This page has been archived and commenting is disabled.
Banks Squirm As Congress Moves To Cut The 6% Dividend Paid To Them By The Fed
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
On December 23 of this year, the Federal Reserve will be 99 years old. And throughout that 99 years, regardless of boom, bust, recession or Great Depression, the biggest Wall Street banks have been enjoying a 6 percent, risk-free return on the capital they hold at the Fed in the form of dividends.
Have you looked at your checking or money market bank statement lately from JPMorgan Chase or Citibank? How about the statement showing the interest you’re earning on your mortgage escrow account with the big banks? While the country suffers through the lingering effects of the Great Recession caused by the biggest Wall Street banks, the public typically receives less than 1 percent on their deposits at the big banks, while the government has legislated a permanent, risk-free 6 percent guarantee to the Wall Street banks for their capital on deposit at the Fed. Now that’s an entitlement program that needs to die!
This corporate welfare program gets even better: if the shares of stock were acquired prior to March 28, 1942, the 6 percent risk-free dividend is tax exempt and the bank doesn’t have to pay corporate taxes on it.
– From the excellent 2012 Wall Street on Parade article: Kill This Entitlement Program: The 6% Risk-Free Dividend the Fed Has Been Paying Wall Street Banks For Almost a Century
Did you know that the Federal Reserve pays an annual 6% dividend to its shareholders, i.e., the member banks of the cartel? Must be nice, considering savers who had nothing to do with cratering the world economy, and failed to receive a taxpayer funded bailout, can barely earn 0.5% on their money. It’s also quite bizarre. How many other “public institutions” have private shareholders to whom they pay 6% risk free dividends?
None, which once again highlights the point that the Federal Reserve is NOT a public institution working on behalf of the citizenry, but is rather a banking cartel designed to enriched and protect its member banks (as we saw on clear display in 2008).
It appears that some members of Congress are now targeting the estimated $17 billion per year paid out by the Fed to its member banks via the highway-funding bill. The Hill reports that:
The banking industry is scrambling to kill a provision in the Senate highway-funding bill that would reap billions of dollars in revenue by cutting a century-old system that has reaped annual awards for banks.
Industry lobbyists say they were blindsided by the inclusion of the provision, which would help policymakers cover the bill’s cost by cutting the regular dividend the Federal Reserve pays to its member banks.
One lobbyist went so far as to reread the Federal Reserve Act of 1913 after getting wind of the proposal to determine what was at stake.
In a Congress where lawmakers are always hunting for politically palatable ways to raise revenue or cut costs to cover the expenses of additional legislation, the Fed provision was a novel, and rich, one. The proposal is estimated to raise $17 billion over the next decade, and is by far the richest “pay for” included in the bill.
Lobbyists said they were not aware of any previous time when lawmakers had attached the language to a piece of legislation, which would scrap a perk banks have come to expect for over a century.
When banks join the Federal Reserve system, they are required to buy stock in the central bank equal to 6 percent of their assets. However, that stock does not gain value and cannot be traded or sold, so to entice banks to participate, the Fed pays out a 6 percent dividend payment.
The Senate proposal says it would slash that “overly generous” payout to 1.5 percent for all banks with more than $1 billion in assets. While the summary language outlining the proposal said that change would only impact “large banks,” industry advocates argued that banks most would identify as small community shops could easily have assets in excess of that amount.
While I’m not convinced that this proposal will actually go through, I applaud the members of Congress who included it nonetheless. At a minimum, it will expose more people to how the banking system actually works, and get this 6% dividend in the public consciousness.
After all, #banklivesmatter
- 35470 reads
- Printer-friendly version
- Send to friend
- advertisements -


Did you know The Fed is responsible for regulating the very same banks that own it?
http://www.federalreserve.gov/econresdata/bsrstaff.htm
How could congress have a say about what a non government evil banking cabal pays it's bloodsucking members?
Who are the current stock holders of the Fed? Web site anyone?
The member banks.
http://www.scribd.com/doc/220335449/G-2014-0202-Responsive-List-1-List-o...
This story is a joint venture in propaganda!
The banks earn 6% on 6% of their aseets. (what they pay for the shares)
What is $17 billion in lost earnings speadout over the member banks - NOTHING!
The banks have allowed Washington to run with this story to look like tough guys!
The Amish would never let an organization like the FED infiltrate our culture. You English are really perverted people.
I have a cattle gun, if Congress wants to borrow it, to put this beast out of its misery.
Kill the Beast from Jekyll Island!
Vile, slimey fucks have NO SHAME...
Truely, pschopathy IS the key to power in todays world.
Gluttonous tribe and their gluttonous lackeys....scarfing, stealing....scum in suits, the world really IS upside down...
Now see this piece of genius and ...laugh? Cry? As you feel disposed...
http://e-sheep.sansara.net.ua/www.e-sheep.com/rusheats/
Slash the return to the prime rate, rather than %1.5, as a little incentive.
A full 10 year audit of the FED would be wonderful, but it'll never happen since we don't have nearly enough prisons for the new convicts. Hmmm... maybe we could turn Puerto Rico into a new Devil's Island.......
If that ever happens, they won't be going to prision. Hitler's solution will come back to the forefront. The central banking system is simply not reformable. It must be completely eliminated or succumbed to.
Meh, $17Billion would pay for a crapton of Interstate Rest stops!
From HH List
BANK 14560 LOCUST (HA HA )
. . . and if i tell you the name of the Game boy it's gonna drive you Insane. PIG MAN ha ha Charade you are.
Yes I did know that. Which is why I want to end the fed , not just turn off their dividends to the banks. And to the poster above , about who owns the fed, I think it's generally believed to be mostly the 'primary dealer' banks. So yes, although yellen is the 'fed head' in reality the privately owned banks own the mechanism through which money is created. It's absurd. Time to get rid of it
Absolutely! End the Fed! It will be up to the people to do this as it will never come from Congress! BTW great video!
You will never find out.
Two brothers,clents of mine, control a large international fast food operation via trusts and
dummy corps.Its supposedly a public company, thats a household name.
The reality is far different and probably impossible for anyone not in the know,to prove
otherwise.
Which is why I favor the Gordian Knot solution and approach.
Owners? The Board Members of the B for IS.
Mostly Zionist Satan-Worshipers with a few Goy baby parts-suppliers.
This will make no difference to the banks - they'll simply give $17 billion less in bribes to Washington!
Need to cut more than dividends. How about heads. Make a list.
A handful of kids are demanding their allowance to be raised. They're entitled and exceptional, didn't you know. They'll get their blow and it will all pass unremarkably into the dustbin of history.
The Fed was hatched in 1913
So banks are like the NFL or MLB?
There is only one bank in the U.S., the Federal Reserve.
Individual banks are franchisees of the Fedral Reserve, like McDonalds, Burger King, Motel 6 ...
Naturally, any notion of the FED giving 6% of any damn thing to the sheeple would be shouted down as a moral hazard and socialism/whateverism.
NFL is rigged too-
http://www.debate.org/opinions/is-the-nfl-rigged
After all, #banklivesmatter
I must have missed the sarc tag. Shouldn't it be
Only #bankerslivesmatter
After all Dimon and Blankfein desperately need their second billion
Who would buy our stuff if not for bankers?
Banks borrow at 0% from the FED, who creates the reserves.
Banks deposit said reseves at the FED and earn 6%.
Banks earn skim.
Sounds like something some banksters would dream up.
pods
Thats not true. What government would allow such a thing?
/s
sounds eerily like a holodomor
So, do they have to go to the next line over to make the deposit or can they just spin a 360 and just hand it back and say "I want to make a deposit"?
Banks borrow at 0% from the FED, who creates the reserves.
Banks deposit said reseves at the FED and earn 6%.
As I'm sure you know, it is FAR, FAR more corrupt and collusive than that. The more you know about the Fed, the more you want to puke in the nearest wastebasket.
Not quite. The banks earn a 6% dividend on their stock in the Federal Reserve Bank, not on reserves on deposit at the Fed. Still, a 6% yield is a sweet, risk-free deal.
Thanks. I didn't see how it could be that awful, even for bankers.
pods
Not to mention that there would be a little mathematical problem with that. It would put the Fed into a position that it had to print FRNs just so that it could continue to print FRNs much faster than it is working its way to that position. Another way of putting that is that the Fed's operating expenses would exceed its income, and it would be forced to print the difference.
Congresscritters trying to be tough with the Fed and its legions...how cute!
Tough would be pulling the plug!!!
yes sir, yes sir.
two days old.
meh
Old news, eh? About 99 years old, just not well advertised in the headlines of the MSM but it will get out eventually, at different rates and from different sources in the Modern Media.
News of the bill Al, not the FR.
Got it. Cheers.
Americans need to wake up to the corruption inside the Fed. Ron Paul tried to wake us up, but it seemed we went back to sleep.
https://biblicisminstitute.wordpress.com/2014/08/24/the-corrupt-federal-...
You can't wake a zombie when they're livin' the dream. The living dead. Try selling a upsized koolaid drinker the dream of debt free money and they'll slit your throat for trying to take away their credit streams. The horror of it all!
How many dollars in capital are we talking about?
So when is Congress gonna reinstate Glass Steagall?
Never.
http://www.opensecrets.org/industries/summary.php?ind=F03++
They never will...
Daniel 7 says the AC will be the leader of a powerful and diverse nation that breaks in pieces many other nations. Also that he will be diverse from all other leaders of that nation, (first black) also that he will be the 11th leader to come out of the powerful nation, (Obama is the 11th POTUS since WW2 when the US became a superpower)
Daniel 11, says he will change times and laws, and have no desire of women! See numerous late Nov 2008 prophecies from Jesus also confirming the AC is Obama at http://revelation12.ca
We now await assassination and then resurrection by Satan.... Revelation 13... the prophecies say it will the Bush/Clinton Cabal..
well if God planned all this ALL along; no wonder Obama spends his time on the golf course.
Daniel Ellsberg and the Pentagon Papers!
Are you sure Daniel was talking about Obama and not Nixon?
it is amazing - and scary, how many people like you walk the earth.
http://youarenotsosmart.com/2010/06/23/confirmation-bias/
The only real prophecies are the self-fulfilling kind.
False prophet.
There will be no assassination.
There won't be any asteroid either.
You don't understand Daniel 11 or Revelation 12, that is very clear.
Reinstating Glass Steagall would really make them go haywire. If "money" is printed out of air, what's the big deal of not collecting 17 billion.
The next question is why are banks considered private institutions at all?
Many questions. Many.
People who want to regulate banks don't get elected.
Basel III or my new desk on the Global Platform.
Why Are You Telling Me?http://m.youtube.com/watch?v=oFFCaKtDzuA
Throughout the history of mankind, one thing we should have learned is it's not unusual those with the power and the wealth will game the system to increase their own power and wealth. The same people who benefit from this "system" also have firm control of the government. We rarely see Congress or the other two branches go against the wishes of Wall St and the oligarchs.
Henry Ford was right all along. Almost makes want to go out and buy a Ford. Almost.
If they end the 6% interest, get ready for some new bank fees if you still have an account.
Kill the Fed.
all other problems will take care of themselves soon thereafter...
Hillary DOES suck.
I bet she doesn't
. . . hmmmm looked at literally you'd have to ask: suck what?
Hahaha - awesome video - FUCK THE FED!!
Don't you know political theater when you see it?
Nothing will be cut to the banks. They are the ones in control, not the U.S. politicians.
In the end, the politicians will probably raise the dividend to the banks, not cut it.
Know Thy True Master - The Banksters
Short off topic rant:
NPR & PBS were always left-biased but I prefer that to the what they have become: shamelss propaganda tools. This morning they had a little piece on increasing numbers of millenials living at home - a surprise because the recovery is so well established and "unemployment" is so low. Not all attributable to student debt as it also applies to non college educated. But it's all OK because "the stigma is fading" and "many parents like having their grown children living at home" - this last delivered with the female voiced lilt of a mother soothing a child. I mean, good lord, this is getting so obvious, it hurts. It is no longer the voice of liberal thought but the voice of power herding and soothing the frightened flock.
And to think, we could have had Ron Paul.
I live in NH. I went to a Bernie Sanders town Hall meeting and asked a question which, at the time, concerned the Financial Transaction Tax. Basically, why this proposal AND OTHER PROPOSED IMPORTANT LEGISLATION always have to be attached to another bill instead of being forwarded in Congress singularly and voted upon as a separate measure. So that we could see who voted for and who voted against.
IMO, this would be a perfect vehicle to see who is "bought and paid for" by Wall Street. And it would be hilariously revealing to read the rationale/justification for those who vote against it providing some foul reasoning.
Guessing that the banks won't even notice. They pay/bribe more currently annually as settlement for their crimes.
Yes what the F is going on here? These bankers are parasite scum and need thrown into prison not paid 6% at the expense of everyone else. Arrest them.
If you check your bank account withdraw at ATM, watch for the $2.00 fee to appear on statement.
What a joke! Wake me up when central banks and fiat currencies are no more. There is no other issue on this planet that comes close - everything else is either a distraction or a direct result of our worldwide monetary system of wealth transfer (legalized theft).
Watch them throw out and denigrate various bankers, banks, politicians, and policies but never, EVER, the sole right of a very elite group to create currency from nothing and charge the world interest on it.
The elevation of bankers in our society as the most wonderful, caring, smart and philanthropic people - pillars of our communities, is the other side of the psy-op coin that relentlessly disparages gold and silver. It's a bizarro world when human predators, in the worst sense of the word, are glorified and the only escape for the rest of us is demonized and crushed.
squash the damn bill, continued funding for the export import bank is tied to the same bill..it's little more than organized crime / extortion
Someone posted that 6% on 6% isnt much..and therefore..so what..
BUT, here is the Fed that loves changing our rates, but doesnt change this one...why not have
it tied to the fed funds rate so we can all suffer together from low rates?
It is also a reminder of what rates SHOULD BE for the rest of us....historical interest rates.
So there are interest rates for THEM and interest rates for us.....just like Congressmen are not subject
to some laws they pass...like obamacare.
This was common knowledge and on the FED's site...
Sweet.
$17 billion? Split 100 ways? Chickenfeed, compared to what they steal everyday.
Added to the spending bill to...
encourage more money from bank lobbyists to have it removed.
That's an interesting thought.
Their dividend need not be cut precipitously, I think the amount I get around .15% is more than fair recompense.
Why in the fuck can we not find out who/what entities/people own the shares in the regional banks?
http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-famili...
http://www.globalresearch.ca/who-owns-the-federal-reserve/10489
^^ this might be right, or largely so - but something official would merit more faith.
"CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches. He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. [3] The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century."
If true - then European Jews basically own and control the Fed. And even when 3 Fed chairs in a row are Jews, even when the second in charge is a dual citizen Israeli {actually a triple citizen} who has PLAINLY been more loyal to Israel and his fellow Jews. {look at the FTA he engineeered and what a fucking that was for America}
http://irmep.org/fischer_aipac.htm
We are not allowed to talk about it. It's "hate" to talk about wildly disproportionae Jewish power, and Israel never does anything wrong - indeed, to call the bulldozing of Arab homes as Jewish only settlements and roads are built "apartheid" is anti-Semtism.
http://israeljewsjudaism.blogspot.com/2014/01/israel-bash-fest-comes-to-...
How do you talk with people so shameless in their hypocrisy, dissembling, and racism, and hyperethnocentrism?
---
How Racism Drives the Zeal to Destroy Iran and Maintain Global Hegemony
http://www.alternet.org/world/racism-drives-zeal-destroy-iran-and-mainta...
Israel’s High Schools Bastions Of Racism, New Israeli Book Claims
http://failedmessiah.typepad.com/failed_messiahcom/2014/08/israels-high-...
How Israel Covers Up Its Ugly Racial Holy War
http://www.alternet.org/world/how-israel-covers-its-ugly-racial-holy-war
‘How to kill goyim and influence people’
http://mondoweiss.net/2010/08/how-to-kill-goyim-and-influence-people
http://www.historycommons.org/timeline.jsp?timeline=complete_911_timelin...
This article from The Hill, predicated on the notion that Congress is separate from and has control over Western central banking, is total bullshit (as many of you have noted). James Finkelstein is the Chairman, President, and CEO of News Communications, Inc of 2 Park Avenue, New York, NY 10016, whose subsidiary Capitol Hill Publishing Inc publishes The Hill (Wikipedia has that wrong). Finkelstein also serves as CEO of Nassau Community Newspaper Group Inc (President, too), South Shore Publishers Inc, Parkchester Publishing Co Inc, Dans Papers Inc, and Tribco Incorporated; he is President and Director of Marquis Who's Who LLC, and holds the Chairmanships of TPH Seller Inc and Guggenheim Digital Media.
But most interesting are Finkelstein's affiliations and associations, which shed light on what he has to gain from propagandizing this illusion of Congress going after the big banks on behalf of the people. His board affiliations include: Credit Suisse Private Equity LLC, D.H. Blair Investment Banking Corp, INVESCO Private Capital, Avista Capital Holdings, Pluribus Capital Management, Hofstra University, The Hollywood Reporter Inc, Advanstar Communications Inc, National Law Publishing Company Inc, ALM Media & Properties LLC, Adweek, and Energy Innovative Products Inc, among others.
I'm curious to know if my fellow ZHers have heard of any of THESE ASSOCIATIONS OF WILBUR LOUIS ROSS, JR., the INVESCO Chairman and CEO whom Bloomberg Business lists as the dominant association of James Finkelstein, publisher of The Hill. Might Ross be associated with anyone we've heard of? How about David R.J. de Rothschild... yeah, that one seems to ring a bell. What of Jamie Dimon? Lloyd Blankfein? What about Rupert Murdoch? There sure are a lot of Cypriot bankers on that list... how weird, then, that Finkelstein -- a man thoroughly connected to both banking and publishing interests -- would want to popularize the notion of a banking system being held in check.
Not quite. The banks earn a 6% dividend on their stock in the Federal Reserve Bank, not on reserves on deposit at the Fed. Still, a 6% yield is a sweet, risk-free deal.
(From a fomer comment that needs expansion.)
Stock and Reserve Channels are two different things. The FED pays banks for reserves on hand, including cash.
Formerly, interest bearing paper held in reserve channels made interest.
So, think about it carefully: Currency (Federal Reserve Notes in this case), which is general purchasing power, is not an interest bearing instrument. Where on your FRN's does it say pay interest to bearer?
When this currency enters reserve channels it can gain interest.
http://www.frbsf.org/education/publications/doctor-econ/2013/march/feder...
Former paper, such as MBS and TBills were swapped during QE operations. The former interest bearing paper ended up expanding FED balance sheet. FED keyboard money then vectors into reserve loops as it buys former debt paper.
Private bankers earn interest on this "currency" that was just created and swapped by the FED.
Currency in reserve loops, that is paid interest, is seen as an asset, and hence it is not traded on overnight market.
Bankers not trading their excess reserve cash on the overnight, thus prevents a rate collapase to zero.
The interest rate knob is how the FED controls the money supply.
Interest rates controlling volume of credit is a twice removed system of control. And, this control is over a money type that requires new loans to come on line to overcome extinction of former credit.
Private banker corporate money system (Bank Credit) is both diabolical and crazy.
It is time to flush it in the crapper. Humanity won't survive with a crazy system that makes us crazy. The money power is very serious and it drives humanity.
A real money system has a large percentage of "money" NOT CREDIT in the supply. Money is a pemanent non-dissappearing unit that people use for transactions and savings.
www.sovereignmoney.eu
And, yes, it is absolutely true that both Ashkenazi and Sephardic Jews were intimately involved in the creation of private banking credit system, mostly through fraud. This fraud is allowed and sanctioned as "usury" on your enemies. Christianity jumped on board the fraud wagon fully in about mid 12'th century, overturning previous injunctions against usury.
SIX PERCENT DIVIDEND TO BANKERS.
Thats outrageous.
First these cabal banksters (Shylocks) sucked the blood out of common people with loans and make profit for their insanely rich lifestyle. And they had free QE money due to TBTF.
On top of that they got a gift of 6% dividend , for what. It is just like the mechanic of the money printing press keeping 6% of the cash in his pocket. Imagine how large this amount is, while the common people struggle to make ends meet to put bread on the table, they romp in billions of cash.
Vampires