FED

							Who owns the FED?


    A summary
Short answer to “Who owns the FED?”




        The American People
                    Long answer



The Fed is organized as a private company, but has a
public mandate

Its organizational structure is very complex.

The Fed was created by the Federal Reserve Act of
1913
                                    Federal Reserve districts




Source: Courtesy of Federal Reserve System
     The Board of Governors of the Federal
               Reserve System

The seven members of the Board of Governors of the Federal Reserve
System are nominated by the President and confirmed by the Senate


A full term is fourteen years. A member who serves a full term may not be
reappointed.


The Chairman and the Vice Chairman of the Board are selected by the
President from among the members and are confirmed by the Senate.
They serve a term of four years.
                 Reserve Banks’ boards of directors
Class A directors represent the member commercial banks in the District
•   are elected by member banks in the district
•   cannot become members of Congress



Class B are selected to represent the public
•   are elected by member banks in the district
•   cannot become members of Congress, officers, directors, or employees of a bank



Class C directors are selected to represent the public
•   are elected by member banks in the district
•   cannot become members of Congress, officers, directors, or employees of a bank
•   cannot own stock in a bank
•   must reside in the district for at least two years before their appointment



Because a Reserve Bank directorship is a form of public service, directors are also expected
   to avoid participation in partisan political activities.