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The Fed is technically a privately owned entity, which is really a caba of banks (banks in the US 'own shares' in the Fed and basically run the show). It's at a
by jomamaxx 10y ago
The Fed is technically a privately owned entity, which is really a caba of banks (banks in the US 'own shares' in the Fed and basically run the show). It's at arms length form congress - as it should be - for monetary operations.
But for regulatory issues?
The US let's a group of banks 'self regulate' - moreover regulate other industries?
The seems kind of crazy to me.
I see the need for 'smart regulation' esp. by bodies that are as 'independent' as possible, but in this case 'independent' could mean 'conflict of interest' which is kind of the opposite of what we would want, no?
- snowwrestler 10y agoBy "the Fed," I meant to refer to the Board of Governors of the Federal Reserve, which is not privately owned; it is an independent agency of the U.S. federal government. It was created by an act of Congress, the governors are appointed by the President and confirmed by the Senate, it makes monetary decisions, it has regulatory powers, heck it even has its own federal police force and a .gov domain name. Some private banks do have representatives on the boards of the regional Federal Reserve banks. This is to balance the fact that they are essentially forced to keep some of their capital in those banks.