It's true on paper, but the Fed is run by government appointed people for the benefit of the public. The private banks are required to pay some money to get a '

It's true on paper, but the Fed is run by government appointed people for the benefit of the public. The private banks are required to pay some money to get a 'share' of the Fed, and they get yearly interest, but the total amount they get isn't particularly big so it's not something to worry about. EDIT: The profit from the Fed's assets (after the small interest payments to the private banks) all goes to the government.