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Banking has never been a public institution. Even now the Federal Reserve System is not, in fact, a public entity. It is chartered by the federal government but
by jkhdigital 5y ago
Banking has never been a public institution. Even now the Federal Reserve System is not, in fact, a public entity. It is chartered by the federal government but does whatever it wants within that charter. There are no elected officials at the Fed.
- bumby 5y agoHaving elected officials is not what constitutes a public institution. CFR 417.201 defines a public institution as “an institution that is operated by or controlled by the Federal government, a State, or a political subdivision of a State such as a city or county.” For example, as you stated the government sets the Fed charter and thus enumerates their powers and duties. Congress also pays their salaries, so (to a very limited extent) the Fed receives government funding to operate and reports to Congress for accountability. Most federal “public institutions” do not have elected officials, but rather are led by appointees, just like the Fed.