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> The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank.

> The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress. > Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund. https://www.federalreserve.gov/faqs/about_14986.htm https://www.federalreserve.gov/faqs/about_14986.htm The Federal Reserve's audited annual financial statements are here: https://www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm https://www.federalreserve.gov/aboutthefed/audited-annual-fi...

boppo1 4y ago
>legally required dividend payments can you tell me more about these?
- eganist 4y ago
  > can you tell me more about these? https://www.federalreserve.gov/aboutthefed/appendix-b-dividends.htm https://www.federalreserve.gov/aboutthefed/appendix-b-divide... I googled "fed dividends" without quotes. You'll also find other results on page 1 of the search detailing how this works.
- commoner 4y ago
  Section 7 of the Federal Reserve Act has the current details: > 1. Stockholder Dividends >> A. Dividend Amount. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend on paid-in capital stock of-- >>> i. in the case of a stockholder with total consolidated assets of more than $10,000,000,000, the smaller of-- >>>> I. the rate equal to the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of such dividend; and >>>> II. 6 percent; and >>> ii. in the case of a stockholder with total consolidated assets of $10,000,000,000 or less, 6 percent. >> B. Dividend Cumulative. The entitlement to dividends under subparagraph (A) shall be cumulative. >> C. Inflation Adjustment. The Board of Governors of the Federal Reserve System shall annually adjust the dollar amounts of total consolidated assets specified under subparagraph (A) to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis. https://www.federalreserve.gov/aboutthefed/section7.htm https://www.federalreserve.gov/aboutthefed/section7.htm The most recent change was made in 2016: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20161123a.htm https://www.federalreserve.gov/newsevents/pressreleases/bcre...
hammock 4y ago
Can you provide a list of all the stockholders, who get a 6% dividend?
- commoner 4y ago
  Each member bank is listed on the website of its regional Federal Reserve Bank. For example, here is the list of state member banks supervised by the Federal Reserve Bank of Richmond: https://www.richmondfed.org/banking/banker_resources/applications_membership/federal_reserve_membership/state_member_banks https://www.richmondfed.org/banking/banker_resources/applica... The member banks with $10 billion or less of total consolidated assets receive the 6% dividend. The ones with over $10 billion of total consolidated assets receive a dividend matching the high yield of the 10-year Treasury note (capped at 6%). The yield is 2.755% as of the most recent auction.* * https://www.treasurydirect.gov/instit/annceresult/annceresult.htm https://www.treasurydirect.gov/instit/annceresult/annceresul...

boppo1 4y ago

>legally required dividend payments can you tell me more about these?

eganist 4y ago
> can you tell me more about these? https://www.federalreserve.gov/aboutthefed/appendix-b-dividends.htm https://www.federalreserve.gov/aboutthefed/appendix-b-divide... I googled "fed dividends" without quotes. You'll also find other results on page 1 of the search detailing how this works.
commoner 4y ago
Section 7 of the Federal Reserve Act has the current details: > 1. Stockholder Dividends >> A. Dividend Amount. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend on paid-in capital stock of-- >>> i. in the case of a stockholder with total consolidated assets of more than $10,000,000,000, the smaller of-- >>>> I. the rate equal to the high yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of such dividend; and >>>> II. 6 percent; and >>> ii. in the case of a stockholder with total consolidated assets of $10,000,000,000 or less, 6 percent. >> B. Dividend Cumulative. The entitlement to dividends under subparagraph (A) shall be cumulative. >> C. Inflation Adjustment. The Board of Governors of the Federal Reserve System shall annually adjust the dollar amounts of total consolidated assets specified under subparagraph (A) to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis. https://www.federalreserve.gov/aboutthefed/section7.htm https://www.federalreserve.gov/aboutthefed/section7.htm The most recent change was made in 2016: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20161123a.htm https://www.federalreserve.gov/newsevents/pressreleases/bcre...

hammock 4y ago

Can you provide a list of all the stockholders, who get a 6% dividend?

commoner 4y ago
Each member bank is listed on the website of its regional Federal Reserve Bank. For example, here is the list of state member banks supervised by the Federal Reserve Bank of Richmond: https://www.richmondfed.org/banking/banker_resources/applications_membership/federal_reserve_membership/state_member_banks https://www.richmondfed.org/banking/banker_resources/applica... The member banks with $10 billion or less of total consolidated assets receive the 6% dividend. The ones with over $10 billion of total consolidated assets receive a dividend matching the high yield of the 10-year Treasury note (capped at 6%). The yield is 2.755% as of the most recent auction.* * https://www.treasurydirect.gov/instit/annceresult/annceresult.htm https://www.treasurydirect.gov/instit/annceresult/annceresul...