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> Isn't it great we have a massive private entity in control of the financial system that pleasantly reminds you that it is not accountable to government laws,

> Isn't it great we have a massive private entity in control of the financial system that pleasantly reminds you that it is not accountable to government laws, and by extension is not accountable to the people ("A government of the people") While I appreciate your desire for more accountability in our financial system, I feel this framing can be interpreted as needlessly alarmist. Although the NY Fed is not subject to FOIA —- because, as written, it excludes them —- they are of course subject to US law in general. Congress (and, by extension, the people) may pass laws to regulate them as they wish.

ActionHank 2y ago
Are they privately held or part of the state apparatus though?
- IncreasePosts 2y ago
  Yes.
- JumpCrisscross 2y ago
  > Are they privately held or part of the state apparatus though? The Fed is part of the state. Unambiguously. FRB New York is its interface with the private sector, analogous to Fannie Mae or the Tennessee Valley Authority.
- throwaway5752 2y ago
  When I search Google with your question "NY Fed privately held or part of the state apparatus", the first answer is from the NY Fed explaining this: https://www.newyorkfed.org/aboutthefed/more-about-what-we-do https://www.newyorkfed.org/aboutthefed/more-about-what-we-do The third result is from the St Louis Fed, a non-technical explanation of this https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-bank https://www.stlouisfed.org/in-plain-english/who-owns-the-fed....
  - hiatus 2y ago
    404 on your St. Louis link.
    - throwaway5752 2y ago
      Thank you, it is missing a trailing "s", it was a bad copy/paste on my part. The corrected link is https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-banks https://www.stlouisfed.org/in-plain-english/who-owns-the-fed.... Still really easy for anyone to find the information if they were inclined.
- skissane 2y ago
  I think the Federal Reserve Banks are essentially government agencies. I know US courts have ruled that they are "private corporations". However, that's really a technical legal definition of "private" vs "government" under US law. In a broader, globally applicable sense of "government"-versus-"private": they were created by Congress, they have special legal powers granted to them by Congress. Although they have private "shareholders" – nationally chartered banks are required by law to join one of the Federal Reserve Banks, and state chartered banks are permitted to if they desire and meet certain conditions – these private shareholders don't have the kind of power that shareholders have in a genuine private corporation. Although they get to vote for seats on the board, they don't get to set strategic direction or make major decisions, those are dictated to them from above. A body created by the government which you are legally required to join isn't really "private" just because it gives you some rather limited say in its running. It is actually a bit like "corporatism" in fascist Italy – in which the government created "corporations" (a bit like trade associations) for each industry, which the employers in that industry legally had to join, and in which they could vote for its governing board, but in practice the government called the shots – except just for banks.
immibis 2y ago
Congress can pass laws to regulate Elon Musk, too, but it doesn't stop anyone from being alarmed about fake news.

ActionHank 2y ago

Are they privately held or part of the state apparatus though?

IncreasePosts 2y ago
Yes.
JumpCrisscross 2y ago
> Are they privately held or part of the state apparatus though? The Fed is part of the state. Unambiguously. FRB New York is its interface with the private sector, analogous to Fannie Mae or the Tennessee Valley Authority.
throwaway5752 2y ago
When I search Google with your question "NY Fed privately held or part of the state apparatus", the first answer is from the NY Fed explaining this: https://www.newyorkfed.org/aboutthefed/more-about-what-we-do https://www.newyorkfed.org/aboutthefed/more-about-what-we-do The third result is from the St Louis Fed, a non-technical explanation of this https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-bank https://www.stlouisfed.org/in-plain-english/who-owns-the-fed....
- hiatus 2y ago
  404 on your St. Louis link.
  - throwaway5752 2y ago
    Thank you, it is missing a trailing "s", it was a bad copy/paste on my part. The corrected link is https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-banks https://www.stlouisfed.org/in-plain-english/who-owns-the-fed.... Still really easy for anyone to find the information if they were inclined.
skissane 2y ago
I think the Federal Reserve Banks are essentially government agencies. I know US courts have ruled that they are "private corporations". However, that's really a technical legal definition of "private" vs "government" under US law. In a broader, globally applicable sense of "government"-versus-"private": they were created by Congress, they have special legal powers granted to them by Congress. Although they have private "shareholders" – nationally chartered banks are required by law to join one of the Federal Reserve Banks, and state chartered banks are permitted to if they desire and meet certain conditions – these private shareholders don't have the kind of power that shareholders have in a genuine private corporation. Although they get to vote for seats on the board, they don't get to set strategic direction or make major decisions, those are dictated to them from above. A body created by the government which you are legally required to join isn't really "private" just because it gives you some rather limited say in its running. It is actually a bit like "corporatism" in fascist Italy – in which the government created "corporations" (a bit like trade associations) for each industry, which the employers in that industry legally had to join, and in which they could vote for its governing board, but in practice the government called the shots – except just for banks.

immibis 2y ago

Congress can pass laws to regulate Elon Musk, too, but it doesn't stop anyone from being alarmed about fake news.