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I really like how they say it isn't owned or for profit when the next paragraph down they say it has "special" shares, of which pay 6% in dividends by law. Nope
by lugg 13y ago
I really like how they say it isn't owned or for profit when the next paragraph down they say it has "special" shares, of which pay 6% in dividends by law. Nope no profits there, just magic money. Technically that isn't ownership, they're not real shares, and technically they dont turn a profit, all that goes to shareholders..
- kahirsch 13y agoTheir goal isn't to turn a profit. Almost all of the profits that they do get go to the federal government. The member banks earn a 6% dividend on the amount of stock that they own in their regional Federal Reserve Bank. That amount of stock is determined by the member bank's balance sheet. They have to invest that money in the Federal Reserve.