permaculture

[CAVM@aol.com]

In a message dated 5/8/2007 6:26:11 P.M. Central Daylight Time,  
martinwnaylor@yahoo.com.au writes:

Enlighten me, who owens the controlling interest in the Federal reserve  bank


The  Board of Governors
of the Federal Reserve System  
On December 23, 1913,  the Federal Reserve System, which serves as the  
nation's central bank, was created by an _act of  Congress_ 
(http://www.federalreserve.gov/GeneralInfo/fract/default.htm) . The System 
consists of a seven member 
Board of Governors with  headquarters in Washington, D.C., and twelve Reserve 
Banks located in major  cities throughout the United States. 
Appointments to the Board
The seven  members of the _Board of  Governors_ 
(http://www.federalreserve.gov/bios/default.htm)  are appointed by the 
President and confirmed by the 
Senate to  serve 14-year terms of office. Members may serve only one full 
term, but 
a  member who has been appointed to complete an unexpired term may be 
reappointed  to a full term. The President designates, and the Senate 
confirms, two 
members  of the Board to be Chairman and Vice Chairman, for four-year terms.
Representation
Only one member of the  Board may be selected from any one of the twelve 
_Federal Reserve Districts_ (http://www.federalreserve.gov/otherfrb.htm) .  
In 
making appointments, the President is directed by law to select a "fair  
representation of the financial, agricultural, industrial, and commercial  
interests 
and geographical divisions of the country."  These aspects of  selection are 
intended to ensure representation of regional interests and the  interests of 
various sectors of the public.
Responsibilities
The primary  responsibility of the Board members is the formulation of 
monetary policy. The  seven Board members constitute a majority of the 
12-member 
_Federal Open Market Committee  (FOMC)_ (http://www.federalreserve.gov/fomc) 
, 
the group that makes the key decisions affecting the cost and  availability 
of 
money and credit in the economy. The other five members of the  FOMC are 
Reserve Bank presidents, one of whom is the president of the Federal  Reserve 
Bank 
of New York. The other Bank presidents serve one-year terms on a  rotating 
basis. By statute the FOMC determines its own organization, and by  tradition 
it 
elects the Chairman of the Board of Governors as its Chairman and  the 
President of the New York Bank as its Vice Chairman. 
The Board sets reserve requirements and shares the responsibility with the  
Reserve Banks for discount rate policy. These two functions plus open market  
operations constitute the _monetary policy_ 
(http://www.federalreserve.gov/policy.htm)  tools of the  Federal Reserve 
System.  
In addition to monetary policy responsibilities, the Federal Reserve Board  
has _regulatory and  supervisory responsibilities_ 
(http://www.federalreserve.gov/banknreg.htm)  over banks that are members of 
the System, bank  holding 
companies, international banking facilities in the United States, Edge  Act 
and 
agreement corporations, foreign activities of member banks, and the U.S.  
activities of foreign-owned banks. The Board also sets _margin  requirements_ 
(http://www.federalreserve.gov/regulations/regref.htm#t) , which limit the 
use of 
credit for purchasing or carrying  securities. 
In addition, the Board plays a key role in assuring the smooth functioning  
and continued development of the nation's vast payments system [see _Fedwire_ 
(http://www.federalreserve.gov/paymentsystems/fedwire/)  and _Payment System 
Risk  Policy_ (http://www.federalreserve.gov/paymentsystems/psr/) ]. 
Another area of Board responsibility is the development and administration of 
 regulations that implement major federal laws governing consumer credit such 
as  the Truth in Lending Act, the Equal Credit Opportunity Act, the Home 
Mortgage  Disclosure Act and the Truth in Savings Act [see _Consumer 
Information_ 
(http://www.federalreserve.gov/consumers.htm)  and  _Community  Development_ 
(http://www.federalreserve.gov/community.htm) ]. 
_http://www.federalreserve.gov/pubs/frseries/frseri.htm_ 
(http://www.federalreserve.gov/pubs/frseries/frseri.htm) 



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