RBA cash rate

[divs4ever]

There are no “shareholders” of the federal reserve in the way that we normally understand the word shareholders.

The Federal reserve have Members who must subscribe to stock in the fed reserve by depositing 6% of their capital base, but they don’t receive any profits, those are passed along to the government.

one might wonder why the members would bother , since they would be looking to derive some gain from somewhere ( apart from front-running/insider-trading )

 

[JohnDe]

There are no “shareholders” of the federal reserve in the way that we normally understand the word shareholders.

The Federal reserve have Members who must subscribe to stock in the fed reserve by depositing 6% of their capital base, but they don’t receive any profits, those are passed along to the government.

And if we're clearing the mud, stricly speaking the "Members" are not ordinary banks -

The 12 Federal Reserve Banks are the operating arms of the Federal Reserve System. Each Reserve Bank is an independent corporation and operates within its own particular geographic area, or District, of the U.S.​

 

[mullokintyre]

And if we're clearing the mud, stricly speaking the "Members" are not ordinary banks -

The 12 Federal Reserve Banks are the operating arms of the Federal Reserve System. Each Reserve Bank is an independent corporation and operates within its own particular geographic area, or District, of the U.S.​

Go read the book "The Creature from Jekyll Island" by Ed Griffin.
The Fed reserve was created by the big banks in 1913
From the Fed reserve charter articles

"A Federal reserve bank, which has accumulated a surplus fund, has legal authority, under the provisions of Section 7 of the Federal Reserve Act, to pay out of such fund, to its stockholding member banks dividends for a year in which the current earnings of the Federal reserve bank are insufficient for this purpose."

Here is another little known gem from New Republic

Rarely does a day go by when some House Republican doesn’t demand an end to Federal Reserve funding of the Consumer Financial Protection Bureau (CFPB). But you will never hear about the Fed’s direct subsidy to private banks that costs over three times as much as the total CFPB budget.
The subsidy comes in the form of a 6 percent dividend, paid on stock that over 2,900 banks purchase to participate in the Federal Reserve system. Very few places where ordinary Americans park their money offer such a risk-free benefit. In 2012 (the last year with available data), the Fed gave away $1.637 billion in dividends to banks, tax-free in the majority of cases. And the Fed has been doing this for the last 100 years. It’s one of the many unknown ways the Fed extends special benefits to Wall Street.

It is owned by them.
If that does not make them shareholders what does.
It is controlled by them, for their benefit.
The US Gov has no control over it.
Mick
NOTE edited to correct the date when Fed was created.

 

[JohnDe]

Go read the book "The Creature from Jekyll Island" by Ed Griffin.
The Fed reserve was created by the big banks in 1913
From the Fed reserve charter articles

Here is another little known gem from New Republic


It is owned by them.
If that does not make them shareholders what does.
It is controlled by them, for their benefit.
The US Gov has no control over it.
Mick
NOTE edited to correct the date when Fed was created.

Who is 'them'?

 

[mullokintyre]

Who is 'them'?

I thought is was bleedin obvious, but I will play the game.
The Them is the member banks who hold stock in the federal reserve banks, which is what the article stated
Mick

 

[JohnDe]

I thought is was bleedin obvious, but I will play the game.
The Them is the member banks who hold stock in the federal reserve banks, which is what the article stated
Mick

Not even close to 'obvious'.

The 'member banks' are Reserve Banks, each operating under the Federal Reserve System. They are an entity controlled by a board with a charter, answerable to laws, regulations and responsibility.

The Board of Governors of the Federal Reserve System is a U.S. federal agency that guides the operation of the Federal Reserve System, including overseeing the operations of the 12 Reserve Banks.​

I don't mean to be blunt but unless you have specific examples, you are handing us conspiracy theories.

 

[mullokintyre]

Not even close to 'obvious'.

The 'member banks' are Reserve Banks, each operating under the Federal Reserve System. They are an entity controlled by a board with a charter, answerable to laws, regulations and responsibility.

The Board of Governors of the Federal Reserve System is a U.S. federal agency that guides the operation of the Federal Reserve System, including overseeing the operations of the 12 Reserve Banks.​

I don't mean to be blunt but unless you have specific examples, you are handing us conspiracy theories.

From the same article I quoted that refuted your statement that the 6% dividend goes to the government ( it goes to the 12 state reserve banks which in turn send it back to the owner banks as dividends under the same charter that set up the fed reserve).

These Reserve Banks operate as private corporations owned by member banks in their districts, even though they also regulate the same banks. Their websites have a .org, not a .gov, suffix.

So the reserve banks are owned by the banks that operate in those 12 states. Does that make it any clearer/
Mick

 

[divs4ever]

Go read the book "The Creature from Jekyll Island" by Ed Griffin.
The Fed reserve was created by the big banks in 1913
From the Fed reserve charter articles

Here is another little known gem from New Republic


It is owned by them.
If that does not make them shareholders what does.
It is controlled by them, for their benefit.
The US Gov has no control over it.
Mick
NOTE edited to correct the date when Fed was created.

one might argue 'stake-holders' which implies a 'controlling interest ' rather than share-holders ( as retail share-holders understand it )

( i voted from management changes at WOW for over 5 years before reducing my holding by 90% )

the US Government ( President ?? ) does appoint the Chair ( whether that is a completely voluntary choice , or a pick from a small number of 'suggestions' , is less clear )

 

[Value Collector]

one might wonder why the members would bother , since they would be looking to derive some gain from somewhere ( apart from front-running/insider-trading )

You have to be a member if you want to be a bank.

Also, you get the support of the federal reserve, back in the day before central banks an Individual bank could go bust over night if enough of its depositors tried to withdraw money at the same time.

Having central banks removed a lot of the risk of banks going suffering fatal “runs” on capital.

If all the banks have to deposit 6% of their capital at the federal reserve, and 1 bank has a short term liquidity problem, it can borrow from the federal reserve to get through the short term cash crunch.

 

[Value Collector]

From the same article I quoted that refuted your statement that the 6% dividend goes to the government ( it goes to the 12 state reserve banks which in turn send it back to the owner banks as dividends under the same charter that set up the fed reserve).

So the reserve banks are owned by the banks that operate in those 12 states. Does that make it any clearer/
Mick

Think of it more like a club that costs money to be in, rather than a profit centre, any money the federal reserve does make gets paid to the government, it the shareholders/members.

Everyone benefits from the existence of the federal reserve, you have to try and avoid the conspiracy theories that revolve around it.

 

[JohnDe]

From the same article I quoted that refuted your statement that the 6% dividend goes to the government ( it goes to the 12 state reserve banks which in turn send it back to the owner banks as dividends under the same charter that set up the fed reserve).

So the reserve banks are owned by the banks that operate in those 12 states. Does that make it any clearer/
Mick

As clear as mud. Your comments are very vague.

Each reserve bank has a board of highly qualified individuals, they receive and review a lot more information than any of us. As well has having regulations to follow while governing in the best interest of the people and country, they are liable to laws which hold 'them' accountable.

I can only presume that you are calling out corruption within the US Federal Banking System, but unable to name anyone or give specifics other than some vague document that sounds like it is written by a conspiracy theorist.

Who owns the Federal Reserve?​

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.​

 

[divs4ever]

Think of it more like a club that costs money to be in, rather than a profit centre, any money the federal reserve does make gets paid to the government, it the shareholders/members.

Everyone benefits from the existence of the federal reserve, you have to try and avoid the conspiracy theories that revolve around it.

i will prefer the conspiracy theories thank you , since i lean more to the Austrian School of Economics

 

[mullokintyre]

Think of it more like a club that costs money to be in, rather than a profit centre, any money the federal reserve does make gets paid to the government, it the shareholders/members.

Everyone benefits from the existence of the federal reserve, you have to try and avoid the conspiracy theories that revolve around it.

Conspiracy Theory?
Did you not read the articles of association I quoted from in the setup of the Reserve banking system?
It distinctly said that if profits are made, dividends go to the 12 member reserve banks, which in turn , are owned by the private banks in each state.
And some of those private banks are subsidaries of non American Banks such as HSBC, Tokyo bank and even the Industrial and Commercial Bank of China.
Mick

 

[divs4ever]

what about the George Carlin conspiracy ... 'it's just one big club and i ain't in it ' ( to paraphrase it )

 

[mullokintyre]

As clear as mud. Your comments are very vague.

Each reserve bank has a board of highly qualified individuals, they receive and review a lot more information than any of us. As well has having regulations to follow while governing in the best interest of the people and country, they are liable to laws which hold 'them' accountable.

I can only presume that you are calling out corruption within the US Federal Banking System, but unable to name anyone or give specifics other than some vague document that sounds like it is written by a conspiracy theorist.

Who owns the Federal Reserve?​

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.​

Oh for crying out load. I never mentioned anything about the high quality individuals you talk about or accountable they are or to whom.
Rule no 1. Follow the money.
Rule no 2. see rule no 1.
You stated that the profit goes to the government.
I pointed out where this is incorrect, and any profit made goes to the individual banks who own the capital in each federal reserve bank.
As to the rest, got nothing to do with the oirginal post.
if you want to talk about corruption in the Fed Reserve, make another thread, more than happy to discuss that.
Mick

 

[JohnDe]

Oh for crying out load. I never mentioned anything about the high quality individuals you talk about or accountable they are or to whom.
Rule no 1. Follow the money.
Rule no 2. see rule no 1.
You stated that the profit goes to the government.
I pointed out where this is incorrect, and any profit made goes to the individual banks who own the capital in each federal reserve bank.
As to the rest, got nothing to do with the oirginal post.
if you want to talk about corruption in the Fed Reserve, make another thread, more than happy to discuss that.
Mick

Please show where I 'stated that profit goes to the government'.

My question was in regard to your comment -

"It is owned by them.​

If that does not make them shareholders what does.​

It is controlled by them, for their benefit."​

That statement looks like it is saying that individuals have control, and those individuals are benefiting.

I figure that 'them' is a person, because an institution cannot make a decision without people.

 

[Value Collector]

Here is a video explaining banking and central banking.

Most countries have a central bank, Federal reserve is the central bank of the USA, in Australia we have the reserve bank of Australia, in the UK they have the Bank of England etc etc.

All the commercial banks you know eg CBA, ANZ, NAB etc etc all contribute capital to the Reserve Bank, and in hard times the Reserve Bank can use this pool of funds to support and bolster the commercial banks.

It’s just part of the way banking works that banks are forced to Borrow short term (deposits) but lend long term (mortgages), this means that they are open to big drains on capital which then simply don’t have liquid cash to support, so central banks can fill the gaps, for a price.

 

[Value Collector]

Conspiracy Theory?
Did you not read the articles of association I quoted from in the setup of the Reserve banking system?
It distinctly said that if profits are made, dividends go to the 12 member reserve banks, which in turn , are owned by the private banks in each state.
And some of those private banks are subsidaries of non American Banks such as HSBC, Tokyo bank and even the Industrial and Commercial Bank of China.
Mick

After it’s paid its expenses, all the federal reserves profits are turned over to the US treasury.

It may pay some token interest to the member banks on the deposits it collects from them, but it’s profits go to the treasury.

 

[Value Collector]

i will prefer the conspiracy theories thank you , since i lean more to the Austrian School of Economics

Ok, Google “federal reserve Rothschild” and you will get more than enough fake federal reserve stories than you can read in a life time ?

 

[Value Collector]

Oh for crying out load. I never mentioned anything about the high quality individuals you talk about or accountable they are or to whom.
Rule no 1. Follow the money.
Rule no 2. see rule no 1.
You stated that the profit goes to the government.
I pointed out where this is incorrect, and any profit made goes to the individual banks who own the capital in each federal reserve bank.
As to the rest, got nothing to do with the oirginal post.
if you want to talk about corruption in the Fed Reserve, make another thread, more than happy to discuss that.
Mick

I think you might have been reading some misinformation, the Feds profits definitely go to the government via the US treasury department.

Last year the Fed handed over $107 Billion to the US treasury. (But yeah if you go down conspiracy theory rabbit holes they will not tell you that)

https://www.federalreserve.gov/newsevents/pressreleases/other20220114a.htm