Quote:
Originally posted by fastpat
Interest is paid them. It's in all the newspapers from time to time. Look it up.
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The private member banks must commit 6% of that bank's capital as an investment in the Reserve Banks -- its stock in the Fed system. These banks are paid a dividend set by law at 6% of the funds they have committed (invested) in the Reserve Bank. These dividends are fully taxable by federal and state governments.
Saying that the Federal Reserve is privately owned is a common anti-government and anti-capitalist conspiracy theory. In truth, the Federal Reserve has both public and private components. The private member banks are used to execute the government's monetary policy. The "stock" they hold in the Federal Reserve cannot be traded, sold, or pledged as collateral.
To imply that the Federal Reserve exists to enrich some select fat cats is either disingenuous or naive.