factcheck

mistaken belief that leads to “end the fed” movement:

equating ownership with control

the only power private banks have in the federal reserve system is that member banks elect their regional reserve banks’ boards of directors. the national board of governors is appointed by the president, confirmed by congress, and has a voting majority on the open market committee.

member banks must invest 3% of their capital in the reserve banks. they cannot sell or trade their stock or even use it as security for loans. they get a fixed annual dividend of 6% that is unaffected by their actions.

private banks have a voice, but only as a minority. they do not control anything.