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18-10-2010, 10:12 AM
#261
Originally Posted by JBmurc
=== Who are the ten major shareholders of the Federal Reserve Bank System?
One only has to read the law to come up with the answer.
The Federal Reserve System is run by the Board of Governors. --> There are no shares and absolutely no mechanism for private ownership at this level. <-- Board members are appointed by the prez and confirmed by congress. Board members are also forbiddent to have a financial stake in any bank or other financial institution. Congress is charged with oversight of the system (though at a high level).
The law is set up where shares can only be owned by member banks within the Federal Reserve branches. But these are not your typical corporate shares that entitle legal ownership. Rather, they bestow participation rights within the branch. Regardless the number of shares they own, each bank gets only one vote toward the branch Board of Directors who actually run the place. Only member domestic banks can own shares. No individuals or foreign entities.
The shares also do not entitle the bank to any profits of the branch bank. The shares do receive a standard 6% dividend. Otherwise, all Fed profit is turned over to the U.S. Treasury at the end of the year.
So who are the top shareholders. Since the law stipulates that the number of shares must be in proportion to the bank size, just look at the 10 biggest banks for the answer.
The top 3 shareholders ar:
1. Bank of America
2. Morgan Chase
3. Citibank
You can find the rest of the list at http://www.usabanks.org/card.htm?gclid=C…
=== why are they important?
Well, obviously the 10 biggest banks play an important role in the economy.
This involvement of private banks in the day to day running of the branches was an important compromise in 1913 between those that wanted 100% private central bank (the republicans) and those that wanted 100% public (the democrats).
Today we have a 100% public government agency at the top (The Board of Governments) being responsible for monetary policy and running of the system. And branches that are run like private corporations carrying out day-to-day functions
JB: Thanks for that clarification, and I am sure we have all benefited from your deeper research as to how the Fed is governed. It just seems that the anonymous "internet poster" had a particular prejudice to push.
Should be an exciting investment week.
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18-10-2010, 11:52 AM
#262
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18-10-2010, 06:12 PM
#263
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23-10-2010, 07:50 PM
#264
Still simmering away.........
21 October 2010 Last updated at 15:32 GMT
Freddie Mac and Fannie Mae bailout 'to double'
Freddie Mac and Fannie Mae are looking to recoup losses from the banks
The ultimate cost of rescuing Freddie Mac and Fannie Mae may double, their government regulator has said.
The US government has already given the two federal mortgage agencies $148bn (£94bn) in capital injections.
But because of continuing loan losses, that figure may increase to between $221bn-$363bn, according to the Federal Housing Finance Agency (FHFA).
Meanwhile, the FHFA has appointed a law firm to look at suing big US banks for mis-selling home loans to the agencies.
The regulator has hired the California-based litigation specialists Quinn Emanuel Urquhart & Sullivan, according to a report in the Wall Street Journal.
Ballooning costs
Continue reading the main story Related stories
During the 2008 financial crisis, Washington put Freddie Mac and Fannie Mae into "conservatorship" - a quasi-nationalised status in which the federal government promised to maintain their solvency by injecting new equity on demand.
Originally, the two home loan agencies' total needs were estimated to be $200bn - of which three-quarters has already been provided - but the FHFA has now revised that figure upwards.
The regulator's upper estimate of $363bn would only happen if there is a second downturn in the US housing market - something that many economists believe has already begun since the expiry in April of a tax credit for homebuyers.
Litigation risk
Freddie Mac and Fannie Mae bought up billions of dollars of mortgages from the big banks, then repackaged them and sold them to investors with their own guarantee.
The FHFA now says that the banks may have breached promises they made in the original sale agreements about the quality of the loans they were selling.
The decision to hire a litigation firm follows the FHFA's decision to issue 64 subpoenas to banks in July, requiring them to provide documentation that would show what they knew about the loans they were selling.
If the regulator can prove its case, the banks would be forced to buy the loans back at their original face value.
JP Morgan has acknowledged it could be one target of any legal action, and set aside provisions of about $2bn against this kind of litigation risk in April.
The FHFA's action could also help other, private sector, investors to pursue their own lawsuits.
Unlike the FHFA, the private investors do not have the power to subpoena the banks
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06-11-2010, 08:02 AM
#265
Another chapter- but what is the outcome going to be?
Its a rather simple example - (you owe $100,000 and have no income to pay the interest, you need more money, who is going to lend it to you ????????)
Answer - Someone that is very stupid or no one.
WELL in the case of the FED, as you all know, they have the perfect solution.
"It is not that the Americans have not pumped enough liquidity into the market and now to say let's pump more into the market is not going to solve their problems”
End Quote Wolfgang Schaeuble German finance minister
The interesting part is going to be with China, with their money locked into the US$, will they continue to subsidise cheap goods to the US ???
The next chapter could be very interesting, where will it leave Australia. Something for me to ponder over the weekend.
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14-04-2011, 11:32 PM
#266
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15-04-2011, 12:03 AM
#267
Yes Tricha, somewhere, someday or some time, somebody must pay the ferry man.
The whole place is a political joke anyway, and the actual simple honest people of the US whom year after year have been having their chains pulled by politicians that they vote are already at disbelief status.
What they need to do, is to bring in Political Hanging whereby "certain" politicians who have robbed or help to decay their own people should be brought before the people and tried for treason and corruption.
They need a new power of different type of party, one maybe by which can start off by being called the Honest Party, or the LOGIC party, the anything Party besides greedy Republicans and far out Democrats.
Change their whole system, their whole way of life, but that would be the definition of impossible wouldn't it.
Each to their own I guess. Have a nice night~!
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08-09-2012, 12:54 AM
#268
Originally Posted by drillfix
Yes Tricha, somewhere, someday or some time, somebody must pay the ferry man.
The whole place is a political joke anyway, and the actual simple honest people of the US whom year after year have been having their chains pulled by politicians that they vote are already at disbelief status.
What they need to do, is to bring in Political Hanging whereby "certain" politicians who have robbed or help to decay their own people should be brought before the people and tried for treason and corruption.
They need a new power of different type of party, one maybe by which can start off by being called the Honest Party, or the LOGIC party, the anything Party besides greedy Republicans and far out Democrats.
Change their whole system, their whole way of life, but that would be the definition of impossible wouldn't it.
Each to their own I guess. Have a nice night~!
Drillfix where are you,??? Impossible, yes.
Full Interview With Billionaire Frank Giustra
http://www.youtube.com/watch?v=9o30g...layer_embedded
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08-09-2012, 09:36 AM
#269
Drilly,I dont think its impossible,but more likely to happen in the rebuilding stage after the great collapse,if thats the way things go
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16-09-2012, 02:30 PM
#270
Originally Posted by tricha
Its a rather simple example - (you owe $100,000 and have no income to pay the interest, you need more money, who is going to lend it to you ????????)
Answer - Someone that is very stupid or no one.
WELL in the case of the FED, as you all know, they have the perfect solution.
"It is not that the Americans have not pumped enough liquidity into the market and now to say let's pump more into the market is not going to solve their problems”
End Quote Wolfgang Schaeuble German finance minister
The interesting part is going to be with China, with their money locked into the US$, will they continue to subsidise cheap goods to the US ???
The next chapter could be very interesting, where will it leave Australia. Something for me to ponder over the weekend.
I've pondered and come up, with the following conclusion.
The next chapter has started and it is inflation, big time.
zero interest rates in the states and money printing being ramped up.
My bet is everything is going to go up fast.
Sharemarkets, Food, Oil, Minerals and housing. If you have cash you will be screwed.
The DOW to 30,000!
Why - you will be far better of, having your money parked in the stock market, with a p\e of 50, than in the bank at a return of zero. Its as simple as that.
Last edited by tricha; 16-09-2012 at 02:33 PM.
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