Federal Reserve Attorneys: Fed Banks Are "Not Agencies" But "Independent Corporations" With "Private Boards of Directors"

29/07/2011 17:46

I noted yesterday that the Federal Reserve has admitted that its 12 member banks are private - not governmental - entities.

Reader Siesta00000 sent me the following post with links to C-Span video of two of the Federal Reserve's senior counsel stating in court that this is true [I've edited for readability]:

During the second circuit court of appeals case for FOX News & Bloomberg v. Board of Governors lawyers in defense of the Fed make some revealing statements during the arguments. At about 13:45, the Fed lawyer stated:
"We do not believe the Federal Reserve Board is an agency, the Board of Governors, . . . the Federal Reserve Bank excuse me." (He made the mistake of saying the Federal Reserve Board when he meant the Federal Reserve Bank.

He admitted the Federal Reserve Banks were not Federal Agencies in a court of law. Watch the lawyer's statement:
here [video will play automatically once you click, but may take awhile to load. The videos are pre-set to play the relevant section, so you need not keep track of the times noted below.]

Another Federal Reserve lawyer goes further at 44:22 to state:
[The Federal Reserve Banks are] independent corporations [which carry on the day-to-day operations. But emergency lending must be approved by the Federal Reserve's Board of Governors.]
Watch the lawyer's statement: here.

At 46:23, the lawyer ... stated:
[The Federal Reserve Banks are] not agencies [and they have] private board of directors.
The most [interesting] evidence is in this clip:  here. 

As a reader notes:

They want to be, or rather want to 'seem to be', government entities in the public eye when it suits them, but then they claim in court they're in fact privately owned and don't have to follow the same rules as governmental institutions (i.e audits) when the government tries to intervene or regulate.

A very intelligently set-up organisation, blame government when it suits them, then hide from government when they need to be audited.


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