can a private citizen invest stock in the federal reserve?

it is a private corporation

so as long as i pay for the stock i can be part of it right

then when i'm a part owner i could convince them to stop making paper money

and then the US could decrease taxes for the middle class

right?

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  • 8 years ago
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    Re: can a private citizen invest stock in the federal reserve?

    No. The closest a private citizen can get to "investing" in the Federal Reserve is to buy the stock of a bank with a national charter. The following link is a list of currently active national banks. http://www.occ.treas.gov/topics/licensing/national...

    Re: it is a private corporation

    No, it is not. That is a misconception based upon a misunderstanding of its structure. As other answers have stated, the 12 district banks might be considered private but I point out the law that shows the "stock" does not confer any rights of ownership. See my answer at http://answers.yahoo.com/question/index;_ylt=Ahwxg...

    Re: i pay for the stock i can be part of it right

    Wrong. No public stock in a Federal Reserve district bank has ever been issued. Only nationally chartered banks and some state banks may become members of the Federal Reserve system.

    Re: When I'm a part owner i could convince them to stop making paper money

    No, you would not be able to. First, actual paper money that is printed and a person can hold in their hands is just a small portion of the overall money supply. Second, monetary policy is a function of the Federal Open Market Committee which is controlled by the Board of Governors. Member banks have only a miniscule input on the actions of the FOMC.

    Re:then the US could decrease taxes for the middle class

    right?

    Wrong. You are confusing monetary policy with fiscal policy which are two different things. Monetary policy has nothing to do with tax rates.

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  • Anonymous
    8 years ago

    The Federal Reserve is not a private corporation. It was created by Congress in the Federal Reserve Act of 1913. And Congress could repeal the Fed if it wanted to.

    Here is the Federal Reserve Act, now codified in Chapter 3 of Title 12 of the United States Code:

    http://www.law.cornell.edu/uscode/html/uscode12/us...

    Besides, you can't buy stock in any corporation that is not registered with the SEC as a publicly traded corporation.

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  • 8 years ago

    No - by law the individual Federal Reserve Banks are owned by the banks operating in their districts.

    And while technically they are privately owned, this ownership gives them absolutely no control over monetary policy. That is managed by the Federal Reserve Board of Governors, who are public servants appointed by the President and confirmed by the senate.

    And I am intrigued as to why you believe a contractionary monetary policy in an economic downturn would result in lower taxes for the middle class.

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  • niHil
    Lv 6
    8 years ago

    Yes, you can buy bonds. You can also buy these things called "dollars" they are paper stock of the federal reserve. But it is a bad investment because Democrats have spent so much, the dollar is worth about 19¢.

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  • Anonymous
    8 years ago

    Yes. Whenever you get one of those green pieces of paper with a picture of a dead president and that says, "Federal Reserve Note," stick it under your mattress.

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  • Joe
    Lv 6
    8 years ago

    Buy government bonds.

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  • Anonymous
    8 years ago

    Abolish the Fed and put the bankers in jail

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