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chromiumman
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chromiumman asked about a month ago in Investment Strategy

The federal reserve banks print the money, seems like a good company to invest in, can i? how?

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FinancialPanther
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You cannot invest in the Federal Reserve Bank as they are a government entity.

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chromiumman
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"You cannot invest in the Federal Reserve Bank as they are a government entity."

well, are you sure? because according to the us 9th circuit court of appeals, in lewis v. us...

"Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately owned and locally controlled corporations."

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Tamara M. Simmons, CFP
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No, stock ownership of Federal Reserve district banks is restricted to national banks and certain state banks. Private individuals, corporations, and foreign governments are not allowed to own Federal Reserve stock. This is in accordance to law. Additionally, Federal Reserve stock is a little different than the stock of a corporation. Federal Reserve stock does not confer any rights of ownership to the holder beyond the par value of the stock. The stock does pay an annual 6% dividend, but that is about it. Member banks are required to subscribe to a specific amount of Federal Reserve stock. This amount is set by law and the member bank cannot subscribe to anymore or any less than the specified amount. National banks, are required to become members and state banks may become members of the system if they meet certain requirements.

BTW, the law that governs the Federal Reserve is Title 12 U.S.C. Chapter 3. http://www.law.cornell.edu/uscode/html/

As an addendum, the law does allow for a private individual to hold a small amount of Federal Reserve stock. However, the individual would have to convince the Federal Reserve to sell it to them because the stock is not traded and I can almost guarantee they won't.

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