Tuesday, July 26, 2011 Federal Reserve Attorneys Admit that Federal Reserve Banks Are PRIVATE Corporations With Private Boards of Directors

George Washington's Blog

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.