So the Central bank was born but not with out future roadblocks that had to be overcome and .
In 1914 World War I broke out and emergency currency was issued to help banks operate. .
1929 the market crashed and the great depression began. Ten thousand banks failed and more changes had to be made over time to help the banking system. .
The Federal Reserve System is The Central Bank of the United States and is overseen by:.
The Board of Governors.
12 Regional Banks.
The Federal Open Market Committee (FOMC).
Depository Institutions.
Advisory committees.
The 12 Regional banks are located in the following states (followed by their branch letter):.
1. Boston A.
2. New York B.
3. Philadelphia C .
4. Cleveland D.
5. Richmond E.
6. Atlanta F.
7. Chicago G.
8. St. Louis H.
9. Minneapolis I.
10. Kansas City J.
11. Dallas K.
12. San Francisco L.
( Source- The Federal Reserve System - Purposes and Functions brochure; Board of .
Governors).
Each Federal Reserve Bank is privately owned by the member banks in its district, the very bank it is charged with supervising and regulating. Also, each member bank is required to buy stock in its district Federal Reserve Bank. "This is equal to 6 percent of its own capital and surplus. Furthermore, of this 6 percent, 3 percent must be paid in and 3 percent is subject to call by the board of governors". On the left side of a dollar, you can see which branch it was manufactured at. Each branch acts as a central bank for private banks in their region.
The Federal Reserve System it is governed by a board of nine directors, six of whom are elected by the member banks and three of whom are appointed by the Board of Governors of the Federal Reserve System. The Federal Open Market Committee, consisting of the seven members of the Board of Governors and five members elected by the Federal Reserve banks, is responsible for the determination of Federal Reserve Bank policy in the purchase and sale of securities on the open market.
