as anyone made sense of the FED in the US not being a gov entity? i would think most CFA candidates, esp those not from the U.S. dont know this, most of the world’s central banks are basiclly part of the gov… so how does this work? if the fed is mostly owned by the member banks, in whos interest are they working? noone sees a conflict of interest here? they should be working for the interest of the American people… but are they realy doing that? would anyone in a position to run things in their interest run it in the interest of “the people” ? anyone knows of a reading that explains this SLOWLY… its a shame CFA seems to skip on it, some kind of concpiracy theory to keep us from knowing…you would think an analyst should know this in detail in order to predict the actions of the FED
“Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bank’s nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board. The Federal Reserve Board regulates the Reserve Banks, but direct supervision and control of each Bank is exercised by its board of directors. 12 U.S.C. Sect. 301. The directors enact by-laws regulating the manner of conducting general Bank business, 12 U.S.C. Sect. 341, and appoint officers to implement and supervise daily Bank activities. These activites include collecting and clearing checks, making advances to private and commercial entities, holding reserves for member banks, discounting the notes of member banks, and buying and selling securities on the open market. See 12 U.S.C. Sub-Sect. 341-361. Each Bank is statutorily empowered to conduct these activites without day to day direction from the federal government. Thus, for example, the interest rates on advances to member banks, individuals, partnerships, and corporations are set by each Reserve Bank and their decisions regarding the purchase and sale of securities are likewise independently made. It is evident from the legislative history of the Federal Reserve Act that Congress did not intend to give the federal government direction over the daily operation of the Reserve Banks: It is proposed that the Government shall retain sufficient power over the reserve banks to enable it to exercise a direct authority when necessary to do so, but that it shall in no way attempt to carry on through its own mechanism the routine operations and banking which require detailed knowledge of local and individual credit and which determine the funds of the community in any given instance. In other words, the reserve-bank plan retains to the Government power over the exercise of the broader banking functions, while it leaves to individuals and privately owned institutions the actual direction of routine.” http://www.globalresearch.ca/index.php?context=va&aid=8518
Wikipedia.
thanks for trying to help guys i can find it on wikipedia, or an econ book but the reality i need this fed ( not the fed ) with a spoon cause its such an irrational thing for me… do you guys think there is a book that explains teh fed for dumies ? i meen i can read those things you would give me, but i would be lie if i tell you it all makes sense, and i wonder if this would affect my work as an analyst one day… would this be explained intensivly in an MBA ?
ahmadmadoff Wrote: ------------------------------------------------------- > its a shame CFA seems to skip on it, some kind of > concpiracy theory to keep us from knowing…you > would think an analyst should know this in detail > in order to predict the actions of the FED Soon you’ll realize that a number of conspiracies against candidates are in place. If you suddenly disappear we will know the reason. It has happened before on AF.
Inner Evil Voice Wrote: ------------------------------------------------------- > ahmadmadoff Wrote: > -------------------------------------------------- > ----- > > its a shame CFA seems to skip on it, some kind > of > > concpiracy theory to keep us from knowing…you > > would think an analyst should know this in > detail > > in order to predict the actions of the FED > > Soon you’ll realize that a number of conspiracies > against candidates are in place. If you suddenly > disappear we will know the reason. It has happened > before on AF. either that, or i killed myself… given that i am in a country where no matter how high your IQ is, and how hard working you are at the end of the day what gets you the job is your last name which religon and then which sect then which part of the country its like an unspoken cast system… (lool i am waiting for someone on AF to tell me to stop bitching about my country soon, but hey when you study all day and your life is down to a break on AF, you guys gota be there for me)
Corporations are charted by state governments but they are not owned by them. Similarly, the Fed is chartered by Congress, but not owned by it. Nonetheless, the Fed is special, because it has been chartered specifically by Congress for the purpose of regulating the money supply, and was not simply formed by a group of entrepreneurs that wanted to make a bank. That means Congress has special interest in the operations of the Fed, and requires the Fed to file reports to Congress and have duties that an ordinary chartered corporation wouldn’t have. It’s also special because the Fed, unlike a standard corporation, has a non-profit objective. It is designed to manage the economy as a whole, rather than having a legal obligation to maximize shareholder value.
ahmadmadoff Wrote: ------------------------------------------------------- > (lool i am waiting for someone on AF to tell me to > stop bitching about my country soon, but hey when > you study all day and your life is down to a break > on AF, you guys gota be there for me) Oh, the thing is we don’t fight here on AF. Chad, the forum’s owner, has taught us to respect each other and base our discussions on rational arguments and constructive exchanges. The way an Analyst should be.
great. Anyway i go bust my ass with these books and try to change my luck