Every now and again a friend of mine asks my view of the world as it relates to conspiracy theories. For the uninitiated, these are plausible concepts with minimal basis in truth that take on a life of their own through repetition by a willing spokesperson. A recent example is Info Wars as reported by Rolling Stone. This platform has been – and continues to be – used by the now indicted and arrested former Trump confidante, Roger Stone.
The theory in question – which has existed for nearly 200 years in some form or fashion – centers on the role played by the Rothschild family in the formation of the Federal Reserve. While the family’s wealth was at one time vast, nationalizations (France), confiscations (Germany/Austria), charitable donations and dilution between various heirs have reduced the fortune. One leading view was that the wealth was being used to accumulate land holdings as the precursor to a ‘one world order’. This one was obviously deflated last week with the sale of their final Austrian property.
As in any good Mythbuster episode, there’s always a secondary revelation and in this case it pertains to Federal Reserve ownership. The Fed is both a public and private enterprise, the Board of Governors is a government agency while the twelve banks are stock companies. Their shares are restricted with ownership limited to Fed member banks which currently number about 767 banks. FRB shares pay a dividend of roughly 6% per annum which for one of my smaller banks Brookline Bancorp (BRKL) would’ve been about $1m last year. The Fed also pays interest on both required and excess reserves on deposit currently about 2.4%.
Fed membership is not compulsory and many smaller institutions choose not to join, taking advantage of correspondent relationships. With the advent of the 1976 banking law permitting interstate banking, correspondent banking began to decline and Banker’s Banks arose on fears of competition from their bigger brethren. Banker’s Banks are structured similarly to the Fed (owned by member banks) but are subject to regulatory oversight. An interesting tidbit … Congressional hearings in 1923 on lack of participation in the Federal Reserve highlighted a trust issue between large and small, rural and urban – a divide that obviously continues to this day!
So, no the Rothschild family don’t own the Federal Reserve or banking system. If you own stock in a National bank or State chartered member bank – you own the Fed.