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The Fed

The Federal Reserve Bank of the United States was created in 1913 when the Federal Reserve Act was signed into law by President Woodrow Wilson. The Federal Reserve System is the third central banking system in the United States history.

In 1791 the First Bank of the United States was established by Congress at the urging of Treasury Secretary Alexander Hamilton. The bank had a twenty year charter, and it was not renewed by Congress in 1811.

In 1816 Congress agreed to a twenty year charter for the Second Bank of the United States. Andrew Jackson who was an opponent of the central bank was elected President in 1828. President Jackson vetoed legislation to renew the Second Bank of the United States, and when the Second Banks charter expired in 1836 it was not renewed.

The National Banking Act of 1863 was passed during the Civil War. It provided for nationally chartered banks whose circulating notes had to be backed by U.S. Government securities. An amendment to the act required taxation on state bank notes but not national bank notes.

IN 1893 bank runs and financial panics triggered the worst depression the U.S. had ever seen. Financial mogul J.P Morgan intervened and stabilized the economy.

J.P. Morgan again intervened after a particularly severe banking panic in 1907. There was clearly a need for banking and currency reform.

The Aldrich-Vreeland Act of 1908 provided for an emergency currency and established the National Monetary Commission to study banking and currency reform. The chief of the bipartisan National Monetary Commission was financial expert and Senate Republican leader Nelson Aldrich.

In 1912 Democrat Woodrow Wilson was elected President. From 1912 to 1913 the Glass-Willis proposal by Virginia Rep. Carter Glass, who would become the chairman of the House Committee on Banking and Finance, and H. Parker Willis, the Committee's expert advisor and formerly a professor of economics at Washington and Lee University, was debated, reshaped, and modified into the Federal Reserve Act.

On December 23, 1913, President Woodrow Wilson signed the Federal Reserve Act into law.

Key laws affecting the Federal Reserve have been:

* Banking Act of 1935
* Employment Act of 1946
* Bank Holding Company Act of 1956 and the amendments of 1970
* Federal Reserve Reform Act of 1977
* International Banking Act of 1978
* Full Employment and Balanced Growth Act of 1978
* Depository Institutions Deregulation and Monetary Control Act of 1980
* Financial Institutions Reform, Recovery and Enforcement Act of 1989
* Federal Deposit Insurance Corporation Improvement Act of 1991
* Gramm-Leach-Bliley Act of 1999

In 2002 the Sarbanes-Oxley Act was passed:

President Bush Signs Corporate Corruption Bill

The basic structure of the Federal Reserve System includes:

  • The Federal Reserve Board of Governors
The President appoints the Board of Governors of the Federal Reserve System in Washington, D.C.

The current members of the Board of Governors are:

* Ben Bernanke, Chairman
* Donald Kohn, Vice-Chairman
* Frederic Mishkin
* Kevin Warsh
* Randall Kroszner

  • The Federal Open Market Committee

  • The Federal Reserve Banks

Federal Reserve Bank LetterNumberWebsitePresident
BostonA1 S. Rosengren
New YorkB2 F. Geithner
PhiladelphiaC3 Charles I. Plosser
Cleveland D4 Pianalto
RichmondE5 Jeffrey M. Lacker
AtlantaF6 P. Lockhart
ChicagoG7 Charles Evans
St LouisH8 Poole
MinneapolisI9 H. Stern
Kansas CityJ10 Thomas M. Hoenig
DallasK11 W. Fisher
San FranciscoL12 L. Yellen

  • The member banks
National banks are required to be member banks in the Federal Reserve System. Other banks may elect to become member banks. The numerous private U.S. member banks subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks.

Federal Reserve Chairman Ben Bernanke delivers the Fed's Monetary Policy Report, Thursday, Feb. 28, 2008, during an appearance before the Senate Banking Committee.

Alan Greenspan was the 13th Chairman of the Board of Governors of the Federal Reserve, from 1987 to 2006. He was knighted in England in 2002.


Treasury freezes assets of four Syrians

WASHINGTON (Reuters) - The Treasury froze assets of four Syrians on Thursday, saying they facilitated the flow of money, weapons and terrorists through Syria to al Qaeda in Iraq.

"Since the fall of Saddam Hussein's regime, Syria has become a transit station for al Qaeda foreign terrorists on their way to Iraq," Stuart Levey, undersecretary for terrorism and financial intelligence, said in a statement.

The four Syrians are said to be members of Abu Ghadiyah's network, the Treasury Department said.

William F. Buckley

William F. Buckley
Nov. 24, 1925 - Feb. 27, 2008


Barack Hussein Obama

Barack Hussein Obama

with Trinity United Church of Christ pastor, Rev. Jeremiah Wright in Chicago

Hello? Hello?! Is this Pockiston?


President Bush in Africa

Mr Bush has been making pledges to help fight Aids and malaria, and promises of aid and investment, as he tours Africa.

George W Bush says violence in Darfur must be stopped "once and for all", as he continues his tour of Africa.

Benin - Cotonou: arrival ceremony, meets president
Tanzania - Dar-es-Salaam: meets president, tours hospital; Arusha: tours hospital, textile mill and girls' school
Rwanda - Kigali: meets president, visits genocide memorial
Ghana - Accra: meets president, state dinner
Liberia - Monrovia: meets president, visits university

Bush highlights malaria campaign
President George W Bush has said the US will help provide 5.2 million mosquito nets as part of a broader campaign to tackle malaria in sub-Saharan Africa.

In 2005 President Bush launched a $1.2bn (£610m) five-year campaign to lower malaria deaths in Africa.

Bush calls for fair Zimbabwe poll
US President George W Bush has called for "free and fair" elections to be held in Zimbabwe.

Earlier, Mr Bush signed a $698m deal with Tanzanian President Jakaya Kikwete to reduce poverty.

Bush urges end to Darfur 'evil'
US President George W Bush has urged the world to take action to stop the violence in the Sudanese region of Darfur "once and for all".

Intervene in Nigeria, Bush urged
A leading militant group from Nigeria's oil region has written to US President George Bush, asking him to help solve their dispute with the government.

In pictures: Bush's Africa tour


Hezbollah terror leader killed

Imad Mughniyeh was responsible for kidnappings, car bombings and hijacks.

Hezbollah Says Top Militant Is Killed

BEIRUT, Lebanon (AP) - Imad Mughniyeh, the militant accused of attacks that left hundreds of Americans and Israelis dead, including a U.S. Navy diver during the infamous 1985 hijacking of a TWA jetliner, has been killed, Hezbollah said Wednesday.

Mughniyeh, who had been in hiding for years, was among the fugitives indicted in the United States for the 1985 hijacking of a TWA airliner in which a U.S. Navy diver was killed. He was also suspected of masterminding attacks on the U.S. Embassy and the Marine base in Lebanon that killed more than 260 Americans in the 1980s when he was then the Iranian-backed Hezbollah's security chief.

Mughniyeh, 45, was also the reputed leader of a group that held Westerners hostage in Lebanon, among them journalist Terry Anderson, a former Associated Press chief Middle East correspondent who was held captive for six years.

Mughniyeh is also believed by Israel to have been involved in planning the 1992 bombing of Israel's embassy in Argentina in which 29 people were killed and the blast at a Buenos Aires Jewish center two years later that killed 95.

Damascus bombing kills Hizbullah No. 2
The head of Hizbullah's military wing, Imad Mughniyeh - considered the organization's second in command - was killed in a car bombing in Damascus late Tuesday night, Hizbullah's Al-Manar television reported Wednesday.

Imad Mughniyeh, Hezbollah terror leader, killed in car bomb
Imad Mughniyeh, the Hezbollah mastermind behind the kidnapping of Westerners in Beirut and many big terror attacks around the world in the 1980s and 1990s, was killed late last night in a car bomb explosion in Damascus.

Hamas spokesman Sami Abu Zuhri, speaking to AFP in Gaza City, called on Arabs and Muslims to "face up to this Zionist octopus whose crimes are now passing beyond the Palestinian territories to touch the Arab and Islamic world."


The US troop surge, a year later

The US troop surge, a year later

A year later — through a mix of military might, new allies and some fortunate timing — Iraq looks very different.

Executions may be carried out at Gitmo

Executions may be carried out at Gitmo

SAN JUAN, Puerto Rico - If six suspected terrorists are sentenced to death at Guantanamo Bay for the Sept. 11 attacks, U.S. Army regulations that were quietly amended two years ago open the possibility of execution by lethal injection at the military base in Cuba, experts said Tuesday.

This undated file photo provided by ABC News shows Waleed bin Attash. Bin Attash, a Yemeni portrayed as an al-Qaida operative and a member of a terrorist family, confessed to plotting the bombings of the USS Cole and two U.S. embassies in Africa, killing hundreds, according to a Pentagon transcript of a Guantanamo Bay hearing, released Monday March 19, 2007. The Pentagon has charged bin Attash and five other detainees at Guantanamo Bay with murder and war crimes in connection with the Sept. 11 terror attacks, and officials said Monday Feb. 11, 2008, the United States will seek the death penalty.
(AP Photo/ABC News)

U.S. Army execution procedures:*