https://www.forexfactory.com/printth...20091&page=236
VI. The 12 Private Banks That Form the Federal Reserve
The Board of Governors may sit atop the Federal Reserve, working closely with the federal government as an executive agency. However, an enormous number of duties, powers, and day to day activities, are squarely in the hands of the 12 Federal Reserve district banks–all private banks with minimal connection to the federal government. These 12 banks each head one of the 12 Federal Reserve System districts, often with multiple branch offices. They are responsible for managing commercial banking in their districts (including the various Federal Reserve member banks), storing currency, processing payments, and generally acting as “bankers’ banks” by providing banking services to other commercial banks in their districts. (see The Structure and Functions of the Federal Reserve, available at https://www.federalreserveeducation....-and-functions).
These districts are also, somewhat counterintuitively, not limited by State borders. Instead, the Federal Reserve Act mandated that they “shall be apportioned with due regard to the convenience and customary course of business and shall not necessarily be coterminous with any State or States.” (The Federal Reserve Act, Section 2, available at https://www.federalreserve.gov/aboutthefed/section2.htm) They are all privately owned by members. However, there are no laws (that we found) requiring disclosure or confidentiality of the ownership interests, and finding that information is an opaque process at best.
However, at a time of unprecedented central bank meddling and manipulation in all rates (and equity) markets, many believe that the longer-dated curve is no longer indicative of anything but noise, especially at a time when the long-end is directly being bought by central banks (or sold by Chinese reserve managers depending on how much Trump's trade war escalates) thus distorting any "signal" value it may have. In its place, a more accurate "signal" has emerged in the short-end of the curve, as manifested by the Overnight Index Swap, or OIS, futures market.
VI. The 12 Private Banks That Form the Federal Reserve
The Board of Governors may sit atop the Federal Reserve, working closely with the federal government as an executive agency. However, an enormous number of duties, powers, and day to day activities, are squarely in the hands of the 12 Federal Reserve district banks–all private banks with minimal connection to the federal government. These 12 banks each head one of the 12 Federal Reserve System districts, often with multiple branch offices. They are responsible for managing commercial banking in their districts (including the various Federal Reserve member banks), storing currency, processing payments, and generally acting as “bankers’ banks” by providing banking services to other commercial banks in their districts. (see The Structure and Functions of the Federal Reserve, available at https://www.federalreserveeducation....-and-functions).
These districts are also, somewhat counterintuitively, not limited by State borders. Instead, the Federal Reserve Act mandated that they “shall be apportioned with due regard to the convenience and customary course of business and shall not necessarily be coterminous with any State or States.” (The Federal Reserve Act, Section 2, available at https://www.federalreserve.gov/aboutthefed/section2.htm) They are all privately owned by members. However, there are no laws (that we found) requiring disclosure or confidentiality of the ownership interests, and finding that information is an opaque process at best.
However, at a time of unprecedented central bank meddling and manipulation in all rates (and equity) markets, many believe that the longer-dated curve is no longer indicative of anything but noise, especially at a time when the long-end is directly being bought by central banks (or sold by Chinese reserve managers depending on how much Trump's trade war escalates) thus distorting any "signal" value it may have. In its place, a more accurate "signal" has emerged in the short-end of the curve, as manifested by the Overnight Index Swap, or OIS, futures market.