mutual claims and claims Federal Reserve Bank, arising from the movement of bank deposits from one Federal Reserve district to another. to the adopted legislation, all national banks to the US are required to maintain their membership in the Federal Reserve System, in addition, a number of banks in the state voluntarily expressed their desire to join the Fed. Their request was granted. Until 1980, banks belonging to the Fed, have certain advantages over other banks and savings and loan institutions. Having the status of a member of the Federal Reserve bank, the financial authority acquired a certain prestige. Fed member banks are entitled to receive loans from Federal Reserve Bank of order, as well as to place, these banks cash, services of the Federal Reserve provided for clearing of checks, we finally obtain the necessary advice on financial matters of interest. In addition, the Fed's member banks have the right to use the teletype lines for the Fed funds transfer. In fairness it should be noted that the services of clearing checks were not the exclusive privilege of member banks of the Fed as the bank does not belong to this system, had the right to register with the Fedof the deregulation of deposit takers and the control of monetary circulation in 1980 removed most of the differences between the member banks the Federal Reserve and other banking institutions. In the seventies, more than 500 banks have stopped his membership in the Federal Reserve System, mainly due to a sharp rise in market rates of interest in that period. The high level of market rates of interest was sharply raising the opportunity cost of reserve requirements of member banks of the Fed. The legislative act of 1980 eliminated the differences in reserve requirements from different banks and deposit-taking institutions. br/>
1.2 The organizational structure of the US Federal Reserve
The Fed has three parts: See table 2. P 31
- Central Council of Governors, which is located in Washington, DC
12 of the Federal Reserve Banks spread across the US
Operations Committee on the open market.Board of Governors consists of seven members (governors) are appointed by the President of the United States and approved by the US Senate for 14 years without the right destination for a second term (the exception is a situation where the governor has replaced its predecessor and leaves the 14 year period. In this case, if all the governors fully worked out his term, the US president can nominate only two new candidates (if re-elected president , he can choose two more candidates for governor). This rule applies to exclude the chance that the president will appoint to the Board of Governors only his supporters, which will allow...
