Trump v. Cook · ¶103
The Federal Reserve Act authorized the incorporation of up to twelve Federal Reserve Banks and created the Federal Reserve Board. §§2, 4, 10–11, 38 Stat. 251–257, 260– 263. The Federal Reserve Banks were “private corporations in which the government has an interest.” Emergency Fleet Corp. v. Western Union Telegraph Co., 275 U. S. 415, 426 (1928). The reserve banks had the capabilities, like the European banks after which they were modeled, to rediscount notes, serve as a lender of last resort, and adjust the money supply. See §§4, 13, 14, 19, 38 Stat. 254–257, 263–265, 270– 271. They had corporate boards and the ordinary powers of private corporations, such as to contract, and to sue and be sued. §4, id., at 254–257; 12 U. S. C. §§301, 341. They were owned by “national banks,” a class of private commercial banks required by the Federal Reserve Act to purchase stock in the reserve banks.…Read in context ›
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