Posted on 07/29/2015 7:24:58 PM PDT by grumpygresh
I'm working on a settlement with a Federal government agency (not IRS). The settlement agreement calls for payment to be wired to an account at the NY Fed. We all know that the Fed is a privately held central bank and not owned by U.S. Does the U.S. Gov have accounts there and why? It seems that money should be sent to US treasury. BTW, they insisted on a wire and not a check. Anyone with legal/financial knowledge would be helpful.
GET A GOOD LAWYER NOW!
The knowledge of some FReepers (not me) about the Federal Reserve makes Ben Bernanke look like a piker. Hopefully you will get a helpful reply if this is a legitimate question posed in good faith.
Yes, by all means get a good lawyer before doing anything.
Thanks it is. I do have atty and this question was also posed to a U.S. Fed district judge (confidentially) via my atty. They did not have answer.
I believe the U.S. government has accounts at every bank that is a member of the Federal Reserve.
Most of these accounts are used to collect payroll taxes from businesses. I don’t know if they are special purpose accounts used only for that purpose or not. I would expect that the Treasury Dept does have accounts at all of the Federal Reserve banks.
Ownership of the Federal Reserve banks is unlike any other corporation n the nation. The government shares normal ownership functions with member banks.
But you should be able to look up the NY Fed’s phone number and call the bank and confirm the account that you are supposed to send money to, is indeed an account owned by the U.S. government.
I would have your lawyer renegotiate with the agency to accept a check so you have a paper trail and he should also require a signed letter of final settlement upon the check clearing.
Bkmrk.
Thanks, will do.
Every wire from or to any bank first goes through the federal reserve. Lovely, isn’t it? So private, too.
Next step. Make sure your lawyer isn’t Nigerian.
I’ve seen wires into and out of a federal agency with the Federal Home Loan Bank of New York as the institution.(I’ve also seen commercial banks used.) Can’t say I’ve ever seen FRB NY on one, but there are a lot of agencies I haven’t done business with.
The shareholder rubric was contrived when the Fed was created by Congress so that instead of relying solely on appropriations, some of the cost of creating the Fed as a central bank would be put on the country's commercial banks by way of assessments for membership. To ease the burden on those banks' capital structure, the assessments were described as for the purchase of shares that could be carried on the banks' books as assets.
Here’s some wire instructions that appear to be from the National Institutes of Health (If I have NIH right). Looks like the page resolves to a .gov address.
https://www.nlm.nih.gov/psd/cas/wire_instructions_federal_reserve_nyc.pdf
So it looks like it can happen.
On the other hand, it looks like FCC payments go direct to the treasury:
https://www.fcc.gov/encyclopedia/wire-transfer
Smells like a scam. The IRS would not require you to wire money to them ever, especially via a money transfer service like Western Union or Moneygram.
Send a paper check or cashiers check to them, or arrange for the wire through an interbank transfer. DO NOT SEND THEM MONEY VIA MONEYGRAM OR WESTERN UNION. If they are demanding it be sent this way, it is likely a scammer.
https://archive.org/details/TheSecretsOfTheFederalReserve
Does the U.S. Gov have accounts there (i.e. Fed Reserve)and why?
Yes, mostly depository, but some are disbursements.
they insisted on a wire and not a check.
That is not unusual with large dollar transactions.
5.56mm
The Fed is the gatekeeper of the U.S. economy and is part of the federal government.
Based in Washington, D.C., the Fed is the bank of the U.S. government and regulates the nation's financial institutions. It's comprised of a network of 12 Federal Reserve Banks and a number of branches. This is all overseen by the Fed's Board of Governors, which we'll detail a little later.
Right. The "stock" is more like a perpetual debt issue.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.