Among other things members are guaranteed 6% return on their stock. Okay. That was about $1.6 billion in dividends last year. What do they do with the rest?
Since member banks are only required to pay half the price of their stock
They only get paid for capital they actually contributed, so it's 6%.
Re:Since member banks are only required to pay half the price of their stock
They only get paid for capital they actually contributed, so it's 6%.
Not according to the Fed:
"Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors......
Member banks receive a 6 percent dividend annually on their stock, as specified by law .... "
http://www.federalreserve.gov/pf/pdf/pf_complete.pdf