Is it true there is a World Bank that controls all of the smaller banks?

Question

I read that there is a World Bank out of Europe that controls the flow of real money and procedures to smaller national banks in the U.S. even small city banks and regional banks are controlled by the World Bank? They have the ultimate power for most countries banks. Is this true?

Answer 1

I'm afraid that this is incorrect information.

The World Bank offers loans and advice to small countries on how to manage their finance, but as far as control it has little.

There are SEVERAL organizations in the US that hold the title of bank supervisors:
The Office of Thrift Supervision - For S&L Banks
Office of the Comptroller of the Currency - For Other Banks
National Credit Union Administration - For Credit Unions

In addition banks most banks have to answer to the Federal Reserve, as well as the Federal Depositers Insurance Corporation.

Answer 2

The World Bank provides financing and advice to countries for the purposes of economic development and international investment. It focuses on developing nations, so it doesn't have much of an impact on the business of banking in the United States.

I suspect you may be referring the the Bank for International Settlement (often called the "BIS") and/or the Basel Committee on Banking Supervision. Based in Switzerland, the BIS kind of acts as a bank cooperative for central banks, allowing central banks in different countries to transfer money to one another.

The BIS hosts and sponsors the Basel Committee on Banking Supervision. The Basel Committee is comprised of representatives of the central banks of the Group of Ten (G10) nations. So, for example, the United States is represented by someone from the Federal Reserve Board. The Basel Committee establishes policies and standards for banks, primarily with respect to capital standards and leverage (i.e., how much risk can a bank take?). The goal is a financially stable international banking system with consistent standards from country to country--it doesn't do anyone any good if banks are failing everywhere.

The Basel Committee does not, however, have any legal supervisory or enforcement authority. It's up to the individual countries to pass their own laws regarding bank supervision, and they are free to agree or disagree with the standards suggested by the BIS. But if the representative from the US Federal Reserve participates in and agrees with the Basel Committee, it stands to reason that the Federal Reserve will likely implement the Committee's standards in the United States. So, in this sense, a committee of bankers in Europe does have an indirect effect on the way the banks in the US operate. But ultimately, the flow of money and regulation of banks lies with the banks and their national governments.

Answer 3

No.

At least not in the US. The Fed (US Government) controls the small banks in the US

Answer 4

it could be but it could also be a big lie.