Can you explain the banking system in America?

Question

You don't need to write a book, but basics please......the banking system seems confusing......private banks, federal reserve, et al....who regulates this or that.......how does it all work?

Answer 1

The basics....


Your Bank:

- Safeguarding your money (including insurance against bank failure)

- Give you a safe (if not very low) return on your money

- Offer you loans from other depositers money

- Clear your checks (i.e. xfer money from your account to someone elses)

- provide you currency from your account when you need it



Federal Reserve (the banker's bank) operations:

- Safeguard banks money on deposit

- Provide emergency loans to banks in trouble

- Clear checks between banks

- provide currency from the banks account when they need it



Federal Reserve monetary policy:

- Monitor for, and guard, against inflation

- Decide on bank-to-bank loan interest rates (i.e. the Federal Funds rates)

Answer 2

Well first off the Federal Reserve is a Privately Held company.
Contrary to popular belief, it is not government owned!

So the way the system works in America is this:

Our government buys bonds from the Federal reserve with a high interest rate and in return the federal reserve prints our money. Our nation goes further into debt (national debt) by doing this, so it really makes no sense.

You should also be aware that legally our government can print our own money, however we are stuck in this crooked system. The last three presidents who attempted to change this system (Abe Lincoln, Garfield, JFK) were quickly assassinated. Abe Lincoln actually did print money during the civil war but the international bankers didn't like that at all.

So back to the Banking, they are privately held and are insured by the federal reserve.

Hope this helps,

Adam

Answer 3

You make money, the government takes a cut right away.
You buy something on your way to the bank, gov takes a bit more.
You deposit your money in the bank - bank charges you to do that.
Then they charge you to hold the money.
Then they take your money and do things with it that they never tell you about, and give you a piece of paper with a number on it representing the money you are supposed to have.

If you don't pay taxes, the gov and the bank split your money and send you a bill for the transaction.

Answer 4

Financial Institutions are out there to #1 ...Make money...#2...Make More MONEY....#3 ditto..ditto...ditto. They charge you out the waahooo...to hold your money. They make interest upon interest with the Federal Reserve...behind them all the way. Seems to me that the highly compensated individuals sit up on the high Executive Boards....with meetings on how to come up with more ways to make money. You get charged for checks, debit cards...debit purchases...and if you are in a pinch, most banks today charge $25.00 for each transaction that is overdrawn. I am almost tempted to put all my money these days in visa/mastercard money cards and pay for everything that way. No fees...no hassle and they are protected from fraud.
Anyway, I didn't explain the banking system, but I gave my opinion. sorry.....

Answer 5

They rip people off BIG TIME!!!!!!!!!!!!!!!!!