ADDENDUM
As of 11:05 Tuesday, July 26, 1983, the list of member banks holding Federal Reserve Bank of New York stock includes twenty-seven New York City banks. Listed below are the number of shares held by ten of these banks, amounting to 66% of the total outstanding number of shares, namely 7,005,700:
|
|
|
|
|
Bankers Trust Company |
438,831 |
( 6%) |
|
Bank of New York |
141,482 |
( 2%) |
|
Chase Manhattan Bank |
1,011,862 |
(14%) |
|
Chemical Bank |
544,962 |
( 8%) |
|
Citibank |
1,090,813 |
(15%) |
|
European American Bank & Trust |
127,800 |
( 2%) |
|
J. Henry Schroder Bank & Trust |
37,493 |
( .5%) |
|
Manufacturers Hanover |
509,852 |
( 7%) |
|
Morgan Guaranty Trust |
655,443 |
( 9%) |
|
National Bank of North America |
105,600 |
( 2%) |
The tremendous number of shares held today as against the original purchases in 1914 is brought about by Section 5 of the original Federal Reserve Act which called for a member bank to buy and hold stock in the district Federal Reserve Bank equal to 6% of its capital and surplus.
Currently, shares held by five of the above named banks comprise 53% of the total Federal Reserve Bank of New York stock. An examination of the major stockholders of the New York City banks shows clearly that a few families, related by blood marriage, or business interests, still control the New York City banks which, in turn, hold the controlling stock of the Federal Reserve Bank of New York.
It is notable that three of the banks holding Federal Reserve Bank of New York stock, in the amount of 270,893 shares, are subsidiaries of foreign banks. J. Henry Schroder Bank and Trust is listed by Standard and Poors as a subsidiary of Schroders Ltd. of London. The National Bank of North America is a subsidiary of the National Westminster Bank, one of London's "Big Five". European American Bank is a subsidiary of the European American Bank, Bahamas, LTD. It is interesting to note that the directors of the European American Bank & Trust include Milton F. Rosenthal, president and Chief Operating Officer of the international gold company,
Engelhard Minerals and Chemical; Hamilton F. Potter, a partner in Sullivan and Cromwell (J. Henry Schroder Bank & Trust attorneys); Edward H. Tuck, partner of Shearman and Sterling (Citibank's attorneys); F.H. Ulrich and Hans Liebkutsch, managing directors of the giant Midland Bank of London, one of the "Big Five"; and Roger Alloo, Paul-Emmanuel Janssen, and Maurice Laure of the Societe Generale de Banque (Brussels, Belgium). [See Chart III] This information, derived from the latest issue of the tabulation available from the Board of Governors, Federal Reserve System, is cited as current evidence which indicates that the controlling stock in the Federal Reserve Bank of New York, which sets the rate and scale of operations for the entire Federal Reserve System is heavily influenced by banks directly controlled by "The London Connection", that is, the Rothschild-controlled Bank of England. [See Chart I]