Quote:
National banks chartered by the federal government are, by law, members of the Federal Reserve System. State-chartered banks may choose to become members of the Federal Reserve System if they meet the standards set by the Board of Governors. Each member bank is required to subscribe to stock in its regional Federal Reserve Bank, but holding Federal Reserve stock is not like holding publicly traded stock. Reserve Bank stock cannot be sold, traded, or pledged as collateral for loans. As specified by law, member banks receive a six percent annual dividend on their Federal Reserve Bank stock; member banks also vote for Class A and Class B directors of the Reserve Bank.
U.S. Bank N.A. is a national banking association chartered under the Office of the Comptroller of the Currency of the U.S. Credit unions, however are typically State chartered financial institutions. Perhaps the aspect of holding stock in an FRB brings with it an encouragement to maximize the profits by feeding off of as many clueless customers as possible? With credit unions and state banks being non-members and non-stock-holders perhaps they could care less--all an FRB might be for them is a clearinghouse rather than a potential profit source.
