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Important information about The Federal Reserve

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The current Central Bank of the United States is the Federal Reserve founded in 1913.

Your supervisor came into the office this morning very upset. He informs you that he attended a meeting the previous evening where he learned that the Federal Reserve was organized, illegally, through a conspiracy of private citizens; many included rich industrialists from Europe. He also discovered that the sole purpose of the Federal Reserve is to make money for these rich industrialists. He asks you to research the Federal Reserve and answer three questions:

Is the Federal Reserve a legal entity?
What influence has it had on financial markets, especially this last year?
Would the country be better off without a Federal Reserve?
Respond with a four to six paragraph memo, in business format.

Follow up with a continuing dialog this week on whether or not the Federal Reserve behaves in a socially responsible manner, and whether or not it should be disbanded.

Your work MUST include a reference list. All research should be cited in the body of the paper. Please note that if you have a source in your reference section, you need to cite it in the body of the paper and vice-versa, per APA guidelines.

Objective: The objective of the Unit 5 DB Assignment will involve the following Course Outcomes and Grading Criteria with their respective percentages for the Grading Rubric:

Define the role of ethics and social responsibility in business. (30%)
Recognize situations that present potential ethical and legal issues and develop solutions for those issues. (30%)
Research current leadership styles and strategies in management. (20%)

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TO: Sally Martin, Finance Controller
FROM: John Sanders, Finance Trainee
DATE: March 9, 2010
SUBJECT: Federal Reserve:

The Federal Reserve System is a legal entity. The reason is that it came into existence with the passing of the Federal Reserve Act. The Federal Reserve is legal because it is subject to the requirements of the Administrative Procedure Act. The Administrative Procedures Act makes it obligatory on the part of The Federal Reserve to establish uniform standards for rule-making and passing judgments. From another perspective The Federal Reserve is legal because after its has paid salaries and dividends to member banks the profits of The Federal Reserve go to the government (D'Arista. J, 1994).

The Federal Reserve is a legal entity which came into existence when the Federal Reserve Act was passed by the Congress in 1913. The Democrats supported the Act whereas the Republicans opposed it. The Federal Reserve act was adapted. However, since then there are several laws that affect the functioning of The Federal Reserve. They point out to the fact that The Federal Reserve is a legal entity. Some of the laws that affect The Federal Reserve are the Banking Holding Company Act of 1956, Depository institutions Deregulation and Monetary Control Act, Financial Deposit Insurance Corporation Improvement Act, and the Emergency Economic Stabilization Act (2008) (Taylor. J.B, Ciorciari.J.D, & Shultz.G.P2009) .

The Federal Reserve has had a strong influence on ...

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