IRS Malfeasance Gives a Glimpse of Larger Government Corruption
By Daily Bell Staff - May 25, 2016

No One Hates the IRS More Than House Republicans … Pity John Koskinen, who agreed to take one of the worst jobs in America and is now being punished for it.  In 2013, President Barack Obama asked Koskinen to take over at the Internal Revenue Service amid budgetary chaos, deteriorating morale and a simmering scandal. House Republicans are now trying to impeach him.  – Bloomberg

We don’t pity John Koskinen. We watched a good deal of the IRS hearings as they unfolded and it was fairly obvious a cover-up was taking place.

The people involved either weren’t telling the truth or were subject to convenient memory lapses.

It was obvious that higher-up officials at the IRS, presumably at the behest of the Obama administration, has schemed to delay the non profit status of Tea Party groups opposed to Obama.

It was obvious as well that no matter how much evidence was collected by the committee under Republican leadership, the Democratic Department of Justice would not bring an indictment.

And it did not.

IRS officials destroyed emails by “accident” while blaming the actions of the IRS on out-of-control low level individuals.

The woman at the center of the scandal, Lois Lerner, resigned and took the fifth. The Committee talked about indicting her as a first step to putting her in prison, but nothing has happened.

The cover-up went all the way to the top. Koskinen himself, while giving the appearance of being cooperative, always seemed a step behind the investigation.

There were many things he didn’t know about. And after a while it became obvious that he didn’t want to know.

Koskinen’s job, as an Obama appointee, was to clean up and move on.


Blame was duly apportioned … The agency’s boss resigned, a top deputy retired, and the director of the offending unit was placed on leave and declared in contempt of Congress. Half a dozen congressional committees vowed to fumigate every pixel of offending detail. One managed to produce an 8,000-page report.

It certainly sounds like there were repercussions, but not really. Someone retired. Ms. Lerner was questioned by Congress. A voluminous report was produced and ignored.

Delaying non profit status of anti-Obama groups was only the latest IRS sin.

A previous scandal saw the IRS apologizing for what reports called “a lavish 2010 conference in California that included an elaborate Star Trek spoof training video.”

The entire conference cost upwards of $3 million and the IRS later warned expenses could exceed $5 million.

The agency didn’t know exactly how much because no one was keeping track of costs.

And that’s the real problem: government doesn’t operate like a normal business.

It doesn’t operate like any kind of venture. The normal checks and balances that exist in private commerce are suspended.

And the laws that citizens have to obey don’t apply to those in Congress.

The result is institutional arrogance. Spend any time in the higher reaches of government and you are surely aware of the protective layers.

The IRS is a good example of how the protection works.

IRS officials don’t have to keep track of how much they spend.

They can send personal, incriminating e-mails knowing that if there’s any trouble those emails will be erased and “lost.”

If they’re hauled before Congress, they can lie without being exposed to significant penalties.

If something damning is proven, they can resign without prosecution.

Congress hasn’t criminally prosecuted a single individual involved in the IRS coverup. But that is to be expected.

Congress is part of the problem as well. When people are asked if Congress is trustworthy only some six percent agree.

That’s a rounding error.

Both parties are willing to spend trillions of dollars fighting the War on Terror. But everyone on Capitol Hill surely knows that the CIA and the Pentagon created first Al Qaeda and then ISIS in the first place.

They just don’t mention it.

The idea is to build a “terrorist” enemy that the military industrial complex can fight.

Eventually tens of trillions are to spent in pursuit of this initially fictitious enemy.

Congress is deeply complicit in this military hoax. So is the President. So is the judiciary.

Congress knows as well, that the current monetary system is ruinous. It also knows that in this era of modern central banking, the IRS is not even necessary.

The Fed can print all the money it wants. It supposedly printed and sent $16 trillion around the world after the 2008 market crash. Very little of those “short term loans” were every repaid.

It is very likely that almost nothing about the US graduated income tax is exactly as it seems. When it comes to US taxes, official explanations are questionable indeed.

This article grapples with the question of IRS corruption. But the issue is actually a lot bigger than that. All three branches of government are  indefensibly corrupt.

Conclusion: Since everyone is involved, no one will be identified or accused. The best thing American citizens can do is probably to stay far away from Capitol Hill. Take care of yourself and your family and be prepared for a variety of unfolding scenarios. Nothing is  certain but the corruption.

You don’t have to play by the rules of the corrupt politicians, manipulative media, and brainwashed peers.

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  • Praetor

    Now you’re talking DB. CORRUPTION always = waste.

    Time for a house cleaning, that includes the senate, and the white HOUSE. Could we please have term limits for the judiciary, in the marbled structure called scotus. If the bureaucracy can’t do their jobs of fighting white collar crime on wall street and the banking industry, those bureaucracies should be eliminated, they are not doing their jobs anyway and are waste of resources.

    I like the fact you point out the IRS can’t or won’t keep track of expenses for their big party. For a service that asks us to account for every penny we drop on the ground. This reinforces, ‘nothing is certain but the corruption!!!

    • Term limits for Scotus? How about no Scotus?

      • alaska3636

        Then, who would “interpret” the constitution?

        • People who wanted to live under it.

          • alaska3636

            Out of curiosity: Does the DB think that natural (negative) rights of life, liberty and property are subject to interpretation? Or a facet of human action?

          • Yes. People will interpret them differently.

          • Gambeir Bay

            You mean psychopaths will don’t you?

      • Praetor

        Better Idea!!!

      • Samarami

        You beat me to the punch. How about term limits of 10 seconds??? Make that for “the” senate and “the” white house (I presume Praetor is referring to that brainless abstraction they’re calling “US Senate and House”). Sam

      • Gambeir Bay

        It’s that we need to make it illegal to alter the laws or to amend or create new laws without a public vote, and even if approved it then must not violate the protections and prohibitions written in the Bills of Rights. 98% of the problem is this tyranny of creating laws without any lawful mandate. Congress has been passing over 40 thousand new laws for the last decade. There’s so many laws no one is immune from anything any longer. It’s insane. Just look at this insanity over drugs laws, costing billions, putting people and kids in jails, it’s madness.

    • Gambeir Bay

      Judiciary is corrupt because the corrupt appoint them. Justice Powell, and the Powell memo confirms the almost open treasons against the Bill of Rights which is their duty to protect. It’s no wonder the whole nations is going down with kepto-corporate stooges like that making ruling on the people supreme laws.

  • Jim Johnson

    I could argue our Constitution was written specifically to prevent the rise of Bureaucracy. Until we can fire these bureaucrats for being or acting stupid, it will continue to run wild, and the parasite kills the host. We now see them so brazen as to actually disrespect those elected to “oversee” their operations. My hope is Trump will make inroads on how to accomplish this house-cleaning. Every firing will no doubt result in “contract” violations, and will be expensive, initially. When these psychopaths find themselves out of Power and out of the Game, though, corrections will ensue.Then they begin eating each other. Mark Twain wrote an interesting piece as he watched one of them eating breakfast by himself. The man was in pure anguish.

    • Praetor

      Layoffs! The union contract probably gives them 2 years of call back rights. Just never call them back, and never replace them. The job is no more. And never a twain shall meet, never again!!!

      • Jim Johnson

        Thanks, P. This will work also in my local monstrosity. We changed our County gov’t to one that “Staff” developed, and we are now seeing our Electeds being ordered around, given tasks to complete, and disallowed from talking directly to anyone but the GM. Hell, they just tossed Robert’s Rules of Order. He fired 3 Heads that disagreed with his efforts only 5 months into this new structure. This is a brazen move by bureaucrats, and will spell the end of our Republic.

        • Pilgrim

          The tail wagging the dog.

      • Gambeir Bay

        It’s not the fed-corp employee’s union, it’s the ass lickers who get the licks. I saw people spend 30 years as employees, retire and then be rehired as a “critical worker” a couple weeks later. Barf! Retire, start drawing retirement and then go back for your regular salary. I guess if money is all that matters to you and you have nothing else to do with your life the this is a great way live out your life.

    • Gambeir Bay

      Yet again, aren’t we all now living in the neo-con utopias of “At Will States?”
      Why should canning crooks and incompetents be anything different for President Trump as opposed to CEO Trump shitcanning some dumbass?

  • FreeOregon
    • Gambeir Bay

      Oregon, what happened to ya? Hipster braindead central or what? Cops taking peoples cars because they are un-insured. What a hell hole that State has become.

  • Goldcoaster

    I left a scathing comment on Bloomberg, the jist of which was “if they would have found criminal wrongdoing there would have been blood in the streets. Thus, they couldnt find criminal wrongdoing”.
    My comment was deleted.

    • Gambeir Bay

      Ha..ha…yea well with a name like Bloomberg it’s to be expected. Best thing is to cut these people out of public discussion altogether and not support them in any way, but thanks very much for sharing your experience here so that we can all be aware of how they like to control the discussion over their in that false reality.

  • tetrahemicon

    First, end “non profit” status. If these groups are “doing good work” the market will take care of it. Another question is, who are they doing good for, their own members like a trade union or strangers who are in need of help. One man’s “doing good” is often not good for other innocent parties.
    In addition, the people that run these dot orgs pay themselves very profitable salaries that offset any taxes they may pay.

    • Gambeir Bay

      Bingo! You’re on to them now. Business associations operating under the guise of not for profit organizations and trade unions and trade associations pool mass $$$ to buy votes. It’s a bribe for votes scheme + corruption and it equals the destruction of free enterprise, freedom of speech, of travel, of everything.

      • tetrahemicon

        John Batchelor had Richard Epstein on his show tonight talking about how companies that are charged with wrongdoing have their $ penalties diverted by the DOJ to left-wing non-profits like LaRaza at a 2-1 ratio instead of the money going to the general fund where congress would control it.
        The 19 min podcast is on JohnBatchelorshow dot com
        It’s “Unchecked Power of the Administrative…”

        • Gambeir Bay

          Hmm…well here’s the way I see the reality of this report. The reality is that any supposed fines imposed by DOJ are only fines in the minds of the employees of the DOJ and those who buy into the idea that the same corporate controlled political system is actually going to impose fines on itself.

          The explanation that these supposed fines are then diverted to one particular collection of the left or right non-profits depends who is in office, naturally, and it is a completely engineered invention designed to keep a sense of outrage inflamed within people involved in the distraction of political theater.

          Notice here that the non-profit is somehow labeled leftist?
          You cannot be a political organization and be a non-profit.
          That’s the stipulation which prevents church’s from engaging in open politics.

          After Trump is elected they will saying his DOJ is sending money to the New Republican Magazine or something.
          LOL! So it’s a bunch of BS.

          In reality the money fines are theater. Oh sure someone might actually have to pay a fine to keep the scheme alive, and or to eliminate the competition, but the whole idea is pretty absurd when you consider that the USAF has been engaged, evidently, in spraying coal waste and other byproducts on the heads of the entire population for over twenty years now.

          If anyone wants to discuss the matter I refer them here to Chuck Norris, and I hope you agree with him for your own sake.

          The money which is being extracted from the American people is so huge that if all taxations, hidden and open were ended, the amount divided among all Americans would exceed $3,000 dollars per person, per month.

          Alone, the US Military receives so much money that one annual year budget could buy every homeless person in America a million dollar home with money to spare.

          Ultimately you have to abandon the facade of politics and ask where is all this money going? It’s not going to building the infrastructure of the nation, it’s not going into the military we see. Rumsfeld admitted the department of defense couldn’t account for $2.3 trillion in transactions; $2.3 trillion — that’s $8,000 for every man, woman and child in America.” As reported by CBS, 1/29/02

  • Jon Jones

    I have watched an interview between Alex Jones and Donald Trump. Trump certainly knows that the banksters and globalists are running the USA. His son also has vaccine induced autism.

  • apberusdisvet

    Most are not aware that the IRS is unconstitutional, is not a Government agency, and in fact is a private corporation. At the time of establishment the scam occurred to ensure the recently enacted Federal Reserve had a vehicle to compel compliance of the US sheep to pay interest on their new indebtedness.

    • Brain@KP

      Please cite your references/proof that the IRS is a Private Corporation? Last I looked it is Title 26 United States Code which pretty much makes it a government ageny.

  • Renov8

    Bring the house down…….don’t pay the dog his bone.

  • Ernie Hopkins

    Great piece and really summed up the whole scenario well. I hope people are paying attention to your conclusions advise.

  • Rex Tyrano

    Nothing is more treasonous in a Democracy than subverting the voting process!

  • Rex Tyrano

    A major problem with government is incentives. While the private sector is rewarded for efficiently satisfying customers, the public sector is rewarded by loyalty to superiors, and amassing and centralizing power. Every page, every sentence, every word of legislation and regulation is fertilizer that enables public sector bureaucrats to grow the bureaucracy and the power of the state. Public sector bureaucrats are in fact punished for efficiency and problem solving – they lose funding and therefore status and power. Consider for example:

    • Why is the cost of compliance (time wasted, litigation, record keeping, mal-investment, fraud, 100K+ IRS workforce, preparer fees, etc.) with our 70,000+ page Income Tax Code now exceeds half a trillion dollars a year?

    • Why, as the end of a fiscal year approaches, does every government bureaucracy rush to spend every remaining cent of funds?

    • What would happen to the Drug Enforcement Agency if the drug problem were “solved”?

    • Why is there a Bureau of Indian Affairs in the 21st century?

    • What has the Department of Energy accomplished re energy independence – the ethanol lunacy?

    • What has the Environmental Protection Agency accomplished other than insuring “dirty” jobs and processes move to such ecological wonderlands as China, India, Bangladesh, etc.?

    • Why is American education poorer but vastly more expensive today than before the creation of the Department of Education?

    How do we incentivize government bureaucrats to change behavior?

  • Calcinor Jones

    A well written article. The US government has the anti-Midas touch and they know that most Americans will do nothing about it. The brazen nature of their deception pilfers the prioritization of retaining freedom at all costs.

  • robertsgt40

    The IRS is the collection agency for the privately owned Fed. They both have the same qualities, corruption and arrogance. Nothing will change until the system collapses.

  • Samarami

    If one accepts the fact that government IS organized crime of the highest nature, s/he can then comprehend the humor in “investigations”. Are corruptions corruptible? Do dogs chase their tails? Let’s have a discussion. Sam

    • Gambeir Bay

      I don’t, I accept that people are gullible and vote on the basis of low information propaganda issued by the billionaires who own the press and who now own the political system with a legalized bribe for votes system.

      Government is not organized crime. It’s the corporate agenda to destroy our form of government and to replace it with the ancient order of new royalty. We already have the nobles here in our own land. Show me a billionaire who doesn’t have the title of CEO? That’s the American Nobility and we need to get rid of them ASAP and return the law to the people.

      Our Constitution and our Bill of Rights are still the greatest documents yet written by human beings in matters of government. The corruption can be excised by rejecting the very people who now are destroying our laws and our nation with their own greed and private agenda’s.

      • Samarami

        If you indeed accept that monopoly government serves a socially useful purpose — and deserves the support not only of you, but also of ALL (including me) — under threat of violence, when necessary; then it’s understandable that you also believe that ‘…”our” constitution and “our” bill of rights are viable (in matters of “government”)…’ I don’t — and I prefer not to be included in the “our”.

        I like the way Dan Sanchez defines elections and government:

        That’s why my message is to abstain from beans:


        • Gambeir Bay

          Voting is a moot issue given the controlled paradigm of a completely corrupted political system, a media owned by a handful of billionaires, and a population so dumbed down that college students don’t even know who fought the civil war.

          We are facing an apparently aggressive, abusive, and hostile government because we ourselves have stupidly given up our duty to ourselves as the citizen soldier.

          Every time a society does this they end up enslaved. There are no societies where an unarmed population doesn’t eventually end up being slaughtered.

          That’s the only reason we are now seeing use threats of violence towards the entire population. The implementation of a militarized police, and the loss of control over both our own local protectors and our national defense.

          Voting for preselected corporate stooges is worse than not voting at all. I can not argue for voting but MetaCynic (Above Comment) does put forward some good thoughts.

          • Samarami

            It appears, Gambeir Bay, that you and I are in general agreement. Perhaps we differ somewhat in the use of words and definitions.

            I don’t see, for instance, this specific government (they’re calling it “The-United-States”) as corrupted. I see all monopoly political systems everywhere — from the beginning of recorded history — as corruption. Nobody has a “right” to impound the resources or the production of another under threat of violence.

            You might correctly observe that large numbers of folks have lusted for rulers (a king, a president, a prime-minister) — and have dragged resisters (“anarchists”) along under coercion. Many have been simply bedazzled into pledging allegiance and singing anthems to “nations” (rulers) and marching into endless wars.

            But there is never total consent-of-the-governed. Read this:


            My ongoing mantra, however, is that I can be free. Here. Today. Where I’m “at”.

            I believe you can also. In order to do so, one must cease “voluntary compliance”. S/he may be forced and coerced under duress to “comply” (I always believe a man with a loaded gun). But never “voluntary compliance”.

            Once one sees that difference, s/he will be free.


          • Gambeir Bay

            Carroll Quigley said the only time that people have been truly free was when they were armed, and when they were armed with weapons equal to the military. President Washington spent a great deal of his later life organizing militia, and making it clear that the people must be the sword of government or else the sword would be turned on them.

            We got a bunch of corporate employees in DC and these stooges are trying to start another Global war right now. People better wake up to reality. The existing slave army isn’t enough for the job these blood suckers have in mind.

            America’s kids can be drafted tomorrow with the stroke of pen. Just look at the edicts, proclamations of high treasons coming out of that legion of corrupted corporate workers in DC, and in State and Local Government which abridge the Supreme Laws of the People. We the people are the government and when you attack those laws you are attacking our form of government. That is an act of High Treason by definition and these attacks are coming across by way of illegal laws abridging the Bills of Rights in all ten laws. From the illegal banning of firearms to the attack on free speech with phony hate speech laws, our government is being destroyed by corporate owned employees pretending to be patriots while tearing up the laws of the people.

            At no time before or since this nation was first formed under the Articles of Confederation has it ever had a greater enemy than the corporate sponsored overthrow of the people laws from the legislative officials they have bought.

            Anyone who thinks that they don’t have a bone in this are dead wrong. On the homefront every single individual is a member of the State Militia. Whether you know it or not you’re already under the command of your governor. If you doubt that look up your State Constitution.

            Why this matters is the fact that these corporate stooges are desperately trying to overthrow the leadership of both Russia and China, and while this has worked against lessor powers, it won’t work against those nations. This is a surefire way to obtain a thermonuclear war. If there was ever a time to be armed for personal reasons it is now.
            The threat is internal. They control the political machine, they control a majority on the Supreme Court, they control the broadcast media in television, radio, and print. The Stooges of Corporate America are our elect and it shows.

            The greatest danger to all of us is the subversion of our Bills of Rights, the unlawful acts of High Treason forbidding the imposition of any governmental authority to cross over the peoples supreme laws in all areas, and the attacks aren’t coming from Russia, China, or anyone in the middle east. They are coming from corrupt legislative persons in local, state, and federal levels.

            The enemy is an internal enemy which has accessed and corrupted the state security and it’s inside our own borders. Some are foreign and some are not, but all are private institutions working to overthrow the government, and by that I mean our government. We the people are the rightful government and the Bills of Rights are our laws. They are the Supreme Laws upon which all American Law rests. Destroy or allow any abridgement of them and the de facto effect is an overthrow of our form of government.

            When people talk about needing hate speech laws, remind them that what they are actually doing is engaging in Sedition, and to those who have abridged those supreme laws, it is actually High Treason, and this is the case because we the people are the government, and to abridge those laws is to make war upon the government. That is the very definition of High Treason. It is to make war upon the government of the United States, and we are that government. The government is made up of people we elect. They are there to serve us and if what they are doing is to undermine those laws, then they are traitors and engaging in making war upon the people. That’s High Treason.

  • MetaCynic

    What’s wrong with the IRS wasting money on wild, lavish parties? The more of their budget spent on partying, the less that will be available for tax collection and enforcement. This is the best we can hope for short of eliminating that agency. So, guys and gals, party on; party 24/7; party til you drop, and then party some more!

    • Don Duncan

      On this note, I hope all the revenue from all sources goes into the bureaucrat’s pockets (offshore accounts, personal spending). If not, it will go into regulation enforcement. Only the honest businesses get enforcement, no cronies. The more congressional gridlock the better the economy, and a little more freedom.

      • MetaCynic

        One thing for certain that Congress will never be gridlocked on is its quest for bipartisan self enrichment. Their greed could be exploited to our advantage by allowing each member of the House and Senate who votes for spending cuts to share in a pool of money equal to 1% of the cuts. Of course no one will opt out of this legalized plunder. So for every trillion $ cut in spending, each of our venerable elected public servants will pocket about $18 million, no questions asked. Every sacred spending program will be kicked to the curb in the rush to get rich. Every corporate lobbyist, empire building bureaucrat and special privilege group will be mercilessly steamrolled in the effort to out-Jefferson, Jefferson.

        What’s not to like about purchasing our liberty by allowing already thieving politicians to legally steal to get rich from only a few hours of work and then retiring from our lives forever?

        • Gambeir Bay

          That’s the fault of ever single American that votes and no one else’s. Stop voting for the corrupt and stop supporting their corruption with your vote. It’s that simple.

          • MetaCynic

            I agree that voting is the problem. Voting legitimizes the political system. I refuse to participate in the voting farce, so I can’t be blamed for the political outcome. I am sure that very few voters vote defensively – to be left alone. Most everyone votes with the expectation of getting something for nothing at the expense of everyone else. So it will be a cold day in Hell when voting is boycotted on principle.

            Yet, I recall reading somewhere that in every election for more than the last century, more qualified voters, for whatever reasons, refused to vote than voted. That means that “None of the Above” has been the winner each time! Perhaps if “None of the Above” was allowed on the ballot, then voting might be meaningful, forcing the political class to put up candidates who really appealed to the public. But then that still wouldn’t change the true nature of democracy which is two wolves and a lamb voting on what to eat for lunch!

        • Don Duncan

          This plan does not strike the root of the problem. The cycle would begin again. No solution will come from the authorities. As long as an authoritarian system is supported it will be used against its supporters. If only they could see this is inevitable not an accident or temporary bad rulers. The boycott of govt., of authoritarianism, is paramount. A new paradigm of a voluntary society is needed to civilize us.

          • MetaCynic

            My plan is somewhat tongue in cheek. The root of the problem is group identity – collectivism – which produces a culture that accepts theft and coercion of other groups for the benefit of one’s own group. I suspect that such behavior has been around forever and is imprinted in human DNA. And if others can be sacrificed to one’s group then why shouldn’t individuals belonging to a group also be sacrificed for the benefit of their group? Perhaps humanity lacks the intellectual horsepower to not identify with groups, and those who have the smarts will manipulate the others. I see no way out of this predicament.

      • Mtdewd

        On a different subject, but same concept, I kinda hope Hillary gets to be president. Then we can watch her run the whole government system straight into the ground, bankrupt the whole darn thing, and force a systemic reboot….

        Imagine what she would do with the IRS, CIA, FBI, NSA, ABC, CBS, NBC, given her past activities…. makes me shiver…

        • Don Duncan

          Larken Rose agrees, or he did a year ago.

          I know the concept of govt. is anti-life and therefore unfixable. When that concept fails overtly, as it has over and over for millennia, we have an opportunity for a new paradigm. But not so when the failure is delayed, and a compromise society accepts the morality of authoritarianism but uses the practically of voluntarism to undue harm. This is what happened with the first colony in the Americas. Communism was specified in their compact. On the verge of starvation they scraped it for a mixed economic plan, mostly capitalist, and saved themselves, by order of the governor of the colony. Too bad they didn’t revolt, ON PRINCIPLE, and refuse to be ruled. The difference would have given rise to a new social paradigm, and we might be living on a star ship exploring the ‘verse. Perhaps this time….?

  • Pilgrim

    “Any departure from Yahweh’s command will fester into malignancy & decay, intensify to a point of conflict & destruction, or progress through stages of discovery until the deviation is purged and equilibrium restored.” The Gates of Hell, Alfred Eugene, Pearl

  • TJ

    When are the American People going to wake up and and finally understand the IRS, like the Federal Reserve, is a PRIVATE Corporation!
    Both the Fed and the IRS were created in 1913 and the IRS is the collection agent for the Federal Reserve. It is the muscle behind the central bank mob!
    The Federal Reserve controls and runs this country.

    “Federal Reserve Directors: A Study of Corporate and Banking Influence
    Published 1976

    Chart 1 reveals the linear connection between the Rothschilds and the Bank
    of England, and the London banking houses which ultimately control the
    Federal Reserve Banks through their stockholdings of bank stock and their
    subsidiary firms in New York. The two principal Rothschild representatives
    in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which
    set up the Jekyll Island Conference at which the Federal Reserve Act was
    drafted, who directed the subsequent successful campaign to have the plan
    enacted into law by Congress, and who purchased the controlling amounts
    of stock in the Federal Reserve Bank of New York in 1914. These firms
    had their principal officers appointed to the Federal Reserve Board of
    Governors and the Federal Advisory Council in 1914. In 1914 a few
    families (blood or business related) owning controlling stock in existing
    banks (such as in New York City) caused those banks to purchase controlling
    shares in the Federal Reserve regional banks. Examination of the charts
    and text in the House Banking Committee Staff Report of August, 1976
    and the current stockholders list of the 12 regional Federal Reserve
    Banks show this same family control.

    N.M. Rothschild , London – Bank of England
    | |
    | J. Henry Schroder

    | Banking | Corp.
    | |
    Brown, Shipley – Morgan Grenfell – Lazard – |
    & Company & Company Brothers |
    | | | |
    ——————–| ——-| | |
    | | | | | |
    Alex Brown – Brown Bros. – Lord Mantagu – Morgan et Cie — Lazard —|
    & Son | Harriman Norman | Paris Bros |
    | | / | N.Y. |
    | | | | | |
    | Governor, Bank | J.P. Morgan Co — Lazard —|
    | of England / N.Y. Morgan Freres |
    | 1924-1938 / Guaranty Co. Paris |
    | / Morgan Stanley Co. | /
    | / | Schroder Bank
    | / | Hamburg/Berlin
    | / Drexel & Company /
    | / Philadelphia /
    | / /
    | / Lord Airlie
    | / /
    | / M. M. Warburg Chmn J. Henry Schroder
    | | Hamburg ——— marr. Virginia F. Ryan
    | | | grand-daughter of Otto
    | | | Kahn of Kuhn Loeb Co.
    | | |
    | | |
    Lehman Brothers N.Y ————– Kuhn Loeb Co. N. Y.
    | | ————————–
    | | | |
    | | | |
    Lehman Brothers – Mont. Alabama Solomon Loeb Abraham Kuhn
    | | __|______________________|_________
    Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg
    ————————- | | |
    | | Mortimer Schiff James Paul Warburg
    _____________|_______________/ |
    | | | | |
    Mayer Lehman | Emmanuel Lehman
    | | |
    Herbert Lehman Irving Lehman
    | | |
    Arthur Lehman Phillip Lehman John Schiff/Edith Brevoort Baker
    / | Present Chairman Lehman Bros
    / Robert Owen Lehman Kuhn Loeb – Granddaughter of
    / | George F. Baker
    | / |
    | / |
    | / Lehman Bros Kuhn Loeb (1980)
    | / |
    | / Thomas Fortune Ryan
    | | |
    | | |
    Federal Reserve Bank Of New York |
    |||||||| |
    ______National City Bank N. Y. |
    | | |
    | National Bank of Commerce N.Y —|
    | |
    | Hanover National Bank N.Y.
    | |
    | Chase National Bank N.Y.
    | |
    | |
    Shareholders – National City Bank – N.Y. |
    —————————————– |
    | /
    James Stillman /
    Elsie m. William Rockefeller /
    Isabel m. Percy Rockefeller /
    William Rockefeller Shareholders – National Bank of Commerce N. Y.
    J. P. Morgan ———————————————–
    M.T. Pyne Equitable Life – J.P. Morgan
    Percy Pyne Mutual Life – J.P. Morgan
    J.W. Sterling H.P. Davison – J. P. Morgan
    NY Trust/NY Edison Mary W. Harriman
    Shearman & Sterling A.D. Jiullard – North British Merc. Insurance
    | Jacob Schiff
    | Thomas F. Ryan
    | Paul Warburg
    | Levi P. Morton – Guaranty Trust – J. P. Morgan
    Shareholders – First National Bank of N.Y.
    J.P. Morgan
    George F. Baker
    George F. Baker Jr.
    Edith Brevoort Baker
    US Congress – 1946-64
    Shareholders – Hanover National Bank N.Y.
    James Stillman
    William Rockefeller
    Shareholders – Chase National Bank N.Y.”
    George F. Baker

    • Legislatively speaking, the Fed is a quasi-public entity.