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Federal Reserve Bank
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
J Woelfel
(We recommend this as work of authority and you can order
it here)
Any one of the 12 Federal Reserve
banks created under the FEDERAL RESERVE ACT and operating in one of the
12 FEDERAL RESERVE DISTRICTS. Federal
Reserve banks are also known as "central," "reserve,"
and "regional" banks.
Section 4 of the Federal Reserve
Act outlines the organization, corporate powers, and directorate of the
Federal Reserve banks. The
Banking Act of 1935 made an important organizational change.
Under the original act, the
board of directors of the Federal Reserve bank had the power to appoint
"such officers and employees as are not otherwise provided for in
this act, to define their duties, require bonds for them and fix the penalty
thereof, and to dismiss at pleasure such officers or employees."
The designation of "governor," which Federal Reserve
banks adopted for their chief executive officer, was not provided for
in the act.
Under the Banking Act of 1935,
and effective March 1, 1936, the board of directors of the Federal Reserve
bank has the power to appoint a president, vice-presidents, and such officers
and employees as are not otherwise provided for in the act, to define
their duties, require bonds for them and fix the penalty thereof, and
to dismiss at pleasure such officers or employees. The title "governor" is reserved for members of the
Board of Governors of the Federal Reserve of the bank and shall be appointed
by the board of directors, with the approval of the Board of Governors
of the Federal Reserve System, for a term of five years. The first vice-president of the bank shall be appointed in
the same manner and for the same term as the president and in the absence
of disability of the president, or during a vacancy in the office of president,
shall serve as chief executive officer of the bank. No change was made in the number, classes, or qualifications
of the board of directors.
See FEDERAL RESERVE SYSTEM
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