The Secrets of the Federal Reserve

[vernarial]

Interesting read.
I was watching an interview last night with the head of AIG. I can't say for certain that it was intentional, but he kept making it sound like the Federal Reserve was part of the governmnet.

RAY SUAREZ: Well, if Carl Icahn buys a position in a company, if Kirk Kerkorian buys a position in a company, they look for some say-so in that company, ditto Warren Buffett. How come when Uncle Sam buys an 80 percent stake in a massive company, he doesn't get a similar sort of say-so at the board level?

EDWARD LIDDY: Well, they will. The federal government is going to put in -- the Federal Reserve is going to put in, not on the board, but -- they can't own equities, per se, so they have to put them in a trust.

There will be trustees who oversee the performance of AIG, with respect to those -- the loan that they've put in. So the Federal Reserve will be very much involved in everything that we do at AIG.

In reality the federal government borrowed money from the Federal Reserve to bail out AIG. The government doesn't own part of AIG, the Federal Reserve(a private corporation) owns part of AIG.