Federal Reserve Bank Stock

At the base of the Federal Reserve System are the member commercial banks.
All national, or federally chartered, banks are required to join the system; membership of state-chartered institutions is voluntary.

Members have to purchase capital stock in their district Federal Reserve bank in the amount of 6 percent of their capital, excluding retained earnings, and get the right to vote for six of the nine directors of that district bank.

Stock ownership does not convey control or the financial interest normally attached to stock in a corporation. The stock may not be sold or used as collateral and must be returned to the district reserve bank if the commercial bank ceases to be a member.