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The Federal Reserve Has Its Own Police and Is Part of a Vast Surveillance Center – Should You Worry?

Courtesy of Pam Martens

Former Police Commissioner Raymond Kelly Inside the Lower Manhattan Security Coordination Center

Without any Congressional hearings on the matter, the USA Patriot Act in 2001 bestowed on the 12 regional Federal Reserve banks domestic policing powers. While the Federal Reserve Board of Governors in Washington, D.C. is deemed an “independent federal agency,” with its Chair and Governors appointed by the President and confirmed by the Senate, the 12 regional Fed banks are private corporations owned by the member banks in their region. As settled law under John L. Lewis v. United States confirms: “Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region.”

In the case of the New York Fed, which is located in the Wall Street area of Manhattan, its largest shareowners are behemoth multinational banks, including JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley. So what the USA Patriot Act effectively did was to give multinational corporations domestic policing powers in New York City via the New York Fed.

Section 364 of the USA Patriot Act reads as follows:

“Law enforcement officers designated or authorized by the Board or a reserve bank under paragraph (1) or (2) are authorized while on duty to carry firearms and make arrests without warrants for any offense against the United States committed in their presence…Such officers shall have access to law enforcement information that may be necessary for the protection of the property or personnel of the Board or a reserve bank.”

The Fed’s police officers are technically known as FRLEO, short for Federal Reserve Law Enforcement Officer. The system has its own police academies for training, their own patch and badges, uniforms, pistols, rifles, police cars and the power to arrest coast to coast without a warrant. They have ranks of Sergeant, Lieutenant, Captain and a recruitment ad campaign with the slogan: “It’s about respect and recognition from your peers. It’s you.” We found current job openings for the St. Louis Fed, the San Francisco Fed, and the Dallas Fed.



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