Central Bank & Texas Bankshares

[Dealey Joe]

A central bank, reserve bank, or monetary authority is an institution that manages a nation's currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the nation's monetary base, and usually also prints the national currency, which usually serves as the nation's legal tender.[1][2] Examples include the European Central Bank (ECB), the Federal Reserve of the United States, and the People's Bank of China.[3]The primary function of a central bank is to manage the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent commercial banks and other financial institutions from reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interferencePrior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song Dynasty was the first to issue generally circulating paper currency, while the Yuan Dynasty was the first to use notes as the predominant circulating medium. In 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The medieval European Knights Templar ran an early prototype of a central banking system, as their promises to pay were widely respected, and many regard their activities as having laid the basis for the modern banking system.As the first public bank to "offer accounts not directly convertible to coin", the Bank of Amsterdam established in 1609 is considered to be the precursor to modern central banks.[4] The central bank of Sweden ("Sveriges Riksbank" or simply "Riksbanken") was founded in Stockholm from the remains of the failed bank Stockholms Banco in 1664 and answered to the parliament ("Riksdag of the Estates") thus making it the oldest central bank still operating today.[5] One role of the Swedish central bank was lending to the government,[6] which was likewise true of the Bank of England, created in 1694 by Scottish businessman William Paterson in the City of London at the request of the English government to help pay for a war. The War of the Second Coalition led to the creation of the Banque de France in 1800.Although central banks today are generally associated with fiat money, the 19th and early 20th centuries central banks in most of Europe and Japan developed under the international gold standard, elsewhere free banking or currency boards were more usual at this time. Problems with collapses of banks during downturns, however, was leading to wider support for central banks in those nations which did not as yet possess them, most notably in Australia.The US Federal Reserve was created by the U.S. Congress through the passing of The Federal Reserve Act in the Senate and its signing by President Woodrow Wilson on the same day, December 23, 1913. Australia established its first central bank in 1920, Colombia in 1923, Mexico and Chile in 1925 and Canada and New Zealand in the aftermath of the Great Depression in 1934. By 1935, the only significant independent nation that did not possess a central bank was Brazil, which subsequently developed a precursor thereto in 1945 and the present central bank twenty years later. Having gained independence, African and Asian countries also established central banks or monetary unions.The People's Bank of China evolved its role as a central bank starting in about 1979 with the introduction of market reforms, which accelerated in 1989 when the country adopted a generally capitalist approach to its export economy. Evolving further partly in response to the European Central Bank, the People's Bank of China has by 2000 become a modern central bank. The most recent bank model, was introduced together with the euro, involves coordination of the European national banks, which continue to manage their respective economies separately in all respects other than currency exchange and base interest rates.[edit]Naming of central banksThere is no standard terminology for the name of a central bank, but many countries use the "Bank of Country" form (for example: Bank of England, Bank of Canada, Bank of Mexico). Some are styled "national" banks, such as the National Bank of Ukraine; but the term "national bank" is more often used by privately-owned commercial banks, especially in the United States. In other cases, central banks may incorporate the word "Central" (for example, European Central Bank, Central Bank of Ireland); but the Central Bank of India is a (government-owned) commercial bank and not a central bank. The word "Reserve" is also often included, such as the Reserve Bank of India, Reserve Bank of Australia, Reserve Bank of New Zealand, the South African Reserve Bank, and U.S. Federal Reserve System. Many countries have state-owned banks or other quasi-government entities that have entirely separate functions, such as financing imports and exports.In some countries, particularly in some Communist countries, the term national bank may be used to indicate both the monetary authority and the leading banking entity, such as the Soviet Union's Gosbank (state bank). In other countries, the term national bank may be used to indicate that the central bank's goals are broader than monetary stability, such as full employment, industrial development, or other goals.Activities and responsibilitiesUnited States Federal ReserveFunctions of a central bank may include:implementing monetary policies.determining Interest ratescontrolling the nation's entire money supplythe Government's banker and the bankers' bank ("lender of last resort")managing the country's foreign exchange and gold reserves and the Government's stock registerregulating and supervising the banking industrysetting the official interest rate – used to manage both inflation and the country's exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms[edit]Monetary policyCentral banks implement a country's chosen monetary policy. At the most basic level, this involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency (disallowed for countries with membership of the International Monetary Fund), currency board or a currency union. When a country has its own national currency, this involves the issue of some form of standardized currency, which is essentially a form of promissory note: a promise to exchange the note for "money" under certain circumstances. Historically, this was often a promise to exchange the money for precious metals in some fixed amount. Now, when many currencies are fiat money, the "promise to pay" consists of the promise to accept that currency to pay for taxes.A central bank may use another country's currency either directly (in a currency union), or indirectly (a currency board). In the latter case, exemplified by Bulgaria, Hong Kong and Latvia, the local currency is backed at a fixed rate by the central bank's holdings of a foreign currency.In countries with fiat money, the expression "monetary policy" may refer more narrowly to the interest-rate targets and other active measures undertaken by the monetary authority.Goals of monetary policyThe European Central Bank building in FrankfurtHigh employmentFrictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. Unemployment beyond frictional unemployment is classified as unintended unemployment.For example, structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Macroeconomic policy generally aims to reduce unintended unemployment.Keynes labeled any jobs that would be created by a rise in wage-goods (i.e., a decrease in real-wages) as involuntary unemployment:Men are involuntarily unemployed if, in the event of a small rise in the price of wage-goods relatively to the money-wage, both the aggregate supply of labour willing to work for the current money-wage and the aggregate demand for it at that wage would be greater than the existing volume of employment.—John Maynard Keynes, The General Theory of Employment, Interest and Money p11Price stability;Inflation is defined either as the devaluation of a currency or equivalently the rise of prices relative to a currency.Since inflation lowers real wages, Keynesians view inflation as the solution to involuntary unemployment. However, "unanticipated" inflation leads to lender losses as the real interest rate will be lower than expected. Thus, Keynesian monetary policy aims for a steady rate of inflation.In opposition to Keynes, the Austrian School of economics views inflation simply as a transfer of wealth from currency holders to those who inflate the currency.Economic growthEconomic growth can be enhanced by investment in capital, such as more or better machinery. A low interest rate implies that firms can loan money to invest in their capital stock and pay less interest for it. Lowering the interest is therefore considered to encourage economic growth and is often used to alleviate times of low economic growth. On the other hand, raising the interest rate is often used in times of high economic growth as a contra-cyclical device to keep the economy from overheating and avoid market bubbles.Interest rate stabilityFinancial market stabilityForeign exchange market stabilityConflicts among goalsGoals frequently cannot be separated from each other and often conflict. Costs must therefore be carefully weighed before policy implementation.[edit]Currency issuanceSimilar to commercial banks, central banks hold assets (government bonds, foreign exchange, gold, and other financial assets) and incur liabilities (currency outstanding). Central banks create money by issuing interest-free currency notes and selling them to the public in exchange for interest-bearing assets such as government bonds. When a central bank wishes to purchase more bonds than their respective national governments make available, they may purchase private bonds or assets denominated in foreign currencies.The European Central Bank remits its interest income to the central banks of the member countries of the European Union. The US Federal Reserve remits all its profits to the U.S. Treasury. This income, derived from the power to issue currency, is referred to as seigniorage, and usually belongs to the national government. The state-sanctioned power to create currency is called the Right of Issuance. Throughout history there have been disagreements over this power, since whoever controls the creation of currency controls the seigniorage income.

[Dealey Joe]

As of the year 2000, there were seven countries without a Rothschild-owned Central Bank: AfghanistanIraqSudanLibyaCubaNorth KoreaIranThen.......... along came the convenient terror of 9-11 and soon Iraq and Afghanistan had been added to the list, leaving only five countries without a Central Bank owned by the Rothschild Family:SudanLibyaCubaNorth KoreaIranWe all know how fast the Central Bank of Benghazi was set up.The only countries left in 2011 without a Central Bank owned by the Rothschild Family are:CubaNorth KoreaIran

[Dealey Joe]

Here is something I found from 1983.Do you recognize any of these directors?The Texas Commerce Bank (officially Texas Commerce Bank N.A.[1], with its parent bank holding company known as Texas Commerce Bancshares, Inc.) was a Texas-based bank acquired by Chemical Banking Corporation of New York in May 1987. The acquisition of Texas Commerce Bank represented the largest interstate banking merger in history at the time with a purchase price of $1.2 billion.[citation needed] The bank had its headquarters in what is now the JPMorgan Chase Building (formerly Gulf Building) in Downtown Houston, Texas.[2]Prior to the merger, interstate banking was illegal in Texas and many other states,[3] which effectively prevented such cross-border mergers. Texas and New York had changed their laws to allow a merger of an in-state bank and an out-of-state bank. Without those changes to the law, the merger between Chemical Bank and Texas Commerce Bank, and later Chase Manhattan Bank would not have been possible.[4]Through a series of mergers and acquisitions Chemical Bank bought Chase Manhattan Bank and then JP Morgan finally changed Texas Commerce to JPMorgan Chase & Co.[edit]HistoryThe Texas Commerce Bank traces its roots to 1866. Texas Commerce changed its name to Chase Bank of Texas in 1998 and merged into The Chase Manhattan Bank in 2000.[5]In 1977, Lady Bird (Claudia Taylor) Johnson (wife of President Lyndon Baines Johnson) became a director of Texas Commerce Bank and Texas Commerce Bancshares in Houston. Other directors were former President Gerald R. Ford, Jr., former U.S. Representative Barbara Jordan and the Odessa oil industrialist Bill Noël. At one time Ken Lay of Enron was a director. Past presidents of the bank include Thomas E. Locke of Lubbock.Jeb Bush's career started with an entry level position in the international division of the Texas Commerce Bank, a job he received through James A. Baker, III, a long time family friend and chairman of the board. Bush assisted in drafting communications for the company's chairman, Ben Love. In November 1977 he was sent to the Venezuelan capital of Caracas to open a new operation for the bank. Bush spent about two years there, working in international finance. He eventually worked for the bank's executive program.J.P. Morgan acquired in 1987References: Lady Bird Johnson, Director, Texas Commerce Bank - http://content.scholastic.com/browse/ar ... id=4952The JPMorgan Chase Building, formerly the Gulf Building, is located in Downtown Houston, Texas, United States. It is one of the preeminent Art Deco skyscrapers in the southern United States. Completed in 1929, it remained the tallest building in Houston until 1963, when the Exxon Building surpassed it in height.[1] The building is the Houston headquarters of JPMorgan Chase Bank, and was formerly the headquarters of Texas Commerce Bank