Corruption in Banking The largest controller of the banking system in the United States might be the Federal Reserve. Federal Reserve is constructed with board of governors, the Federal Open Market Committee, twelve regional major Federal Reserve banks located in major cities throughout the country, numerous privately owned U.S member banks and various advisory councils. Though the Fed members are appointed by the president and confirmed by the senate, the Federal Reserve is a privately institution controlled by many large privately owned banks. Once the president appoints the boards of governors, the congress has actually no significant influence on the Fed. Therefore the question of corruption in U.S banking system has risen, studies about functions of the Fed reveals that private banks like J.P Morgan has a large control over the formation and management of the monetary policy through the control over the Fed. Due to this relationship between the Fed and the private banks, the Fed has consistently neglected to document the roles and responsibilities between the board of the members, and many cases have been reported. Government Accountability Office reported that, Stephen Friedman, the chairman of NY Fed’s board of members who resigned later, was trying to posses a large amount of shares in Goldman Sachs through an automatic stock purchase program as a way to secretly give bailout to the Wall Street. In addition, in the early may, 2012. Fed’s serving member Jamie Dimon, whom also as the CEO of J.P Morgan Chase&Co tried to downplay the company’s recent $2 billion loss. Another important fact about the Federal Reserve System that has risen up a concern of corruption might be the fractional-reserve banking. This refers to the banks issue more money compared with the money they hold as reserves. Theoretically, we loan what we have, yet the Fed loans ten