The Fed’s Payments and Clearing System

Executive Summary

• The Fed has a payments and clearing system for chartered banks.

Introduction

The Fed payments and clearing system is described in the following quotation.

Only chartered banks are allowed access to the payments and clearing system, which is a network created and operated by the Federal Reserve. The DOJ targeted banks that were “involved with or willfully blind” to consumer fraud schemes that require payment systems to debit funds from consumer accounts.108 In August 2013, New York Financial Services Superintendent Benjamin Lawsky sent 117 financial institutions (including Bank of America, Wells Fargo, JPMorgan Chase, and Citigroup) a list of thirty-five payday lenders who violated New York usury laws.

Source: How the Other Half Banks

https://www.amazon.com/How-Other-Half-Banks-Exploitation/dp/0674286065

As soon as the Trump Administration took office they went about to undermine the CFPB.