When Did the US Treasury Cede Authority to the Federal Reserve?

If you do a careful study of the changes in American currency over the years, you might be surprised. The Texas Bankers Association has a good understanding of how finance has changed over the years. Its November 2016 Annual Strategic Opportunities Conference allowed for the financial experts to prepare for future developments.

US Treasury Controlled Currency

From its founding in 1789, the United States Treasury has been in charge of the American currency. If you take a look at old dollars, you will see “US Treasury Note” and the department’s seal on them. It was quite clear who called the shots.

Chief Decision Maker: Federal Reserve

In 1914, that all changed with the rise of the Federal Reserve System. Thereafter, two seals were actually listed on the American dollar: the Treasury and Fed. Eventually, the dollar became the “Federal Reserve Note.” When the Fed Chairman spoke, people listened.

Innovative NexBank Funds Future

When NexBank CEO John Holt spoke on the aforementioned conference’s panel – “Reinventing Community Banking: Perspectives on Competing by Innovation” – people also listened. Here was a rising Dallas based bank discussing what future financial products would lead the industry.

The award-winning NexBank offers student, home, business and institutional services. It was ranked in the Top 10 in April 2017 as 5th in the nation on pretax return on equity (community banks with assets between $1 billion to $10 billion). Its strategy is obviously working well.

The future belongs to those who prepare today. The Texas Bankers Association conference allows for NexBank to be a key decision maker. The US Treasury has gradually ceded authority to the Fed. Only the future will show if that trend continues.