Private Banking | Our Sovereign Soul

What Private Banking is

Private Banking refers to banking services offered to a limited clientele, typically high-net-worth individuals and institutions, on a personalized, relationship basis. A Private Bank provides dedicated attention, customized financial structures, and services that go beyond what a standard retail or commercial bank offers to the general public.

How it differs from public commercial banking

The bank most people use is a public commercial bank, a corporate depository institution chartered under federal or state Law that accepts deposits from the public and lends against them. Its relationship with the depositor is that of creditor to debtor, and the funds on deposit become the bank's assets. A Private Banking relationship, by contrast, is structured around the individual Client, with services such as asset management, trust and estate administration, custody, and tailored credit. The distinction Spivey encourages studying is the difference between being a depositor in a public system and operating as a Principal in a Private capacity.

The monetary system behind it

To study Private Banking is also to study the structure of the monetary system itself. The Federal Reserve System is the central bank of the United States, created by the Federal Reserve Act of 1913. It issues the nation's currency, sets reserve requirements, and acts as banker to the federal government and to member banks. The U.S. Department of the Treasury manages federal finances, issues securities, and operates the Treasury Directsystem through which individuals can hold government securities directly, outside the commercial banking layer. Innerstanding these layers helps clarify where Private Banking sits in relation to public monetary institutions.

The depositor as creditor

A fact often overlooked: when you deposit money in a commercial bank, you do not retain ownership of a segregated fund. You become an unsecured creditor of the bank, and the deposit becomes an asset of the bank, which owes you a debt. The Federal Deposit Insurance Act defines a "deposit" as the unpaid balance of cash or its equivalent received by a bank in the usual course of business (12 U.S.C. § 1813(l)). This is why a bank can lend against your deposit, and why, in an insolvency, you stand as a creditor rather than as the owner of specific funds.

Fractional reserve banking

Commercial banks operate on a fractional reserve model: they keep only a fraction of deposits on hand and lend out the rest. The Federal Reserve sets reserve requirements, and the deposit created when a bank makes a loan becomes new money in the system. This means the money supply is largely created through bank lending, not simply printed. Innerstanding this helps a Man see why a commercial deposit is a claim on the bank, not a store of his own property.

Lawful money and legal tender

United States coins and currency are legal tender for all debts, public charges, taxes, and dues (31 U.S.C. § 5103). The distinction between "lawful money" and "legal tender" is part of the study of what money actually is, and how the form of money a person holds affects his standing. A Private Banking relationship lets a Client consider forms of holding and settlement beyond the standard deposit account.

Holding assets directly

One of the most important distinctions in this study is the difference between holding assets through a bank and holding them directly. Through Treasury Direct, an individual can purchase and hold U.S. government securities directly with the Treasury, outside the commercial banking layer. Private custody, trust structures, and direct holding of securities keep the Client as Principal rather than as a creditor of an intermediary. This is a core reason the study of Private Banking matters to anyone concerned with the control of his own property.

Presentment

Presentment is a formal demand to pay or accept a negotiable instrument. Under the Uniform Commercial Code, presentment means a demand made by the person entitled to enforce the instrument to the maker, acceptor, drawee, or other payer to pay the instrument, or to a drawee to accept a draft (UCC § 3-431). There are two kinds: presentment for payment, a demand that the instrument be paid now, and presentment for acceptance, a demand that the drawee agree now to pay the instrument at a later date. In everyday banking, presentment is what happens when a check or draft is delivered to the bank on which it is drawn and presented for payment.

Presentment matters because it is the act that triggers the obligation to pay. When a proper presentment is made and it is dishonored, the holder gains rights against the parties liable on the instrument (UCC § 3-502). Innerstanding presentment helps a Man see how a demand for payment is properly made, how an instrument is enforced, and what follows when a presentment is refused.

How Contracts play a vital role

Every banking relationship rests on a Contract. The deposit account most people use is governed by a deposit agreement, a Contract between the bank and the depositor that sets out the terms on which the bank holds and moves the funds. A loan is a Contract, typically a promissory note, governed by the UCC's rules on negotiable instruments (UCC § 3-104). A secured loan adds a security agreement, a Contract that creates a security interest in collateral (UCC § 9-203). Even the relationship between a Private Bank and its Client is contractual, defined by the account, custody, trust, or management agreement the parties sign.

A valid Contract requires an offer, acceptance, consideration, and a meeting of the minds, and it binds only the parties who entered it. This is why reading and innerstanding the Contract before signing is vital: the terms a Man agrees to define his Rights and obligations, including what the bank may do with his funds, what fees apply, and how disputes are resolved. In Private Banking, where the sums and the structures are larger and more tailored, the Contract is the foundation of the entire relationship. Studying Contracts lets a Man enter, read, and structure his agreements deliberately rather than on the bank's standard terms.

Spivey's Private Bank and the 2024 Reassignment

Spivey does not merely study Private Banking from the outside. He owns and controls his own Private Bank, and he has acted on the study set out on this page. In 2024, Spivey filed a set of official IRS forms to reassign the obligations of the U.S. Treasury back to the Treasury, returning those obligations to their source rather than carrying them himself.

The forms Spivey used, and what each one officially does:

Form 56, Notice Concerning Fiduciary Relationship: notifies the IRS of the creation or termination of a fiduciary relationship under 26 U.S.C. § 6903, and gives notice of qualification under § 6036.
Form 56-F, Notice Concerning Fiduciary Relationship of Financial Institution: notifies the IRS of a fiduciary relationship with respect to a financial institution, such as a bank or thrift.
Form 2848, Power of Attorney and Declaration of Representative: authorizes a representative to act on the filer's behalf before the IRS, including to receive and inspect confidential tax information.

Filed together, these forms established the fiduciary relationship over the financial institution, appointed the representation, and returned the Treasury's obligations to the Treasury. This is part of Spivey's own Record of action, not theory.

Why Spivey points people here

Money and credit touch nearly every area of Rights and Status. Innerstanding how Private Banking works, and how it differs from the public banking system, helps a Man innerstand the financial structures that operate around him and make informed choices about how he holds and moves his property.

Official sources

Back to Who's Sovereign Spivey?