I've heard both sides of the stories, and I don't really care for either. It's not a fact, either way, just like why I said that they supposedly threw Osama in the sea. I'm not taking sides, just stating what is there.
The Federal Reserve isn't privately owned. It's quasi-private, partially owned by the government, partially private to protect certain "interests." It's about as privately owned as Fannie, Freddie, and Ginnie Mae.
The federal reserve isn't a big of a scam as you make it out to be. There are far bigger scams in the world. It's the only thing stopping us from collapsing at the markets whim and having another Great Depression which they managed to prevent last year. Don't get me started on the gold standard.