Final answer:
The 12 Federal Reserve District banks are quasi-public due to their blend of private ownership and public control within the Federal Reserve System. These regional banks are part of a system established to handle various critical banking functions on a national level. The financial crisis of 2008 led to a banking landscape where few large banks controlled the majority of assets and prompted an increase in credit union participation.
Step-by-step explanation:
The 12 Federal Reserve District banks blend private ownership and public control, making them quasi-public banks. These regional banks are part of the Federal Reserve System, which was established to serve as a central bank for the United States, providing a range of services including serving as a bank for banks, regulating the banking industry, and managing the nation's money supply. The unique structure of the Federal Reserve System ensures both private participation and public oversight, reflecting its dual nature as both a private entity, due to its member banks' ownership, and a public institution because of its public control and obligations.
A critical event related to banks and public trust occurred in 2008 with the financial crisis, leading to bank failures and mergers, which decreased the total number of banks from 7,085 in 2008 to 5,571 by the end of 2014. This period also saw an increase in interest and participation in credit unions, evidenced by the "Transfer Your Money" movement in 2009, as many sought alternatives to traditional big banks amidst widespread bailout frustrations. The banking landscape was further concentrated as of 2013, with the 12 largest banks controlling 69 percent of all banking assets.