Through the FDIC is how the Fed Res controls other banks. If the Fed Res actually becomes part of the US Government, then the FDIC can be ended. Banks will then be controlled by Fair Market & operate more freely in the interests of each community & would be regulated through State Banks. The Constitution does NOT grant power to form a central bank on its own, but the 10th Amendment will allows for States to establish their own banks (which has already been done).
In essence, Power that the US Government had usurped with the Federal Reserve Act will be returned to the States & the People, respectively. State & local banks will be more free to pursue their own economic interests.
If the Federal Reserve Bank is taken into the Federal Government on an Official basis, then all members of that bank will be under Oath of Office & Congress will still be limited by the Constitution to use it for the specific Powers under Article 1, Section 8, Clauses 1-to-6.