If you thought SVB was bad ... The Fed is sitting on unrealized losses of ~$1.2 trillion on their $8.3 trillion bond portfolio. And the Fed is losing money every day by paying $$$ to commercial banks via reverse repos.
@WallStreetSilv The Fed sends profits to Treasury. If they have a loss, they have deferred asset to treasury, similar to when companies have a loss and get a tax credit. In the future, if the Fed is profitable again, they can claim that credit and wouldn’t have to send profits to treasury.
@eggreynolds @WallStreetSilv The Fed is agent of the Treasury, not the principal/counterparty it is assumed & pretends to be. That's why Fed member/investor banks hold no joint/common stock. Similarly @bankofengland as agent of @hmtreasury issued only nominal £1 controlling shares of common stock