Profiles

One of the problems we’re forced to confront when considering the role of the Federal Reserve is whether it’s better for the Fed to take losses and capitalize them as deferred assets, or go back to an era of “Fed profitability” whereby the Fed remitted money to the Treasury on a weekly basis....

The notes to the Fed’s Financial Statements read like a disclaimer at the end of an Rx drug commercial. However, a financial statement review would not be complete without a look at the fine print. The question is: How bad is it?

Never mind the $16 billion dollar loss that was...

Yesterday we reviewed the Fed’s Statement of Operations finding many peculiarities such as: a $16 billion capitalized loss, $2 billion spent by the Board of Governors, and $1.2 billion paid as a dividend to the banks. It also illustrated how the Fed receives money from the government, pays banks...