The Fed's equity could be wiped out by a 2.8% drop in the value of its Treasurys and its...

|By:, SA News Editor

The Fed's equity could be wiped out by a 2.8% drop in the value of its Treasurys and its Fannie/Freddie securities, writes Heard on the Street. "True, the Fed could hold on to those securities and ride out any losses... but what self-respecting central bank wants to risk a negative net worth?"