[aquila48]

Yes but it’s just pretend book keeping with monopoly money.

So, tell me, what are the dire consequences of such an epic “loss”?

The depositors (commercial banks) sure ain’t losing sleep over it? They love it, they keep getting 5.5% risk free on the huge reserves they have at the fed.

[SaxxonWoods]

“They love it, they keep getting 5.5% risk free on the huge reserves they have at the fed.”

So am I, on T-Bills. This isn’t a problem.

[Toddsterpatriot]

So, tell me, what are the dire consequences of such an epic “loss”?

Not dire. The Fed turns over their profit to the Treasury. They'll have none to turn over this year, or any year, until they make up for this loss.