Bloomberg elaborates on the FED’s losses from the Bear Stearns bailout:

In its biggest disclosure of the securities accepted to stabilize capital markets, the Fed said yesterday it had unrealized losses of $9.6 billion on the assets as of Dec. 31. The bonds, swaps and notes were taken in from Bear Stearns, once the fifth-biggest Wall Street firm by capitalization, and AIG, which had been the world’s largest insurer.

“The numbers basically confirm that Treasury is going to have to take some TARP money and reimburse the Fed,” said Whalen, whose financial-services research company analyzes banks for investors. “It is essentially up to the Treasury to get the Fed out of this.”

Bloomberg is doing the taxpayers a favor by suing the government to force disclosure of  the names of the obligors of the collateral held by the FED.  We should all be supporting them in their effort!