The Swiss National Bank Vs. The Federal Reserve: The Fed's Capital Losses In Perspective

Since the Fed's governing law does not permit it to maintain "a robust balance sheet with sufficient equity capital to absorb high losses," indeed forbids it from doing so, the losses have wiped out the Fed's capital by more than 3.5 times.

The current capital deficit is shown by the undeniable arithmetic of the Fed's capital as of February 28.

Starting capital of $43 billion minus Losses of $154 billion = current capital of negative $111 billion.

You will not find this negative capital, which is the real capital, reported on the Federal Reserve balance sheet, however.

The Fed insists on the accounting charade of booking its massive losses as an asset, a so-called "Deferred asset." Do you believe, Candid Reader, that losses are an asset? You don't? Neither do I. Do you believe that losses should be subtracted from capital, as responsibly done by the SNB? So do I! In short, the Fed publishes, not to put too fine a point on it, a phony capital number.

Here is an update on the real capital as of February 28, 2024 of these individual FRBs, as well as the total Federal Reserve.

Do you like your central bank capital positive or negative? I believe that the Fed should be recapitalized, but the Fed itself and most economists fervently dispute this. 

https://mises.org/mises-wire/swiss-national-bank-vs-federal-reserve-feds-capital-losses-perspective