The U.S. Federal Reserve is now operating at a financial loss, and is months away from having negative tangible equity for the first time in modern history. This article explores how we got here and to what extent any of this matters for savers and investors. Commercial Bank Assets and Liabilities A commercial bank has a considerable amount of both assets and liabilities. In order to remain solvent, the asset side must exceed the liability side, and they have various regulations placed on them to try to keep them as solvent as possible. For a typical bank, their liabilities mainly consist of deposits. Individuals or ... (full story)