The Fed has suffered a $2.7bn paper loss on the $29bn portfolio of toxic assets it took over from Bear Stearns as part of JPMorgan Chase’s government-brokered takeover of the failed investment bank. The value of the Bear portfolio fell from $29.5bn to $26.8bn over the past three months, the Fed said in a filing. The filing also showed that AIG has already used up three-quarters of its $123bn Fed loan.
