Fed May Lose Out on Bear Assets, Bank of America Says

Hey, a 20% loss in three months isn't too bad, right? Bring on the $700 bn bailout!

The Fed will announce its quarterly estimate of the fair value of Maiden Lane LLC's $30 billion of holdings that JPMorgan Chase & Co. considered too risky when it acquired Bear Stearns in March, Bank of America analysts Jeffrey Rosenberg and Hans Mikkelsen wrote in a client note. The central bank valued the assets at $29 billion as of June 30, according to the report. ``With the worsening in mortgage markets since last quarter, we estimate a range of $2 billion to $6 billion of unrealized losses,'' the New York-based analysts wrote.