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Fed Writes down mortgage securities?

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jtermine Posted: Tue, Jan 27 2009 10:06 PM

I know it's the socialist Yahoo! news network, but it's Reuters anyway ..

Fed Takes Major Step Stalling Foreclosures

Would someone explain this to me.  How does the Fed writedown an asset?  What assets are they holding and if they're holding onto assets, how are they capable of writing down anything if they have so much outstanding?  Can one have a "run on the Fed bank"?

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