The Fed's claims of "no credit losses" are funny. I guess such a claim is technically true if the junk mortgages the Fed took onto its balance sheet can't be written down thanks to favorable accounting rule changes. The bailouts have not purchased any solid improvements in U.S. banks' financial performance. Bank of America is a joke, losing money like crazy. The rest of the banking sector only looks healthy as long as they can pretend their bad mortgage loans will someday recover cash flows.
Nota bene: No positions in any U.S. banks at this time.