Via Sudden Debt this morning.
See this picture, it is a before and after picture of the FED asset structure. It summarizes the crisis pretty well.
The biggest action has been reliquify assets in the industry. They have pawned L3 assets for Treasuries (for free). A pretty good trade on the surface of things (for the banks) at the expense of the tax-payers.
The assets are illiquid and probably mis-priced and may go further down in value. If they do, this has been a socializing of losses. If on the other hand the asset go back up in value (unlikely keep in mind that banks offloaded their crap, by definition of these facilities) it would have been a good trade.
Point is the risk is transfered to the FED.
There is 57% left of treasuries, so quite a way to go still on "shock absorption" this is what is left.