Oh my. Treasury ops at banks live in fear of clients getting ripped off like this. The liability is probably not the Fed's, but the reputation hit from large v

Oh my. Treasury ops at banks live in fear of clients getting ripped off like this. The liability is probably not the Fed's, but the reputation hit from large value transfer fraud is enough that loss of client business is a very real possibility. Consider also that the Fed is also facing competition in the intra-government "hold my cash" business from the Chinese, and this could be the first reputational domino in a real geopolitical shift in how funds are held and managed internationally.