Still Cooking the Books, are we

An article on Zero Hedge points out that the Fed is taking losses on the commercial and residential mortgage loans it took into its Maiden Lane vehicle. Read the Fed statement here (pdf).
As the article points out, this begs the question that if the Fed is taking losses, why are commercial banks booking profits?
Considering that housing prices will probably not bottom out any time soon (see Barry Ritholz’s post), one might conclude that the losses that will be coming to the banks will just wipe them out entirely.
So, why not find a better use for taxpayer money than shoving it down the bottomless pit of bank-“bailouts” where the payments are just are re-purposed and doled out as bonuses. Considering that Fed people and Treasury people are not stupid one might argue that “this is just the point”. Who cares if the banks go down as long as a legitimate reason can be found to funnel big bucks to rich investors.