Fred steals two checks from Eagle Retail Stores, Inc.: one is a blank check and the other is a check payable to the order of General Supplies Company (GSC), drawn on Eagle's account with First National Bank. Fred forges Eagle's signature on the blank check and makes it payable to himself. Fred forges GSC's endorsement on the back of the other check and adds "Pay to the order of Fred" At Ace Credit, Inc., Fred endorses the back of both checks with his own name and gives them to Ace for cash. Ace does not know about the theft or the forged signatures and presents the checks to First National, which pays them. Eagle, which was not negligent, discovers the forgeries and asks First National to recredit its account. 

Who suffers the loss on each check, and why? What circumstances might have led to a different outcome -- and why?