US Banks’ Unrealized Losses Explode by $118,400,000,000 in Three Months As FDIC Declares 66 Banks on ‘Problem List’

The amount of unrealized losses on American banks’ balance sheets is surging. In its new Quarterly Banking Profile for the fourth quarter of 2024, the Federal Deposit Insurance Corporation (FDIC) says US banks reported a massive $118.4 billion increase in unrealized losses on securities, bringing the total to $482.4 billion. The FDIC says spikes in longer-term interest rates like the 30-year mortgage and 10-year Treasury rates lowered the value of bank securities, triggering the increase in unrealized losses. Unrealized losses are the difference between the price banks paid for securities and the current market value of those assets. Concern over...