US Banks’ $684 Billion Securities Loss

December 3rd, 2023
The FDIC reports a sharp increase in unrealized securities losses for US banks, totaling $684 billion. A significant $126 billion surge in Q3 reflects a 22.5% jump in a few months. These losses, driven by the gap between purchase price and current market value of bonds, become critical during liquidity needs. Highlighted by Silicon Valley Bank's collapse, the issue is exacerbated by prolonged high interest rates. Despite this, banking profits remain resilient amid ongoing deposit outflows and liquidity concerns.
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