Substack - Gregory Mannarino: $517,000,000,000 in Unrealized Losses Hit US Banking System, FDIC Says.
In its latest Quarterly Banking Profile report, the FDIC notes that banks now face over half a trillion dollars in paper losses on their balance sheets, primarily due to their exposure to the residential real estate market. These unrealized losses, the gap between the purchase price of securities and their current market value, are becoming a significant burden.
DC Patriot: $517,000,000,000 in unrealized losses hits US Banking System as FDIC Warns 63 Lenders on Brink of Insolvency.
“The number of banks on the Problem Bank List, those with a CAMELS composite rating of ‘4’ or ‘5’, rose from 52 in the fourth quarter of 2023 to 63 in the first quarter of 2024. This figure represents 1.4% of all banks, a range considered normal for non-crisis periods, typically between 1% and 2%. The total assets held by problem banks increased by $15.8 billion to $82.1 billion during the quarter,” the FDIC stated.
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Despite these concerning trends, the FDIC assures that the US banking system is not in imminent danger. However, it warns that ongoing inflation, fluctuating market rates, and geopolitical issues continue to exert pressure on the industry.
"...and geopolitical issues..." Gee, I wonder what those might be?
Does the FDIC's assurance there's no imminent danger put you at ease?
4 comments:
They were saying the exact same thing just before the Great Depression, made worse with FDR's meddling and jackasses like this that couldn't find a balance sheet or a P&L statement to wipe their ass with a flashlight with their two hands and a buddy helping. We are so flucked it cannot be imagined.
Cederq , It's gonna be brutal. Rerun of 2008 in real estate. 63 lenders teeter on insolvency. WTF?!!!
And somehow JP Morgan will win again.
Molson , You got that right. JP and others "too big to fail". EFT!
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