But they won’t give a list of these banks.
How did banks ever survive rising interest rates in years gone by? It’s not the first time this rodeo has been in town.
(The U.S. Federal Reserve has revealed that 722 banks reported unrealized losses exceeding 50% of their capital at the end of the third quarter of 2022. “Rising interest rates are creating significant unrealized losses in investment securities and in some cases depressing tangible equity,”)
Remember: everything is fine, just fine
Thank God the Fed is there to fix this problem..... which it created.
Serious fundamental flaws in the banks.
The Youtube channel Economic Ninja just had a live feed about this a moment ago. I thought it was probably overhyped but this looks like the real deal.
“Fed Reveals 722 Banks Reported Unrealized Losses Over 50% of Capital as Concerns Over US Banking Crisis Grow”
caused by the biden inflation-interest trap + stupid bankers ...
722 insolvent banks.
Result of Fed raising rates too high, too fast. Shows how little the Fed cares about the economy or risk analysis reports generated in-house. In my opinion, this is by design with goal of creating a global electronic currency.
.
Hallucination or not.
Back in earlier banking “crisis” some people warned that government bailouts would only encourage more problems.
I must be hallucinating. No way could that be true.
(From the Article):" The U.S. Federal Reserve has revealed that 722 banks reported unrealized losses exceeding 50% of their capital
at the end of the third quarter of 2022.
“Rising interest rates are creating significant unrealized losses in investment securities and in some cases depressing tangible equity,”
according to the Fed’s Division of Supervision and Regulation."
"722 Banks Reported Unrealized Losses of More Than 50% of Capital The U.S. Federal Reserve has revealed in a board presentation
by the Division of Supervision and Regulation that 722 banks reported unrealized losses exceeding 50% of their capital
at the end of the third quarter of 2022.
The presentation, released to the public in April, is dated Feb. 14.
It highlights the impact of raising interest rates on certain banks and the Fed’s supervisory approach to address issues at these banks."
“Rising interest rates are creating significant unrealized losses in investment securities and in some cases depressing tangible equity,” the Fed presentation states.
“As interest rates increase, banks with large market value losses could experience increased financial and risk management challenges.”
The Fed presentation further details:
At third quarter end, 722 banks reported unrealized losses exceeding 50% of capital."
Moreover, “31 of these banks report negative tangible equity levels,” which means they are currently “not able to borrow new money from Federal Home Loan Banks
and may lose the ability to sell loans to Government Sponsored Enterprises,” the Fed presentation adds. "
“It’s Spooky”: Stanford Professor Warns Thousands Of US Banks Are “Potentially Insolvent”
Following the collapse of First Republic last week, the meltdown of three other banks, and the Federal Reserve’s quarter-point increase, making the tenth straight hike in an aggressive campaign to tame elevated inflation, a professor of finance at the Stanford Graduate School of Business presented a grim warning that the regional banking dominoes are falling.
In a New York Times opinion piece titled “Yes, You Should Be Worried About a Potential Bank Crisis. Here’s Why,” Professor Amit Seru wrote, “the fragility and collapse of several high-profile banks are most likely not an isolated phenomenon.” He said, “A damaging combination of fast-rising interest rates, major changes in work patterns, and the potential of a recession could prompt a credit crunch not seen since the 2008 financial crisis.”