(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. "
Gold is at $2,027.90 today. Silver is at $25.45.
Something is afoot. At least it’s balancing out all my LOSSES thanks to our brain-dead politicians and the Fed.