Part 3/9:
According to the latest Federal Deposit Insurance Corporation (FDIC) reports, as of September 30th, U.S. banks are holding approximately $684 billion in unrealized losses on securities, primarily U.S. Treasuries and mortgage-backed securities (MBS). The number is even more alarming considering it does not fully account for recent bank failures, notably Silicon Valley Bank, Signature Bank, and First Republic Bank, which had substantial unrealized losses.
This figure surged by 22% (or $126 billion) from the prior quarter, a clear indicator of rising risks in the system. The situation hints at a broader vulnerability, especially given the recent collapse of Heartland Tri State Bank, which adds to the urgency of addressing these hidden losses.