FDIC warns that 63 Lenders are on the brink of insolvency
BREAKING: U.S. Banking System >>> FDIC warns that 63 Lenders are on the brink of insolvency due to banks sitting on $517 billion in unrealized losses
This is $39 billion higher than the $478 billion recorded in Q4 2023.
The surge was driven by higher residential mortgage-backed securities losses held by banks due to rising mortgage rates.
Q1 2024 also marked the 10th consecutive quarter of unrealized losses, an even longer streak than during the 2008 Financial Crisis.
As “higher for longer” returns, unrealized losses are likely to continue rising.
Source: BofA, The Kobeissi Letter
To put this into perspective, if all of these banks go bakrupt, it would be the equivalent of the 39th largest bank going under
This is $39 billion higher than the $478 billion recorded in Q4 2023.
The surge was driven by higher residential mortgage-backed securities losses held by banks due to rising mortgage rates.
Q1 2024 also marked the 10th consecutive quarter of unrealized losses, an even longer streak than during the 2008 Financial Crisis.
As “higher for longer” returns, unrealized losses are likely to continue rising.
Source: BofA, The Kobeissi Letter
To put this into perspective, if all of these banks go bakrupt, it would be the equivalent of the 39th largest bank going under
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73177563 : Does that mean these big banks have more chances to annex these small banks
BrianjhOP 73177563: This is also possible