BREAKING: Unrealized losses on investment securities for banks jumped to $517 BILLION in Q1 2024.
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.
Did the banking crisis ever really end?
The FDIC has also identified 63 banks that are on the brink of collapse.
2 months ago, the Fed’s emergency lending program for banks expired.
Many regional banks never truly recovered from the crisis.
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