$517,000,000,000 in Unrealized Losses Hit US Banking System, FDIC Says 63 Lenders on Brink of Insolvency
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2024 Jun 4, 4:26pm 365 views 6 comments
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1
FortwayeAsFuckJoeBiden
2024 Jun 4, 4:43pm
they’ll print away the problems. are you new here? we bail out rich with printing press, everyone else gets middle finger “losers”.
entire bullshit system built on perpetual debt slavery.
entire bullshit system built on perpetual debt slavery.
2
Al_Sharpton_for_President
2024 Jun 5, 5:40am
Al_Sharpton_for_President
2024 Jun 5, 5:40am
Our next chart shows the level of unrealized losses on held-to-maturity and available-for-sale securities portfolios. Total unrealized losses of $516.5 billion were $38.9 billion higher than the previous quarter. Higher unrealized losses on residential mortgage-backed securities drove the increase, as mortgage rates increased in the first quarter, putting downward pressure on the prices of such investments.
https://www.fdic.gov/news/speeches/fdic-quarterly-banking-profile-first-quarter-2024
https://www.fdic.gov/news/speeches/fdic-quarterly-banking-profile-first-quarter-2024
3
PeopleUnited
2024 Jun 5, 6:42am
PeopleUnited
2024 Jun 5, 6:42am
Gee, this sound like the great reset the satanic globalists set in motion when they nearly shutdown the entire world’s economy in 2020 for a fake pandemic in order to steal an election and implement the new world order global government.
The graph pretty much correlates perfectly with the delayed effects of the lockdowns.
The graph pretty much correlates perfectly with the delayed effects of the lockdowns.
4
Tenpoundbass
2024 Jun 5, 6:55am
Tenpoundbass
2024 Jun 5, 6:55am
But I thought AirBNB was going to pay all of those super over inflated home mortgages?
5
RayAmerica
2024 Jun 5, 8:30am
RayAmerica
2024 Jun 5, 8:30am
Hyper inflation hit soon after the Weimar Republic decided to create more and more fiat money in order to make their payments to the American Banksters. We're following Weimar in lock step.
We're now approaching $35 Trillion in official National Debt, with $1 Trillion needed annually in order to pay just the interest on that debt. It gets even worse when you look at off budget obligations which are over $120 Trillion. We are way beyond the point where this can be corrected, and, it's all by design. That's what the Great Reset is all about; global Communism via a despotic one world government and financial system.
We're now approaching $35 Trillion in official National Debt, with $1 Trillion needed annually in order to pay just the interest on that debt. It gets even worse when you look at off budget obligations which are over $120 Trillion. We are way beyond the point where this can be corrected, and, it's all by design. That's what the Great Reset is all about; global Communism via a despotic one world government and financial system.
6
DemocratsAreTotallyFucked
2024 Jun 5, 10:28am
DemocratsAreTotallyFucked
2024 Jun 5, 10:28am
RayAmerica says
Yes and no.
Weimar Germany had to pay reparations in gold, for the most part. Or in francs, pounds and dollars. So they printed Reichmarks to buy the gold or foreign currencies to make those reparations.
THAT is what caused the hyperinflation, not printing Reichmarks to pay domestic debt. (hyperinflarion that came later when the hyperinflation was in it's later stages probably paid for donestic debt too, if it was worth anything).
There is about $90T to $120T dollar denominated debt that non-Americans owe other non-Americans. And like Weimar Germany, many have to print their currencies to buy the dollars to pay those obligations. And that pressure rises as US interest rates soar, pushing the USD value up with it and interest rates on that new USD denominated debt.. Japan is feeling the hurt because of it, for example.
And that has nothing to do with US national debt.
So will the US dollar go the way ALL fiat currencies have? Yes. Will there be raging nflation as part of that? Yes.
But the rest of the world is in the shitter on that front far more than the US is and faster.
This is why they seek to conduct trade less in dollars amongst themselves. It's because the dollar is worth more than their currencies. Not to mention the domestic damage in their own economies from printing their currency to buy oil, etc.
It's a fiat version of Gresham's Law: Crappy rupees, yen, yuan, etc. drives the good money (dollars) from circulation. Only it is state driven, as citizens in their own countries want dollars & gold no matter what their governments want them to use otherwise.
Hyper inflation hit soon after the Weimar Republic decided to create more and more fiat money in order to make their payments to the American Banksters. We're following Weimar in lock step.
Yes and no.
Weimar Germany had to pay reparations in gold, for the most part. Or in francs, pounds and dollars. So they printed Reichmarks to buy the gold or foreign currencies to make those reparations.
THAT is what caused the hyperinflation, not printing Reichmarks to pay domestic debt. (hyperinflarion that came later when the hyperinflation was in it's later stages probably paid for donestic debt too, if it was worth anything).
There is about $90T to $120T dollar denominated debt that non-Americans owe other non-Americans. And like Weimar Germany, many have to print their currencies to buy the dollars to pay those obligations. And that pressure rises as US interest rates soar, pushing the USD value up with it and interest rates on that new USD denominated debt.. Japan is feeling the hurt because of it, for example.
And that has nothing to do with US national debt.
So will the US dollar go the way ALL fiat currencies have? Yes. Will there be raging nflation as part of that? Yes.
But the rest of the world is in the shitter on that front far more than the US is and faster.
This is why they seek to conduct trade less in dollars amongst themselves. It's because the dollar is worth more than their currencies. Not to mention the domestic damage in their own economies from printing their currency to buy oil, etc.
It's a fiat version of Gresham's Law: Crappy rupees, yen, yuan, etc. drives the good money (dollars) from circulation. Only it is state driven, as citizens in their own countries want dollars & gold no matter what their governments want them to use otherwise.
In its Quarterly Banking Profile report, the FDIC says banks are now saddled with more than half a trillion dollars in paper losses on their balance sheets, due largely to exposure to the residential real estate market.
Unrealized losses represent the difference between the price banks paid for securities and the current market value of those assets.
Although banks can hold securities until they mature without marking them to market on their balance sheets, unrealized losses can become an extreme liability when banks need liquidity.
“Unrealized losses on available-for-sale and held-to-maturity securities increased by $39 billion to $517 billion in the first quarter. Higher unrealized losses on residential mortgage-backed securities, resulting from higher mortgage rates in the first quarter, drove the overall increase. This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates in first quarter 2022.”
The FDIC also says that the number of lenders on its Problem Bank List rose last quarter. According to the agency, these banks are on the brink of insolvency due to financial, operational, or managerial weakness or a combination of such issues.
“The number of banks on the Problem Bank List, those with a CAMELS composite rating of ‘4’ or ‘5’ increased from 52 in fourth quarter 2023 to 63 in first quarter 2024. The number of problem banks represented 1.4% of total banks, which was within the normal range for non-crisis periods of 1% to 2% of all banks. Total assets held by problem banks increased $15.8 billion to $82.1 billion during the quarter.”
While the FDIC says that the health of the US banking system is at no imminent risk, it warns that persistent inflation, volatile market rates and geopolitical concerns continue to put pressure on the industry.
“These issues could cause credit quality, earnings, and liquidity challenges for the industry. In addition, deterioration in certain loan portfolios, particularly office properties and credit card loans, continues to warrant monitoring. These issues, together with funding and margin pressures, will remain matters of ongoing supervisory attention by the FDIC.”
https://dailyhodl.com/2024/06/02/517000000000-in-unrealized-losses-hit-us-banking-system-as-fdic-warns-63-lenders-on-brink-of-insolvency/