Dubster watching
5 months ago
Unrealized losses on investment securities for US banks reached $512.9 billion in Q2 2024.
This is 7 TIMES higher than at the peak of the 2008 Financial Crisis.
Q2 2024 also marked the 11th consecutive quarter of unrealized losses as interest rates continued to pressure the economy.
Bank of America, the second-largest lender in the US, now accounts for $110.8 billion of held-to-maturity securities with unrealized losses, or 20% of the total.
Meanwhile, the number of banks on the FDIC Problem Bank List increased to 66 in Q1 2024, or 1.5% of the aggregate.
Unrealized losses held by banks remain a major issue.
Meanwhile, small banks hold 70% of outstanding commercial real estate debt.
Many of these loans are on the brink of default.
Just because rate cuts started, it doesnβt mean we are smooth sailing into 2025.
Plan to βexecuteβ
Blessings