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- “Unrealized Losses” On Securities Held by Banks Jump by 22% to $684 Billion in Q3, Oh Lordy
“Unrealized Losses” On Securities Held by Banks Jump by 22% to $684 Billion in Q3, Oh Lordy
by Wolf Richter Wolf Street
They amount to 32% of Tier 1 capital and don’t matter, until they suddenly do.
“Unrealized losses” on securities – mostly Treasury securities and government-guaranteed MBS – at FDIC-insured commercial banks at the end of Q3 jumped by $126 billion (or by 22%) from the prior quarter, to $684 billion, according to the FDIC’s quarterly bank data release on Wednesday.
These unrealized losses were spread over the two accounting methods: