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Started By
Message
63 banks on the brink of insolvency according to the FDIC
Posted on 6/4/24 at 9:00 am
Posted on 6/4/24 at 9:00 am
quote:
The US banking system faces $517 billion in unrealized losses, primarily due to higher mortgage rates affecting residential mortgage-backed securities. The FDIC reports that 63 banks are on the brink of insolvency, an increase from 52 in the previous quarter. Despite these challenges, the FDIC states the banking system is not at imminent risk but warns of ongoing pressures from inflation, volatile market rates, and geopolitical concerns.
Summary
FDIC
To be fair they are saying this is within the normal range
This post was edited on 6/4/24 at 9:02 am
19
Posted on 6/4/24 at 9:02 am to stout
gotta force that move to CBDC somehow
Posted on 6/4/24 at 9:04 am to stout
Ill guess we'll have to see what banks pelosi avoids to figure out which ones to stay away from.
Posted on 6/4/24 at 9:09 am to stout
We can just print more money; it's fine.
Brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Posted on 6/4/24 at 9:10 am to CocomoLSU
Thank joe and the biden crime family
Posted on 6/4/24 at 9:11 am to kengel2
Didn’t read but if article doesn’t say, it’s useless to even write about.
Posted on 6/4/24 at 9:17 am to stout
Well, which ones are they?
Posted on 6/4/24 at 9:18 am to stout
Not supporting bank bailouts is antisemitism
Posted on 6/4/24 at 9:20 am to stout
Perfectly normal.
Posted on 6/4/24 at 9:21 am to el Gaucho
Hopefully Trump will get in office and print Trillions of dollars more money to fix this.
Posted on 6/4/24 at 9:22 am to Robin Masters
quote:
Well, which ones are they?
They'll never disclose that because it'd cause massive runs on the named banks. Not defending the idiots who loaded up on 30-year securities, but the fed skyrocketing rates sure didn't help. Even a 50bp decrease in the fed rate would swing those unrealized losses down wildly.
Posted on 6/4/24 at 9:40 am to Dixie2023
Article was written by an "anonymous source familiar with the banks".
Posted on 6/4/24 at 9:46 am to stout
Every person and institution that bought longer term Treasuries is in this boat.
Posted on 6/4/24 at 9:50 am to SloaneRanger
you missed the part where it says "falls within the normal range." At least 1.4% of ANY type of business is always in trouble. TBH 98.6 NOT being in trouble seems high
Posted on 6/4/24 at 9:51 am to SloaneRanger
quote:
Every person and institution that bought longer term Treasuries is in this boat.
Yes, in terms of present value.
The banks REALLY fricked are ones where depositors start fleeing to JP Morgan et all while all their assets are below water. By law they are required to maintain certain positions and that will require them to sell off some assets at a loss… which likely makes them insolvent and requires a bailout.
Posted on 6/4/24 at 10:08 am to el Gaucho
so based I love this comment 
Posted on 6/4/24 at 10:15 am to stout
63 isn't an alarming figure when you think of how many rinky dink banks there are just in Louisiana..
I will not feel bad for any banks that fail that were chasing shady real estate financings in order to keep up appearances within their local communities.
I will not feel bad for any banks that fail that were chasing shady real estate financings in order to keep up appearances within their local communities.
Posted on 6/4/24 at 10:16 am to RunninReb
Let it fail.
People need hard lessons.
People need hard lessons.
Posted on 6/4/24 at 10:18 am to stout
quote:
To be fair they are saying this is within the normal range
To be fair, they are lying sacks of sh*t
Posted on 6/4/24 at 10:30 am to stout
quote:Yawn.
63 banks are on the brink of insolvency
There are over 4,300 banks in the U.S.
There are 184 banks in China, a country with almost 5 times the U.S. population.
And every single one of those Chinese banks are insolvent (not on the brink of insolvency) and have been insolvent for more than a decade.
The rising market interest rates in the U.S. has decreased the market value of bonds which banks own. That decline in market value has to be written down thus creating the bookkeeping version of "brink of insolvency."
If the economists are correct and we are about to experience falling interest rates over the next few years, the underwater bonds will experience an increase in their market value thus removing the unrealized losses on banks' books.
So, again.....
.
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