722 US banks notified the US Federal Reserve of unrealized losses in their capital that exceeded 50%, and 31 of these banks are rated as “catastrophic”.
The data shows that the three US banks that failed this year, First Republic Bank, Silicon Valley Bank and Signature Bank, are equivalent to more than 25 banks that failed during the 2008 crisis.
The assets of these three banks are valued at $532 billion, $526 billion more than the assets of the 25 banks that collapsed during the Great Recession.
Higher interest rates have led to large unrealized losses on investment securities and, in some cases, lowered the cost of real capital, according to Fed reports.
And the reports pointed out that “with high interest rates, banks that suffer large losses in market value may face financial problems, management and increased risks.”
Based on reports received, total US deposits declined again last week, falling to $10.54 trillion from $10.61 trillion the previous week, and US inflation hit its highest level in 40 years.
American experts noted that there is still a year and a half before the US presidential election, and it seems that the Federal Reserve System is forced to act as an offshoot of the election campaign of President Joe Biden, and bad news is hidden in every possible way.
Source: RT+