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FDIC Warns That 63 Lenders Are On The Brink Of Insolvency

Sanger
  |     |   321 posts since 2022

FDIC warns that 63 lenders are on the brink of insolvency due to Banks sitting on 517 billion unrealized losses. Who are these Banks?

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13


gregk
  |     |   73 posts since 2013
Might a significant number of Credit Unions be in similar circumstances?
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MAKNYC
  |     |   324 posts since 2015
Not likely. Credit Unions typically focus on actually lending their funds to members…auto, real estate, boat & r.v., credit card, etc. Buying securities does not tend to be their M.O.
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5
MY2CENTSWORTH
  |     |   440 posts since 2016
https://www.thegatewaypundit.com/2024/06/bidenomics-517-billion-unrealized-losses-cripple-us-banking/?utm_source=rss&utm_medium=rss&utm_campaign=bidenomics-517-billion-unrealized-losses-cripple-us-banking
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1
sams1985
  |     |   781 posts since 2022
Just FYI- to calm people down:

1) the source is the daily hodl- which is a news source that has a significant bias towards banking institutions and pushes cryptocurrencies

2) "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. "
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Sanger
  |     |   321 posts since 2022
Hey sams1985 Just FYI - to calm people down: that's fine until it is your bank them snake eyes !
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9
milty
  |     |   1,689 posts since 2018
Interesting. You would think if the FDIC is issuing such a dire warning that it would be easy to find in a variety of economic publications, but so far all the references I've found do indeed appear to be cryptocurrency related.
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7
choice1
  |     |   371 posts since 2023
This is the risk of raising rates… greater losses with mark to market debt on their books. Fed more reluctant to raise rates! 
 Which banks:  Again look at SEC filings for banks/holding companies 
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1
enduser
  |     |   711 posts since 2015
FDIC Quarterly Banking Profile First Quarter 2024
May 29, 2024

"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 percent of total banks, which was within the normal range for non-crisis periods of one to two percent of all banks.  Total assets held by problem banks increased $15.8 billion to $82.1 billion during the quarter."


https://www.fdic.gov/news/speeches/fdic-quarterly-banking-profile-first-quarter-2024
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milty
  |     |   1,689 posts since 2018
Thanks for posting. Too bad the FDIC doesn't identify how many have the "5" rating, which has the highest probability of failure within 12 months.
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