4 US banks have bigger unrealized losses than their equity capital; over 50 banks face losses exceeding 50% of their equity capital.

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As of the first quarter of this year, several banks have faced significant unrealized losses that exceed their equity capital. Here are some notable examples:

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These situations highlight the challenges banks are currently facing due to rising interest rates and the impact on their investment portfolios. While most banks can manage these unrealized losses, it’s essential to monitor their financial condition closely to ensure stability and soundness.

50 banks reported unrealized losses on their investment securities portfolios exceeding 50% of their capital equity. This slight increase from the last quarter of 2023 is due to spiking interest rates placing pressure on the financial system. Aggregate unbooked losses at banks across the country rose to $517 billion, up from $478 billion at the end of the previous quarter.

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