Banks located within the United States are reporting a very concerning increase in unrealized losses, along with an ever-growing list of institutions at risk of failure during the first quarter of 2024, according to reports coming from the U.S. Federal Deposit Insurance Corporation, also known as FDIC. The data from the FDIC shines a spotlight on a whopping $517 billion in unrealized losses and has officially identified a total of 6 banks that are now vulnerable. As if we needed more bad economic news, right?
The folks over at Bitcoin.ComNews pointed out that both the U.S. Federal Reserve and the Biden administration have been trying desperately to convince Americans that the banking sector in our nation is resilient, but a massive wave of financial strain that is cresting on the horizon is looming over us all with more than a dash of menace.
Unrealized losses on securities swelled by $39 billion from the previous quarter, driven predominantly by depreciations in residential mortgage-backed securities due to rising mortgage rates.
The latest FDIC report highlights that this marks the ninth consecutive quarter of substantial unrealized losses, a troubling trend that began with the Federal Reserve‘s interest rate hikes in early 2022. Simultaneously, the number of banks on the FDIC’s Problem Bank List has escalated from 52 to 63 in just one quarter.
These banks, identified with a CAMELS composite rating of “4” or “5,” indicate a heightened level of financial, operational, or managerial weaknesses. The total assets of these at-risk banks have surged by $15.8 billion, signaling potential vulnerabilities in the broader banking ecosystem. The widespread belief is that the banking crisis that began in 2023 is ongoing.
I mean, if you look at the FDIC report it actually says, right there in print, “The banking industry continued to show resilience in the first quarter. Net income rebounded from the non-recurring expenses that affected earnings last quarter, asset quality metrics remained generally favorable, and the industry’s liquidity was stable. However, the industry’s net interest margin declined as competition continued to pressure rates paid on deposits and asset yields declined.”
Yet we can see the information for ourselves and what we’re seeing and what we’re being told are not the same thing. They don’t line up. In other words, when hard facts, like numbers, don’t match the rhetoric we’re being spoon fed by the government, you should just assume the government is blowing smoke up your backside.
You have to remember. This is an election year. The progressive agenda is fully dependent upon whether or not Biden is reelected. With things in the economy look as dire as they do, people aren’t going to cast a ballot for the incumbent. And that’s why the left is trying to control the narrative.
Republic First Bank, located out of Philadelphia collapsed this year, adding to the three huge failures of the largest financial institutions in our country’s history. A study produced by the Klaros Group, which was published in May of this year (2024) seemingly suggests that there are now hundreds of banks in the United States at risk of failing.
The latest data presented by the FDIC serves as a sobering reminder of the ongoing challenges within the U.S. banking sector. Despite governmental assurances, the persistent rise in unrealized losses and the expanding roster of vulnerable institutions suggest a pivotal moment for so-called ‘economic resilience.’ The FDIC figures emphasize the persistent uncertainty regarding the stability of the U.S. banking system.
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