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The Banking Crisis Gets Worse! $1.7 Trillion in Unrealized Losses Loom as U.S. Banks Rapidly Bleed Deposits

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The author of “End Times” provided a troubling analysis of the banking crisis of 2023, and the details are certain to unnerve those who are attentive.

“If our banking system can’t find a way to turn things around, our entire economy will soon be in a world of hurt. When banks get into trouble, they start getting really tight with their money. That means fewer mortgages, fewer commercial real estate loans, fewer auto loans and fewer credit cards being issued.

So it should greatly concern all of us that U.S. banks are bleeding deposits at an absolutely staggering pace right now. During the week ending March 15th, 98.4 billion dollars was pulled out of U.S. banks.

That was really bad, but we just learned that things got even worse the next week. During the week ending March 22nd, 126 billion dollars was pulled out of U.S. banks…” Michael Synder reported on his blog, The Economic Collapse Blog, adding:

According to newly released Federal Reserve data, depositors withdrew an additional $126 billion from U.S. institutions in the week ending March 22. This time, the outflow originated from the major institutions in the nation.

Contrary to popular belief, however, this banking crisis did not start in March.

In the past year, well over a trillion dollars have been withdrawn from U.S. institutions, resulting in extreme financial duress…

The challenge created by the outflow of deposits for all banks is that if they raise rates on deposits to retain customers, this could reduce their profitability. However, if they lose too many clients, as Silicon Valley Bank did, they may be forced to sell assets at a loss to satisfy withdrawals.

Customers withdrew $42 billion from Silicon Valley Bank in a single day, leaving the bank with a negative cash balance of $958 million.

When a large number of depositors withdraw their funds, banks may be forced to sell assets in order to maintain sufficient liquidity.

Global Research also reported on Synder’s research:

Currently, U.S. institutions are resting atop a massive mountain of unrealized losses.

Previously, it was reported that U.S. institutions face unrealized losses of 620 billion dollars on the bonds they hold as a result of swiftly rising interest rates. However, we are now told that the actual amount is 780 billion dollars.

And when you include unrealized losses on their loan portfolios, the total unrealized losses that our institutions are confronting is approximately $1.7 trillion…

You Will Be Astounded by the Amount of Money Being Withdrawn from U.S. Banks, and Now the Largest German Bank Is in Trouble.

A study published on March 13 examined banks’ likely unrealized losses in greater detail. The investigation revealed that actual losses on bank holdings of securities were $780 billion, not the $620 billion estimated by the FDIC.

But the authors went deeper, rightly noting, “Loans, like securities, also lose value when interest rates go up.”

More on this story via The Republic Brief:

They found that total unrealized losses as of December 2022 were $1.7 trillion. In a chilling warning, the authors noted that “the losses from the interest rate increase are comparable to the total equity in the entire banking system.” We’re not out of this banking crisis. In fact, it may be just the beginning. CONTINUE READING…

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