Currencies33825
Market Cap$ 3.45T+0.53%
24h Spot Volume$ 52.56B+3.62%
DominanceBTC61.94%+0.69%ETH8.48%-1.63%
ETH Gas0.57 Gwei
Cryptorank

$413,200,000,000 in Unrealized Losses Hit US Banks As FDIC Warns Rising Rates Adding Pressure


by Daily Hodl Staff
for The Daily Hodl

US banks are now saddled with $413.2 billion in unrealized losses on their balance sheets.

In its new Quarterly Banking Profile for the first quarter of 2025, the Federal Deposit Insurance Corporation (FDIC) says US banks reported a $67.5 billion decrease in unrealized losses on securities.

Although it looks like progress, the FDIC warns the decrease has likely already reversed amid extreme bond market volatility and a surging Treasury yield curve.

“Longer-term interest rates such as the 30-year mortgage rate and the 10-year Treasury rate decreased in the first quarter, increasing the value of securities reported by banks and lowering unrealized losses.

However, increases in longer-term interest rates since the end of the first quarter would likely reverse most of these improvements in unrealized losses if measured today.”

Rebel Cole, who worked in the Federal Reserve System for ten years, tells Fortune the losses represent a serious ongoing danger for lenders.

“All it takes is one bad news story about any of these banks, and we could have another banking crisis like we had in March of [2023].

I’m amazed we haven’t had one since then.”

The FDIC says banks recorded a $180.9 billion rise in domestic deposits, which is about 1%, and a $3.8 billion increase in net income to $70.6 billion, with a reserve coverage ratio declining from 179.9% to 168.8%.

Follow us on X, Facebook and Telegram

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post $413,200,000,000 in Unrealized Losses Hit US Banks As FDIC Warns Rising Rates Adding Pressure appeared first on The Daily Hodl.

Read the article at The Daily Hodl

Read More

Employee at Billion Dollar Bank Embezzles $44,000 From Customer Accounts Before Being Banned From Industry

Employee at Billion Dollar Bank Embezzles $44,000 From Customer Accounts Before Being Banned From Industry

An employee at a $23.8 billion bank embezzled $44,000 worth of customer money before ...
SoFi to Launch Blockchain Remittances With Stablecoins as Crypto Returns to Platform

SoFi to Launch Blockchain Remittances With Stablecoins as Crypto Returns to Platform

The move comes as the CEO shared plans to re-enter the crypto business under the Trum...

$413,200,000,000 in Unrealized Losses Hit US Banks As FDIC Warns Rising Rates Adding Pressure


by Daily Hodl Staff
for The Daily Hodl

US banks are now saddled with $413.2 billion in unrealized losses on their balance sheets.

In its new Quarterly Banking Profile for the first quarter of 2025, the Federal Deposit Insurance Corporation (FDIC) says US banks reported a $67.5 billion decrease in unrealized losses on securities.

Although it looks like progress, the FDIC warns the decrease has likely already reversed amid extreme bond market volatility and a surging Treasury yield curve.

“Longer-term interest rates such as the 30-year mortgage rate and the 10-year Treasury rate decreased in the first quarter, increasing the value of securities reported by banks and lowering unrealized losses.

However, increases in longer-term interest rates since the end of the first quarter would likely reverse most of these improvements in unrealized losses if measured today.”

Rebel Cole, who worked in the Federal Reserve System for ten years, tells Fortune the losses represent a serious ongoing danger for lenders.

“All it takes is one bad news story about any of these banks, and we could have another banking crisis like we had in March of [2023].

I’m amazed we haven’t had one since then.”

The FDIC says banks recorded a $180.9 billion rise in domestic deposits, which is about 1%, and a $3.8 billion increase in net income to $70.6 billion, with a reserve coverage ratio declining from 179.9% to 168.8%.

Follow us on X, Facebook and Telegram

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post $413,200,000,000 in Unrealized Losses Hit US Banks As FDIC Warns Rising Rates Adding Pressure appeared first on The Daily Hodl.

Read the article at The Daily Hodl

Read More

Employee at Billion Dollar Bank Embezzles $44,000 From Customer Accounts Before Being Banned From Industry

Employee at Billion Dollar Bank Embezzles $44,000 From Customer Accounts Before Being Banned From Industry

An employee at a $23.8 billion bank embezzled $44,000 worth of customer money before ...
SoFi to Launch Blockchain Remittances With Stablecoins as Crypto Returns to Platform

SoFi to Launch Blockchain Remittances With Stablecoins as Crypto Returns to Platform

The move comes as the CEO shared plans to re-enter the crypto business under the Trum...