Banking Contagion Could Overwhelm the System.

1 year ago
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#bank #interestrates #bond #risk #money

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Today we will look at the latest FDCI quarterly banking profile which came out on the 7th of September, 2023 for the second quarter of 2023.

Unrealized losses on Securities increased by $42.9 billion or 8.3% from the first quarter of 2023.

We will look at why it is so important to keep an eye on the bond markets, especially Treasury notes and bond yields.

The conclusion is that the U.S. banking sector is so stretched that even the failure of a tiny bank could trigger a snowball effect on the whole system.

Interview from February with John Titus - The Banks Have Started Panic Borrowing.: https://youtu.be/I3_LHGPLP-Q

Tiny Bank Called Republic First Faces Test of Depositors’ Faith: https://archive.ph/mba6z#selection-143.5-143.68

“Unrealized Losses” on Securities Held by Banks, Oh Dearie, the Whole Schmear: +8%, to $558 Billion: https://wolfstreet.com/2023/09/08/unrealized-losses-on-securities-held-by-banks-oh-dearie-the-whole-schmear-8-to-558-billion/

FDIC Quarterly Banking Profile: https://www.fdic.gov/analysis/quarterly-banking-profile/qbp/2023jun/qbp.pdf#page=1

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