![]() Those losses stem from a historic collapse in bonds amid the Fed’s push to keep interest rates higher for longer. The bank’s sudden failure back in March was sparked by an announcement that it had booked a $1.8 billion loss from selling a portion of its underwater bond portfolio.Īs a whole, Moody’s estimates that the US banking industry is facing approximately $650 billion in unrealized losses, as reported by Reuters. The dangers of unrealized losses came into focus early this year amid the collapse of Silicon Valley Bank. In Q2 of this year, Wells Fargo said it had $40 billion in unrealized bond market losses, while Citigroup had $25 billion in paper losses. Working a job at minimum wage, you’d need 13,200 years to earn 200 million. ![]() ![]() The news follows a new quarterly report from Bank of America revealing it now has a total of $131.6 billion in unrealized losses.Īlthough Wells Fargo and Citigroup have also reported third-quarter earnings, they have yet to reveal the latest stats on their own unrealized losses. The interest on 200,000,000 will be between 2,000,000 and 20,000,000 a year. The new numbers were located in a footnote on the firm’s third-quarter financial supplement and were higher than an expected $34 billion loss.
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