US Banking Crisis Looming as 722 Banks Report Unrealized Losses Over 50% of Capital, Says Fed
The US Federal Reserve has revealed that 722 banks reported unrealised losses exceeding over 50% of their capital at the end of Q3 2022. The data was presented in a board presentation by the Division of Supervision and Regulation, which highlights the impact of rising interest rates on certain banks and the Fed’s approach to address issues among these banks. According to the report, some banks with large market value losses could face increased financial and risk management challenges. While Fed Chair Jerome Powell claims that the banking system is “sound and resilient,” many have warned that the crisis is not over, including JPMorgan Chase CEO Jamie Dimon and economist Peter Schiff.