63 banks on the verge of collapse

[TheYellowKing]

Higher interest rates have created 63 'problem banks' and $517 billion in unrealized losses, FDIC says

"This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates," the FDIC said.

www.businessinsider.com

• High interest rates continue to put pressure on the US banking system.
• The FDIC said the US banking system has 63 "problem banks" and is sitting on $517 billion in unrealized losses.
• Upward pressure on mortgage rates has significantly hurt the banking sector.

High interest rates putting pressure on these banks. That's the FED and Bidenomics for ya. This puts pressure on mortgage rates as people aren't buying at 7-8% rates. But everything is fine right demwits?

 

[iku]

Move on nothing to see. Everything is fine and dandy.

 

[Votto]

Higher interest rates have created 63 'problem banks' and $517 billion in unrealized losses, FDIC says

"This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates," the FDIC said.

www.businessinsider.com

• High interest rates continue to put pressure on the US banking system.
• The FDIC said the US banking system has 63 "problem banks" and is sitting on $517 billion in unrealized losses.
• Upward pressure on mortgage rates has significantly hurt the banking sector.

High interest rates putting pressure on these banks. That's the FED and Bidenomics for ya. This puts pressure on mortgage rates as people aren't buying at 7-8% rates. But everything is fine right demwits?

Trump done it!

Can't they wait till Trump takes over?

How inconsiderate can you be?

 

[TroglocratsRdumb]

But the crazy Democrat cult says that the economy is great.

1. 
   Forbes
   https://www.forbes.com/sites/simonmoore/2024/03/15/...
   

   U.S. Recession Risk May Be Rising According To These Metrics​

   Mar 15, 2024 · In the aggregate, for the U.S. the Sahm rule has not forecast a recession, but looking at state-level unemployment data, several states have seen relatively stark rises in unemployment from...

 

[two_iron]

Whoa..... hard stop.

Doesn't this toilet brush head tell us daily that our economy is stronger than ever??

 

[jackflash]

Higher interest rates have created 63 'problem banks' and $517 billion in unrealized losses, FDIC says

"This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates," the FDIC said.

www.businessinsider.com

• High interest rates continue to put pressure on the US banking system.
• The FDIC said the US banking system has 63 "problem banks" and is sitting on $517 billion in unrealized losses.
• Upward pressure on mortgage rates has significantly hurt the banking sector.

High interest rates putting pressure on these banks. That's the FED and Bidenomics for ya. This puts pressure on mortgage rates as people aren't buying at 7-8% rates. But everything is fine right demwits?

Don't worry as social insecurity is riding to our rescue!



The Capital Hill Gang, don't get financially tortured without them!

 

[1srelluc]

Housing sales are declining due to high price and "high" interest rates and inflationary costs of everyday stuff.

That may be a good thing as sellers will have to lower prices of existing homes as more of them are sitting now than six months ago. I've noticed it in my AO......Older homes priced to the moon that were selling within days are just sitting now with little interest shown in them.

That and a lot of older homeowners died over the winter (like my mom did) and their homes all hit the market around the same time so there's a lot more to pick and choose from.

I believe I beat the slump by a week. Then again I priced mom's place realistically and got my asking price but there sure as hell was no bidding war over it as over the winter.

It's being said that prices may have to come down by as much as 30% to start them moving again.

My realtor said new construction has started to level-off price-wise as may builders are finding that the capital is not out there for them. At least some banks are risk averse, fearing an slump.

 

[TheGreatSatan]

The democrats WEF masters want to collapse the economy so they can step in and issue CBDC and save the day.

 

[Sparker]

The article and the FDIC report don't say which banks.

There are vast numbers of financial organizations that only subtract value from the economy, not add to it, so they may be mostly wiped out as the economy shrinks: banks, investment brokers, hedge funds, consulting firms, etc.

 

[TheGreatSatan]

Americans should get there money out of banks while they still can.

If democrats win, they will start freezing the accounts of Trump supporters.

 

[jackflash]

Housing sales are declining due to high price and "high" interest rates and inflationary costs of everyday stuff.

That may be a good thing as sellers will have to lower prices of existing homes as more of them are sitting now than six months ago. I've noticed it in my AO......Older homes priced to the moon that were selling within days are just sitting now with little interest shown in them.

That and a lot of older homeowners died over the winter (like my mom did) and their homes all hit the market around the same time so there's a lot more to pick and choose from.

I believe I beat the slump by a week. Then again I priced mom's place realistically and got my asking price but there sure as hell was no bidding war over it as over the winter.

It's being said that prices may have to come down by as much as 30% to start them moving again.

My realtor said new construction has started to level-off price-wise as may builders are finding that the capital is not out there for them. At least some banks are risk averse, fearing an slump.

Sorry to hear about your momma, I can relate to that hit in the ole heart like freakin' hurts. So we are entering the bubble? 30%, I would imagine that is going to cause some serious loss for those home owners with not much equity built up. I am tickled to hear that you landed your asking price!

 

[1srelluc]

Sorry to hear about your momma, I can relate to that hit in the ole heart like freakin' hurts. So we are entering the bubble? 30%, I would imagine that is going to cause some serious loss for those home owners with not much equity built up. I am tickled to hear that you landed your asking price!

I suspect those owners who currently have a low interest mortgage will continue to stand pat as they are currently doing in this market but when they make the move they won't be able to get what they would have just a few months ago.

Of course it's market dependant but it should open-up some availability.....The thing is rent is still high so many will be bought by investors and turned into rentals.

 

[TheYellowKing]

Housing sales are declining due to high price and "high" interest rates and inflationary costs of everyday stuff.

That may be a good thing as sellers will have to lower prices of existing homes as more of them are sitting now than six months ago. I've noticed it in my AO......Older homes priced to the moon that were selling within days are just sitting now with little interest shown in them.

That and a lot of older homeowners died over the winter (like my mom did) and their homes all hit the market around the same time so there's a lot more to pick and choose from.

I believe I beat the slump by a week. Then again I priced mom's place realistically and got my asking price but there sure as hell was no bidding war over it as over the winter.

It's being said that prices may have to come down by as much as 30% to start them moving again.

My realtor said new construction has started to level-off price-wise as may builders are finding that the capital is not out there for them. At least some banks are risk averse, fearing an slump.

Sorry to read about your mom Virginia. Happy you made a good deal with her home though

I got about 6k above asking and the home I found on the Gulf Coast is only about 15k, 700sqft more and ill have a lower mortgage than the people buying my place

Gotta love those VA home loans and Property Tax exemptions

Was able to get my seller to put in 12k concessions and buy my points down to a 5.75% rate. Not bad for these times but not the 3% for my current rate

 

[TheYellowKing]

I suspect those owners who currently have a low interest mortgage will continue to stand pat as they are currently doing in this market but when they make the move they won't be able to get what they would have just a few months ago.

Of course it's market dependant but it should open-up some availability.....The thing is rent is still high so many will be bought by investors and turned into rentals.

That's exactly what they're doing. If you have 4% or lower sit on that and build equity

Me I desperately needed to get out of the west coast so I'll bite the bullet and pay a little more til I can refinance

 

[TheYellowKing]

The article and the FDIC report don't say which banks.

There are vast numbers of financial organizations that only subtract value from the economy, not add to it, so they may be mostly wiped out as the economy shrinks: banks, investment brokers, hedge funds, consulting firms, etc.

They probably don't wanna say which ones and cause a run on those banks. Wouldn't look good for ol Biden then would it

 

[FranklinRoosevelt_FTW]

Higher interest rates have created 63 'problem banks' and $517 billion in unrealized losses, FDIC says

"This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates," the FDIC said.

www.businessinsider.com

• High interest rates continue to put pressure on the US banking system.
• The FDIC said the US banking system has 63 "problem banks" and is sitting on $517 billion in unrealized losses.
• Upward pressure on mortgage rates has significantly hurt the banking sector.

High interest rates putting pressure on these banks. That's the FED and Bidenomics for ya. This puts pressure on mortgage rates as people aren't buying at 7-8% rates. But everything is fine right demwits?

couple high interest rates with the highest prices of homes we’ve ever seen in our lifetime. Coupled with the lowest wages we’ve seen in years. We have a recipe for disaster.


40 years ago the average 25-year-old made 80,000 per year adjusted for inflation . Today The average 25-year-old makes $50,000 per year.

The economy under Biden is a disaster. At least it was better under Trump.

 

[TheYellowKing]

A couple high interest rates with the highest prices of homes we’ve ever seen in our lifetime. Coupled with the lowest wages we’ve seen in years. We have a recipe for disaster.


40 years ago, the average 25-year-old made 80,000 per year. The average 25-year-old makes $50,000 per year.

The economy under Biden is a disaster. At least it was better under Trump.

Yep in the 80s someone making minimum wage would spend 48% of their income on housing

Now you need two to three times minimum wage

 

[d0gbreath]

There are 4,049 commercial banks and 565 savings and loan associations in the U.S. insured by the Federal Deposit Insurance Corporation (FDIC) with US$23.4 trillion in assets.

63 you say? My, oh my.

 

[scruffy]

Is there a list of the 63?

 

[luiza]

Snippets from ZH and as per OP .
Keep your crash helmet on

WEDNESDAY, JUN 05, 2024 - 03:50 PM

It has been more than a year since the regional banking crisis exposed vulnerabilities in the financial system. A new Federal Deposit Insurance Corporation (FDIC) report discovered that the banking sector is still grappling with ballooning unrealized losses, a high number of “problem” banks, and various challenges that could worsen from high inflation and interest rates.

This, the report noted, represented the ninth consecutive quarter of “unusually high unrealized losses” since the Federal Reserve started raising interest rates in March 2022.


The FDIC report further revealed that the number of problem banks totaled 63 in the first quarter, up from 52 in the fourth quarter of 2023.