[packagingguy]

Is this because banks held long term treasuries to back up loans they gave?

I don’t know I’m asking.

[RomanSoldier19]

https://www.risk.net/risk-quantum/7959239/smaller-us-banks-hold-over-half-of-cre-loans

[citizen]

I think that’s it. The “free” money was never going to end...then it did, and rising interest rates cut the value of those treasuries in half.

The word is the FED assured these small-to-mid banks they would be protected if they bought US long-term debt. They were lied to.