Most of this is because of Interest rates going up and the value of their bind portfolios going down. Another crisis of Mark to Market. My guess is Powell is going to have to ease off the rate hikes or problems will only worsen.
To Big To Fail is still the prevailing strategy. If Citicorp goes down to $0.25 a share again I will buy all I can which is where it went in 2008 and I curse myself for not buying then.
CBDC is due out in July. Powell isn’t going to back off, he is playing his part of the plan marching to a new world currency
The inverted yield curve ain’t helping.
Thank Jao BiXiden, McConnell, Schmuckie and Nanzi for the Inflation.
I don’t think they do mark them to market. Or at least it hasn’t been an issue because rates moved so little the last decade. Now the rates are much higher. They either have to mark their old low-yield bonds at the new market price (big loss because nobody wants to buy a 1% Yield in a 5% Yield environment without paying a big discount for the difference in ROI), or they are being forced to sell them at a big loss when bank customers ask for their cash. Either way, banks are looking at large losses to book on their balance sheets. Probably a bad year for banks’ quarterly/annual reporting.
I figure the bigger banks can handle it but one never knows.