Reported 4 months ago
The Federal Deposit Insurance Corp. reported that US banks experienced increased paper losses on available-for-sale and held-to-maturity securities, reaching $517 billion in the first quarter of 2024, marking the ninth consecutive quarter of high unrealized losses since interest rates began to rise. Despite the rise in losses and the inclusion of more lenders in the regulator's "Problem Bank List," FDIC Chair Martin Gruenberg stated that the industry remained stable, with rebounding net income, favorable asset quality metrics, and stable liquidity. Gruenberg also mentioned plans to work on new capital rules for banks and proposals to ensure easy access to funding before his eventual departure, which could impact the Biden administration's regulatory agenda and the financial industry.
Source: YAHOO