The United States... 722 banks announce a loss of 50% of their capital

Al-Anbat – Dema Hina

722 US banks notified the US Federal Reserve, with unrealized capital losses exceeding 50%, and 31 of these banks are estimated to be "catastrophic."

The data shows that the three U.S. banks that went bankrupt this year, First Republic Bank, Silicon Valley Bank, and Signature Bank, are equivalent to more than 25 banks that collapsed during the 2008 crisis.

The assets of these three banks are estimated at $532 billion, $526 billion more than the assets of the 25 banks that collapsed during the Great Recession.

According to Fed reports, higher interest rates have led to large unrealized losses in investment securities and, in some cases, a reduction in the cost of real capital.

And the reports indicated that, with "high-interest rates, banks with significant market value losses may face financial challenges, management, and increased risks."

According to the reports received, total deposits in the United States decreased last week again, dropping to $10.54 trillion, compared to $10.61 trillion in the previous week, and inflation in the United States reached its highest level in 40 years.

American experts noted that there is still a year and a half before the US presidential elections, and it seems that the Federal Reserve is forced to act as a branch of President Joe Biden's election campaign, and the bad news is concealed by all possible means.