$40,000,000,000 in Unrealized Losses Hits JPMorgan Chase As Bank of America, Wells Fargo and Citigroup Face Exposure to US Treasuries: Report
According to a recent analysis on the company's entire balance sheet, JPMorgan Chase has quietly revealed tens of billions of dollars in losses on securities.
According to Barron's, the banking giant is now saddled with about $40 billion in unrealized bond losses as of the third quarter of this year, a 20% increase over the previous quarter.
The fresh figures, which were revealed in a footnote to the company's third-quarter financial supplement, were larger than the predicted $34 billion loss.
The announcement comes on the heels of a recent quarterly report from Bank of America, which revealed that the company now has a total of $131.6 billion in unrealized losses.
Although Wells Fargo and Citigroup reported third-quarter profitability, they have yet to release the most recent data on their own unrealized losses.
Wells Fargo reported $40 billion in unrealized bond market losses in the second quarter of this year, while Citigroup reported $25 billion in paper losses.
The risks of unrealized losses were brought to light earlier this year with the failure of Silicon Valley Bank.
The bank's abrupt demise in March was precipitated by a statement that it had incurred a $1.8 billion loss from the sale of a section of its underwater bond portfolio.
According to Reuters, Moody's believes that the US banking industry is facing $650 billion in unrealized losses.
These losses are the result of a historic bond sell-off in response to the Fed's attempt to maintain interest rates higher for longer.
Paul’s charge to us in Romans 13:8 to owe nothing but love is a powerful reminder of God’s distaste for all forms of debt that are not being paid in a timely manner (see also Psalm 37:21). At the same time, the Bible does not explicitly command against all forms of debt. The Bible warns against debt, and…
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