The Risks and Realities of Investing in Banks Today.

US banks are sitting on $1.7tn in unrealized losses caused by rising interest rates that have slashed the value of the US Treasuries and mortgage-backed securities that make up a large portion of many banks’ assets. Nearly $7tn of the $17tn in total US bank deposits are currently not insured by the FDIC, according to a new paper by researchers at New York University. If half of these uninsured depositors decide to withdraw their funds after the recent bank instability, it could put hundreds of billions of dollars of deposits in jeopardy. Multiple politicians have argued the Fed should backstop every type of depositor at all banks to prevent further bank runs from the public.