The Risky Reality of U.S. Banks' Unrealized Losses and Potential Collapse.

U.S. banks had unrealized losses of $1.7 trillion at the end of 2022, nearly equal to banks’ total equity of $2.1 trillion, due to rising interest rates that have slashed the value of their assets. Nearly $7 trillion of the $17 trillion in total U.S. bank deposits are currently not insured by the FDIC, and 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.