Fannie Mae (FNMA)

[Robert from yahoo bd]

Hardly ANY credit risk (the problem in 2008), tons of interest rate risk. Is this a ticking time bomb? From the FDIC chairman:

"The total of these unrealized losses, including securities that are available for sale or held to maturity, was about $620 billion at year end 2022."

In other words, the US banking system as of end of 4Q22 had $620B in UNREALIZED LOSSES.

Those losses are unrealized because of the accounting treatment, but will easily become realized losses if there is a depositor run on the banks.

Btw, those unrealized Losses could easily crest above $1T, depending on how high and how long Jerome and the federal reserve board ratchet up interest rates to fight off inflation.

How high will the unemployment rate have to go?

https://www.fdic.gov/news/speeches/2023/spmar0623.html#:~:text=The%20total%20of%20these%20unrealized,%24620%20billion%20at%20yearend%202022.