---
title: "BREAKING: U.S. Banking System >>> FDIC warns that 63 Lenders are on the brink of insolvency due to banks sitting on $517 billion in unrealized losses"
description: "This is $39 billion higher than the $478 billion recorded in Q4 2023.\nThe surge was driven by higher residential mortgage-backed securities losses held by banks due to rising mortgage rates.\nQ1 2024 also marked the 10th consecutive quarter of unrealized losses, an even longer streak than during the 2008 Financial Crisis.\nAs “higher for longer” returns, unrealized losses are likely to continue rising.\nSource: BofA, The Kobeissi Letter"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [BREAKING: U.S. Banking System \>\>\> FDIC warns that 63 Lenders are on the brink of insolvency due to banks sitting on $517 billion in unrealized losses](https://blog.syzgroup.com/syz-the-moment/breaking-u.s.-banking-system-fdic-warns-that-63-lenders-are-on-the-brink-of-insolvency)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jun 4, 2024, 3:21:24 PM

[View full post](https://blog.syzgroup.com/syz-the-moment/breaking-u.s.-banking-system-fdic-warns-that-63-lenders-are-on-the-brink-of-insolvency)

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