Bank of America's Unrealized Losses on HTM Debt Securities Total $106 Billion; 34 Percent of All Such Unrealized Losses Reported by 4,645 Banks

Bank of America’s Unrealized Losses on HTM Debt Securities Total $106 Billion; 34 Percent of All Such Unrealized Losses Reported by 4,645 Banks

By Pam Martens and Russ Martens: September 26, 2023 ~ According to Bank of America’s federal regulatory filing known as the Call Report, for the quarter ending June 30, 2023, it had $105.79 billion in unrealized losses on its held-to-maturity (HTM) securities. That figure is not only far beyond the realm of what its peer banks reported, but it represents a stunning 34 percent of all unrealized losses on held-to-maturity securities reported by 4,645 FDIC-insured commercial banks and savings institutions as of June 30, according to the FDIC’s Quarterly Banking Profile. For the quarter ending June 30, the FDIC reported that all 4,645 FDIC-insured financial institutions had $309.6 billion in unrealized losses on held-to-maturity securities. Held-to-maturity securities at the largest banks are made up predominately of federal agency mortgage-backed securities and U.S. Treasury bills, notes and bonds. The principal on these securities is federally guaranteed at maturity but their market value … Continue reading Bank of America’s Unrealized Losses on HTM Debt Securities Total $106 Billion; 34 Percent of All Such Unrealized Losses Reported by 4,645 Banks