2:26 PM PT
Olympia, WA
We haven’t heard much about the banks since the Silicon Valley Bank collapse in 2023, but this chart shared by Apollo’s Torsten Slok caught my attention:
Banks continue to hold large amounts of unrealized losses on their balance sheets, and those losses increased further as of last reporting. Judging by how the bond market has performed recently, I would guess those losses are continuing to increase. I’m not sharing this to warn about any sort of major risks to be concerned about. This has been an issue for several quarters now and still hasn’t resulted in any economic issues. This is just a reminder that, as always, being careful and prudent about your banking relationships is still necessary. When it comes to banking, always make sure you:
1. Stay within the FDIC limits – Ensure no single account or combined accounts at one bank exceed $250,000 ($500,000 for joint accounts), the standard FDIC insurance limit per depositor, per insured bank, for each account ownership category.
2. Review FDIC coverage – Confirm your accounts are held at an FDIC-insured institution and understand which account types (e.g., joint, trust) affect coverage limits.
Again, this is not a warning about any major issues in the financial system. This is just a reminder to always be prudent with banking as you never know which bank will become the next Silicon Valley Bank.
If you have any questions or would like any recommendations about your banking situation, please reach out. We are happy to help!
