In a stunning revelation this morning, Bank of America disclosed $112 billion in unrealized bond losses, a figure that underscores the precarious state of the U.S. banking system. The losses, which account for nearly 57% of the bank’s tangible common equity, highlight the risks of lockdown-era investments in low-yield bonds—a strategy that has backfired spectacularly as interest rates have surged.

Poster Comment:

That does not count the urealized commercial real estate losses.