New figures from the Federal Deposit Insurance Corporation (FDIC) reveal that US banks are carrying a staggering $395 billion in unrealized losses on their investment securities portfolios for the second quarter. This significant loss position represents one of the largest ever recorded and underscores the ongoing financial pressure felt by the banking sector. The FDIC’s analysis breaks down these losses into held-to-maturity (HTM) and available-for-sale (AFS) securities, revealing that pressures on bank balance sheets remain substantial. The bulk of these unrealized losses stem from fixed-income securities acquired during the era of near-zero interest rates. With rising interest rates impacting their value significantly, many have suffered substantial declines in market capitalization.