$600 Billion of unrealized losses
The FDIC keeps track of all the marketable securities held within the banking system and is able to measure the unrealized gains and losses on them. What the schedule above suggests is that there are close to $600 Billion of unrealized losses in banks’ securities portfolios. Now some will say some of these are hedged, and in the available for sale category some are. But the rules don’t allow a held to maturity security to be hedged. So, there are a lot of losses out there waiting to be discovered.