Martin Lowy

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Bank bosses are hiding $600 billion in unrealized losses to keep their mega bonuses. Here’s why portfolio securities should be marked to market

Apr 14, 2023 | fortune.com | Robert Litan |Martin Lowy |Lawrence White

Silicon Valley Bank (SVB) failed because it invested too much in long-term bonds that lost value when interest rates went up. That’s what our accounting rules encourage banks to do. As a consequence, U.S. banks, including some of America’s leading banks, are estimated to have over $600 billion of unrecognized losses on the “underwater” securities on their books.

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