US banks sitting on unrealized losses of $620B

This article is from Sunday. It&#x27;s wildly out of date.<p><i>&gt; is there a reason why the US government &#x2F; fed can’t just buy them off the banks at the “denominated price” or issue a bridge loan that would be repaid when they mature?</i><p>Yes, that&#x27;s basically what happened. Just a few hours after this article came out, the Federal Reserve said &quot;it will offer bank loans for up to a year in exchange for US Treasury bonds and mortgage-backed securities that lost value. The Fed will honor the debt’s original value for the banks that take the loans.&quot;

Feels like a yellow journalism headline.<p>It&#x27;s only a loss if they have to liquidate before maturity. Kind of feels paradoxical: money can be accounted for in the future but not today.<p>People tied up a bunch of money at worse terms than they can get today. Nobody is willing to buy those bonds at face value because the market is offering better. Current market value of assets may be below what was paid for them, but that doesn&#x27;t matter <i>unless the owner is depending on liquidating them at par value at any time</i>.

There appears to be a coordinated attempt to promote upvoting of this article on Twitter.<p><a href="https:&#x2F;&#x2F;twitter.com&#x2F;search?q=%09%20US%20banks%20sitting%20on%20unrealized%20losses%20of%20%24620B&amp;src=typed_query" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;search?q=%09%20US%20banks%20sitting%20on...</a><p>(Again, the headline is wildly out of date because a few hours later the federal reserve said they would honor all these bonds at their original value, eliminating much of the risk in these unrealized losses.)

For government securities is there a reason why the US government &#x2F; fed can’t just buy them off the banks at the “denominated price” or issue a bridge loan that would be repaid when they mature?

Somehow that feels like an entirely avoidable problem. &quot;Do we need to increase unemployment to bring inflation down&quot; What kind of inflammatory nonsense is this? We could clearly observe that the largest driver for inflation in the US is Energy&#x2F;Oil generating record revenues for Oil&#x2F;Gas companies around the globe. I just 48 hours ago read this headline: Saudi oil giant Aramco posts record $161 billion profit for 2022

seems like a decent way to unprint some money.

Unrealized losses of $620B yet.

Under Bidens plan to tax unrealized gains, will the banks be able to claim unrealized losses as well?

CNN is not a good source for financial news.