U.S. Banks Report $395 Billion in Unrealized Losses for Q2 2025

According to FDIC data, American banks carried substantial paper losses in the second quarter of 2025, reflecting continued valuation pressures on investment securities.

Summary

The FDIC reported that U.S. banks held $395 billion in unrealized losses on investment securities in the second quarter of 2025. These represent declines in asset values that have not been realized through sales. The data highlights ongoing financial sector challenges during the April–June period, with market conditions impacting the valuation of bank-held investments.

Terms & Concepts
  • Unrealized Losses: Losses that exist on paper due to a drop in the value of an asset but are not yet actualized through a sale.
  • Q2: The second quarter of a financial year, covering April through June.
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