‘This is a risk confronting all banks,’ ex-FDIC chief Sheila Bair tells MarketWatch

MarketWatchJoy Wiltermuth/3-23-2023

“‘I don’t see regional banks as having any particular problem,’ said Sheila Bair, who ran the Federal Deposit Insurance Corp. from 2006 to 2011, in an interview with MarketWatch on Thursday. ‘We need to be mindful of all unmarked securities at banks — small, medium and large.'”

USAGOLD note: By “unmarked securities,” we are guessing she means bonds held in bank portfolios that have not been marked to market, an accounting procedure that cloaks the true position of the banks. The fact that Credit Suisse failed for the very same reasons as SVB – underwater bond holdings that undermined its ability to return customer deposits – tells us that Bair’s concerns are valid.