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Replying to Avatar Lyn Alden

Fun fact.

Many US banks hold long-duration Treasuries that are currently underwater. They don't have to mark their unrealized losses to market because they plan to hold them to maturity.

This works as long as they don't have a highly-volatile deposit base that pulls money out and forces them to sell their Treasuries at an inopportune time and lock in a loss and thus risk insolvency.

https://void.cat/d/AXU6Hi5Z4LghCxCGA6yzNY.webp

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darnzen 2y ago

The bank my business uses asks for financials every year for line of credit. I want to ask them for their financials to make sure they sre solvent.

Only problem is I don't know what to look for on a banks balance sheet.

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