Odaily Planet Daily News According to the latest data from the Federal Deposit Insurance Corporation (FDIC), the number of banks in the United States with significant problems continues to rise. The FDIC stated in its quarterly bank profile report that the number of U.S. banks on its 'problem bank list' increased to 68 in the third quarter. This figure represents the fifth consecutive quarterly increase in the number of banks rated 4 or 5 on the CAMELS rating system since the second quarter of 2023. A CAMELS rating of 4 indicates that the bank is experiencing financial, operational, or managerial issues (or a combination of these issues) that, if not addressed, could threaten its viability. Meanwhile, a CAMELS score of 5 indicates that the bank is critically deficient in one or more areas and requires immediate remedial action. The report noted that 'the total assets held by problem banks increased by $3.9 billion, reaching $87.3 billion. Problem banks account for 1.5% of the total number of banks, which is within the normal range of 1% to 2% for all banks during non-crisis periods.' At the same time, the amount of unrealized losses on bank balance sheets has decreased. The FDIC stated that as of the third quarter of this year, banks had recognized losses of $364 billion, primarily due to risk exposure in the residential real estate and Treasury markets. Unrealized losses represent the difference between the price banks paid for securities and their current market value. The third-quarter recognized losses decreased by $148.9 billion from $512.9 billion in the second quarter. However, FDIC Chairman Martin J. Gruenberg indicated that the reduction in recognized losses last quarter is only temporary. Changes in long-term interest rates since the end of the third quarter suggest that U.S. banks' current unrealized losses may be nearing $500 billion. (The Daily Hodl)