The Federal Deposit Insurance Corporation (FDIC) stated in its quarterly bank profile report that the number of U.S. banks on its 'problem bank list' rose to 68 in the third quarter. As of the third quarter of this year, banks have recorded book losses of $364 billion, primarily due to their involvement in the residential real estate and Treasury bond markets. Unrealized losses represent the difference between the price banks paid for securities and the current market value of those assets. In the third quarter, banks' book losses decreased by $148.9 billion compared to $512.9 billion in the second quarter.