Many U.S. Banks Face the Same Risks That Brought Down Silicon Valley Bank

In a speech just a few days before Silicon Valley Bank failed, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg said that the market value of U.S. banks’ long-term assets had dropped $620 billion in 2022. Yet a sobering new analysis finds that the banking industry’s unrealized losses are now more than three times that — and many banks are facing the same kinds of troubles that brought down SVB.

The research, coauthored by Amit Seru, a professor of finance at Stanford Graduate School of Business, looked at more than 4,800 U.S. banks to gauge their exposure to…