David Friedberg: Rising Rates Could Trigger a Banking Shock Right Before the Midterms
Rising Treasury rates may trigger banking equity write-downs just before midterm elections
“about 95 banks will say, "Hey, we have over 20% depreciation on our equity."”
David Friedberg analyzes how a 60 basis point rise in short-term Treasury rates could force roughly 95 of 4,295 FDIC-reporting banks to report equity write-downs exceeding 20%. The reports are due October 30th, coinciding with the election cycle. This content has no meaningful AI signal and is focused on macroeconomic and banking risk.