The level has remained high since 2022 and has not returned to zero.

This is a direct legacy of the interest rate hike cycle. Banks bought Treasuries and MBS when yields were low, and now these securities are worth less.

As long as interest rates don't fall, the loss remains on the balance sheet.

It's not an immediate risk as long as there's no run on withdrawals.

But it's a reminder that the American banking system still carries a structural vulnerability that the market chose to ignore after the SVB episode.