First Republic Bank was forced to seek a lifeline this week, receiving tens of billions of dollars from other banks. These are known as unrealized losses — they turn into real losses only if the banks have to sell the assets. +2 % 0 –4 First Republic Pacific Western Signature −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 –4 Silicon Valley Western Alliance Zions −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 First Republic Pacific Western Signature –4 −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 Silicon Valley Western Alliance Zions –4 −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 First Republic Pacific Western Signature –4 −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 Silicon Valley Western Alliance Zions –4 −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Source: Federal Financial Institutions Examination Council Note: Includes both “held-to-maturity” and “available-for-sale” securities, meaning both long- and short-term investments. Banks’ cash and noncash assets Plotted quarterly $200 billion Pacific Western Signature 150 100 First Republic 50 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 $200 billion Western Alliance Zions 150 100 50 Silicon Valley 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Banks’ cash and noncash assets $200 billion Pacific Western Signature 150 100 50 First Republic 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 $200 billion Western Alliance Zions 150 100 50 Silicon Valley 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Source: Federal Financial Institutions Examination CouncilMidsize banks like SVB do not have the same regulatory oversight as the nation’s biggest banks, who, among other provisions, are subject to tougher requirements to have a certain amount of reserves in moments of crisis. Last weekend, the Fed announced a program that offers loans of up to one year to banks using the banks’ government bonds and certain other assets as collateral.

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