[winflop]

It's only a loss if they sell now.  Unlike smaller banks, BAC should (in theory) have diverse enough of a deposit base and overall business that they don't need to be selling right now.

That is not correct. All investments need to be adjusted to current market values on the balance sheet ("marked to market"), and federal regulators look at the market value of assets when assessing systemic risk. Any devaluation of this magnitude will materially impact their balance sheet and their systemic risk of failure

Banks do not have to mark assets they plan to hold to market.  This was one of the changes coming out of the GFC.  It is true that regulators will look at market values.

FWIW, BofA is not in any kind of real trouble due to its balance sheet.  For that matter, SVB wasn't either.  Without the deposit run SVB would have easily been able to manage its way through the increase in interest rates.

ALL companies must mark their assets to market on their balance sheet. See FASB rule 157. Frequency is at least once per year at the end of the fiscal year, but many companies do it more frequently especially publicly-traded ones who often do it quarterly as part of their reporting requirements.

[winflop]

It's only a loss if they sell now.  Unlike smaller banks, BAC should (in theory) have diverse enough of a deposit base and overall business that they don't need to be selling right now.

That is not correct. All investments need to be adjusted to current market values on the balance sheet ("marked to market"), and federal regulators look at the market value of assets when assessing systemic risk. Any devaluation of this magnitude will materially impact their balance sheet and their systemic risk of failure

Banks do not have to mark assets they plan to hold to market.  This was one of the changes coming out of the GFC.  It is true that regulators will look at market values.

FWIW, BofA is not in any kind of real trouble due to its balance sheet.  For that matter, SVB wasn't either.  Without the deposit run SVB would have easily been able to manage its way through the increase in interest rates.

ALL companies must mark their assets to market on their balance sheet. See FASB rule 157. Frequency is at least once per year at the end of the fiscal year, but many companies do it more frequently especially publicly-traded ones who often do it quarterly as part of their reporting requirements.