US banks are currently holding $395 billion in unrealized losses on investment securities for the second quarter, according to the Federal Deposit Insurance Corporation (FDIC). This significant figure highlights the ongoing financial challenges faced by the banking sector amid fluctuating market conditions. The unrealized losses reflect the difference between the current market value of the securities and their purchase price, indicating potential vulnerabilities in banks' investment portfolios. The FDIC's report underscores the importance of monitoring these losses as they could impact banks' financial stability if market conditions do not improve.