The Big Banks Are Sitting on Massive Hidden Losses | Bagholder

Rigatoni Capital Podcast · Oct 10, 2026 · 1h 3m

This week Kevin, also known as Bagholder, who writes Mytwocent$ on Substack, joins me before bank earnings season kicks off. Bag lays out the bearish case on the big banks. His argument is that the banks loaned out deposits long term at pandemic-era mortgage rates near 2.5%, and with rates now at 7.5%, the market value of those loan books has collapsed to a fraction of what is still carried on the balance sheet. Because they do not have to mark those losses to market, he sees enormous hidden holes (or unrealized losses) at names like Bank of America and Wells Fargo, which in his view leaves…