A top strategist says ‘massive unrealized losses’ are a ‘Pandora’s box’ for banks and it’s going to impact lending

Customers in line outside Silicon Valley Bank's headquarters on March 13 (Credit: David Paul Morris—Bloomberg/Getty Images)

Regulators and government officials are urging calm in the wake of this month’s major bank failures, while insisting that the U.S. financial and banking system remains stable. But even if the dust is starting to settle after a chaotic few weeks for bank stocks, the crisis may not be over yet as bank assets could still be in trouble, according to some experts.

“Financial stress issues, the liquidity crisis, the bank runs, that can stop. Will the capital issues that the U.S. banking system faces, will that go away? I would argue it doesn’t,” Priya Misra, head of global rates research at TD Securities, said in an interview with Bloomberg Thursday.