Golden Finance reported that the Federal Deposit Insurance Corporation (FDIC) said in its quarterly bank profile report that the number of U.S. banks on its "problem bank list" rose to 68 in the third quarter. Banks had $364 billion in losses on their books through the third quarter of this year, largely due to their exposure to the residential real estate and Treasury markets. Unrealized losses represent the difference between the price a bank paid for the securities and the current market value of those assets. In the third quarter, banks reported $148.9 billion in paper losses, down from $512.9 billion in the second quarter.