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🚨Ω🚨
$CUBI is now one of the most exposed banks, if not the single most crypto exposed bank, in the United States. They're also relying on brokered deposits to stay solvent, meaning they have to pay the highest interest rate of any bank or risk losing their deposits.
ngmi
$CUBI is now one of the most exposed banks, if not the single most crypto exposed bank, in the United States. They're also relying on brokered deposits to stay solvent, meaning they have to pay the highest interest rate of any bank or risk losing their deposits.
ngmi
https://twitter.com/RhoRider/status/1651736772718764033
🧵2/Ω
$CUBI is running the same game as $SBNY. Not even just the same game - they're literally running the same software. #TassatPay is just rebranded #SigNET. It's the kind of platform money launderers have wet dreams about.
$CUBI is running the same game as $SBNY. Not even just the same game - they're literally running the same software. #TassatPay is just rebranded #SigNET. It's the kind of platform money launderers have wet dreams about.
https://twitter.com/Cryptadamist/status/1636161933861609474
🧵3/Ω
About $CUBI's brokered deposits game... They don't even have someone to negotiate with because #MaxMyInterest is apparently fully automated. In other words, #CodeIsLOL.
About $CUBI's brokered deposits game... They don't even have someone to negotiate with because #MaxMyInterest is apparently fully automated. In other words, #CodeIsLOL.
https://twitter.com/RhoRider/status/1644058658404438016
🧵4/Ω
$CUBI data point: Circle, the issuer of the $USDC stablecoin, used to keep a billion dollars at $CUBI. But ever since The Great USDC Depeg Event Of 2023 where $USDC fell as low as $0.80 they won't trust $CUBI with any uninsured deposits.
Wonder why?
$CUBI data point: Circle, the issuer of the $USDC stablecoin, used to keep a billion dollars at $CUBI. But ever since The Great USDC Depeg Event Of 2023 where $USDC fell as low as $0.80 they won't trust $CUBI with any uninsured deposits.
Wonder why?
https://twitter.com/Cryptadamist/status/1634672673216159747
🧵5/Ω
@RhoRider (worth a follow) has done a lot of good research on $CUBI; might be easier for me to just link a search to their tweets than keep QTing:
twitter.com/search?q=%40rh…
@RhoRider (worth a follow) has done a lot of good research on $CUBI; might be easier for me to just link a search to their tweets than keep QTing:
twitter.com/search?q=%40rh…
🧵6/Ω
$CUBI released some numbers last week. If you are considering trading the stock you should probably read it. Some things jump right out:
➤ they made a lot of money on #PPP loans but now the program is ending
➤ deposit flight risk is rising
Ω👇Ω
sec.gov/Archives/edgar…
$CUBI released some numbers last week. If you are considering trading the stock you should probably read it. Some things jump right out:
➤ they made a lot of money on #PPP loans but now the program is ending
➤ deposit flight risk is rising
Ω👇Ω
sec.gov/Archives/edgar…
🧵7/Ω
$CUBI's annual report "risks" section (always the best section in these total page turners published by SEC) has a section about the risk that they will not be able to meet withdrawals.
$CUBI's annual report "risks" section (always the best section in these total page turners published by SEC) has a section about the risk that they will not be able to meet withdrawals.
🧵8/Ω
This section of the report also puts a number on what @RhoRider was getting at w/r/t brokered deposits from MaxMyInterest and other capital that could walk out the door in a hurry.
It's kind of a scarily high number: 28.1% ($4.74 billion).
This section of the report also puts a number on what @RhoRider was getting at w/r/t brokered deposits from MaxMyInterest and other capital that could walk out the door in a hurry.
It's kind of a scarily high number: 28.1% ($4.74 billion).
🧵9/Ω
$CUBI's interest income is rising... but not nearly as fast as its interest expensive. As a result net income fell more than 50% and is probably still falling...
$CUBI's interest income is rising... but not nearly as fast as its interest expensive. As a result net income fell more than 50% and is probably still falling...
🧵10/Ω
Big picture: $CUBI has to keep paying more and more to keep the 28% of their deposit base that is brokered by MaxMyInterest etc. but expense of doing so is devouring their profits. bc if they lose those depositors then the non interest customers will yank too, which is🪦
Big picture: $CUBI has to keep paying more and more to keep the 28% of their deposit base that is brokered by MaxMyInterest etc. but expense of doing so is devouring their profits. bc if they lose those depositors then the non interest customers will yank too, which is🪦
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