Customers Bancorp extends fall as brokerages cut PT on 'disappointing' Fed action

Customers Bancorp

09/08/2024 14:57

** Shares of regional lender Customers Bancorp  CUBI.N  fall
~4.5% to $44.92 in morning trading 
    ** D.A. Davidson cuts PT on CUBI to $68 from $79; KBW lowers
to $63 from $76
    ** U.S. Federal Reserve announced on Thursday it had imposed
an enforcement action against CUBI for "significant
deficiencies" around the bank's risk-management and anti
money-laundering practices
    ** "To be fully transparent, we were disappointed by this
development, and recognize that this could be an overhang for
the next 2-3 years," KBW analysts say  
    ** Stock closed the previous session down ~13.3% 
    ** "There will be additional investments going forward,
along with a few million dollars of investments over the next
2-quarters as they hire consultants and submit written plans to
show steps/progress taken to strengthen risk management
controls," says D.A. Davidson analyst Peter Winter 
    ** Including session move, stock down ~22% YTD  

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))