Customers Bancorp hits nine-month low after Federal Reserve slaps enforcement action

Customers Bancorp

08/08/2024 18:20

(Updates)
    ** Shares of regional lender Customers Bancorp  CUBI.N  fall
as much as 21.8%, hitting their lowest since November 2023; last
down 16.3% at $45.37
    ** U.S. Federal Reserve imposes enforcement action against
CUBI for "significant deficiencies" around its risk management
and anti-money laundering practices
    ** CUBI provides blockchain-based digital payments via
Customers Bank Instant Token, which allows clients to make
instant payments in U.S. dollars
    ** Enforcement action stems from Fed's most recent
examinations and inspection of CUBI
    ** About one-sixth of company's total deposits are tied to
cryptocurrency
    ** Stephens analyst Matt Breese says CUBI's written
agreement with Fed is negative and could impact both deposit
balances and expenses 
    ** Stock down 21% YTD 

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))