EddieJayonCrypto
26 May 23
I woke up to some serious news from the banking industry. Here is what is on my mind today.1. Breaking: New York City Banking Commission votes to halt deposits into the City's bank accounts at Capital One and KeyBank. Apparently, the two banks failed to submit plans to root out discrimination. Going...
I woke up to some serious news from the banking industry. Here is what is on my mind today.1. Breaking: New York City Banking Commission votes to halt deposits into the City's bank accounts at Capital One and KeyBank. Apparently, the two banks failed to submit plans to root out discrimination. Going forward the account will be used to pay bills, but will not receive any net new funds. When you have a city like NY citing unfair lending practices, you have a PR nightmare. I am pretty sure this is going to cause major stock problems for the banks. 2. Ripple CEO Brad Garlinghouse says he expects a ruling in their case against the SEC in the coming weeks, not months. As you might think, the XRP Army is all over this news. Something else to contemplate is Brad also stated that 95% of XRP holder and users are outside the United States. I will say that number may be greatly inflated because there are a number of people in the US that may have used VPNs to make their purchases. The big deal is going to be when the case comes, how fast will US exchanges relist XRP. I would expect explosive growth when that happens. 3. In other banking news, JPMorgan informed First Republic employees there will be a reduction in headcount. I am pretty sure this was expected. The initial number of affected employees is 1K. The bank does expect to retain approximately 85% of First Republic's almost 7K employees. As we move forward I expect to learn more about post-acquisition efforts. 4. In more news, JPMorgan files for a trademark on IndexGPT. This would be an investment platform that would leverage AI to create identify securities based on client-centric parameters. First reported by CNBC, this could be groundbreaking news and have a huge impact on an already the bot-driven financial services industry. They have 3 years to launch or they lose the trademark. 5. DCG shuts down their trade execution, prime brokerage unit, TradeBlock. I am not sure if I am surprised by this. DCG lost about $1B last year and is having major problem meeting its obligation with Gemini and other investors. I think there will be more to come from DCG. They are still in hot water. 6. There is a major event going on right now and it smells like a rug pull. Multichain, a pretty big blockchain bridge, has locked $1.8B in assets. Rumors are swirling that Chinese officials may be arrested team members and assumed control of the wallets. It is said that about 40% of Fantom's assets may be wrapped on Multichain. Fantom tweeted the Multichain bridge with Fantom is operating as normal, but the whole thing has spooked the market.