Otter's Take on MCB

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otter spoke about earning retirement wealth through due diligence earlier folks who acted on it made millions of dollars now otter is going to show you some due diligence not financial advice least you could do is like & retweet this please 🦦

otter was one of the few people who called SBNY and Signet into question before both were taken offline by authorities anyone who was shorting SBNY made max amount of money millionaires were made that day twitter.com/otteroooo/status/1615044621608030215

but first who is otter...? twitter.com/otteroooo/status/1597605022283333632?s=20

In today's thread we will cover: a. bank failure context b. MCB clients c. Auditor red flag d. Asset liabilities mix e. How the pros profit

None of this thread should be construed as financial advice Consider this as due diligence, bedtime reading, anything but financial advice A little context about $MCB twitter.com/0xManBun/status/1641671490889461761?s=20

b. MCB clients MCB has been banking CryptoCom for some time CryptoCom has been in the eyes of online investigators recently for a couple of reasons - blockchain evidence - retreats in many jurisdictions

MCB and Cryptodotcom are embarassed with their relationship twitter.com/Cryptadamist/status/1641617993158336515?s=20

- blockchain evidence twitter.com/BoringSleuth/status/1627912380586885120?s=20

- retreats in many jurisdictions twitter.com/Cryptadamist/status/1641854009676791844?s=20

c. Auditor red flag ⛳️ MCB auditor found a "critical audit matter" When auditors ring alarm bells, we listen the key issue here seems to be that the allowances for loan losses is insufficient for $MCB twitter.com/Cryptadamist/status/1643448666739335170

If a bank does not have sufficient loan losses allowance, it can lead to several negative consequences A loan loss allowance is an amount that a bank sets aside to cover potential losses from loans that may not be repaid in full the risks are

i. Financial Losses If the bank experiences loan losses that exceed its allowance, it may have to write off the difference as a loss, which can negatively impact its financial position

ii. Regulatory Intervention: Banks are required by regulators to maintain sufficient loan loss allowances to cover potential losses. If a bank does not have enough loan loss allowance, it may face regulatory intervention, such as fines, sanctions, or even closure (like SBNY)

iii. Credit Downgrades: If a bank experiences significant loan losses that exceed its loan loss allowance, credit rating agencies may downgrade the bank's credit rating this could very well start a downward spiral for the bank

Overall, insufficient loan loss allowance can be a serious problem for a bank. It can lead to financial losses, regulatory intervention, credit downgrades, and damage to the bank's reputation

d. Asset liabilities mix The good folks at Vidar Research looked into the balance sheet and found flaky deposits, illiquid assets twitter.com/vidar_research/status/1641432688803602432?s=20

problem with flaky crypto exchanges deposits is when the banking regulator comes to you and demand you unbank the crypto exchange for whatever reason the bank suddenly loses a sizable deposit base! don't forget that unbanking one crypto exchange can be many people RT this 🦦

the assets side of the balance sheet is equally troublesome most of MCB assets don't qualify for the Fed's rescue program much badder fact is that its stuck in CRE loans and CRE loans are in all the wrong news these days twitter.com/vidar_research/status/1641470475451727875

now otter is not a pro but several folks on FinTwit have a great pro record we have Ser @eliant_capital who has a knack to find "zee ponzi banks" twitter.com/eliant_capital/status/1641502072976597000

an astute short seller may not do a naked short sell but buy put options on MCB this limits your downside (to the purchase amount) and gives greater upside options have leverage effect too the degen leverage lover can choose to max lev - short dated puts - deep otm

if you didnt understand what was all that in the previous tweet you should NOT be buying put options leave the generational wealth to others please again, no part of this thread is financial advice do your own research 🦦

this thread is built on the shoulders of the following giants @Cryptadamist @vidar_research @0xManBun @BoringSleuth @MikeBurgersburg @AlderLaneEggs @ParrotCapital @eliant_capital