Citizens Financial Stock Drops Thanks to Manafort Indictment
- Bank says it’s not aware of an active regulatory investigation
- Analysts say investors are worried about possible rogue worker
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Citizens Financial Group Inc. dropped as much as 5.6 percent after it was tied to a loan described in U.S. Special Counsel Robert Mueller’s indictment of U.S. President Donald Trump’s former campaign chairman, Paul Manafort.
A $3.4 million loan from so-called “Lender B" in the indictment matches one that Manafort took from Providence, Rhode Island-based Citizens Bank, according to public records. Investors are concerned that banking regulators could open an investigation into the firm’s bank-secrecy act and anti-money laundering compliance processes, said John Pancari, an analyst at Evercore ISI.