Discover Financial Falls After Disclosing Regulatory Review, Suspends Buybacks
- The lender misclassified some cards and overcharged retailers
- Management to prepare a refund program for affected merchants
A Discover Financial Services chip credit card.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Discover Financial Services fell the most in more than three years after the lender disclosed that it was in discussions with regulators over how it misclassified some of its credit cards.
The stock was the worst performer in the S&P 500 on Thursday, tumbling 16%, the biggest decline since March 2020. A day earlier, the company said in a statement that it will suspend buybacks while it begins an internal review of compliance, risk management and corporate governance.