topic Re: DISCOVER FDIC probe in Credit in the News

DISCOVER FDIC probe

CreditCuriosity — Thu, 20 Jul 2023 16:34:52 GMT

https://www.marketwatch.com/story/discover-stock-falls-more-than-8-after-company-discloses-accounting-mistake-fdic-probe-8b4e2909?mod=home-page

currently down 16% being their stock for today. Sure it will recover.

Re: DISCOVER FDIC probe

AndySoCal — Thu, 20 Jul 2023 20:39:05 GMT

@CreditCuriosity It would be interesting to know what the consumer compliance issue is. The fact that Discover is talking to and I presume trying to work with the FDIC is good. You do not fight with regulators the vast majority of the time you do not win those fights.

Re: DISCOVER FDIC probe

CreditCuriosity — Thu, 20 Jul 2023 20:45:24 GMT

Ya be interesting, but really hit their stock today closed 17% down.

Re: DISCOVER FDIC probe

AndySoCal — Fri, 21 Jul 2023 20:35:44 GMT

@CreditCuriosity I found this on the FDIC probe

https://www.paymentsdive.com/news/discover-facing-fdic-probe-payments-compliance-pricing-error-second-quarter-earnings/688507/

Re: DISCOVER FDIC probe

AndySoCal — Tue, 15 Aug 2023 18:20:36 GMT

This is related to the earlier postss. The CEO stated earlier as part of their earnings report that Discover was not spending enough on compliance and related issues. Also, he stated more money was budgeted for these issues and it was his fault for not budeting more for compliance. The move of yesterday is tied to what happened earlier.

https://investorrelations.discover.com/newsroom/press-releases/press-release-details/2023/Discover-Financial-Services-Announces-Leadership-Transition/default.aspx

On personal note I am Discover Bank and Discover Card customer and have been for years. I have no plan to leave Discover at this time. I do have back ups if need be.

Re: DISCOVER FDIC probe

CreditCuriosity — Wed, 16 Aug 2023 11:11:50 GMT

As a side to this the CEO resigned due to apparently this situation.

https://www.pymnts.com/credit-cards/2023/discover-financial-ceo-resigns-amid-regulatory-review/

Re: DISCOVER FDIC probe

AndySoCal — Wed, 04 Oct 2023 01:43:57 GMT

@CreditCuriosity

Here is an update

https://www.investopedia.com/discover-shares-jump-after-reaching-consent-agreement-with-the-fdic-8304184