Why Discover Financial Services Sank This Week

Shares of Discover Financial Services (NYSE: DFS) sank this week, falling about 10% as of noon on Thursday, according to data from S&P Global Market Intelligence.

On Monday, the company announced its CEO Roger Hochschild was resigning as CEO and stepping down from the board, following a discussion with the company's board of directors. Board member John Owen will be stepping in as interim CEO as the company looks for a replacement.

While the company didn't disclose the exact reason for the departure, it is likely related to an issue brought up during the last earnings call, when Discover announced it was suspending its buyback program amid an internal investigation into a compliance matter. That could mean Discover may have made a mistake that could potentially result in fines, other regulatory actions, or higher ongoing compliance costs.

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Source Fool.com