Good News Outweighs the Bad for KeyCorp

There was good news and bad news for KeyCorp (NYSE: KEY) in the third quarter. Let's start with the bad.

KeyCorp, the Cleveland-based parent company of regional lender KeyBank, fell short of earnings estimates due to a fraud case that cost the company $123 million.

In July, KeyCorp learned that Interlogic Outsourcing, an Indiana-based payroll processor and a longtime customer, had initiated a roughly $123 million overdraft from KeyBank to make wire transfers but didn't have the money to cover them. KeyCorp is suing Interlogic to recover its losses, but the fraudulent activity had a significant impact on the company's financial results.

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Source Fool.com