U.S. regional bank stocks fell on Thursday after quarterly earnings showed it was getting more costly for lenders to retain deposits.
Shares of Discover Financial Services (DFS.N) tanked 16% after it disclosed a regulatory review.
Discover incorrectly classified some credit card accounts from around mid-2007, while the Federal Deposit Insurance Corporation (FDIC) is also probing a separate compliance issues, the lender said on Wednesday. It has also paused share buybacks.
Read More : US Regional Bank Stocks Decline Due to Mixed Performance; Discover Hit by Regulatory Review