Is Discover Financial in Crisis? It Mulls Student-Loan Business Sale After CEO Resignation
Portfolio Pulse from Shivani Kumaresan
Discover Financial Services (NYSE:DFS) is reportedly considering selling its student loan business, which has a portfolio of $10.2 billion. The move follows a series of regulatory lapses and the abrupt resignation of CEO Roger Hochschild. The company had previously suspended share buybacks due to an internal investigation into its student loan servicing business. DFS shares are currently trading higher by 0.53% at $90.56.
September 15, 2023 | 3:52 pm
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NEUTRAL IMPACT
Discover Financial Services is considering selling its student loan business following regulatory issues and CEO resignation. This could potentially streamline operations and improve regulatory compliance. DFS shares are currently trading higher.
The potential sale of the student loan business could streamline operations and improve regulatory compliance, which could be seen as a positive move by investors. However, the abrupt resignation of the CEO and past regulatory issues may cause some uncertainty. The impact on the stock price in the short term is neutral as the market seems to have reacted positively to the news, but the long-term impact will depend on the outcome of the potential sale and the company's future strategy.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100