Banc of California Inc (NYSE: BANC)
Banc of California has had a rough time in the market as of late. Ever since stories that the company may be involved with a known fraudster hit, there have been several questions that have come up about the stock and its ability to grow. Now, things have gone from bad to worse as more news breaks, sending the stock spiraling downward. Below, we’ll talk about what we’re seeing from BANC, why, and what we’ll be watching for ahead.
What We’re Seeing For BANC
As mentioned above, Banc of California isn’t having the best of days in the market today. After starting the day off well into the green, the stock began to fall and eventually landed teetering on the breakeven point. But then the stock started to tank minutes ago. At the moment, the stock is trading at $14.70 per share after a loss of $0.25 per share (1.67%) thus far today.
Why The Stock Is Falling
As is always the case, as soon as we received the alert from Trade Ideas that BANC was taking a dive, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it didn’t take long to dig up the story. It seems as though things are going from bad to worse with regard to possible fraud that was uncovered months ago.
According to the whistleblower in this case, Banc of California sold bad loans to an off-balance-sheet entity that is managed by related parties. The whistleblower also provided documentation revealing that Jason Galanis held a large equity stake in Steven Sugarman’s COR Securities Holdings. If the whistleblower does indeed have the documents to prove these statements, the stock may only be seeing the tip of the iceberg when it comes to the declines.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on BANC. In particular, we’re interested in learning more about the allegations of fraud and how this pans out. We’ll keep a close eye on the news and bring it to you as it breaks!
What Do You Think?
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