Banc of California (BANC) Stock: Here’s Why It Fell More Than 18%

Banc of California Inc (NYSE: BANC)

Bank of California had a relatively flat start to the day. However, minutes ago, we started to see declines and now it’s down more than 11%. The declines are the result of a Seeking Alpha author claiming ties to fraudulent activity. Here’s what’s going on with BANC…

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What’s Happening With BANC

Banc of California is tanking. At the moment, 1:35, the stock is trading at $13.82 per share after a loss of $2.05 per share (12.92%). The declines started minutes ago and continue to take place. Every few seconds brings more losses.

Why It’s Happening

A Seeking Alpha contributor wrote a post on the stock claiming ties with fraudsters. The contributor, Aurelius says that most of the senior officers at BANC, as well as the company’s board members, have extensive relationships with a man known as Jason Galanis.

According to the post, Jason Galanis is known as a fraudster. In fact, SA said that he has a “long history of gaining control of lenders via front men and looting the assets.”

What’s Next

The truth is that we don’t know that there has been any wrong doing on the part of BANC. However, stories associated with scandals can end up very badly. Just take a look at VRX. Nonetheless, we’ll be watching the story closely here at CNA Finance.

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UPDATE – BANC releases letter to employees from CEO – Click here to read it!
UPDATE – Banc of California has not yet released a statement with the story being out for hours at this point. The stock continues to fall. It is down 3%+ in after hours. There has been no denial of a relationship with Jason Galanis thus far, and with this much time passing, concerns are growing even more.

[Image Courtesy of Pixabay]

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