Citizens Financial Group Inc. losses shares after false produced information surfaces from 11 former branch employees. The employees mentioned that they faked the information regarding the financial checkup program. The financial institution dropped 2% opening today after the scandal broke today.

Further news explains that amongst the former and current employees who are stretched around five states produced random names of customers and claim the customer either didn’t buy any new products at a “Citizens Checkup” or never showed for the fake meeting.

The investigation sprung from the recent Wells Fargo debacle, regulators have been on high alerts to anyone who is using such aggressive sales tactics. Wells Fargo then proceeded to pay a fine after uncovering almost 2 million fraudulent accounts from the bank.

FSMNewsFalse Data’s Potential Problem

The fraudulent data from the 11 employees can potentially lead investors to make influenced votes and inferences on the company’s culture and internal controls on their meetings. According to the employees, they felt the pressure to have a certain amount if appointments while also doing other duties, along with the time constraints.


Citizens’ Response

According to a statement released by the bank, “We believe that our Checkup programme is the right way to build stronger relationships with our customers and to better understand their needs,” and “We believe that the programme is effectively managed and our data are accurate. Nevertheless, we take any allegations seriously and our chief conduct officer will lead a thorough review.”

Regulators like the Office of the Comptroller of the Currency along with the Consumer Financial Protection Bureau, and the Federal Reserve had carried several investigations and also, separately asked for data from the bank.


S&P 500’s Comment

The Rhode Island-based bank reached losing as much as 2.9% after the news hits; this prompted S&P 500 to put Citizens amongst the top 10 worst performers. A similar dip last March 21, Citizens Financial Group Inc. losses as much as 5.16% to $34.36 with 7.58 million shares changing hands.

The announcement of their latter fiscal year earnings last January 20 was accompanied by the company saying that the programme had garnered in about 400,000 scheduled appointments so far.

Citizens also irritated that the programme was geared towards the “mass-affluent” and affluent customers. According to the company, almost 78% of their customers said that they were “very to completely satisfied” with the experience.

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