Discover Plunges After Suspending Buybacks on Student-Loan Probe

Discover Financial Services dropped the most in more than two years after the company suspended share repurchases, saying it started an internal investigation into compliance practices at the student-loan servicing business.

The board appointed an independent special committee to conduct the probe, Discover said in a statement late Wednesday. Chief Executive Officer Roger Hochschild said executives at the firm took the probe into account when they developed guidance for expenses for this year, and the company continues to expect costs to climb by a percentage in the mid-single digits.

“We can’t really give you anything to expect in timing,” Hochschild ...