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A KeyBank sign with a stock symbol appears on the facade of the KeyBank building in Columbus, Ohio.
Jay Laprete | Bloomberg | Getty Images
KeyCorp's shares fell on Tuesday after the regional bank revealed it had discovered a $ 90 million fraudulent business.
KeyCorp stated in an 8-K file that the fraud involved a "professional client" and was discovered "to" on July 9. The fraud took place in the third quarter of this year, which began earlier this month, the company said.
KeyCorp's shares fell by more than 2% in the pre-market market. The loss would reduce KeyCorp's market capitalization to around US $ 17.343 billion from US $ 17.735 billion, by about US $ 393 million.
"The company is working with the relevant law enforcement authorities on this case," KeyCorp said. The bank added that it considered it to be an "isolated" incident based on its "examination of the circumstances of the fraudulent activity" and that it "would seek all available sources" to mitigate potential loss.
KeyCorp has not responded to CNBC's request for comment.
KeyCorp's shares rose 19% this year until Monday's close. The stock outperformed the SPDR S & P Regional Banking (KRE) ETF in 2019, up 13.1%.
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