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Bank stock plunges 75 percent after CEO named Peter Crook resigns following government investigation

By Mason White 3:47 PM August 28, 2017
Provident Financial CEO Peter Crook
Provident Financial CEO Peter Crook
By: Tanya Clark

(Scroll down for video) A bank stock in the United Kingdom, lost nearly all its value after the CEO announced his resignation following a government investigation.

On Tuesday, shares of Provident Financial plc, which is based in Bradford, West Yorkshire, fell 75 percent after its CEO, Peter Crook, announced a cut to its dividend and his resignation.

Shares fell from 17.45 to close at 5.89 or a loss of 65 percent.

At one point during the day, the shares traded at 4.50 or a loss of 75 percent.

The company said that the trouble began when it change the way it got business.

The company used to have thousands of self-employed sales agents, who went door to door to solicit loans.

Provident Financial plc is a subprime lender.

It specializes in credit cards, online loans and consumer car loans to individuals with low and variable incomes.

Recently, the company fired its independent contractors and hired a sales force to work at their offices and solicit new loans.

The performance of the new sales team fell nearly 50 percent.

Additionally, the U.K. Financial Conduct Authority has announced that it is investigating the company.

The government agency did not disclose any other information.