Comerica Faces Setback with Likely Loss of Treasury Contract

The end of the Direct Express program could significantly impact Comerica's deposits and earnings.

Comerica likely to lose the Direct Express contract, affecting over $3 billion in deposits.
The Treasury Department has given preliminary notice of contract non-renewal, but final decision is pending.
Comerica's stock dropped 10.6% following the announcement and revised earnings guidance.
Allegations of mismanagement and data breaches have plagued Comerica's handling of the Direct Express program.
The bank plans to refocus on targeted deposit strategies amid the anticipated loss.