Market Overview

8 Stocks To Play The Mulvaney Era At The CFPB

8 Stocks To Play The Mulvaney Era At The CFPB
Barclays Constructive On US Large-Cap Bank Stocks Ahead Of Earnings Reports
Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
Exeter Finance IPO: Too Risky, It Is Not A Buy (Seeking Alpha)
Related CACC
Credit Acceptance Corporation's Q3 Earnings Preview
Earnings Scheduled For October 29, 2018
Exeter Finance IPO: Too Risky, It Is Not A Buy (Seeking Alpha)

One of President Donald Trump's top campaign promises was to eliminate regulations and free up U.S. corporations to operate will fewer restrictions. One of Trump’s first targets after taking office was the Consumer Financial Protection Bureau, which was created in the wake of the mortgage crisis to protect American consumers from predatory activities by banks and other financial institutions.

According to Height Securities analyst Edwin Groshans, Trump-appointed CFPB director Mick Mulvaney, who has a history of criticizing CFBP oversight, will loosen the reins on the financial industry, creating a number of potential investment opportunities.

“The change in the Consumer Financial Protection Bureau's leadership is positive for payday and auto title lenders, indirect auto finance companies, debt collectors, and, to a lesser degree, prepaid card issuers and mortgage lenders,” Groshans wrote earlier this week.

Groshans said regardless of whether or not Mulvaney’s official appointment is blocked in court, the Trump-era CFPB will be relatively impotent no matter who ends up in charge.

“We expect a significant reduction in enforcement actions as a result of the change in leadership,” Groshans said.

In his report, Groshans listed eight stocks that could be the biggest winners from the downfall of the CFPB:

  • Enova International Inc (NYSE: ENVA)
  • World Acceptance Corp. (NASDAQ: WRLD)
  • Credit Acceptance Corp. (NASDAQ: CACC)
  • Ally Financial Inc (NYSE: ALLY)
  • Green Dot Corporation (NYSE: GDOT)
  • Total System Services, Inc. (NYSE: TSS)
  • Encore Capital Group, Inc. (NASDAQ: ECPG)
  • Pra Group Inc (NASDAQ: PRAA)

The CFPB has already announced it intends to change or eliminate rules related to oversight of prepaid cards and payday lending, and it also intends to modify the Home Mortgage Disclosure Act rules as well.

Related Links:

Emboldened? Payday Lender CURO Group IPOs With Mulvaney Now In Charge Of CFPB

Analyst: Navient Stock Is Simply Too Cheap, Buy It

Image credit: Gage Skidmore [CC BY-SA 3.0], via Wikimedia Commons

Latest Ratings for ALLY

Oct 2018NomuraMaintainsNeutralNeutral
Oct 2018OppenheimerMaintainsOutperformOutperform
Jul 2018Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for ALLY
View the Latest Analyst Ratings

Posted-In: CFPBAnalyst Color Long Ideas Politics Top Stories Analyst Ratings Trading Ideas General Best of Benzinga


Related Articles (CACC + ALLY)

View Comments and Join the Discussion!

Latest Ratings

CGBDJP MorganUpgrades15.5
NLYJP MorganUpgrades10.5
NTNXMorgan StanleyUpgrades58.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

The Key To Alexion's Long-Term Upside Potential, According To Credit Suisse

Bernstein: Why Video Game Publishers Could Be 'The Perfect Media Companies'