Romney win would boost pawnbrokers, Sallie Mae
Says Janney's Gokhale
Romney win would boost pawnbrokers, Sallie Mae
Joseph N. DiStefano
"A Republican win would be positive for financial services stocks broadly," writes Janney Capital Markets analyst Sameer Gokhala in a report to clients. "A Republican administration would likely de-emphasize government regulation and reduce the power wielded by certain regulatory agencies." Worst-case scenario for banks isn't that bad, he adds: If Obama is re-elected he's not likely to tighten bank regulation any further.
Two stocks that would get a special boost in a Romney administration: Wilmington, Del.-based student lender Sallie Mae, and national cash-for-stuff chain Cash America Pawn. Both "could appreciate significantly if Mitt Romney were elected," while an Obama victory wouldn't likely hurt them either. "Romney has indicated that, were he to be elected President, he would bring the [privately-run, taxpayer-funded Federal Family Education Loan Program] back, enabling companies like Sallie Mae to again originate federally guaranteed student loans. "It is unclear whether there would be enough bipartisan support for this, but the likelihood of this happening would increase in a Republican Administration. "Furthermore, the likelihood of any change to the bankruptcy law would also decrease if Romney were to win. Senator Durbin (D, Illinois) has proposed a bill that would make private student loans dischargeable in bankruptcy," reversing the 2005 federal bankruptcy law that made it hardest for student and credit card debtors to use bankruptcy to escape their bills. "A Romney victory reduces the likelihood that private student loans would be made dischargeable in bankruptcy, it would be viewed positively by investors.
"Cash America would also potentially benefit if Romney were to win. The company makes pawn and payday loans focused on serving the subprime market. While both the pawn and payday loan markets face the risk of increased regulation by the Consumer Finance Protection Bureau, we believe the payday lending business in particular is more exposed... "Romney would reduce the power wielded by the Consumer Financial Protection Bureau and other financial regulators. He could accomplish this by appointing Republicans to key positions at these regulatory agencies, which would then be less inclined to make rules that could negatively impact regulated companies. This would reduce the risk posed to the payday lending business from potential changes forced by the CFPB. "While the Bureau appears to have taken a generally reasonable and measured approach thus far, a Romney victory would reassure investors that further negative regulatory changes from the CFPB or other agencies will be less likely to happen."
an obuma win will boast more ownership of gm....so what's the big deal— frank1121
So basically, what you're trying to say, is that a Romney win will make it much easier to prey upon the average, hard-working, struggling citizen? Gotcha.— amd804- Is this article necessary or a waste of letters?— Mystified
- A Romney win would help all businesses.If Occupy Wall Street (OWS) are who they say they are then their primary goal should be occupy every democrat political event for Obummer and Biden and cause as much disruption as possible short of violence, to get their point across. There is only one person who has been a stooge for Wall Street at the expense of the American people and that's Obummer. Obummer is the one for bailing out publicly traded companies (companies listed on the stock exchange to the tune of billions and billions of dollars. Although Mitt Romney worked on Wall Street he never asked to tax payer money. Obummer is the one who took tax payer money to give to Wall Street banks and AIG, which compaies which were being ran by his buddies and bundlers for his campaign (like Solyndra). Romney may have worked on Wall Street but no one can ever say he used the force and the power of the government to take tax payer money and give it to his buddies, that distinction belongs soley to Obummer.Just recently Obummer had [...] (Ben Bernanke) to electronically print 40 billion dollars to purchase real estate bonds from WALL STREET firms, thereby pumping up Wall Street at the tax payers expenses. The stock market is at record levels Wall Street firms have record profits and we have record levels of unemployment in this country. 50% of all recent college graduates can't find jobs and Obummer has [...] Bernanke pump 40 billion dollars per month into Wall Street. If Obummer is so concerned about the people why doesn't he give the 40 billion dollars right to the people as opposed to his Wall Street bundlers. If OWS is for real they would implement the aforementioned plan right on the White House lawn, on the other hand if they are simply another liberal tool for Obummer it would not be surprising if they do nothing.— Speak-truth-2-power
- An Obama win will continue to boost the stock of gun makers.— cb54
- Uh oh. Looks like The Mittster is lacking one important trait to be prez - a speed-bump between his neuron-challenged brain and his rather large mouth. Don't think you guys have to worry about what would happen if this plasticine-headed mannequin wins. This guy is a poster child for the NRA - idiot can't stop shooting himself in the foot and killing an already-dying campaign.— CiceroSpuriousDeodatus
