Payday Lenders Challenge Financial Consumer Watchdog's Budget Structure In Supreme Court: What It Means For Your Wallet
Portfolio Pulse from AJ Fabino
The U.S. Supreme Court is set to hear a case challenging the funding structure of the Consumer Financial Protection Bureau (CFPB). The case, initiated by payday lenders, argues that the CFPB's funding mechanism, which draws from the Federal Reserve rather than Congress-approved budgets, violates the Constitution. If the court rules in favor of the lenders, regulations issued by the CFPB over the past 12 years could be nullified, and the funding models of other regulators and programs could be scrutinized. Stocks and ETFs exposed to the payday loan sector, including Firstcash Holdings Inc, Oppfi Inc, World Acceptance Corp., EZCORP Inc, First Trust Multi-Manager Sm Cap Opportunities ETF, Invesco S&P SmallCap 600 Pure Value ETF, and Invesco Dorsey Wright Financial Momentum ETF, could be impacted.
October 03, 2023 | 4:30 pm
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NEUTRAL IMPACT
EZCORP Inc could be affected by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting EZCORP Inc's operations and profitability.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
Firstcash Holdings Inc could be impacted by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting Firstcash Holdings Inc's operations and profitability.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
First Trust Multi-Manager Sm Cap Opportunities ETF could be impacted by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting the value of assets held by the First Trust Multi-Manager Sm Cap Opportunities ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
Oppfi Inc could be affected by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting Oppfi Inc's operations and profitability.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
Invesco Dorsey Wright Financial Momentum ETF could be impacted by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting the value of assets held by the Invesco Dorsey Wright Financial Momentum ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
Invesco S&P SmallCap 600 Pure Value ETF could be affected by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting the value of assets held by the Invesco S&P SmallCap 600 Pure Value ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
World Acceptance Corp. could be impacted by the Supreme Court case challenging the CFPB's funding structure.
The outcome of the case could affect the regulatory environment for payday lenders, potentially impacting World Acceptance Corp.'s operations and profitability.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75