BofA unpacks potential impact of US election on Consumer Finance stocks

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BofA unpacks potential impact of US election on Consumer Finance stocks

Investing.com -- As the U.S. election approaches, Bank of America analysts examined its potential impact on Consumer Finance stocks in a recent research memo.

One significant area of concern is said to be the regulatory environment surrounding mergers and acquisitions, particularly the anticipated Capital One and Discover Financial Services . "The late fee rule being nullified would be a positive for all issuers," especially for Synchrony and Bread , which derive over 10% of their revenue from late fees, said BofA.

BofA reports that while the initial market reactions can vary,"by the 1-week mark, both scenarios saw stocks up 11-12%." This suggests that investors may prioritize post-election certainty over short-term policy-driven news.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

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