From the Washington Post:
Rob Cox and Daniel Indiviglio have created
what they call the “Cordray Index” to measure the impact of new
regulations on the “netherworld of the money industry”--the payday
lenders, pawnshops, and others besides banks that are under new scrutiny
from the Consumer Financial Protection Bureau.
These lenders
actually benefited from the financial crisis, as banks pushed out
subprime customers with poor credit history, forcing them to got to
payday lenders and the like. As a result, the 15 companies that make up
Cox and Indiviglio’s Cordray Index significantly outperformed the banks
in the S&P 500 and the index as a whole:
(SOURCE: THOMSON REUTERS)
The assumption is that new regulations from the CFPB will bring
these alternative lenders back down to earth. Some listed in the index
are facing increasing scrutiny over abusive practices....MORE
