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:
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