NEW YORK (TheStreet) --Capital One Financial Corp. (COF) was issued a subpoena by the New York district attorney's office as part of an investigation into the company's subprime auto finance practices, Reuters reports.
The financial services holding company is one of several other lenders, including: Santander Consumer USA Holdings Inc. (SC) , Ally Financial Inc. (ALLY) , and GM Financial, that were also issued subpoenas by a variety of law enforcement authorities and regulators, Reuters added.
Officials are looking into the subprime auto finance industry to determine if lenders discriminated against women and minorities, the Wall Street Journal reported in August.
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Capital One has the second largest market share, behind Wells Fargo (WFC) , in the used car market. The used car market usually has more subprime borrowers than new vehicle businesses, Reuters noted.
Shares of Capital One are lower by 0.44% to $82.31 in mid-afternoon trading on Tuesday.
Separately, TheStreet Ratings team rates CAPITAL ONE FINANCIAL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAPITAL ONE FINANCIAL CORP (COF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."