Short PositionEven in the absence of legislative change, political expectations will support the company's ability to continue to raise capital. I expect to short it again someday. By contrast, Cable Car did not adjust its short position in World Acceptance Corp (WRLD) . I believe early market predictions of the Consumer Financial Protection Bureau's demise are greatly exaggerated, and a challenge to Director Cordray's authority may be delayed pending a legal process.
Speed UpEven if threatened by the incoming Congress, in my opinion, the bureau still has plenty of time to complete ongoing enforcement activities, which are the work of rank-and-file attorneys as opposed to political appointees.
Although doubt has been cast on future rulemaking, if anything, I expect increased political pressure on the agency to accelerate the timeline for the CFPB to bring cases or reach settlement agreements with companies it has already served with notices of potential legal action.
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