Credit card firms fall as Democrats sweep Congress

Synchrony Financial

Today 15:48

** Shares of credit card issuers Synchrony Financial SYF.N, Capital One Financial COF.N and Bread Financial BFH.N fall between 3.5% and 4.3% after Democrats win Congress
** Democrats seized control of both the Senate and House of Representatives, scoring stunning wins in Republican strongholds for the first time in generations in a broad voter backlash against President Donald Trump
** TD Cowen says victory raises potential for increased traction on some areas where the President and progressive Democrats share common ground such as potential cap on credit card interest rates
** Trump earlier this year called for a one-year cap on credit card interest rates at 10%, only for the issue to fade away quickly
** "Trump and Sen. Elizabeth Warren agree on capping interest rates. We view this as a risk though it is likely to be closer to 36% than to the 10% cap Trump has sought. As such it may impact fintechs more than banks" - TD Cowen analyst Jaret Seiberg

(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))