BUZZ - Democrats Achieve Sweeping Victory in Congressional Elections, Credit Card Companies' Stock Prices Fall

November 4 - ** After Democrats won control of Congress, shares of credit card issuers Synchrony Financial (SYF.N), Capital One Financial (COF.N), and Bread Financial (BFH.N) fell by 3.5% to 4.3%

** The Democratic Party has taken control of both the Senate and the House of Representatives, achieving a remarkable victory in a Republican stronghold for the first time in generations amid a broad backlash against President Donald Trump. (link)

** TD Cowen noted that this victory increases the possibility of progress in certain areas where the president finds common ground with progressive Democrats, such as potentially setting a cap on credit card interest rates

** Trump earlier this year called for a 10% cap on credit card interest rates for one year (link), but the issue quickly faded from attention

** “Trump and Senator Elizabeth Warren agree on the issue of setting interest rate caps. We see a risk here, though ultimately the cap is more likely to be around 36% rather than the 10% sought by Trump. As a result, the impact on fintech companies might be more significant than on banks.” — TD Cowen analyst Jaret Seiberg

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