CFPB expands oversight to PayPal and Block, says New Street

New Street says the Consumer Financial Protection Bureau’s finalized rule that it will soon supervise non-bank firms that offer financial services includes PayPal (PYPL), Block (SQ), Apple (AAPL), Google (GOOG, GOOGL) Amazon (AMZN) and Zelle. Unsurprisingly, banks supported these actions after facing competitive pressure from tech firms moving into financial services, the analyst tells investors in a research note. The firm believes it is not yet known whether the Trump administration will decide to change or kill the new rule. The new rule will force oversight of non-bank financial firms in the areas of privacy, consumer complaints around errors and fraud, and losing banking access, contends New Street. It believes the rule is “somewhat significant,” though “far from game-changing for the likes of PayPal.” There’s only a small probability that the new Trump administration will keep many elements of the final rule proposed by the current CFPB leadership, according to New Street.