Tax-preparer H&R Block (NYSE:HRB) received a bit of bad news this morning. The company will not be able to issue tax-refund loans to customers this tax season due to a recent ruling by US regulators. The Office of the Comptroller of the Currency informed the tax-preparer's partner, HSBC (NYSE:HBC), that it could not make refund anticipation loans, prompting the bank to cancel its relationship with H&R Block. The tax preparer will not have time to create an alternative products for the upcoming tax season, and earnings could be impacted as a result.
Shares of HBSC were lower by about 0.8% on the news, but shares of H&R Block were sharply lower, falling nearly 8% so far.
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