Catenaa, Monday, January 12, 2026- Banks and financial services stocks slid Monday after President Donald Trump called for a 10%, one-year cap on credit card interest rates.
Capital One shares dropped 5.7% in early trading, and Synchrony Financial lost 6.8%. Credit cards account for a large share of both banks’ business models. Citigroup lost 3%, JPMorgan Chase shed more than 1.3% and Bank of America fell 1%. Visa and Mastercard, credit card processors that don’t put any of their capital at risk, were both down about 3% each.
Other financial services names were caught in the downdraft. American Express fell 4%, while Wells Fargo and Morgan Stanley declined about 1%.
The proposed cap would take effect on January 20, according to a post on Truth Social on Friday, although Trump did not provide additional details on how it would operate.
Card interest rates, which have been hovering above 20% in recent years, have been a target of US lawmakers on both sides of the aisle, with bills popping up and meeting stiff resistance from the industry.
Trump, speaking Sunday to reporters, deadline for companies to comply or risk being “in violation of the law.”
In response to Trump’s call, industry groups, including the Bank Policy Institute and the Consumer Bankers Association, struck a measured tone.
“We share the president’s goal of helping Americans access more affordable credit,” the groups said in a joint statement late Friday.
“At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small-business owners who rely on and value their credit cards, the very consumers this proposal intends to help.”
