JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S.†), with operations worldwide. JPMorganChase had $4.4 trillion in assets and $362 billion in stockholders' equity as of December 31, 2025. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in th ...

Core Viewpoint - The proposal by President Trump to impose a 10% cap on credit card interest rates has been met with significant opposition from major banking executives, who warn that it could restrict credit access for consumers and negatively impact the economy [1][3][17]. Group 1: Industry Reactions - Bank of America CEO Brian Moynihan expressed concerns that capping interest rates could lead to a credit crunch, limiting credit card availability for consumers [1][2]. - Citigroup's outgoing CFO Mark Mason highlighted the potential "unintended consequences" of the cap, suggesting it could slow down the economy and affect various sectors [4][5]. - Wells Fargo's CFO Mike Santomassimo echoed these sentiments, stating that a cap could hinder economic growth and negatively impact credit availability [8][9]. Group 2: Financial Implications - The average credit card interest rate was reported at 20.97% in November, indicating the high returns banks generate from credit card loans [12]. - Research from Vanderbilt University suggested that a 10% cap could save Americans $100 billion annually, with only a modest impact on rewards and accounts [15]. - JPMorgan CEO Jamie Dimon noted that banks would need to adjust their models to account for the added risk and price controls, indicating that the changes would be significant [15]. Group 3: Market Impact - Following Trump's announcement, banking shares experienced a decline of 5% to 8% as investors assessed the potential impact on financial institutions [3]. - The enforcement of the proposed cap remains uncertain, with questions about whether it would be implemented through executive order, voluntary compliance from banks, or legislative action [17].

Core Viewpoint - Bank CEOs are expressing significant concern regarding President Trump's proposal for a 10% cap on credit-card interest rates, highlighting potential negative impacts on credit access and consumer spending [9]. Industry Reactions - Brian Moynihan, CEO of Bank of America, stated that implementing a cap would constrict credit and lead to unintended consequences, emphasizing the importance of affordability [2][3]. - Citi's CEO Jane Fraser opposed the cap, warning that it would severely impact access to credit for consumers and businesses, potentially forcing them to seek predatory alternatives [3]. - Wells Fargo's CEO Charlie Scharf acknowledged the importance of affordability but suggested that the response to the issue should be carefully considered [4]. Financial Implications - Analysts predict that a cap on credit-card interest rates could significantly reduce earnings for banks with large card portfolios, with estimates suggesting it could wipe out card earnings for a year [7][10]. - The average credit-card interest rate was reported at 21.39% in Q3 2025, indicating that a 10% cap would drastically alter the current economic landscape for credit cards [6][11]. - JPMorganChase's CFO Jeremy Barnum noted that the cap would negatively affect both consumers and the broader economy, leading to a loss of credit access for those who need it most [15][16]. Market Reactions - Shares of Synchrony Financial and Bread Financial Holdings, which are heavily reliant on interest income, have seen declines of approximately 11% and 14% respectively since the proposal [12]. - Larger banks with diversified business models may experience smaller impacts, but they still face challenges due to the proposed one-year time limit on the cap [12][13]. Legislative Outlook - Analysts believe there is a "very low chance" that the 10% cap will pass Congress, as it could undermine the Treasury's goal of encouraging banks to lend more [8][14]. - The legal feasibility of implementing and enforcing such a cap is also questioned, with some analysts suggesting it may be difficult to achieve [14].

Core Viewpoint - The fourth quarter earnings season has commenced, with significant reports from Delta Air Lines and JPMorgan Chase, and additional bank earnings expected later in the week [1]. Group 1: Earnings Expectations - Wall Street analysts project an 8.3% earnings per share growth rate for S&P 500 companies in Q4, marking the 10th consecutive quarter of annual earnings growth if realized [2]. - Prior to the reporting period, analysts had increased earnings expectations, particularly for tech companies, with the consensus estimate for S&P 500 Q4 earnings growth at 7.2% as of September 30 [3]. Group 2: Market Influences - The earnings season will assess the improved stock market breadth observed at the start of 2026, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to influence investor sentiment [4]. Group 3: Upcoming Earnings Reports - Major financial companies scheduled to report earnings this week include Bank of New York Mellon, Bank of America, Citigroup, Wells Fargo, BlackRock, Goldman Sachs, and Morgan Stanley, alongside Delta and JPMorgan [5].

Core Viewpoint - Major U.S. banks are resisting President Trump's directive to lower credit card interest rates, indicating a potential conflict as he prepares for a global appearance at Davos [1][2]. Group 1: Bank Responses - Executives from JPMorgan Chase and Citigroup have stated that instead of complying with a 10% interest rate cap, they may close many customer accounts, with Citigroup's CFO Mark Mason emphasizing that such a cap would limit credit access for those in need and negatively impact the economy [2]. - JPMorgan's CFO Jeremy Barnum mentioned that the banking industry is prepared to defend itself legally if necessary, indicating that all options are being considered in response to the proposed interest rate cap [3]. Group 2: Political Context - President Trump has intensified his criticism of banks, claiming they are exploiting credit card borrowers, as part of his strategy to address voter concerns about affordability ahead of the midterm elections [4]. - Despite the threats from Trump, bankers and lobbyists have reported that they have not received any formal guidance from the Trump administration regarding the interest rate cap, leading to speculation that the administration may not be serious about pursuing this policy [5].

JPMorgan Chase & Co. (NYSE:JPM) is set to report its fourth-quarter results before markets open on Tuesday, kickstarting the bank earnings season. Leading analysts expect the company to set the tone for the entire industry in 2026, with several key catalysts lining up. Dealmaking Set To Replace Rate-Driven Profits? “The story for 2026 is really going to be about deal-making,” said Alexis Garcia, Senior Editor at Investor’s Business Daily, noting that investment banking and trading revenue will be a key hi ...

Group 1 - The year 2025 was favorable for American banks, especially the Big Four: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, all of which outperformed the S&P 500 index [1] - JPMorgan Chase experienced a stock price increase of over 34% in 2025, marking it as a significant player despite not having the highest stock appreciation among the Big Four [2] - Consistent better-than-expected results contributed to JPMorgan's success, as it beat analyst profitability estimates in every quarter reported in 2025 [3][8] Group 2 - JPMorgan Chase passed the Federal Reserve's annual stress tests, reinforcing its reputation for solid business operations and allowing for a 7% increase in its quarterly dividend to $1.50 per share, the highest among the Big Four [4][5] - The bank's strong performance in capital markets was a key advantage, generating nearly $4.1 billion in investment banking revenue in the first half of 2025, significantly ahead of Bank of America's $2.7 billion [6] - The favorable conditions in the capital markets, despite challenges such as high interest rates and tariff uncertainties, benefited JPMorgan Chase and were recognized by investors [7]

Core Viewpoint - JP Morgan Chase & Co. reported a decline in net income for the fourth quarter, but adjusted earnings per share exceeded analyst expectations, indicating resilience in its financial performance despite challenges [2][3]. Earnings Snapshot - The company reported a net income of $13.0 billion, or $4.63 per share, which is a 7% decrease year over year [2]. - Adjusted earnings per share were $5.23, surpassing the analyst estimate of $4.92 [2]. - A $2.2 billion credit reserve was established for the forward purchase commitment of the Apple credit card portfolio, impacting earnings [2]. - For fiscal 2026, JP Morgan expects net interest income of approximately $103 billion and net interest income excluding Markets of about $95 billion [2]. Analyst View - Goldman Sachs analyst Richard Ramsden maintained a Buy rating with a price forecast of $386, citing strong loan growth trends of 4% sequentially that supported the positive net interest income outlook [3]. - Following the results, Ramsden raised the 2026 and 2027 Performance Profitability Net Revenue (PPNR) estimates by 2% and 3%, respectively, and increased EPS by 3% due to higher net interest income and fee income [4]. - The analyst introduced EPS projections for 2028 and expects the bank to maintain Return on Average Tangible Common Equity (ROTCE) above the ~17% medium-term target, with estimates around 20% and 21% for 2026 and 2027, respectively [4]. Market Reaction - Despite the generally positive results, shares of JP Morgan Chase were down 1.00% at $307.80, with expectations that the stock may remain range-bound until there is more clarity on credit card APR limits and the Card Competition Act [5].

Core Insights - The article discusses the expertise of an independent investor in the Indian and US equity markets, highlighting their qualifications and research focus in various financial areas [1]. Group 1: Investor Profile - The investor holds a CFA Charter and a PhD in Finance from the University of Durham, U.K. [1] - They are an Honorary Associate Professor in Finance and Corporate Governance at Brunel University London [1]. - The investor runs a YouTube and Podcast channel titled "The Stock Doctor," where they share insights on the US and Indian markets weekly [1]. Group 2: Research Focus - The investor actively conducts quantitative research in US equities, Behavioral Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies, and M&A [1]. - Their research has been published in top-ranked peer-reviewed journals, indicating a strong academic and professional background [1].

Core Insights - The healthcare sector is optimistic about 2026, with expectations of better performance compared to previous years due to settled drug pricing issues, falling interest rates, and promising scientific advancements [3] Company Updates - Novo Nordisk plans to expand its incretin market with the introduction of the Wegovy oral pill and its injectable version in 2026, despite anticipating price pressures due to a recent drug pricing deal with the Trump administration and the introduction of cheaper generics [5][6] - Bristol Myers Squibb aims to deliver up to 10 new products by the end of the decade to offset losses from upcoming exclusivity expirations of blockbuster drugs, with a diverse portfolio in late-stage development [7][8] - Pfizer is heavily invested in obesity treatments following its $10 billion acquisition of Metsera, planning to launch 10 late-stage studies of obesity products by the end of the year [11][12] Business Development Strategies - Novo Nordisk is focusing on volume growth to counteract price cuts and is actively seeking complementary assets to enhance its pipeline [6] - Bristol Myers Squibb is casting a wide net for business development, aiming to build on its core therapeutic areas and pursue innovative science for challenging diseases [10] Collaborations and Investments - Eli Lilly and Nvidia announced a joint investment of up to $1 billion over five years to create a lab in San Francisco for AI-driven drug discovery [14] - AbbVie has reached an agreement with the Trump administration to lower drug prices and invest $100 billion domestically over the next decade, while also licensing an experimental cancer therapy from RemeGen for $650 million upfront, potentially worth $5.6 billion [14]