Benzinga·2026-01-13 06:51Core Viewpoint - President Trump's proposal to impose a one-year 10% cap on credit card interest rates is largely ignored by Wall Street, indicating a lack of concern among investors and analysts [1][2][4]. Group 1: Market Reaction - The market has shown indifference to Trump's announcement, with bank stocks rebounding after an initial drop, suggesting that Wall Street does not view the proposal as a significant threat [4]. - Leading bank stocks closed in the red on the day of the announcement, with Capital One Financial Corp. experiencing a steep decline due to its reliance on credit card revenue [5][6]. Group 2: Legislative and Economic Implications - Congressional approval is required for the cap to take effect, and there are concerns that Trump may attempt to pressure banks into compliance without formal legislation [2][3]. - Industry organizations, including the Bank Policy Institute and American Bankers Association, expressed concerns that the cap could limit credit availability for consumers, particularly affecting those with lower credit scores [6]. - High interest rates are deemed necessary for lenders to justify the risk of lending to subprime borrowers, and capping rates could lead to a significant reduction in credit flow, potentially mandating an economic downturn [5].