JPMorgan Chase says banks could fight Trump credit card rate cap: 'Everything's on the table'

Core Viewpoint - The banking industry is considering legal action against President Trump's proposal to impose a 10% cap on credit card interest rates, as it may lead to negative consequences for consumers and the economy [1][3]. Group 1: Industry Response - JPMorgan Chase's CFO Jeremy Barnum indicated that the industry might litigate against the proposed credit card price controls, stating that "everything's on the table" if the directives are not justified [1]. - Barnum emphasized the responsibility to shareholders in responding to potentially harmful regulations [1]. Group 2: Economic Implications - Industry insiders believe that implementing an interest rate limit would lead to fewer credit card accounts and reduced consumer spending, as companies may withdraw accounts rather than operate at a loss [2]. - The current average credit card interest rate is 19.7%, with higher rates for subprime borrowers and store-specific cards [2]. Group 3: Consequences of Regulation - Barnum argued that the proposed actions would likely have the opposite effect of what the administration intends, potentially reducing the supply of credit rather than lowering costs for consumers [3]. - The anticipated reduction in credit availability could negatively impact consumers, the broader economy, and the banking sector itself [3].