Big Banks Are Already Flashing Glaring Warning Signs About Trump's 10% Credit Card Cap

Core Insights - The earnings season commenced with the four largest U.S. banks reporting mixed results, leading to a decline in their stock prices by 5% to 7% due to concerns over a proposed political measure [1][2][8] Group 1: Earnings Performance - JPMorgan Chase and Bank of America exceeded both revenue and earnings estimates, while Citigroup and Wells Fargo surpassed earnings but fell short on revenue [2] - Despite some business lines underperforming, the diversified nature of these banks allowed strengths in other areas to offset weaknesses [2] Group 2: Political Proposals Impacting the Industry - A significant concern for the banks is President Trump's proposal to impose a 10% cap on credit card interest rates for one year, which would require legislative action [3] - The Credit Card Competition Act (CCCA) was reintroduced, mandating that large banks provide merchants with a choice of at least two payment networks, potentially lowering prices by 1% to 2% and saving consumers $150 monthly [4][5] Group 3: Financial Implications - The proposed cap on credit card interest rates could result in a substantial financial impact on banks, reducing interest income from loans and affecting revenue from swipe fees [6] - An analysis indicated that a 10% cap could save consumers $100 billion annually in interest payments, directly affecting banks like JPMorgan Chase, which generated approximately $28 billion from card services in 2025 [7]