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].

Delta Air Lines’ boss has become the latest high-profile corporate chief to push back against President Donald Trump’s plans to cap credit card interest rates at 10%, claiming it would hurt customers. “The knock-on effects are pretty significant when you think about what seems to be a good idea to help lower income strata and bring some interest-rate relief,” CEO Ed Bastian said in a Bloomberg interview. “The reality is, it will eliminate their ability for credit and freeze up tremendous amounts of credit ...

NEW YORK (AP) — Fintech giant Bilt announced an overhaul of its credit cards on Wednesday, which notably will include an introductory rate on all card users’ interest rates at 10% for one year. The promotion comes at a time of heightened political rhetoric around the cost of credit cards, with President Donald Trump announcing last week that he also is seeking a one-year cap on credit card interest rates of 10%. New York-based Bilt, which originally built its business model around earning rewards on ren ...

Core Viewpoint - Major U.S. banks are warning that President Trump's proposed cap on credit card interest rates could negatively impact lower-income consumers, the economy, and their profitability [1][2]. Group 1: Bank Executives' Opinions - Executives from JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo agree that while affordability is a concern, capping credit card interest rates is not the appropriate solution [2][3]. - Citigroup's outgoing CFO Mark Mason stated that an interest rate cap could lead to a significant economic slowdown and emphasized the need for collaboration with the administration on affordability issues [3]. - Bank of America CEO Brian Moynihan argued that lowering interest rate caps would restrict credit availability, resulting in fewer credit card approvals and lower credit limits for consumers [4]. Group 2: Market Reactions - Shares of Wells Fargo, Bank of America, Citigroup, and JPMorgan Chase have experienced declines between 5% and 8% over the past week [5]. - JPMorgan and Citigroup reported a decline in net income compared to the fourth quarter of 2024, while Wells Fargo and Bank of America saw an increase [5]. Group 3: Presidential Proposal - President Trump proposed a one-year cap on credit card interest rates at 10%, threatening banks with violations if they do not comply by January 20 [6]. - Analysts have raised questions about how the cap would be implemented without an executive order, voluntary action, or legislative approval [6]. Group 4: Impact on Consumers - JPMorgan CEO Jamie Dimon highlighted that the proposed cap would have a dramatic impact on subprime customers [7]. - Wells Fargo CEO Charles Scharf expressed alignment with the goal of improving affordability and finding solutions to assist consumers [7].

Photographer: Simon Dawson/Bloomberg US President Donald Trump’s efforts to cut interest rates on credit cards could force lenders to cough up more money to support bonds they’ve sold backed by the debt, weighing on their profits, while also cutting into new issuance of the bonds. Trump last week demanded that credit card companies cap the interest rates they charge at 10% for one year, and later said that companies that ignored him would be “in violation of the law.” Most Read from Bloomberg Many ban ...

Core Insights - Visa is in the news following President Trump's announcement regarding potential interest rate caps on credit cards, which could impact the credit card industry significantly [1]. Company Overview - Visa operates in the financial services sector, specifically focusing on payment processing and credit card services [1]. Market Implications - The proposed interest rate cap could lead to changes in consumer behavior and credit card usage, potentially affecting Visa's revenue streams [1].

Group 1 - The U.S. has approved exports of Nvidia's H200 AI chip to China with conditions [3] - Netflix is considering an all-cash offer for Warner Bros. Discovery's streaming and studio assets [3] - JPMorgan Chase reported mixed Q4 results, with earnings exceeding estimates but investment banking revenue missing expectations [5] - Bank of America posted better-than-expected Q4 results, while Wells Fargo's revenue fell below estimates [6] - Citigroup is viewed as fairly valued after a turnaround, with future returns expected to align with earnings growth [6] Group 2 - Trump's proposal to cap credit card interest rates at 10% has faced pushback from banks, with concerns about access to credit [5] - Saks Global has filed for Chapter 11 bankruptcy due to debt issues [8] - China's trade surplus reached a record $1.2 trillion despite tariffs imposed by Trump [8]

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: Citi is considering selling more stakes in its Mexican retail-banking unit Banamex while continuing to prepare for a public sale of its remaining shares, CFO Mark Mason said Wednesday.  “We are actively looking at selling some additional, smaller stakes as we lead up to an [initial public offering],” Mason said Wednesday during a media call on the bank ...

So it should come as no surprise that the entire banking industry has circled the wagons against a cap on credit card interest rates, especially one as stringent as 10%. On Jan. 9, the very day of Trump's announcement, five leading bank lobbying organizations issued a joint statement asserting that a 10% cap would 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.""Almost 30% of that is pure ...

JPMorgan CFO Jeremy Barnum warned Tuesday that President Donald Trump's push to put a 10% cap on credit card interest rates could hurt the broader economy and reduce access to credit. "What's actually simply going to happen is that the provision of the service will change dramatically. Specifically, people will lose access to credit, like on a very, very extensive and broad basis, especially the people who need it," Barnum said during a call tied to the bank’s fourth-quarter earnings release. Barnum said th ...