President Trump's proposed plan to cap credit card rates at 10% have sent big waves through the financial scene, causing shares of banks and credit card companies to take a fairly sizeable hit. ...

Nobel laureate Paul Krugman asserts that President Donald Trump's recent announcement of a 10% cap on credit card interest rates is a legally powerless “charade” driven by political considerations.Governing By ‘Performance’In a new analysis on Substack, Krugman dismisses the President’s declaration as purely “performative,” noting that a post on Truth Social lacks the legal force to alter financial regulations.“Tweets don't change the law,” Krugman writes, characterizing Trump as a “would-be price controlle ...

President Trump took a swipe at credit card issuers this week, vowing his administration wouldn’t let consumers be “ripped off” by high interest rates and sending bank stocks and financial-sector ETFs skidding downward. Like many things in the Trump era, it’s hard to tell what is noise and what is an actual threat to businesses. In this case, the president told credit card issuers to cap interest rates at 10% (about half the current average across the industry) or risk running afoul of the law. But it doe ...

Photographer: Michael Nagle/Bloomberg Klarna Group Plc Chief Executive Officer Sebastian Siemiatkowski has called for President Donald Trump to go further in shaking up the credit card industry, calling it an “extraction machine” that rips off poorer borrowers. “If you look at the Fed’s own data, it shows that credit card rewards redistribute $15 billion annually from the poor to the wealthy, and that high FICO consumers gain $200 a year, subprime consumers lose $55,” he said in an interview on Bloomberg ...

JPMorgan Chase CFO Jeremy Barnum hinted Tuesday the industry could fight President Donald Trump's demand for credit card price controls, saying "everything's on the table." "If you wind up with weakly supported directives to radically change our business that aren't justified, you have to assume that everything's on the table," Barnum said in a call with reporters following JPMorgan's fourth-quarter earnings report. "We owe that to shareholders."Barnum was responding to a question about whether banks would ...