Key Takeaways Bank stocks fell Monday after President Donald Trump said over the weekend that credit card interest rates should be capped at 10% for at least a year.How a cap would be put in place and why for only a year remains unclear. A number of banking and financial stocks slumped Monday morning after President Donald Trump over the weekend suggested capping credit card interest rates. Trump posted on social media late Friday that Americans are being "ripped off" by interest rates of 20% to 30%, a ...

President Donald Trump has threatened to impose a 10% cap on credit card interest rates for one year, effective Jan. 20, arguing that Americans are being “ripped off” by rates often exceeding 20% to 30%. This proposal aims to provide relief amid high consumer debt levels but faces substantial skepticism. Enacting such a cap would likely require congressional approval, as executive orders alone may not suffice, and industry pushback could lead to legal challenges from banks reliant on interest income. Des ...

Core Viewpoint - Shares in US banks with credit card businesses have declined following President Trump's demand to cap credit card interest rates at 10% for one year, increasing political pressure on card issuers [1][2][5] Group 1: Market Reaction - Barclays shares fell by as much as 4.8% in early London trading, marking the largest intraday loss since October 17 [3] - In pre-market trading in New York, Capital One's shares dropped by 10%, while American Express fell by 4.9%. Other major US lenders also experienced declines, with Citigroup down 4.3%, JPMorgan down 3%, and Wells Fargo slipping 2.4% [3] Group 2: Impact on Companies - Credit cards are a significant component of Barclays' US consumer bank, which serves around 20 million American customers and has been expanding its credit card offerings [4] - Barclays' US consumer bank is projected to generate £3.6 billion in revenue by 2025, accounting for 12% of the group's total revenue, with credit cards being a crucial element [4] - A potential cap on credit card rates would disproportionately affect Barclays compared to other European banks, as credit cards contribute significantly to its pretax profit [4] Group 3: Political Context - Trump's comments have intensified scrutiny on card issuers, with interest rates on credit cards typically exceeding 20% in recent years, prompting legislative proposals that face strong industry resistance [2] - Trump has set a compliance deadline of January 20 for the proposed interest rate cap, warning that failure to comply would result in legal violations [5]

Core Viewpoint - Capital One stock (NYSE: COF) experienced a nearly 10% decline in pre-market trading following President Donald Trump's proposal to impose a one-year cap on credit card interest rates at 10% [1] Company Impact - The proposed interest rate cap is likely to significantly affect Capital One's revenue and profitability, as credit card interest rates are a major source of income for the company [1] - The stock's sharp decline reflects investor concerns over the potential regulatory changes and their implications for the company's financial performance [1] Industry Implications - The proposal could set a precedent for other financial institutions, potentially leading to broader changes in credit card interest rate policies across the industry [1] - If implemented, the cap on interest rates may lead to increased competition among credit card issuers, as companies may need to adjust their pricing strategies to remain attractive to consumers [1]

本文源自：金融界AI电报 第一资本金融股价大跌9.7%，美国运通下跌4.6%。美国主要银行的股价亦普遍走低：花旗下跌4.1%， 摩根大通跌2.8%，富国跌2.2%。 ...

格隆汇1月12日｜第一资本金融股价大跌9.7%，美国运通下跌4.6%。美国主要银行的股价亦普遍走低： 花旗下跌4.1%，摩根大通跌2.8%，富国跌2.2%。消息上，美国总统特朗普呼吁自1月20日起，将信用卡 年利率上限设定为10%，为期一年，但他并未透露该计划将如何落地，也未说明打算如何促使企业遵守 这一要求。 ...

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Core Viewpoint - President Trump's proposal to cap credit card fees at 10% has led to significant declines in the stock prices of major credit card lenders, raising concerns about the potential impact on their earnings and the broader financial industry [1][4]. Group 1: Market Reaction - Shares of Capital One and Synchrony Financial fell as much as 9% in premarket trading, while American Express and Citigroup saw declines of about 4%, and JPMorgan Chase and Bank of America were down closer to 2% [1]. Group 2: Proposal Details - Trump announced a one-year cap on credit card interest rates of 10%, effective January 20, 2026, but the method of implementing this cap without Congressional legislation remains unclear [2][3]. Group 3: Financial Impact - The proposed cap could reduce large bank earnings before tax by an estimated 5%-18%, potentially wiping out earnings for lenders focused solely on credit cards, such as Capital One and Synchrony Financial [4]. Group 4: Industry Context - Credit card interest rates have significantly increased, with the average rate reaching 22.30%, up from 16.28% in 2020, indicating a growing concern over high fees in the industry [5]. Group 5: Political Support and Opposition - The proposal has garnered attention from politicians across the spectrum, with some expressing support for limitations on high fees, while banking industry trade groups have warned against the negative consequences of such a cap [6][7][8].

Core Viewpoint - Trump's proposal to cap credit card interest rates at 10% has led to a significant decline in the stock prices of credit card issuers and related companies, raising concerns about the potential impact on their profitability and the credit market overall [1][2]. Group 1: Market Reaction - Following Trump's announcement, stocks of credit card companies such as Synchrony Financial and Bread Financial fell nearly 10%, while American Express and Citigroup dropped over 4% [1]. - Barclays experienced a significant intraday drop of 4.8%, marking its largest decline since October 17 of the previous year, highlighting the vulnerability of its U.S. retail banking segment, which heavily relies on credit card operations [3]. Group 2: Implications of the Proposal - If implemented, the proposed interest rate cap would result in the lowest credit card rates since 1994, with current average rates at 19.65% for general credit cards and 30.14% for store cards [2]. - Major banking associations have opposed the proposal, arguing it could push consumers towards less regulated and more expensive alternatives, potentially reducing access to credit for lower-income individuals [2]. - A study indicated that a similar interest rate cap in Illinois led to a 38% reduction in loans issued to subprime borrowers within six months, suggesting significant negative effects on credit availability [2]. Group 3: Company-Specific Insights - Barclays' U.S. retail banking division is projected to generate £3.6 billion in revenue by 2025, with credit card operations being a crucial component, contributing significantly to its income despite lower profit margins [3]. - Analysts suggest that any regulatory cap on credit card rates would have a pronounced impact on Barclays compared to European banks, emphasizing the importance of the U.S. market for its credit card business [3].

Group 1 - President Trump demands credit-card lenders to cap interest rates at 10% for one year, threatening legal action if they do not comply by January 20 [1][2] - Major lenders such as JPMorgan Chase, Capital One, and Citigroup are directly affected by this demand, with Barclays shares dropping 4.2% in response [3] - Current credit card interest rates are above 20%, prompting bipartisan legislative interest, though industry resistance is strong due to concerns over profitability and credit access [4] Group 2 - Industry groups, including the Bank Policy Institute and Consumer Bankers Association, express support for affordable credit but warn that a 10% cap could reduce credit availability and harm consumers [5][6]