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Capital One drops 7%, other banks hit after Trump calls for credit card rate cap

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https://www.cnbc.com/2026/01/12/trump-credit-card-limit-banks-jpmorgan-citi.html

Banks and financial services stocks slid Monday after U.S. President Donald Trump called for a 10%, one-year cap on credit card interest rates.

Capital One shares dropped 7% in early trading and Synchrony Financial tumbled 8%. Credit cards account for a large share of both banks’ business models. Other banks that are more diversified saw smaller losses. Citigroup lost almost 4%, JPMorgan Chase shed 2% and Bank of America fell 1%. Visa and Mastercard, credit card processors that don’t put any of their capital at risk, were down 2% each.

Other financial services names were caught in the downdraft. American Express
slumped 5%, while Wells Fargo and Morgan Stanley declined about 1%.

The proposed cap would come into force on Jan. 20, according to a post on Truth Social on Friday, though Trump didn’t provide details on how it would work.

“Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” Trump wrote, echoing a pledge he made in the 2024 presidential campaign.

“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies,” he added.