economy

January 12, 2026

Capital One drops 6%, other banks hit after Trump calls for credit card rate cap

Posting on Truth Social, Trump said he would "no longer let the American Public be 'ripped off' by Credit Card Companies."

Capital One drops 6%, other banks hit after Trump calls for credit card rate cap

TL;DR

  • Donald Trump announced a proposal to cap credit card interest rates at 10% for one year, starting January 20, 2026.
  • Major financial stocks, including Capital One, Synchrony Financial, Citigroup, JPMorgan Chase, Bank of America, Visa, Mastercard, American Express, and Wells Fargo, experienced declines.
  • The proposed cap would require Congressional approval.
  • Critics warn that the cap could lead banks to reduce lending, limit consumer credit access, and dampen personal spending.
  • Industry insiders suggest the cap would make parts of the credit card industry unprofitable, especially for subprime customers, leading to reduced credit offerings and scaled-back rewards.
  • Buy-now-pay-later stocks initially rose on the news but later fell.

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