Archive · 13 Jan 2026
Bank Stocks Tumble After Trump's 10% Credit Card Rate Cap
President Trump wants to limit the interest rates on credit cards to 10% for one year.
He says this is because some credit cards charge up to 30% interest, which is too high for people.
After his announcement, the stock prices of companies like American Express and Capital One dropped a lot.
Some experts think this could make it harder for people to get credit and might hurt small businesses.
However, others agree that making credit cheaper is a good idea.
It's not clear if this will actually happen because new laws would need to be passed, and the banking industry has a lot of influence in Congress.
President Trump proposed a 10% cap on credit card interest rates for one year, effective January 20, 2026.
Major US card issuers and banks, including American Express, Capital One, Citigroup, Wells Fargo, and Synchrony Financial, saw significant stock price drops.
American Express fell 4.28%, Capital One plunged 6.4%, Citigroup declined 3%, Wells Fargo eased 1%, and Synchrony Financial plunged 8.4%.
Analysts warn the cap could wipe out billions in industry profits and curb lending, while industry groups endorse the goal of more affordable credit but warn of potential harm to consumers and small businesses.
Implementing the cap would require new legislation from Congress, which is unlikely given the banking industry's lobbying power.
- Who
- President Donald Trump, major US card issuers and banks, including American Express, Capital One, Citigroup, Wells Fargo, and Synchrony Financial
- What
- President Trump's proposal for a 10% cap on credit card interest rates, leading to a significant drop in bank stocks
- When
- January 20, 2026 (deadline for compliance)
- Where
- United States
- Why
- To make credit more affordable for consumers, as Trump believes current rates are too high and abusive
- Amex Stock Drop
- 4.28%
- Capital One Stock Drop
- 6.4%
- Citigroup Stock Drop
- 3%
- Wells Fargo Stock Drop
- 1%
- Synchrony Financial Stock Drop
- 8.4%
- Trump's Interest Rate Cap
- 10% for one year starting January 20, 2026
- Amex 5-Day Performance
- Down 5.33%
- Capital One Largest Drop
- Nine months
Sources
Wall Street: Investors eye bank stocks this week as six largest US lenders prepare to disclose Q4 results
Amex Stock Dips 4.3% As Trump Pushes 10% Credit Card Interest Rate Cap, Sparking Industry Turmoil
Amex stock plunges 4.3 pc after Trump pushes 10 pc cap on credit card rates
Amex stock plunges 4.3 pc after Trump pushes 10 pc cap on credit card rates
