Particle.news
Download on the App Store

Banks Warn Against Trump’s 10% Credit-Card Cap as Stocks Drop

The proposal lacks legal force without congressional action.

Overview

  • Executives from JPMorgan, Citigroup, Bank of America and Wells Fargo said a 10% ceiling would lead to tighter lending, closed accounts and broader economic strain.
  • Shares of Visa, Mastercard and American Express fell roughly 5% to 7% this week after the push on rates and swipe-fee changes, though some analysts called the sell-off a buying opportunity.
  • There is no federal cap in place and banks report no formal directive, with legal experts underscoring that only Congress can impose a nationwide limit.
  • Trump also backed the Credit Card Competition Act to require multiple payment networks on cards, a shift Goldman Sachs said could dent rewards and profits but likely not overhaul the system immediately.
  • Fintech Bilt launched three cards that cap APR at 10% for the first year on new purchases as a voluntary offer, with rates rising to roughly 26.74% to 37.47% afterward.