Overview
- The president set Jan. 20, 2026 as the start of a one‑year 10% cap and warned noncompliant issuers could face legal consequences, though no enforcement mechanism has been detailed.
- Bank and card‑related shares fell on Monday, with steep declines for Capital One and Synchrony and losses across Citi, JPMorgan, Bank of America, American Express, Visa and Mastercard.
- Wall Street analysts and legal experts said a nationwide cap cannot be imposed unilaterally and would require legislation, with several notes assigning low odds of passage.
- Industry groups warned a hard cap would sharply restrict credit, citing estimates that 82% to 88% of open accounts tied to credit scores below 740 could be closed or curtailed and that fees and rewards could be cut.
- Analysts said reduced card lending could push borrowers toward buy‑now‑pay‑later and other alternative lenders, and upcoming bank earnings this week will offer issuers a platform to respond.