Overview
- Bank, card‑issuer and payments stocks fell Monday after the weekend announcement, with declines reported across JPMorgan, Citigroup, Bank of America, Capital One, American Express, Visa and Mastercard.
- No enforceable policy or executive order has been issued, and legal and market analysts say the president lacks unilateral authority to impose a rate cap or meet the Jan. 20 timeline.
- Industry groups warned a 10% ceiling would sharply restrict lending, and the Electronic Payments Coalition estimated that 82% to 88% of accounts, especially those tied to scores below 740, would be closed or severely limited.
- Research from Vanderbilt Policy Accelerator projected roughly $100 billion in annual consumer savings under a 10% cap, though rewards could shrink for many cardholders.
- Analysts expect issuers would respond by raising fees, tightening credit and lowering limits, potentially steering below‑prime borrowers toward buy now, pay later or personal loans from alternative lenders.