Banks and financial services stocks fell today after U.S. President Donald Trump proposed a one-year limit of 10% on credit card interest rates.
President Trump took to Truth Social stating, “Please be informed that we will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! PRESIDENT DONALD J. TRUMP”
When asked about his post, Trump told reporters that if banks don’t limit rates, they would be “in violation of the law.”
Today, following the President’s social media post, Big Bank stocks declined, with Capital One most affected, as its shares dropped 10% in premarket trading.
Prior to the bell, Citigroup’s shares fell 4%, JPMorgan Chase’s fell nearly 3%, Bank of America declined 2.36%, Visa dropped 1.94%, and Mastercard was down 2.21%.
Financial services stocks also declined, with American Express dropping 4.87%, Wells Fargo decreasing 2.01%, and Morgan Stanley falling 0.98%.
Buy-now-pay-later stocks rose in early trading, fueled by the idea that more consumers would need to turn to these short-term lenders.
Affirm Holdings increased by 5%, while PayPal rose by 1%.
By CEO NA Editorial Staff
