Investors were quick to respond. Shares of Capital One Financial Corp, the largest US card issuer, saw their steepest drop in nine months on Monday. JPMorgan Chase & Co, No 2 in the card rankings, and American Express Co, also tumbled, along with Synchrony Financial.
(Jan 17): President Donald Trump’s unexpected demand for a cap on credit card interest rates sent financial shares tumbling this week, leaving the heads of Wall Street’s biggest lenders fielding a swarm of questions on their quarterly earnings calls.
With just days to go before big banks reported results, Trump last Friday called on credit-card companies to cap interest rates at 10%, or roughly half the current average on outstanding balances, for one year. The directive — which came with a Jan 20 deadline — could wipe out billions in profits for one of the industry’s most important businesses.
