Sign at the entrance to a Capital One Bank branch in Manhattan.
Erik McGregor | Light flare | Getty Images
Stocks of banks and financial services fell on Monday after US President Donald Trump called for a one-year cap on credit card interest rates at 10%.
Capital one shares fell 8% in early trading and Financial Synchrony lost 9%. Credit cards represent an important part of both banks’ business models. Citi Group lost 4%, JPMorgan Chase lost almost 3% and Bank of America fell by almost 2%. Visa And MasterCard were both down about 2% each.
Other financial services names were hit by the downdraft. American Express fell 4%, while Wells Fargo And Morgan Stanley decreased by approximately 1%.
The cap would go into effect on January 20, according to an article published Friday on Truth Social, although Trump did not provide additional details on how it would work.
“Beginning January 20, 2026, as President of the United States, I am calling for a one-year cap on credit card interest rates of 10%,” Trump wrote, echoing a pledge he made during the 2024 presidential campaign.
“Please be informed that we will no longer allow the American public to be ‘ripped off’ by credit card companies,” he added.
A cap would require congressional approval. There has long been interest in reducing fees, and bipartisan bills to cap credit card interest rates at 10% have passed. already been introducedhighlighting the potential appetite for this move.
Asked about his message, Trump told reporters Sunday that if banks didn’t limit rates, they would be “violating the law.”
Critics said over the weekend that Trump’s plan, if enacted, would cause banks to stop lending, leaving many consumers without access to credit.
Buy now, pay later stocks were higher in early trading as more consumers would be forced to use these short-term lenders.
Affirm assets jumped 5% in premarket trading. Paypal added 1%.