Credit card stocks sink after Trump proposes 10% cap on fees: 'Yikes'

Shares successful large recognition paper lenders tumbled successful aboriginal trading Monday aft President Trump precocious Friday projected a 10% headdress connected the fees these cards complaint customers.

Shares of Capital One (COF) and Synchrony Financial (SYF) fell arsenic overmuch arsenic 10% successful premarket trading connected Monday. American Express (AXP) and Citigroup (C) shares were down astir 4% earlier the open, portion JPMorgan Chase (JPM) and Bank of America (BAC) shares were disconnected person to 2%.

“Effective January 20, 2026, I, arsenic President of the United States, americium calling for a 1 twelvemonth headdress connected Credit Card Interest Rates of 10%,” Trump wrote Friday nighttime successful a station connected Truth Social.

Read more: How to find the champion recognition paper involvement rates

It's not wide however Trump plans to headdress paper fees without Congress archetypal passing legislation. But the president doubled down connected his connection connected Sunday portion speaking with reporters connected Air Force One arsenic helium returned to D.C. from Florida.

“They truly abused the recognition cards,” helium said of large paper lenders, adding that if rates aren’t capped by his deadline, “then they’re successful usurpation of the law," according to a Bloomberg report.

Without legislation, it's not wide however recognition paper issuers would interruption the instrumentality if they resisted lowering fees.

"Yikes," Wells Fargo expert Mike Mayo wrote to clients connected Monday.

The toll of a one-year 10% headdress connected fees would deed ample slope net earlier taxation by an estimated 5%-18%, and "wipe retired earnings" for lenders that exclusively absorption connected recognition cards and related services, specified arsenic Capital One and Synchrony Financial, according to Mayo.

Credit paper involvement rates person jumped importantly successful caller years and acold transcend the complaint paid connected different user loans. The mean complaint was 22.30%, according to the astir caller Federal Reserve data, up from 16.28% successful 2020.

Politicians connected some sides of the aisle, including Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.), person taken up the contented and applauded immoderate limitations connected precocious fees successful the past. Trump projected a 10% headdress connected recognition paper fees portion campaigning for his 2nd word successful bureau successful 2024.

The recognition paper headdress connection comes arsenic a achromatic oculus successful what was shaping up to beryllium the fiscal industry's astir favorable regulatory situation successful a generation. Five banking manufacture commercialized groups, including the American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America, rapidly fired disconnected a informing connected specified a curb wrong hours of Trump's societal media station connected the cap.

“Evidence shows that a 10% involvement complaint headdress would trim recognition availability and beryllium devastating for millions of American families and tiny concern owners who trust connected and worth their recognition cards,” the commercialized groups wrote.