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Compass News
Major changes ahead for the US credit card industry
President Donald Trump has proposed a one-year cap on credit card interest rates at 10 per cent, saying the move is intended to protect Americans from excessive charges by card issuers.
| 00:01:17
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Cayman Compass
Trump’s plan to cap credit card interest rates alarms bank shareholders
Late on Friday, 9 Jan. US President Donald Trump posted a social media message saying banks would have to cap credit card interest rates at 10%. Writing on Truth Social, he said the cap would be effective from 20 Jan., to mark his first year of this administration.
In morning trading on 12 Jan., the first day markets opened after the announcement, the share prices of US credit issuers, Capital One, American Express, Synchrony Financial and Citigroup fell by an average of 6.7%, while shares in JPMorgan Chase and Bank of America fell by about 2%.
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