Pres. Trump calls for credit card rate cap: Here's what to know
Speakers
Andrew Ross Sorkin
— Co-Anchor, Squawk Box
Joe Kernen
— Co-Anchor, Squawk Box
Summary
CNBC's Squawk Box discusses President Trump's call for a one-year 10% cap on credit card interest rates. Bank groups warn the cap would reduce credit availability and be devastating for consumers and small businesses. The conversation covers credit card business models, banker backlash, and market reaction, with Capital One shares falling 10%.
- Trump proposed a one-year 10% cap on credit card interest rates.
- Bank groups including the Bank Policy Institute and American Bankers Association warned of reduced credit availability.
- Bankers reportedly argued the cap would force them to shut down millions of credit cards.
- Discussion highlighted that credit cards now embed services like loyalty points and insurance, complicating economics.
- Capital One shares fell 10% amid the proposed cap.
- The segment questioned why credit card rates remain above 20% when benchmark rates are low.
Ideas
Capital One hit by rate cap threat.
The proposed one-year 10% cap on credit card interest rates is a regulatory threat to credit card issuers, and Capital One is the name being hit hardest, with shares already down 10% as the market prices in the risk. The cap would undermine the economics of credit card lending, which rely on interest income and fees, making Capital One risky to own.
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This CNBC video, published January 12, 2026, features Andrew Ross Sorkin discussing COF. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Andrew Ross Sorkin · Tickers: COF