Wall Street bankers hope to fend off Trump's demands for credit card rate cap

Watch on YouTube ↗  |  January 15, 2026 at 12:42  |  2:42  |  CNBC
Speakers
Hugh Son — CNBC Banking Reporter

Summary

CNBC banking reporter Hugh Son previews Goldman Sachs and Morgan Stanley earnings, saying both should beat expectations by a wide margin because investment banking, trading, and wealth management momentum is strong. He also reports that banks are resisting Trump's proposed 10% credit card rate cap, with no formal guidance yet and dim odds for near-term legislation or CFPB action. The deadline and Davos meeting with Jamie Dimon could create a legal and political showdown. The transcript ends as he begins to mention drugmakers as a precedent for dealing with policy pressure.

  • Hugh Son expects Goldman Sachs and Morgan Stanley to beat expectations by a wide margin.
  • He cites strong momentum in asset management, wealth management, trading, and investment banking.
  • JPMorgan and Citi results are cited as evidence of sector strength.
  • Banks are pushing back on Trump's proposed 10% credit card rate cap.
  • No written or formal guidance has been received from the Trump administration.
  • Congress or CFPB action is seen as unlikely near-term.
  • Banks warn they could close accounts rather than comply with a cap.
  • Davos timing and the deadline raise legal and political showdown risk.
Ideas
Hugh Son CNBC Banking Reporter 0:22
Pure-play investment banks should capture momentum.
Hugh Son expects Goldman Sachs and Morgan Stanley to beat expectations by a wide margin because asset management, wealth management, trading, and investment banking are on fire. He cites JPMorgan beating trading expectations by $500 million and Citi exceeding investment banking expectations by about 80% year over year, arguing that pure-play investment banks should capture the alpha in this environment.
GS MS HIGH
Hugh Son CNBC Banking Reporter 1:22
Credit card cap remains regulatory overhang.
Trump's push for a 10% credit card rate cap remains a social-media threat without formal written guidance from the administration. Banks and lobbyists are resisting and warning they would close accounts rather than comply, while legislation in Congress or a revived CFPB action are seen as dim chances. The coming deadline and Davos meeting with Jamie Dimon create a legal and political showdown and headline risk for credit card issuers.
Credit card issuers MED
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This CNBC video, published January 15, 2026, features Hugh Son discussing GS, MS, Credit card issuers. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Hugh Son  · Tickers: GS, MS, Credit card issuers