Trump's Credit Card Cap Threat Sinks Bank Shares, Sparks Industry Alarm

• President Trump proposed capping credit card interest rates at 10% for a year, causing shares of Capital One, American Express, and other US banks to tumble.
• Capital One, the largest US card issuer, fell 6.4%, while American Express dropped 4.3% and JPMorgan Chase slid 1.4%.
• Analysts warn a 10% cap could wipe out card earnings, ruin card economics, and lead banks to stop lending, severely impacting lower-income consumers.
• Industry groups like Bank Policy Institute and Consumer Bankers Association argue a 10% cap would reduce credit availability and harm millions of American families and small businesses.
• Buy-now, pay-later firms like Klarna and Affirm could benefit if traditional credit card loans are curtailed; airlines and retailers with card portfolios also saw shares drop.

Why It Matters: Trump's proposed 10% credit card interest rate cap sent bank shares plummeting and raised industry concerns.