Capital One, Amex Shares Sink on Trump’s Credit-Card Threat

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  Bloomberg Audio Studios.

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  Podcasts, radio, news.

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  I look at the Bloomberg terminal and the top story all morning long has been about shares of Capital One,

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  Amex, Tumbling, along with some other banks that issue credit cards,

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  following President Trump's announcement that he is calling on these companies to cap interest rates at 10% a year,

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  which could threaten their profits, billions in profits for the industry.

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  Let's bring in now Nathan Dean.

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  Nathan is our senior policy analyst at Bloomberg Intelligence.

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  And Nathan, one thing that we need to make clear,

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  President Trump calling for this is not the same as him actually having authority to do this.

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  Is this something in which he has the authority to call for a cap on interest rates for credit card companies?

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  No,

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  it's not and that should be the first question that these investors look at is how would President Trump implement this

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  because look he said that effective January 20th that there would be a one-year cap at 10% but really there's no way that he can implement this.

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  There has been legislation from Senators Bernie Sanders the independent and obviously Josh Hawley the Republican to actually put in a cap for five years but that legislation really hasn't gone anywhere.

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  Now the industry averages around 21% going down to 10% obviously you're gonna see a significant decline and what the interest would be to these banks,

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  and obviously that we're starting to see what the potential of that would be in the stock market.

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  But our note that we put out to clients this morning is said,

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  look, we only see a 30% chance of this happening in 2026.

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  The more likely scenario is that President Trump uses the regulators.

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