Banks Ready Battle Plans to Save Their Credit Card Businesses
The New York Times • • general
Key Points:
- President Trump has proposed capping credit card interest rates at 10 percent, a move that has caught banks by surprise and prompted strong opposition from the lending industry.
- JPMorgan Chase CFO Jeremy Barnum stated that the bank is prepared to fight the proposal, warning it would be harmful to consumers and the economy.
- Other major banks, including Bank of America, Citigroup, and Wells Fargo, are expected to express similar resistance during their upcoming earnings reports.
- A research study suggests that the interest rate cap could render up to 80 percent of credit card customers unprofitable, likely leading banks to reduce the credit they offer.
- The proposal, announced via social media, has sparked significant concern on Wall Street and in Washington
