Credit card and credit card issuer stocks fell on Monday in premarket hours after President Donald Trump late on Friday called for a one-year cap on credit card interest rates at 10%.
His remarks drew immediate opposition from major banking groups. “If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” read a joint statement from the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America.
“Please be informed that we will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more,” Trump wrote.
Credit card and credit issuers that were down include Bank of America (BAC) -2.9%, Capital One Financial (COF) -8.8%, PNC Financial Services (PNC) -0.5%, U.S. Bancorp (USB) -1.2%, Truist Financial (TFC) -0.7%, Wells Fargo & Company (WFC) -2.1%, JP Morgan Chase & Co. (JPM) -3%, American Express Company (AXP) -4.4%, Citigroup (C) -4%, Mastercard (MA) -1.8%, Visa (V) -1.7%, Toronto Dominion Bank (TD) -0.3%, Synchrony Financial (SYF) -9.4%, Bread Financial (BFH) -6.9%, and Fifth Third Bancorp (FITB) -1.1%.