Trump Proposes 10% Credit Card Rate Cap; BAC and C Explore New Products
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: seekingalpha
- Rate Cap Proposal: President Trump proposed a 10% cap on credit card interest rates, prompting major banks like BAC and C to consider launching new products that align with the administration's affordability concerns.
- Bank Responses: Several bank CEOs, including Jamie Dimon of JPMorgan Chase, pushed back against the rate cap, warning that it would severely limit consumer access to credit, particularly for those who need it most.
- Citi CEO's View: Citi CEO Jane Fraser acknowledged Trump's focus on affordability but argued that a rate cap would not effectively provide the necessary credit access, highlighting the need for more comprehensive solutions.
- BAC's Position: BAC CEO Brian Moynihan stated that the bank supports affordability in financial products, although the low-rate credit cards currently offered do not reach the proposed 10% level, emphasizing the need to manage credit losses for sustainability.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 49.270
Low
55.00
Averages
61.64
High
71.00
Current: 49.270
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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