Big Take Banks Really Hate Trump’s Credit Card Proposal
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Jan 23, 2026 Claire Ballentine, Bloomberg finance reporter who covers banks and credit-card business models. She breaks down Trump’s revived push for a 10% credit‑card interest cap. Topics include why rates are so high, how card profits work, who might lose access to credit, banks’ warnings and the legal and political paths to making a cap real.
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Cards Are Banks' Crown Jewels
- Credit cards are a major profit center for big banks and drive large portions of card-unit revenue.
- Capping rates at 10% would materially change banks' card businesses and their profitability.
High Rates Create Big Consumer Burdens
- U.S. credit card interest rates average far above 10%, and balances create sizable interest burdens.
- A Vanderbilt study suggests a 10% cap could cut consumer interest payments by over $100 billion annually.
Risk Drives Card Pricing And Access
- Banks argue high card APRs compensate for unsecured, non-repossessable lending risk.
- If rates fall, issuers may restrict access for riskier borrowers to avoid unprofitable lending.