Name: Wall Street bankers hope to fend off Trumps credit card rate cap
Uploaded: 2026-01-15T15:51:16.727Z
Duration: 2 min 28 s
Description: Hugh Son, CNBC’s banking reporter, says big banks are rejecting President Trump’s 10% credit-card cap, warning they’ll close accounts instead, likely setting up a legal and political showdown as Davos approaches.

Hugh Son, CNBC’s banking reporter, says big banks are rejecting President Trump’s 10% credit-card cap, warning they’ll close accounts instead, likely setting up a legal and political showdown as Davos approaches.

Goldman Sachs and Morgan Stanley are preparing to report earnings following strong results from Citi, with expectations high due to recent momentum in investment banking and wealth management. Industry analysts note that these banks are anticipated to capitalize on current market trends, and any failure to exceed expectations could lead to disappointment.

Meanwhile, Wall Street is monitoring President Trump's proposal to cap credit card interest rates at 10%, which has so far only been announced via social media. The banking industry has not received any formal guidance or legislative action on the matter and remains hopeful that the measure can be delayed or avoided, potentially through negotiated concessions.

Wall Street bankers hope to fend off Trump's credit card rate cap

All right. So we have two big earnings coming up from Goldman Sachs and Morgan Stanley. They're both investment banking wealth management giants after results from Citi. Citi had a blowout report when it came to those metrics. What do you expect from these two big banks. So allies in Goldman Morgan Stanley as you point out Frank. And I would say this if they do not beat expectations by a wide margin today then I think there'll be disappointment. This is why. So asset management right. Wealth management trading investment banking. These are all businesses that are basically on fire. You've seen JP Morgan beat expectations in trading by half a billion dollars. You've seen Citi exceed in investment banking by approximately 80 percent gain year over year. And so there's tons of momentum here. And if you think of Goldman and Morgan Stanley as being pure play investment banks in this type of environment they're supposed to capture the alpha of that. All right. Another big issue. You've done some great reporting on this. The president's desire to cap credit card rates at 10 percent. He's put out some social media posts. So far we haven't seen any official moves to make that happen. Now here's what's interesting. The deadline that he set for that again on social media comes up next week. He's also going to be joining Jamie Dimon in Davos next week. Chase the biggest credit card issuer. The timing is pretty interesting here. So what about this story. What's the very latest. So these are all the things that you point out in my reporting in the recent story yesterday which I put on CBC dot com which is it's five or six days after the original truth social threat from the president saying you have to give 10 percent interest rates for everybody for at least a year. And you know the industry the lobbyists the bankers looking at this are saying apart from that post is there any teeth to this. They have not yet received anything in terms of written or formal guidance from the Trump administration on this. And so the question for the world is is he jaw boning. And is there actually any teeth to this. So I'm going to venture that maybe a social media post is not legally binding. And so you're waiting on a couple of things. One legislation in Congress or two far less likely some kind of use of the CFPB perhaps reviving it and then weaponizing it in this in this case. And so those are considered pretty dim chances. And the industry is feeling potentially hopeful that they can kind of hold this off. Perhaps there's some concession to be made. One analyst looked at sort of the drug makers the pharmaceuticals as an example of this in which Trump jawboning them essentially extracted concessions for the industry. But once there were not extremely painful or existential for the credit card business.

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