00:00It's Benzinga, bringing Wall Street to Main Street
00:02MasterCard shares fell Tuesday as credit card stocks retreated after JPMorgan Chase, CFO,
00:07Jeremy Barnum warned that President Trump's proposed cap on credit card interest rates
00:12could hurt consumers and the broader economy, according to Benzinga.
00:16Trump floated a one-year cap limiting rates to 10% starting January 20th,
00:20which rattled banking stocks. Barnum said such a cap would force JPMorgan to sharply
00:25scale back its credit card business and lead to outcomes opposite of what the administration
00:29intends, according to Reuters. Financial groups pushed back, saying credit cards are a key
00:34profit driver that offsets unsecured lending risk. A major banking trade group warned that a 10%
00:40cap would reduce credit availability for families and small businesses who rely on credit cards for
00:45everyday financing. Analysts said the uncertainty is weighing on card issuers and payment networks.
00:51MasterCard shares were down 3.38% at $547.16.
00:56For all things money, visit Benzinga.com.
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