00:00I think the concern initially was whether the 10% rate cap would find somehow or somehow be
00:07implemented. And that is difficult to see because it does require legislation and it doesn't seem
00:12like there's appetite to push through legislation. So I think there's been an expectation that banks
00:19and credit card issuers probably would respond to this through products, new products that offer
00:2410% rates or some sort of relief to cardholders. But one distinction here is, are these rates for
00:32new balances or existing balances? It is for new balances likely. And so it's not going to really
00:39change the financial outlook materially at this point. And just keep in mind, credit cards already
00:46offer you teaser rates. They offer you balances and stuff like that. So this is not something that
00:52really changes the dynamics of the business, at least on the surface of it.
00:56OK, so nothing that you've heard so far and nothing from the White House has pushed the banks to be in
01:03a position where they need to change their existing credit card structure. And I'm thinking in particular
01:08of the banks that can charge hefty annual fees. Yeah. No, I think when, no, I think to see the
01:18economics of the business really change, you would have to have a policy change that really fundamentally
01:23changes their ability to price. And in fact, during the Trump administration, they revoked the CFPB
01:33proposal of capping late fees. So you've actually moved in the other direction. I think right now,
01:41the concern is it is less about the direct impact of policy on profitability. And it's a little bit
01:49more directional, Scarlett, in the sense that until now, I think investors have seen policy
01:54and deregulation as a one-way street towards more benign outcomes, better outcomes, either in terms of
02:02capital or supervisory intensity. And I think what this shows is that it may not be a one-way street,
02:09right? It's a reminder that policy can cut both ways. And in fact, in our outlook report for the
02:15banks this year, we highlighted policy risk as one of the areas of downside risk. Now, we thought about
02:21it in terms of the midterm elections, and if Democrats do well, could serve as a reminder that
02:26this one-way street towards more lax regulatory policy may not always be there. But certainly with,
02:32you know, President Trump's, you know, social media post on the 9th, it kind of is a reminder that,
02:39you know, there could be some, you know, that policy can at times cut both ways. So,
02:45and the broader, the other thing is just cards are now part of the affordability agenda.
02:51Absolutely.
02:52We're discussed in that sense. So that is something that we have to be cognizant of and keep in mind.
02:58Okay.
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