US EditionBig banks report soaring profits amid tensions with Trump over credit card interest rates
Big banks reported rising profits driven by consumer spending and dealmaking; Bank of America posted $7.6 billion profit, while Trump pushes a 10% credit card interest rate cap.
- On Wednesday, the latest trio of big banks reported profits are up and consumers remain steady, according to Mason, a bank executive.
- Dealmaking last year helped by feeding steady investment-banking revenues and fees, while retail deposits rose to $945.4 billion, supporting lending and profits.
- At Bank of America, profit increased to $7.6 billion, or 98 cents per share, with a 6% rise in credit and debit card spending, and credit card balances reaching $103 billion.
- President Donald Trump said Friday he wants to cap credit-card interest rates at 10% and has supported a Justice Department probe of Jerome Powell, Federal Reserve chairman; bank executives warned a cap "simply cannot happen" and would harm the economy.
- Up until last weekend the big banks had been allied with the White House, but Trump doubled down Tuesday night, increasing political strain as Brian Moynihan said he is bullish on the U.S. economy.
29 Articles
29 Articles
GOP breaks with Trump on credit card interest rate cap proposal
Many Republicans are flatly rejecting President Trump’s proposal for a one-year 10-percent cap on credit card interest rates, warning that it will be unsustainable in the long run. Trump’s proposal echoes a long-standing push by progressive Democrats and a few conservative firebrands on Capitol Hill to implement credit card interest rate caps, which would limit [...]
Associated Press News
Big banks report soaring profits amid tensions with Trump over credit card interest rates
Wall Street is seeing positive results as big banks report increased profits. Bank of America, Citigroup, and Wells Fargo have all shown strong earnings.
CHRONIQUE. While credit cards, the first means of payment in the United States, allow households to finance their consumer spending, the US president intends to force banks to comply with this rule from 20 January. The powerful banking lobby is wind up, says Isabelle Chaperon, a columnist at the "World Economy" service.
King of the Deal - Fat Tail Daily
Here’s something from Newsweek: President Donald Trump has said his plan to impose a temporary cap on credit card interest rates would curb “abuse” by U.S. lenders, but this has faced pushback from the banking industry, and experts question whether his demands, even if enforceable, would provide any relief for the country’s borrowers. Capping credit card rates? By the US president? Where did he get the authority? Where did he get the audacity? …
DONALD TRUMP PUT on the table the proposal to limit interest rates on credit cards in the United States to a maximum of 10% seems, at first glance, to be a populist measure to alleviate the burden of the consumer. However, behind this promise lies an impact that transcends borders and threatens to alter financial stability in Mexico. Currently, the average rate on American cards is around 21%. Reducing it to less than half would mean a direct bl…
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