New York, Jan 12, 2026, 18:10 EST — After-hours
Citigroup Inc (NYSE: C) shares fell 3% to $117.70 in after-hours trading Monday after Reuters reported the bank plans to cut roughly 1,000 jobs this week. Citi didn’t confirm the figure but restated it plans to keep trimming its workforce through 2026. The bank is targeting a total reduction of 20,000 employees by year-end under an earlier announced strategy. A spokesperson said, “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs.” 1
The report came as political risks for consumer lenders mount. U.S. President Donald Trump put forward a one-year cap on credit card interest rates at 10%, starting Jan. 20, but didn’t offer any enforcement specifics. 2
The proposal rattled bank and card-related stocks, putting a key consumer lending segment at risk. JPMorgan analysts pointed out that early figures suggest Citi will bear the brunt, followed by U.S. Bancorp. Earnings season for major banks begins Tuesday, led by JPMorgan and BNY Mellon. 3
Credit card interest rates have climbed to an average of 19.65%, Bankrate reports, while outstanding balances reached $1.23 trillion in September, according to Federal Reserve data. Imposing a 10% cap on rates could push banks to restrict credit for higher-risk borrowers, as lenders depend on those elevated rates to offset defaults. Truist Securities warned that such a cap would “swing the business to unprofitable” if enacted. 4
The Electronic Payments Coalition warned that nearly all accounts with credit scores below 740—around 82% to 88% of open card accounts—would be shut down or heavily restricted if a 10% cap were introduced. Morningstar analyst Michael Miller called the cap unlikely but warned it could bring “dire consequences” for card profitability if it happens. Brian Shearer, director at Vanderbilt Policy Accelerator, said banks have “some fat to cut,” referencing a study estimating consumers could save $100 billion a year. 5
Citi faces a tough moment as these headlines land mere days before its quarterly earnings. Investors are demanding clearer cost breakdowns, steady credit conditions, and real evidence that the restructuring is driving better returns—not merely rearranging the organization chart.
This week, rival firms come under the microscope as their executives field questions on consumer spending and rising card delinquencies. Any hint of tougher lending standards or weaker payment patterns could trigger a broad sell-off across the sector.
On Monday, Citi submitted a Form 8-K disclosing supplemental indentures linked to its debt securities. 6
Traders are still unsure how quickly political actions will turn into actual policy. If the rate-cap push weakens, the sector’s selloff could ease; but if it gains momentum, lenders may respond by raising fees, cutting rewards, and tightening credit lines.
Citi is set to release its fourth-quarter results around 8 a.m. ET on Wednesday, with a webcast and conference call scheduled for 11 a.m. ET. 7
JPMorgan is set to report earnings at about 6:45 a.m. ET Tuesday, followed by a conference call at 8:30 a.m. ET. This will offer an early indicator of how aggressively the big banks may emphasize the cards business. 8
