NEW YORK, Jan 20, 2026, 19:19 EST — After-hours
- Bank of America shares fell 1.64% to close at $52.10 and stayed largely flat in after-hours trading
- Bank of America announced plans to grant roughly $1 billion in stock to most of its employees, totaling close to 19 million shares
- Traders are watching a proposed 10% cap on credit-card interest rates alongside new tariff headlines shaking risk appetite
Shares of Bank of America Corp dropped Tuesday before holding steady in after-hours trading as investors weighed a fresh $1 billion employee stock award against rising concerns about possible limits on credit-card rates.
Timing is crucial. Major banks find themselves caught between politics and consumer-credit calculations, and the market is watching closely, as if it’s a real-time experiment on what regulators and the White House will do next.
Capping credit-card annual percentage rates, or APRs—the main interest rate cardholders face—would limit what lenders can charge on unsecured loans. Throw in any rise in share count from stock awards, and BAC shareholders begin to wonder how that will impact per-share earnings.
Bank of America shares ended at $52.10, slipping 1.64%, after fluctuating between $51.96 and $53.48 during the session. Roughly 48.7 million shares exchanged hands. 1
The stock dropped alongside JPMorgan and Citigroup as investors waited to see if President Donald Trump’s administration would impose a one-year 10% cap on credit-card interest rates—a move Reuters reported remains uncertain without new legislation. Brian Jacobsen of Annex Wealth Management described the situation as “an overhang.” Citigroup CEO Jane Fraser warned that “capping rates would not be good for the U.S. economy,” while the American Bankers Association cautioned that up to 159 million cardholders could lose credit access if a blanket cap is enforced. 2
Bank of America announced Tuesday it will grant $1 billion to employees via its Sharing Success program, an equity plan that specifically excludes senior management. The bank said the awards represent nearly 19 million shares. CEO Brian Moynihan described the initiative as one that “strengthens our business and the communities we serve.” 3
A Form 4 filing with the U.S. Securities and Exchange Commission revealed that Moynihan sold 17,891 shares at $52.59 on Jan. 15. The document, dated Jan. 20, also reported the purchase of an identical number of shares. 4
The mood remained grim. Wall Street suffered its largest one-day decline in over three months following Trump’s tariff threats linked to Greenland, rattling investors. Wasif Latif, chief investment officer at Sarmaya Partners, described it as a “pretty significant risk-off day.” Meanwhile, EU leaders plan to meet for an emergency summit in Brussels on Thursday to consider their response. 5
But Bank of America’s outlook isn’t straightforward. Should the rate cap falter or shrink into a limited deal, pressure on consumer lenders might ease quickly. If it turns into enforceable policy, though, interest income could take a sustained hit, with legal battles looming.
Investors are focused on Wednesday’s Trump speech at the World Economic Forum in Davos, looking for clues on whether the proposed 10% credit-card cap will materialize or remain just a threat. 6
