New York, January 20, 2026, 21:16 EST — Markets are closed.
- Wells Fargo shares slipped 1.9%, ending Tuesday at $86.66
- Bank stocks fell amid concerns over a proposed 10% ceiling on credit-card interest rates
- Attention shifts to Washington’s next move and Wells Fargo’s appearance at the Feb. 10 conference
Wells Fargo & Company shares dipped 1.9% Tuesday, closing at $86.66, as bank stocks slid ahead of the upcoming U.S. trading day.
Washington remains the focal point. President Donald Trump is advocating for a 10% limit on credit card interest rates, but whether this will come through executive action or legislation is still unclear.
This matters since credit cards are unsecured loans. Banks price them based on risk, and a strict cap on the annual percentage rate (APR) can push lenders to restrict credit or redesign their offerings.
Wells Fargo followed the trend. JPMorgan Chase tumbled 3.1%, Citigroup dropped 4.4%, and the S&P 500 Banks index slid around 1.2%, Reuters reported. Brian Jacobsen, chief economic strategist at Annex Wealth Management, called it “an overhang” for now but said it might vanish quickly if Congress takes the lead. 1
Banking industry groups are scrambling to measure the impact. The American Bankers Association estimates that between 137 million and 159 million cardholders could lose credit card access if a 10% rate cap is imposed, drawing on issuer data covering roughly 75% of the market. 2
The Consumer Bankers Association highlighted changing voter attitudes. According to a Morning Consult survey it commissioned, 60% of adults believe banks will impose more fees and tighten approvals if a 10% cap is enforced. CBA chief Lindsey Johnson cautioned that such a cap would “hurt consumers by drying up access to credit.” 3
Traders face a clear-cut dilemma: the proposal either stalls outright or morphs into a drawn-out battle over rules, fundamentally changing how banks lend, price, and market credit-card accounts.
Wells Fargo is making some internal shifts too. The bank plans to move the headquarters of its wealth-management unit to West Palm Beach, Florida. Barry Sommers, head of wealth management, confirmed they’ve signed a lease for 50,000 square feet at Related’s One Flagler building. Around 100 employees are slated to relocate by the end of the year. 4
The credit-card debate compounds issues investors were already digesting from earnings season. Wells Fargo’s Jan. 14 report projected roughly $50 billion in interest income for 2026. CFO Mike Santomassimo warned that a proposed 10% cap on card rates might curb lending activity. (Net interest income reflects the difference between what banks earn on loans and what they pay on deposits.) 5
The downside is straightforward: if the cap is firmly imposed, banks’ interest income might suffer, and credit could tighten quickly. This could also reignite legal and regulatory questions throughout the sector, right when investors are trying to assess credit quality for 2026.
Policy moves, not fundamentals, are in focus now. Investors look to Wednesday for clues from the White House and Congress following Tuesday’s deadline. Wells Fargo is set to present at the UBS Financial Services Conference on Feb. 10 and will release first-quarter earnings on April 14. 6
