New York, January 22, 2026, 7:13 PM (EST) — After-hours
- Bank of America shares were last up about 0.7% after the close.
- Reuters reported the bank is weighing new credit cards priced at a 10% interest rate.
- Traders are watching Washington and next week’s Fed meeting for the next catalyst.
Bank of America Corp (BAC.N) shares were up about 0.7% in after-hours trading on Thursday after Reuters reported, citing a source familiar with the matter, that the lender is weighing new credit cards with a 10% interest rate. The stock last traded at $52.45, after moving between $52.21 and $53.13 during the session, with about 31 million shares traded. Citigroup (C.N) is also weighing similar cards, and analysts have said the industry could respond with no-frills products priced at 10% and fewer perks. 1
The stakes are high because credit cards throw off strong returns for banks, and rates on those unsecured loans help cover higher default risk. JPMorgan CEO Jamie Dimon said, “It would remove credit from 80% of Americans,” while Annex Wealth Management’s Brian Jacobsen said, “That makes it highly unlikely we’ll see a 10% cap put in place anytime soon.” 2
APR, or annual percentage rate, is the interest cost borrowers pay when they carry a balance month to month. Trump set Jan. 20 as a deadline for card companies to cut rates to 10% for one year, but most issuers have kept rates unchanged while they press for clearer rules. The average credit card APR was 19.7% at the end of December, according to Bankrate data cited by CBS News. 3
Citigroup was up 1.6% after hours, JPMorgan gained 0.5%, and Wells Fargo rose 2.2%.
U.S. stocks ended higher on Thursday, helping banks hold onto recent gains. The S&P 500 rose 0.5%, the Dow added 0.6% and the Nasdaq climbed 0.9%, according to the Associated Press. 4
But the cap remains a political demand, not a rule: the Consumer Financial Protection Bureau says there is no generally applicable federal law limiting what a credit card company can charge, and state law often sets the ceiling. That leaves a wide range of outcomes — from a symbolic push to a real pricing reset — and the timing is the trade. 5
For Bank of America, a hard cap would squeeze card yields, and the easiest relief valve is to pull back from riskier borrowers or strip back rewards.
With the regular session over, the next read comes on Friday when investors weigh whether Washington turns Trump’s demand into a bill and whether banks start talking about product changes. Any hint of compliance costs, or a pullback in lending, would likely show up first in guidance and card marketing.
Markets also have next week’s Federal Reserve meeting on the calendar, with the two-day FOMC gathering set for Jan. 27-28 and a policy statement due at 2 p.m. ET on Jan. 28, followed by a press conference. Bank stocks, including Bank of America, often trade on rate expectations because policy moves feed through to loan yields and funding costs. 6
