New York, Jan 23, 2026, 11:23 EST — Regular session
- Bank of America shares dipped roughly 1.5% during late-morning trading in New York
- Traders are assessing how banks might react to a proposed 10% ceiling on credit card interest rates
- Coming up: Washington’s stance on enforcement and the Fed’s January 27–28 meeting
Bank of America Corp shares dropped roughly 1.5% to $51.64 on Friday, retreating after a gain the previous day sparked by news the bank is considering new low-rate credit cards. The stock fluctuated between $51.51 and $52.52 during the session.
The drop comes as investors grapple with political risk tied to credit cards, a high-margin segment for major U.S. banks. Bank of America is exploring options to roll out new cards with a 10% interest rate to meet President Donald Trump’s demands, a source told Reuters on Thursday. Citigroup is also considering a similar approach, Bloomberg News reported. (Reuters)
This matters because the cap targets rates on unsecured credit card balances—that is, loans without collateral—and could push banks to reconsider who qualifies for credit and at what cost. JPMorgan Chase CEO Jamie Dimon slammed the proposal as an “economic disaster,” warning it “would remove credit from 80% of Americans.” Still, Brian Jacobsen, strategist at Annex Wealth Management, called a 10% cap “highly unlikely” to be implemented anytime soon. (Reuters)
Trump has ramped up the public pressure. “They make a lot of money, they got to give people a break,” he told CNBC, adding he’s been contacted by credit-card companies but didn’t specify which ones or name any executives. (Reuters)
For Bank of America, the issue isn’t the numbers on one product but the uncertainty around the regulations. If Washington makes the idea enforceable, investors anticipate banks will tighten credit standards and adjust pricing elsewhere in the product — steps that may safeguard profits but slow down spending.
Thursday saw tensions flare once more as Trump launched a $5 billion lawsuit targeting JPMorgan and CEO Jamie Dimon over claims of “debanking.” Reuters also reported Trump has leveled similar accusations against other banks, including Bank of America. JPMorgan pushed back, saying, “we believe the suit has no merit.” Trump fired back at reporters, insisting, “You’re not allowed to do what they did.” (Reuters)
Bank of America is drawing notice for its deal activity outside Washington. The bank is reportedly one of four Wall Street firms in the running for senior roles in a possible SpaceX IPO, according to a source familiar with the situation. Both the banks and SpaceX have declined to comment. (Reuters)
Macro factors are also in play. The Federal Reserve will meet Jan. 27–28, with the rate decision set for Jan. 28. Expectations around rates can shift bank stocks sharply, since they affect lending demand and the gap between banks’ loan earnings and deposit costs. (Federal Reserve)
Traders in BAC are focused on two key developments in the short term: if lawmakers will turn Trump’s call into a concrete bill, and whether banks will roll out “no-frills” products that hit the 10% cap without sacrificing profitability.
The Fed’s Jan. 28 decision looms as the next key date, with the credit-card cap issue set to linger until Washington either lays out the details or drops it altogether.
