London, Jan 14, 2026, 08:15 GMT — Regular session
- Barclays shares slipped in early London trading, rattled by volatility sparked by U.S. credit-card policy headlines.
- Traders are assessing Trump’s plan to cap credit card interest rates at 10% and debating its potential reach.
- Next up: a new share buyback update and earnings set for Feb. 10.
Shares of Barclays (BARC.L) slipped 0.2% to 476.35 pence in early Wednesday trading, retreating after a steep fall earlier this week sparked by U.S. discussions about capping interest rates on credit cards.
This move hits home for Barclays, given its U.S. credit card division is a solid profit driver. Ranked ninth in the U.S. card market, it accounts for roughly 11% of the bank’s overall profits, according to Reuters.
Barclays isn’t the only one feeling the heat. JPMorgan’s top brass pushed back sharply this week after Trump proposed a one-year 10% rate cap starting Jan. 20. CFO Jeremy Barnum slammed it as “very bad for consumers, very bad for the economy,” and CEO Jamie Dimon called the move “dramatic.” Reuters — JPMorgan pushback
Analysts pointed out the challenges ahead. UBS Global said a rate cap would require “an Act of Congress” to happen. The first impact hit U.S. banks, card issuers, and the payment networks that rely on card transactions. Reuters — financial stocks fall
Jefferies analysts, quoted by Reuters, warned the proposed cap might limit card access and curb retail spending. Truist Securities added that if passed, it “would swing the business to unprofitable,” especially hitting riskier borrowers first. Simply put, the concern boils down to tighter lending rules, reduced credit limits, and less buffer for banks against losses on unsecured loans. Reuters — credit-card cap explainer
Barclays continued its buying spree, snapping up 3,549,207 shares on Jan. 13 for cancellation under its buyback scheme. The bank paid a volume-weighted average price of 478.9802 pence per share.
Barclays’ latest spending figures revealed UK consumer spending dropped 1.7% in December compared to the previous year — the steepest decline since February 2021. The data highlights a cautious tone among households as 2026 gets underway.
The biggest question mark remains political rather than cyclical. Should the proposal become law—or expand to include other price controls like card “swipe fees” charged to merchants—banks and card networks could see a broader revenue hit. That would put Barclays’ U.S. consumer strategy under renewed scrutiny.
Traders remain focused on any updates from Washington regarding the implementation of a cap and whether lawmakers will take it up. Barclays investors are eyeing Feb. 10, the next fixed date when the bank will announce its FY 2025 results.
