New York, Jan 12, 2026, 16:33 EST — After-hours
- Capital One shares dropped following Trump’s proposal to cap credit-card interest rates at 10% for one year, starting Jan. 20
- The lender secured preliminary approval for an updated $425 million depositor settlement related to savings-account rates
- Investors are zeroing in on policy specifics, responses from Capitol Hill, and Capital One’s earnings call scheduled for Jan. 22
Shares of Capital One Financial dropped 6.4% to $233.20 in after-hours trading Monday, dragged down by a widespread selloff among credit-card lenders. The slide followed President Donald Trump’s call to impose a 10% cap on credit-card interest rates for one year.
The proposal targets Capital One’s main revenue driver: interest on revolving credit-card balances. It comes as the company grapples with new developments in a long-standing fight with depositors over interest rates on certain savings accounts.
On Friday, Trump urged for the cap to start on Jan. 20 but didn’t explain how companies would be forced to comply. Analysts said such a cap would almost certainly need Congress to get involved. UBS Global analysts noted that implementing the measure would require congressional approval and would probably encounter significant legal hurdles if attempted via executive order.
Capital One’s shares hit a session low of $221.68, sliding about 11% from Friday’s close, before clawing back some losses by the close. Synchrony Financial and Bread Financial also suffered steep drops. Meanwhile, American Express, Visa, and Mastercard edged lower.
A federal judge gave preliminary approval to a revised $425 million class-action settlement involving depositors who claimed they were underpaid interest on 360 Savings accounts. The updated deal requires Capital One to boost the 360 Savings rate to match the 360 Performance Savings rate and keep both account types available for at least two years. The final approval hearing is scheduled for April 20.
Credit cards rank as some of the most expensive consumer loans, largely because they’re unsecured and issuers factor in the risk of defaults. The Federal Reserve’s consumer credit report shows the average credit-card interest rate hit 20.97% in November, Reuters reported.
Seaport Research analyst Bill Ryan sees Trump’s move as part of a fresh focus on affordability. Yet some analysts caution that capping rates might lead to reduced credit limits or account closures for riskier borrowers. J.P. Morgan’s Vivek Juneja added the cap could drive certain borrowers toward pricier non-bank loans.
Capital One faced allegations of capping rates at 0.3% on its “high interest” 360 Savings accounts for existing depositors, while handing out significantly higher rates to new customers with similarly named accounts, Reuters reported. The 360 Performance Savings accounts now offer a 3.3% yield, even after recent drops in benchmark short-term rates, according to the report. Reuters
Capital One’s ties to U.S. consumer credit have turned it into a key indicator for credit conditions, with investors closely watching for any rise in delinquencies and charge-offs. Monday’s discussion went beyond quarterly earnings; it centered on the fundamental rules shaping the industry.
There’s a clear “but”: Wall Street largely believes a broad rate cap would be tough to roll out swiftly, facing political and legal roadblocks despite ongoing headline risks. Should the proposal gain momentum, credit-card profits might take a hit; if it loses steam, the sector could rebound just as quickly. Reuters
Next on the docket: investors await any official policy moves or congressional reactions before the Jan. 20 deadline Trump mentioned. Capital One’s Q4 earnings and conference call are set for Jan. 22. The depositor settlement heads back to court for final approval on April 20.
