New York, Jan 20, 2026, 14:15 EST — Regular session
- Capital One shares dropped 3.7%, slipping to $230.18 in afternoon trading
- Investors wrestle with the uncertainty tied to a proposed 10% cap on credit-card interest rates
- Capital One will release its fourth-quarter results on Jan. 22
Capital One Financial shares dropped 3.7% to $230.18 in Tuesday afternoon trading, underperforming the S&P 500 banks index, which fell 1.2%. Investors are weighing whether the Trump administration will push forward with a proposed one-year, 10% cap on credit-card interest rates after the Jan. 20 deadline, amid doubts about enforcing it without Congress. “For now, it’s an overhang,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters. The American Bankers Association warned that up to 159 million cardholders could lose access. Meanwhile, TD Cowen anticipates a “political compromise” involving stripped-down low-rate cards and voluntary “Trump cards” as potential workarounds. 1
The stakes cut deep into Capital One’s core operations. As a major card lender, the company expanded its reach by acquiring Discover Financial Services in May 2025. This move added the Discover franchise to its portfolio, boosting its scale in consumer credit. 2
Thursday marks the next major event. Capital One plans to announce its fourth-quarter 2025 results around 4:05 p.m. Eastern on Jan. 22, with a conference call set for 5 p.m. Traders will be watching closely for how management addresses risk pricing if a cap turns into official policy. 3
The company is also navigating legal challenges connected to its deposit business. A federal judge gave preliminary approval to a revised $425 million class action settlement involving “360 Savings” accounts. Capital One agreed to boost rates for at least two years, matching its “360 Performance Savings” rate — which depositors’ lawyers valued at roughly $530 million in addition to the cash payout. “This is a great result for the class,” said plaintiffs’ lawyer Philip Black. Capital One did not immediately respond to a request for comment, Reuters reported. 4
Morgan Stanley bumped up its price target on Capital One to $300 from $280 and maintained an “Overweight” rating, The Fly reported. 5
Right now, policy risk is the main headache for investors because it hits interest income — the cash lenders make when cardholders carry balances. Since credit cards are unsecured loans without collateral, lenders depend on pricing to offset losses.
The downside is obvious: a binding cap would push lenders to tighten credit, cut back rewards, or quickly revamp their products. Meanwhile, Washington remains locked in a battle over what’s legal and what isn’t. That uncertainty could keep the sector stuck, even if no rule takes effect right away.
The near-term calendar is straightforward. Traders await a clear signal from Washington following the Jan. 20 deadline, then shift their attention to Capital One’s earnings report on Jan. 22. Investors will look for updates on card pricing, credit trends, and the progress of the Discover integration during the call.
