New York, Jan 20, 2026, 19:50 EST — After-hours
- Citigroup shares slipped roughly 4.4% post-close, dragging along with a wider slump in U.S. bank stocks.
- CEO Jane Fraser said she doesn’t anticipate Congress will approve any caps on credit-card interest rates.
- Traders are waiting on clearer signals from Washington to see if the proposal will become policy.
Citigroup shares slipped 4.4% to $112.80 in after-hours trading Tuesday, following a steep fall during the regular session. Investors are reacting to new concerns over U.S. credit-card pricing policies.
The stock move is significant as the discussion pivots from campaign rhetoric to immediate action, pushing bank executives to assess how a hard cap might impact consumer lending. Citi CEO Jane Fraser expressed skepticism that Congress will greenlight limits on credit-card interest rates, cautioning that such measures could restrict credit availability. 1
Credit cards are unsecured loans, meaning they aren’t backed by collateral. That risk forces lenders to set higher prices. A forced cap would shrink that margin, which is why bank shares have taken a hit even though no clear rules are set yet.
The Trump administration urged companies to meet the deadline by Tuesday, but questions remain about whether the cap can be enforced without new legislation. The S&P 500 banks index dropped 1.2%, with Citigroup and other major banks also sliding. Brian Jacobsen, chief economic strategist at Annex Wealth Management, described the situation as “an overhang” for now. 2
Industry groups have attempted to quantify the impact. The American Bankers Association, citing new data from issuers that cover about 75% of the market, estimates that between 137 million and 159 million cardholders might lose credit access. ABA President and CEO Rob Nichols cautioned that these caps “lead to fewer options.” 3
The Consumer Bankers Association highlighted a Morning Consult survey revealing that 60% of adults anticipate banks would introduce new fees and tighten approvals if a 10% cap were enforced. Lindsey Johnson, CBA’s President and CEO, warned the move would “hurt consumers” by shrinking credit availability and jeopardizing rewards programs. 4
Treasury Secretary Scott Bessent, speaking from Davos, called it “not unreasonable” to discuss credit-card company practices, indicating the issue remains firmly on the policy radar. 5
Outside Washington, Citi is stepping up its investment banking staff by bringing in senior hires as it rebuilds its coverage teams. That includes a new head of media banking, according to the Wall Street Journal. 6
Citi bulls face the possibility that Tuesday’s slide isn’t over. Should the cap turn into a strict rule—or if lawmakers push through legislation—banks might clamp down on credit, slash rewards, and crank up fees. That would ripple through consumer spending and dent bank profits.
Traders on Wednesday are eager for a clear sign on enforcement—will the White House press Congress, opt for an executive path, or settle on a voluntary “low-rate” card proposal that softens the blow to banks’ earnings?
