NEW YORK, Jan 12, 2026, 09:51 EST — Regular session
- Synchrony Financial shares fell about 7% in early trade as credit-card lenders sold off.
- President Donald Trump called for a one-year 10% cap on credit-card interest rates starting Jan. 20.
- Investors are watching whether the idea turns into legislation as bank earnings season begins.
Synchrony Financial shares were down about 7% at $80.80 on Monday morning, as investors sold credit-card lenders after President Donald Trump called for a one-year cap on credit-card interest rates.
The proposal matters for Synchrony because it leans heavily on interest income from store and co-branded cards. A hard cap would compress what lenders earn on revolving balances, just as the sector heads into a fresh earnings cycle.
Trump said on Friday he was calling for a 10% cap starting Jan. 20, but offered no details on how the plan would be enforced. “We will no longer let the American Public be ‘ripped off’ by Credit Card Companies,” he wrote on Truth Social. 1
Card-linked names across the market fell with Synchrony. Capital One slid about 6%, while American Express was down about 4%; Visa and Mastercard also traded lower, and the financial sector ETF lagged the broader market.
Analysts also flagged the knock-on effects for consumers. “This rate cap would not address the root of the problem and could push consumers towards more expensive debt,” J.P. Morgan analyst Vivek Juneja wrote, pointing to a shift toward non-bank lenders if banks pull back. 2
Jefferies analysts said the White House lacks the executive authority to impose such a cap on its own, calling it unlikely to survive Congress. That legal uncertainty is part of what traders are trying to price out in real time.
Still, the headline risk is enough to hit companies most exposed to card spreads. Bread Financial, another card-heavy lender, fell nearly 9% in early trading.
For Synchrony, the swing factor is whether the politics moves beyond a presidential call and into actual legislation. A rate cap would likely force lenders to tighten credit standards, cut credit lines or lift fees elsewhere — steps that can slow growth and push delinquencies around.
There is also a path where nothing happens. Previous efforts to cap credit-card rates have struggled to gain traction in Washington, and banks and industry groups have warned such a move could reduce credit availability and steer borrowers to costlier options.
Investors will look for signs of pushback — and how seriously executives take the threat — as big U.S. banks start reporting quarterly results this week, beginning with JPMorgan on Tuesday.
Synchrony’s next fixed catalyst is its fourth-quarter results on Jan. 27, when investors will listen for management’s read on pricing, credit trends and the policy backdrop. 3
