New York, Jan 12, 2026, 17:23 EST — After-hours
- Capital One shares dropped roughly 6% after news of a proposed 10% cap on credit-card interest rates stirred investor concern
- A U.S. judge gave preliminary nod to Capital One’s updated $425 million depositor settlement
- Attention turns to potential policy moves by Jan. 20 and Capital One’s earnings due Jan. 22
Shares of Capital One Financial Corp dropped 6.4% to $233.20 in after-hours trading Monday, hitting a low of $221.68 during the session.
The decline refocused attention on a political risk that many traders had largely set aside: President Donald Trump’s proposal to cap credit-card interest rates at 10% for one year. Lenders reliant on card interest from revolving balances face direct impact, and investors struggle to price in such a headline, even if it never materializes.
Wall Street analysts say the legal route for the plan looks tight. UBS Global analysts pointed out it would require an Act of Congress for a rate cap to hold. J.P. Morgan’s Vivek Juneja cautioned in a note that such a cap “could push consumers towards more expensive debt” beyond banks. Investors are now focusing on bank earnings starting Tuesday for clues on credit demand and quality. The average credit-card rate hit 20.97% in November, according to Federal Reserve data cited in the report. 1
The selloff spread to other consumer lenders and payments companies linked to card spending, as investors broadly knocked stocks sensitive to credit-card yields and fees. 2
A federal judge has given preliminary approval to Capital One’s updated $425 million settlement with depositors who alleged they were shortchanged on savings-account rates. The revised agreement also mandates Capital One to boost rates on its 360 Savings accounts to match the higher-yielding 360 Performance Savings accounts — a shift valued by depositors’ attorneys at roughly $530 million. Both account types must be maintained for at least two years. A final approval hearing is scheduled for April 20. Depositors’ lawyer Philip Black called it “a great result for the class,” while New York Attorney General Letitia James accused the bank of having “misled them and cheated them,” saying her office will drop its lawsuit if the settlement is finalized. Capital One did not immediately respond to requests for comment. 3
Investors will be watching Jan. 22 closely, when Capital One plans to report its fourth-quarter 2025 results after the market closes. The company will follow up with a conference call at 5 p.m. Eastern. 4
The immediate risk is in Washington. Should the rate-cap proposal gain traction — even lacking a clear legal framework — traders anticipate lenders tightening credit limits and approvals. This could push markets to price in slimmer card margins and softer rewards economics.
The market’s focus remains narrow for now: it’s all about spotting any hints before Jan. 20 that the White House or Congress will push for the cap, plus what bank executives reveal this week on consumer credit, delinquency patterns, and pricing power as earnings come in.
