Trump's credit card rate cap plan has unclear path, 'devastating' risks, bank insiders say

Trump's credit card rate cap proposal raises significant concerns from banks regarding its profitability and associated risks. A proposed cap at 10% could severely threaten the credit card industry, particularly affecting segments servicing customers with poor credit histories. While such a cap may seem favorable for consumers, it poses serious challenges for financial institutions, which may result in widespread unprofitability. Bank insiders warn of the uncertainty surrounding the industry's ability to adapt to new regulations and the potential need for additional regulatory measures. This could lead to survival challenges for high-risk lenders and smaller financial institutions. Therefore, policies introduced without thorough consideration of their potential consequences for the industry could carry considerable risks and should be approached with caution.