JPMorgan pushes back on Trump proposal for credit – Business News
JPMorgan Chase is pushing back on President Trump’s proposed 10% cap on credit card rates of interest, with the bank’s high finance govt warning that the transfer can be “very bad for consumers” and pressure a radical overhaul of one of Wall Street’s most profitable companies.
“If it were to happen, it would be very bad for consumers, very bad for the economy,” JPMorgan Chief Financial Officer Jeremy Barnum mentioned on the bank’s earnings call on Tuesday.
If the cap is applied, the company’s credit card operation “would be a business that we would have to significantly change,” the exec added.
JPMorgan Chief Financial Officer Jeremy Barnum vowed to combat President Trump’s proposed 10% cap on credit card rates of interest. JPMorganChase
Barnum mentioned “everything is on the table” because it pertains to the bank’s response to the proposal.
The bank’s CEO Jamie Dimon echoed these remarks, saying, “You would have to adjust your model for the added risk by this and ongoing price controls.”
“It would be dramatic,” he noticed during the call with analysts.
JPMorgan is the nation’s largest credit card issuer by excellent balances.
As of 2025, the lender held about $211 billion in excellent credit card balances — roughly 18% of the US market — based on industry estimates.
Trump has since escalated the stress on the cardboard industry, urging lawmakers to back the Credit Card Competition Act. REUTERS
The bank’s US credit card loan e book stood at roughly $235 billion as of the third quarter of 2025 and was projected to rise additional following its settlement to take over Apple’s credit card portfolio.
The Post has sought remark from the White House.
Trump has been escalating stress on the cardboard industry, urging lawmakers to back the Credit Card Competition Act — a bipartisan measure that may enable retailers to route transactions away from Visa and Mastercard.
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In a Tuesday social media post, the president mentioned the measure would “stop the out of control Swipe Fee ripoff,” signaling that his crackdown now extends past rates of interest to fee networks themselves.
The laws would require giant banks to provide retailers the option to route transactions over networks different than Visa and Mastercard, putting instantly at a profitable price construction that the cardboard industry has long defended.
JPMorgan, led by CEO Jamie Dimon, is the nation’s largest credit card issuer by excellent balances. AP
The proposed Credit Card Competition Act doesn’t explicitly single out Visa or Mastercard, however it’s structured to weaken their grip on the credit card ecosystem.
The invoice would pressure giant banks to offer retailers a number of routing choices, permitting transactions to bypass the dominant networks that presently control most US card funds.
Sen. Dick Durbin (D-Ill.) and Sen. Roger Marshall (R-Kan.) on Tuesday reintroduced the invoice, which has been championed for years by main retailers desirous to decrease processing prices.
Credit Card Competition Act is a bipartisan measure that may enable retailers to route transactions away from Visa and Mastercard. Nicholas Felix/peopleimages.com – stock.adobe.com
The renewed push has rattled markets however drawn skepticism on Capitol Hill, the place bank allies have traditionally blocked the invoice.
Analysts say passage stays unlikely regardless of Trump’s backing, framing the transfer as half of a broader election-year effort in charge Wall Street for high costs and rising prices punishing shoppers.
Shares of Visa have been down practically 4% as of 2 p.m. Eastern Time on Tuesday, whereas Mastercard’s stock price was down more than 3.5%. The Post has sought remark from each firms.
