Business
Under threat from Trump, Wall Street banks wager they can fend off credit card price controls
The biggest U.S. banks show no sign of capitulating to President Donald Trump’s mandate to slash credit card interest rates, setting up a confrontation just as the president is expected to take the world stage next week at Davos.
Executives at JPMorgan Chase and Citigroup warned this week that rather than offering cards at a 10% interest rate, as Trump has directed should happen by Jan. 20, the banks would simply close many customers’ accounts.
“An interest rate cap is not something that we would or could support,” Citigroup CFO Mark Mason told reporters on Wednesday.
It would “restrict access to credit to those who need it the most and frankly would have a deleterious impact on the economy,” he said.
On Tuesday, JPMorgan CFO Jeremy Barnum indicated that the industry could defend itself in the courts if needed, saying “everything’s on the table” in terms of a response.
Trump, keen to address voters’ concerns over affordability ahead of midterm elections this year, began his broadside against banks in a late-Friday social media post by alleging that the industry was ripping off credit card borrowers. In media interviews and follow up posts, Trump has doubled down on his push and endorsed a separate bill that takes aim at the swipe fees paid by merchants.
But five days after the original threat, bankers and their lobbyists told CNBC that they have yet to receive any formal or written guidance from the Trump administration about the policy.
That gives some of them hope that the administration isn’t serious about pursuing the interest rate cap, according to industry insiders, who asked for anonymity to speak candidly.
Deal time?
While Trump has said banks that don’t comply on rates will be “in violation of the law,” there is currently no U.S. law capping card rates. A bill introduced last year that would cap rates at 10% for five years has stalled in Congress.
“We are legally compliant right now,” said one person with knowledge of a large card issuer’s operations.
Barring legislation, which is not likely, the industry will either dodge the caps entirely or be forced to offer concessions, similar to how Trump dealt with the pharmaceutical industry, Wolfe Research analysts led by Tobin Marcus said Tuesday in a note.
“We continue to view the drugmakers as the case study in how this kind of dealmaking-under-threat could go,” Marcus said. “In that case, Trump had enough leverage to secure some new pricing commitments, but not enough to extract truly painful commitments.”
The financial sector is keenly focused on two upcoming events for a sense of how the credit card battle will unfold, sources tell CNBC.
The first is Senate meetings this month where bills being worked on could see the addition of Trump’s rate cap or the push to limit interchange fees. But that path is murky, given that several Republicans, including House Speaker Mike Johnson, have already indicated they wouldn’t support price controls on credit cards.
The other looming date is next Wednesday, the day after Trump’s Jan. 20 deadline. That’s when Trump will address leaders from the corporate and political realms at the annual World Economic Forum in Davos, Switzerland. U.S. Treasury Secretary Scott Bessent and CEOs including JPMorgan’s Jamie Dimon are also scheduled to attend.
At last year’s Davos conference, Trump surprised Bank of America CEO Brian Moynihan by accusing him and Dimon of discriminating against conservatives when it comes to access to bank accounts.
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Gold is sold at a discount in Dubai due to Middle East conflict disrupting flights. Traders offer up to $30 per ounce less than London prices.
Dubai Gold Selling Cheaper As Iran War Grounds Flights
Gold is being sold at a discount in Dubai as the widening conflict in the Middle East disrupts flights and hampers the movement of bullion from one of the world’s key trading hubs.
According to a Bloomberg report, traders in Dubai are offering discounts of up to $30 per ounce compared to the global benchmark price in London. The unusual price cut comes as shipments remain stranded due to flight disruptions triggered by the escalating conflict involving Iran and Israel.
Dubai is a key global centre for refining and exporting gold to markets across Asia, including India. However, partial airspace restrictions and heightened security risks have slowed the movement of bullion out of the region.
Why Gold Is Being Sold Cheaper
Gold is typically transported in the cargo holds of passenger aircraft. With several flights from the UAE restricted amid regional tensions, traders are struggling to move bullion to international markets.
At the same time, insurance and freight costs have surged, making shipments more expensive and uncertain. Many buyers have therefore stepped back from placing new orders, unwilling to bear high logistics costs without assurance of timely delivery.
To avoid paying prolonged storage and financing costs while shipments remain stuck, some traders are offering gold at discounted prices.
Although transporting bullion by road to airports in neighbouring countries such as Saudi Arabia or Oman is theoretically possible, logistics firms are reluctant due to the risks and complications of moving high-value cargo across land borders during a conflict.
What It Means For India
India, one of the largest buyers of gold shipped from Dubai, could face short-term supply disruptions if the situation continues.
Renisha Chainani, head of research at Augmont Enterprises Ltd., said several cargo shipments have already been delayed, creating temporary tightness in the availability of physical bullion in India.
However, industry experts as reported by Bloomberg say the immediate impact may remain limited as domestic inventories are currently comfortable after heavy imports earlier this year.
Chirag Sheth, principal consultant for South Asia at Metals Focus, said Bloomberg that India has ample stocks for now, but warned that prolonged disruptions could eventually affect supply if the conflict continues for several months.
Meanwhile, global gold prices have surged this year amid geopolitical uncertainty, with spot gold recently trading above $5,000 per ounce.
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March 08, 2026, 10:03 IST
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Some seven in 10 British adults without a full driving licence say learning to drive is currently unaffordable, according to a survey.
The figure is even higher among younger people, with 76% of 18 to 29-year-olds without a licence saying driving lessons are financially out of reach, the poll for car insurer Prima found.
Overall, 38% said the cost of driving lessons was the biggest deterrent to learning to drive.
Some 32% were put off by the price of buying a car and 15% said the cost of car insurance was the main barrier to learning to drive.
Almost half (45%) said they would consider learning to drive if it became significantly cheaper.
Nick Ielpo, UK country manager at Prima, said: “For a growing number of people, driving is no longer a symbol of freedom – it’s a financial stretch too far.
“Between lessons, buying a car and insuring it, the upfront and ongoing costs are pricing many people out before they even start.”
Find Out Now surveyed 1,134 adults who do not hold a full driving licence between January 21 and 23.
Go Digit General Insurance on Saturday said it has received a demand notice of about Rs 170 crore for short payment of goods and services tax (GST) for nearly five years. The company has received an order copy from the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate on March 6, confirming GST demand of Rs 154.80 crore levying penalty of Rs 15.48 crore and Interest u/s 50 of CGST Act, 2017 for the period July 2017 to March 2022, the insurer said in a regulatory filing. The company is in the process of evaluating the legal advice on the implications and would file an appeal, it said.
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