Barclays Shares Drop 4% Amid Trump’s Proposed Credit Card Rate Cap
Barclays PLC (BARC.L) tumbled nearly 4% in London trading as markets reacted to former U.S. President Donald Trump's renewed push for a 10% cap on credit card interest rates. The proposal, floated via social media without legislative details, sparked fears of compressed banking margins across Atlantic markets.
European financial stocks broadly declined, with the sector index falling 1.1% as analysts questioned the feasibility of implementing such caps without Congressional approval. Brian Jacobsen of Annex Wealth Management warned, "When companies can't price risk properly, credit lines contract"—a sentiment echoing through trading floors.
The selloff highlights Barclays' vulnerability among European peers given its substantial U.S. consumer banking exposure. Investors await February earnings for clarity on potential impacts, though legal experts note the proposal lacks enforcement mechanisms in its current form.
