JPMorgan CFO Warns on Credit Card Rate Cap

JPMorgan Chase Chief Financial Officer Jeremy Barnum issued a warning regarding proposed interest rate caps on credit cards during the bank's fourth-quarter earnings call on Tuesday. Barnum suggested that if price controls are implemented, it could make the cards business 'not worth being in.' The bank reported strong earnings for 2025, but the potential regulatory changes cast a shadow over future profitability.

The comments came in response to President Donald Trump's recent proposal to cap credit card interest at 10% for one year. Barnum emphasized that such a dramatic shift would not only challenge the bank's business model but could also harm consumers who rely on credit. The bank is currently expanding its credit card footprint by taking over the Apple Card from Goldman Sachs.

During the fourth-quarter earnings call, JPMorgan Chase CFO Jeremy Barnum addressed the potential impact of regulatory changes on the bank's lending operations. He specifically highlighted the credit card division, noting that while the business is competitive, it remains profitable under current conditions. However, the introduction of price controls could fundamentally alter the landscape.

Barnum stated, "It's a very competitive business, but we wouldn't be in it if it weren't a good business for us. And in a world where price controls make it no longer a good business, that would present a significant challenge." He further added that the bank's specific response would depend heavily on the details of any legislation, noting, "I just don't think we have enough information at this point."

The CFO also outlined the potential negative consequences for the general public if such caps were enacted. He warned that a dramatic shift in interest rates could lead to reduced access to credit for consumers, stating it would affect "especially the people who need it the most."

The warnings from JPMorgan come amidst a shifting political landscape regarding consumer lending regulations. On Friday, President Donald Trump announced via a Truth Social post that he intends to call for a 10% cap on credit card interest rates. This proposal is set to begin on January 20 and would last for one year.

Implementing such a cap would not be a unilateral executive action; Congress would typically need to approve the measure. If enacted, the cap would directly impact the profitability of major lending institutions. Lawmakers from both political parties have previously criticized the high interest rates associated with credit cards, which have hovered around 20% in recent years.

Despite the regulatory threats, JPMorgan Chase reported a strong financial position. The firm, identified as America's biggest bank by assets, ended 2025 with strong performance and entered 2026 with significant momentum.

While navigating potential regulatory hurdles, JPMorgan Chase is actively expanding its credit card portfolio. The bank is currently in the process of taking over the Apple Card from Goldman Sachs. This transition marks a significant shift in the partnership between the tech giant and the banking sector.

The acquisition of the Apple Card portfolio adds millions of potential new accounts to JPMorgan's ledger. However, the value of this acquisition could be diminished if the proposed interest rate caps are put into place. The bank faces the challenge of integrating this new business while preparing for potential changes in the regulatory environment.

Analysts and shareholders are closely watching how the bank will navigate the coming months. The interplay between the strong earnings reported for Q4 and the potential for new price controls creates a complex outlook for the bank's future growth in the consumer lending sector.