Matt Frankel

This would likely have very broad economic consequences, in addition to hurting bank profits, such as sharply lower consumer spending, as people would be more hesitant to spend money.

Just to be clear, I don't think a 10% rate cap has any chance of happening.

But we could see some sort of restriction on the credit card industry.

It's kind of a bipartisan thing now.

The President messaged about it.

Elizabeth Warren has been crusading for this for years.

The two of them actually had their first-ever phone conversation about this.

Some sort of restriction could be placed on the credit card industry.

There are the obvious credit card-heavy banks, like you have your Capital One, you have your American Express.

But all the big four, the Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, all have substantial credit card exposure.

I don't think that the 10% thing is going to happen.

John mentioned Buy Now, Pay Later as an obvious beneficiary.

Think of any company that focuses on alternate ways of borrowing money, home equity loan companies, companies like SoFi.

The President said absolutely nothing about capping personal loan interest rates.

Anything that offers alternative ways of providing the credit that Americans have grown accustomed to could be companies to watch here.

I'm looking for Capital One.

Wouldn't you know it, the President wants to cap credit card interest rates at 10%, and Capital One pulled back by 10% in response.

Nice coincidence there.

As we've discussed, the 10% cap is unlikely to happen.

I don't know what's going to happen, but this bank has excellent profitability.