Citigroup Chief Financial Officer Mark Mason warned that President Donald Trump’s proposed 10% cap on credit card interest rates could have dire consequences.
“An interest rate cap is not something that we would, or could, support, frankly,” he said on a call with reporters ahead of the bank’s fourth-quarter earnings call at 11 a.m. “At the end of the day, I think an interest rate cap would restrict access to credit to those who need it the most, and frankly would have a deleterious impact on the economy.”
Mason said multiple times that he did not want to speculate on the impact of the potential cap, given the limited available information. He said that Citi would work with the Trump administration to address the “important issue” of affordability.
Reporters asked Mason about the cap multiple times, and he repeatedly said it would likely not help customers most in need, as is Trump’s stated intention. He said later in the call that, again, it would have a “very negative impact on the economy.”
During JPMorgan’s Tuesday earnings call, the bank’s CFO warned that any cap could have a detrimental impact on its lending business and negatively impact consumers.
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