Stock Movers Banks Face Credit Card Selloff; Allegiant to Buy Sun Country; Shake Shack Sinks
Jan 12, 2026
Trump's comments about capping credit card interest rates at 10% send shockwaves through banks and card issuers, raising concerns about potential earnings impacts. Allegiant Airlines announces a cash-and-stock acquisition of Sun Country, valued at nearly $1.5 billion, sparking discussions on airline consolidation. Meanwhile, Shake Shack struggles with a revenue miss for Q4, raising questions about the fast-casual dining sector's performance amid changing consumer behaviors.
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Trump Remarks Trigger Card And Bank Selloff
- President Trump saying card lenders must cap rates at 10% sent major card issuers' stocks sharply lower in premarket trading.
- Analysts warn such a cap could wipe out card earnings and reduce credit availability for consumers.
Card Rates Near 20% Make Caps Painful
- Credit card interest rates have hovered around 20%, making card businesses highly profitable.
- Wells Fargo analyst Mike Mayo said a one-year 10% cap could effectively wipe out card earnings for that period.
Caps Could Shrink Credit And Shift Customers
- Critics and industry groups say a steep cap could shrink credit availability and push some consumers to alternative lenders or pawn shops.
- Hosts noted BNPL firms like Klarna could gain share if traditional cards become constrained.