""It would be an economic disaster," Dimon said when asked about President Donald Trump's proposed one-year 10% cap on credit card interest rates. "And I'm not making that up because of our business, we would survive it, by the way. In the worst case, you would have to have a drastic reduction of the credit card business.""
"Speaking at the World Economic Forum in Davos, Switzerland, Dimon predicted that, if enacted, the cap could strip credit from 80% of Americans. Dimon proposed that the government test the proposal by forcing all the banks in Vermont and Massachusetts to comply, "and then see what happens," causing a ripple of laughter through the audience."
""The people crying most won't be the credit card companies," he said, adding that those hurt will include restaurants, retailers, travel companies, and municipalities, "because people will miss their water payments.""
A proposed one-year 10% cap on credit card interest could strip credit from 80% of Americans and force a drastic reduction of the credit card business. JPMorgan Chase would survive but credit availability would shrink for many consumers. Reduced credit access could hurt restaurants, retailers, travel companies, and municipalities through missed consumer payments and reduced spending. A suggested test would require banks in Vermont and Massachusetts to comply to observe consequences. JPMorgan intends to provide detailed analysis of the potential effects while also expressing support for greater affordability. Many big-bank CEOs have criticized the proposed cap.
Read at Business Insider
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