Shares of Credit Card Issuers and Lenders Rise After Election

Shares of credit card issuers and lenders have reportedly risen after the election of Donald Trump, with investors expecting the incoming Trump administration to deliver regulatory changes that are favorable to the industry.

Collectively, S&P 500 banks have seen their stocks gain about 7% so far this week, the Wall Street Journal (WSJ) reported Friday (Nov. 8).

Some credit card issuers and lenders have seen double-digit gains this week, according to the report. These include gains of 18% for Bread Financial, 17% for Synchrony Financial, 16% for Discover Financial Services and 13% for Capital One Financial.

The report attributed these increases in part to investors’ belief that there will be more spending and fewer defaults as the economy improves.

It also found that analysts expect a new Trump administration to be more likely than the Joe Biden administration to approve Capital One’s planned acquisition of Discover and to alter or eliminate the Consumer Financial Protection Bureau (CFPB) rule that would reduce credit card late fees to $8.

The CFPB rule was finalized in March but its implementation was halted by a judge amid litigation, per the report.

While analysts have these expectations, the WSJ report also noted that Trump suggested a temporary 10% cap on credit card interest rates and that senator and incoming vice president JD Vance co-sponsored a bill to regulate credit card swipe fees.

When the incoming administration names a new head for the CFPB, there will be greater clarity about the direction of these regulations, the report said.

It was reported Wednesday (Nov. 6) that experts predict Trump will roll back some other policies instituted under the Biden administration, including the Justice Department’s efforts to break up Alphabet’s Google, merger review guidelines that were instituted in 2023 and policies implemented by Federal Trade Commission (FTC) Chair Lina Khan that sought to address perceived harm from corporate consolidation.

Trump’s election also drove the price of bitcoin to a new all-time high Wednesday as part of a crypto rally that reflected investor optimism about a more favorable regulatory environment for the industry under the Trump administration than a potential Harris administration.