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- Jan 14 Who really benefits from 10% cap on interest rates
Market
“Bank CEO’s have indicated they will legally challenge and contest the 10% cap on credit card interest rates, which they think will rule in their favor” 😊 😋
Markets all took a break thanks to bank earnings, which were good, but expectations were higher
Banks make $160B in interest payments, $148B from swipe fees (interchange fee) and $30B in annual fees, late fees and international fees. Unlike the EU where interchange fees are capped at 0.3% of the total, the US has no cap, which means 1.5% - 3% swipe fees are the norm. Canadians pay 50% of US fees per transaction, and the EU 1/7th - 1/10th of US.
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Insights from the portfolio
Video of the day
Today’s video is on Citibank $C ( ▲ 1.19% ) the US bank.
