Bank executives, including CEOs of Wells Fargo, Bank of America, JPMorgan Chase, Citigroup, State Street, BNY Mellon, Goldman Sachs, and Morgan Stanley, faced a Senate Banking Committee hearing.

President Trump announced a 10% cap on credit card interest rates, causing bank stocks to drop. Visa, Mastercard, and American Express also fell. Capitol One, heavily reliant on credit cards, sank 7%.

Banks warn the rate cap could make credit card industry unprofitable, leading to reduced credit availability and consumer spending. Industry trade groups argue the proposal would hurt Americans and small businesses.

Enforcement of the rate cap remains unclear, with Congress unlikely to pass legislation by the proposed start date. Trump administration’s attempts to use banking regulators face challenges from the industry and courts.

Read more at CNBC: Trump credit card rate cap has unclear path, ‘devastating’ risks