DAVOS, Switzerland–The CEO of the largest bank in the U.S. has repeated his assertion that a 10% cap on credit card APRs would be an “economic disaster,” but said if such as cap is implemented, it should first be put in place in Vermont and Massachusetts.
While he didn’t say it, those are the home states of Sens. Bernie Sanders and Elizabeth Warren, both Democrats who have said they support such a cap. Republicans, including President Trump and Vice President J.D. Vance, have also advocated for the cap.
Speaking at the World Economic Forum in Davos, Switzerland, JPMorgan Chase CEO Jamie Dimon said during a panel that the cap would be an “economic disaster, In the worst case, you’d have a drastic reduction of the credit card business” for 80% of Americans.
‘Great Idea’
Dimon told the meeting he has a “great idea” to help quell disagreement over the proposed card cap, suggesting that the U.S. government impose the pricing controls on Americans in Vermont and Massachusetts, CNBC reported.
Sanders and Warren have both said they would support capping card rates at 10% for five years; Trump has proposed a one-year cap.
Dimon said “the left” and people who argue for price controls “will learn a real lesson, and the people crying the most won’t be the credit card companies,” he said, according to CNBC.
“It’ll be the restaurants, the retailers, the travel companies, the schools, the municipalities, because people miss their water payments,” he stated.. “It would be something else to watch.”
Bank to Share its Analysis
CNBC reported that Dimon added that JPMorgan was planning on giving the Trump administration its analysis on what would happen under a national credit card rate cap.
“I think it’s wrong for the government to get involved extensively in pricing of stuff, but I got to deal with the world I got,” Dimon said.
