US financial stocks are being sold off. How will the policy shift impact traditional banks?

Question

【Chain Wen】 Recently, there have been quite a few developments in the US stock market financial sector. US officials proposed to lock the credit card interest rate cap at 10%, and this statement directly hit bank stocks. JPMorgan pre-market plunged 2.4%, Citigroup fell even more sharply, dropping 3.6%, and Bank of America was not spared, declining 1.5%.

It seems that many are re-evaluating the profitability of banks. The issue of interest rate regulation has always been sensitive and can easily trigger market nerves, as it directly affects the net interest income of financial institutions. How do banks make money? A large part of it is through interest rate spreads. If the cap is firmly set at 10%, the profit margins of higher-risk lending activities are squeezed.

This change in policy environment will also create ripple effects on the risk appetite of the entire capital market. The performance of financial stocks often reflects market expectations of economic prospects. This wave of selling may indicate that investors are re-examining the growth prospects of the banking sector under the new policy framework.

ZKSherlock · Accepted Answer

actually... the 10% cap thing is wild because nobody's really talking about the trust assumptions here, right? like, gov says they'll enforce it but who actually verifies the rates banks are charging? classic information asymmetry problem tbh

TopBuyerBottomSeller · Answer

Is it time to cut the leeks again? I’m happy when bank stocks fall; these bloodsuckers deserve it.

I’m already tired of the old tricks of traditional finance; I still believe in on-chain DeFi.

10% interest rate cap? Haha, regulation is the last salvation for retail investors.

Dump the market if you want; I’ll counter with a full crypto bet. The opportunity to switch from cages to birds has arrived.

The Fed’s move marks the end of the old world.

The entire financial system was a bubble to begin with; it’s just a matter of time.

Bank stocks plummeting... This is the most ironic thing I’ve seen; Web3 is the true future.

Interest rate controls directly hit the pain points of financial institutions; on-chain lending has long since crushed them.

JPMorgan down 3.6%? That’s what you call karma.

SpeakWithHatOn · Answer

Another policy to cut leeks? Bank stocks directly plummeted, which is reasonable. With the interest spread locked, who still plays traditional finance?

Hurry up and get on the DeFi train, everyone. Decentralization is the future.

These Wall Street bigwigs are about to cry. If interest rates are regulated, the entire ecosystem will have to reshuffle.

10% interest rate cap? That's hilarious. Might as well go all in on crypto.

As soon as the policy appeared, it was clear that traditional finance was going to cool off. Those who only react now should be bottom fishing in the crypto space, right?

Citi dropped 3.6%. Can it fall to zero? Haha.

unrekt.eth · Answer

10% cap? Traditional finance is about to be tightly controlled, no wonder bank stocks are plunging.

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JPMorgan Chase fell 2.4%, which is relatively mild; Citigroup dropped 3.6%... Now the policy negative news is really here.

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Interest spread is being squeezed, how can banks operate like this? It's a world of difference compared to the freedom of crypto.

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Wait, if they really want to lock in a 10% cap, high-risk lending will need to be recalculated.

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The plunge in financial stocks actually signals to us that the traditional system is becoming more fragile.

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It's hilarious—US politicians are once again stirring up financial institutions. Banks are really struggling this time.

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A 10% interest rate cap... the profit margins for high-risk lending businesses are directly cut in half, no wonder there's a big drop.

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From the policy suppression of traditional finance, the potential of decentralized finance indeed seems greater.

memecoin_therapy · Answer

10% interest rate cap? Banks are directly out, this really might push traditional finance to the brink

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Laughing to death, policies are coming again, and the decline in US financial stocks is quite sharp this time

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So, once regulation comes into play, traditional banks are doomed. This might be the reason why Web3 exists, right?

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JPMorgan's drop of 2.4% isn't a big deal, what I care about is whether this policy will affect crypto financing costs

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Interest rate cap at 10%? How to handle high-risk loans then? Banks really can't make money...

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A wave of sell-offs in financial stocks... hmm, this time we need to observe whether large funds will flow into alternative assets

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Speaking of which, how much impact will this policy have on the entire financial system? Will it push up the demand for stablecoins in reverse?

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The bank's interest margin is locked, so it's normal for investors to panic

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A 10% interest rate cap is truly outrageous. Is this forcing banks to die or what?

MetadataExplorer · Answer

Banks are really being pushed into a corner, with a 10% cap... How can this even work?

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Cutting the interest margin is like cutting the bank's lifeline. No wonder everyone is fleeing.

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As soon as policies come out, the market becomes so sensitive. It feels like traditional finance is really about to change.

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JPMorgan Chase, Citigroup, and these giants have all fallen so much. You have to be very optimistic about crypto.

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A 10% interest rate cap? That's laughable. Who would dare to take high-risk loans anymore?

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Are the good days for banks completely over? Or is this just the beginning?

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This policy shift makes me even more convinced that the future belongs to decentralization.

US financial stocks are being sold off. How will the policy shift impact traditional banks?

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