U.S. Stocks Erase Gain as House Votes to Limit Card Rates

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Source: Bloomberg

U.S. stocks erased most of a 156- point rally in the Dow Jones Industrial Average after a House bill to curb credit-card rates spurred concern about bank earnings, outweighing the Federal Reserve’s plan to keep interest rates at a record low.

Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. led financial shares to the steepest loss among 10 industries as the vote moved up the start date of many rule changes that will make it more difficult for lenders to raise rates on existing credit cards. The Standard & Poor’s 500 Index wiped out most of a 1.5 percent rally triggered when the Fed said it will leave interest rates at “exceptionally low” levels.

“The credit-card regulation and regulation in general, how much Congress is going to clamp down on financial company activities, is important,” said Giri Cherukuri, who helps manage $1.5 billion at Oakbrook Investments in Lisle, Illinois. “To the extent that Congress keeps their hands off of things, that’s better for financial stocks and financial stock prices.”


Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=anlKeQIz.vz4

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I pay off my credit card every month on time - carry no balance - have never been late - i just received a modified credit card agreement in mail that jacked up my interest rate to 30% - the credit card companies are trying to lock in high rates for when the new regulations go into effect

[wisteria]

1. Yes, the card companies are scurrying to jack up rates no matter what your credit history is.

I have had four cards raise my interest rates near 30% or at 30% and lower my credit available, and I have one of the best credit ratings. I have learned my lesson about these crooks and I intend to do without credit cards- keeping one or two for credit purposes and for reservations. I will never again pay for something with credit and end up paying three times as much for it.