Asks about impact of credit card rate cap proposal on large banks with credit card portfolios.
Host
Gerard Cassidy
Executive order won't force banks to lower rates to 10%; requires legislation or regulation which takes time and is unlikely to happen. Views this as buying opportunity and political move.
Asks if this disrupts deregulation narrative and administration friendliness toward banking industry.
Host
Gerard Cassidy
Administration has done incredible job focusing on deregulation; Treasury Secretary was clear about loosening bank regulation. Basel III Endgame changes expected this quarter. This doesn't change deregulation trend.
Asks if current positive environment for banks (deregulation, good GDP, credit quality, capital markets) is concerning because everything is so good.
Host
Gerard Cassidy
Worries that there's nothing to worry about. Points to steepening yield curve - Fed funds rate around 3% with positive slope of 75-100 basis points would be very positive for lenders' net interest income.
Asks what's holding back U.S. Bancorp stock trading at 11x next year's numbers with 10% earnings growth.
Host
Gerard Cassidy
Stock sentiment was negative coming into 2025 due to surprise CEO change. Company struggled with expense growth but operating leverage has turned positive recently. If they show two quarters of positive operating leverage and give 2026 guidance, could be a winner.