Every industry wants government assistance either directly or indirectly by allowing the companies to do what they do without a great deal of interference. Government through the politicians often have other priorities in order to win votes or show a position that they are not 100% with the industry.

In an article by Ken Sweet of the Associated Press, Wall Street has generally benefited from the Trump administration policies. President Trump signed the One Big Beautiful Bill he gave Wall Street companies significant tax breaks, for the banks the President has pushed deregulation.

But everything is never perfect. The President has proposed a one year 10% cap on credit cards. The industry can be and is a lucrative business for many financial institutions. The President has also gone have the Fed to cut interest rates as opposed to allow the Fed to operate with little political interference.

Bank of New York CEO Robin Vince told reporters that going after the independence of the Fed does not seem to use to be accomplishing the administration’s primary goal of affordability.

JPMorganChase CEO Jamie Dimon said he has enormous respect for Jay Powell and would not want his job.

In terms of credit cards, the average interest rate on the credit cards is between 19.65% and 21.5%. A cap of 10% would likely cost banks roughly $100 billion in lost revenue each year the cap is on. according to researchers at Vanderbilt University. The banks have indicated they will fight the cap, with the resources of the banks.

Linking to dividend paying stocks, owning financial institutions such as banks and credit card companies as long as the loan losses remain very manageable has been a very good investment to hold and collect dividends from. Removing $100 billion would lower profitability and the potential of dividend increases. Sometimes government helps, sometimes it does not.

There are more questions than answers, till the next time – to raising questions.