xAI Cash Burn Highlights the High Cost of Competing in Generative AI 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
Allegiant to Acquire Sun Country Airlines in $1.5 Billion Deal to Expand U.S. Leisure Travel Network 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
OpenAI Sets $50 Billion Stock Grant Pool, Boosting Employee Equity and Valuation Outlook 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
GM Takes $6 Billion EV Write-Down as Electric Vehicle Demand Slows in the U.S. 
Trump Weighs Blocking Exxon Investment as Venezuela Deemed “Uninvestable” 
China’s AI Sector Pushes to Close U.S. Tech Gap Amid Chipmaking Challenges 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
FCC Approves Expansion of SpaceX Starlink Network With 7,500 New Satellites 
A federal judge in Texas has ruled against a Biden administration regulation that would have capped credit card late fees at $8, marking a significant setback for the Consumer Financial Protection Bureau (CFPB) and a major win for the banking industry.
The decision, issued by U.S. District Judge Mark Pittman in Fort Worth, continues an injunction he imposed in May, preventing the regulation from taking effect. The blocked rule was part of President Joe Biden’s broader crackdown on so-called "junk fees," which include excessive penalties charged by financial institutions.
Legal Grounds for Blocking the Fee Cap
The CFPB proposed the rule to limit late fees for card issuers managing more than one million accounts. Under the regulation, higher fees would only be allowed if companies could prove they were necessary to cover operational costs.
However, Judge Pittman ruled the CFPB overstepped its authority under the Credit Card Accountability and Disclosure Act (CARD Act) of 2009. The law permits penalty fees for contract violations, such as late payments, but requires they be reasonable and proportional. Pittman argued that the $8 cap effectively eliminated the ability for issuers to impose legitimate penalty fees.
Using a baseball analogy in his ruling, Pittman stated, “Congress assigned the CFPB as an umpire to call balls and strikes on the reasonableness and proportionality of penalty fees. But by preventing card issuers from actually imposing penalty fees, the CFPB impermissibly established a strike zone only large enough for pitches right down the middle.”
The judge also denied the CFPB’s request to transfer the case to Washington, further complicating the agency’s path forward.
Billions in Consumer Costs at Stake
The CFPB estimates that without the cap, American consumers will pay over $56 billion in credit card fees over the next five years. The agency’s spokesperson called the ruling “a gift to big banks,” emphasizing that late fees cost families $27 million each day.
Critics argue that the decision benefits financial institutions at the expense of vulnerable consumers. Erik Huberman, a financial analyst, commented, “This ruling highlights a troubling trend—where regulatory limitations aimed at consumer protection are consistently rolled back.”
The U.S. Chamber of Commerce and the American Bankers Association, which challenged the rule, praised the ruling, arguing the fee cap was unreasonable and overly restrictive.
