1016 GMT - Shares in European banks slip after U.S. Federal Reserve chair Jerome Powell said a Justice Department investigation into overspend on the agency's building was pretext for President Trump's campaign to pressure the Fed to lower interest rates. Powell said the investigation is about Fed independence, and whether interest rate decisions will be subject to political pressure. Barclays shares--down 3.1%--fall most steeply after Trump called Friday for a one-year cap of 10% on credit card interest rates. Elsewhere, French banks BNP Paribas and Societe Generale both fall around 1.3%, while Spanish banks fall across the board. German banks slip too, though there are bright spots in Italy, with Banca Monte dei Paschi di Siena up 1.6% as the market reacts positively to a potential share buyback. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

January 12, 2026 05:24 ET (10:24 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.