JPMorgan Chase CEO Jamie Dimon revealed Tuesday the multinational investment bank is preparing for the “potentially catastrophic” event that the United States defaults on its debt.
According to TheBlaze, The eyebrow-raising comments were made as Democrats seek to pass a $3.5 trillion spending bill, which they claim “costs zero dollars.” Unfortunately, the Congressional Budget Office has not yet scored the bill, but some analyses indicate the bill if it becomes law, could add more than $4 trillion to the national debt.
Dimon told Reuters that JPMorgan Chase is preparing for how to conduct business if the U.S. defaults on its credit, a possibility that would cripple the U.S. economy. According to Reuters, The country’s largest lender has begun scenario-planning for how a potential U.S. credit default would affect the repo and money markets,
client contracts, its capital ratios, and how ratings agencies would react, Dimon said in an interview. “This is like the third time we’ve had to do this, it is a potentially catastrophic event,” he said. “Every single time this comes up, it gets fixed, but we should never even get this close.
I just think this whole thing is mistaken and one day we should just have a bipartisan bill and get rid of the debt ceiling. It’s all politics,” he added. Congressional Democrats are scrambling to find a way to raise the government’s $28.4-trillion borrowing cap before the Treasury Department runs out of means to service the nation’s debt. Treasury Secretary Janet Yellen has said the Treasury will likely exhaust extraordinary measures by Oct. 18.
