Dimon says JPMorgan is bracing for ‘potentially catastrophic’ US credit default

JPMorgan Chase CEO Jamie Dimon said the multinational investment bank has started preparing for a “potentially catastrophic” situation in which the United States could default on the national debt.

Dimon said in an interview with Reuters on Tuesday that although the country’s largest lender has already predicted such a scenario, and “whenever it happens it is resolved,” he argued that the country ” should never even be this close “.

“I just think this is all wrong and that one day we should just have a bipartisan bill and get rid of the debt ceiling,” he added. “It’s all political.

Dimon told Reuters: “This is like the third time we have to do this,” adding that “it is a potentially catastrophic event”.

Political struggles over the debt ceiling had previously resulted in last-minute deals in 2011 and 2017.

Dimon said on Tuesday that the last time JPMorgan prepared for a possible national debt default, it cost the company around $ 100 million.

The CEO’s remarks came the same day the Treasury Secretary Janet YellenJanet Louise YellenOn The Money – GOP blocks spending bill to kick off chaotic week in Congress GOP blocks debt ceiling hike and government funding This week: Democrats reach turning point for Biden MORE warned congressional leaders that the United States is currently on track to default by October 18, calling on lawmakers to raise or suspend the federal debt limit to avoid an economic crisis.

Yellen joined Senate Democrats in condemning Republicans for failing to support a bill that would raise the federal debt limit and allow the federal government to reimburse expenses.

“It would be disastrous for the US economy, the global financial market and millions of families and workers whose financial security would be compromised by late payments,” she said at a hearing. “Even getting very close to maturity without raising the debt ceiling can undermine the confidence of financial markets in the creditworthiness of the United States.”

Majority leader in the Senate Charles SchumerChuck SchumerObama says US desperately needs Biden legislation ahead of key votes Congress shows signs of movement on agenda Biden stalled Schumer is shouted, standing ovation from crowd at Tony Awards MORE (DN.Y.) had attempted to hold a simple majority vote on a bill that would suspend the country’s borrowing limit, although the Senate Minority Leader Mitch mcconnellAddison (Mitch) Mitchell McConnellFord To Boost Electric Vehicle Production In Multi-Billion Dollar Push On The Money – GOP Blocks Spending Bill To Kick Off Chaotic Week In Congress (R-Ky.) Blocked the request on Tuesday.

McConnell and other Republican lawmakers have said they will not support a vote to raise or suspend the debt ceiling, arguing Democrats should instead try to do so through reconciliation, a budget process that Democrats do. use to try to get past $ 3.5 trillion. social spending bill.

McConnell said on Tuesday, “Democrats will not get bipartisan help borrowing money so that they can immediately spend historic sums in a taxing and partisan spending frenzy.”

“The Democratic leader knew that this request would fail,” he added. “There is no chance, no chance that the Republican Conference will do everything possible to help Democrats save their time and energy so that they can return to the path of partisan socialism as quickly as possible.”

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