Jamie Dimon, the CEO of JPMorgan Chase, told Bloomberg in a televised interview that the markets will be under severe panic as the USA approaches a rumor of default on its sovereign debt. An actual default can be catastrophic for the whole country. Jamie Dimon said that he hopes the worst-case scenario will be avoided because lawmakers are forced to respond to increasing concerns. He said that the closer people get to it, they will panic. It may reflect in the form of stock market uncertainty and upheaval in the Treasuries.
Jamie Dimon joined a host of business figures and some administration officials to predict the effects of failing to suspend the USA’s debt limit and allowing the globe’s biggest economy to default on its bonds. The Treasury Secretary, Janet Yellen, commented that the idea that the USA can default should be unthinkable because it can lead to economic disaster.
Jamie Dimon also said it is a bad idea because panic is bad. It can affect other markets throughout the world. He further said that JPMorgan, the largest bank in the USA with around $ 3.7 trillion in assets, was preparing for the risk of an American default.
He also said that such an event will move through the economic world. It will impact contracts, clearing houses, and affect clients worldwide. The bank has been gathering for meetings once weekly. This may shift to everyday meetings around May 21 and then 3 meetings daily after that, he said.
In the interview, Jamie Dimon said that he speaks every day to the regional bank executives in the middle of the concerns started by the SVB collapse in March. Again, in the past week, JPMorgan Chase won the government-brokered auction for the First Republic Bank. The regional banks are strong and will have good economic results. However, the managers are worried that there will be more to the regional banking crisis.
About James Dimon
James Dimon is a billionaire American businessman and banker. He has been the chairman and CEO of JPMorgan Chase since the year 2005. Jamie Dimon was on the Federal Reserve Bank (New York) board of directors. He was on Time magazine’s list of the world’s hundred most influential people in 2006, 2008, 2009, and 2011. Jamie Dimon’s net worth is about $ 1.8 billion.