When JPMorgan CEO Jamie Dimon speaks, Wall Street listens — and he just warned of disaster.
It’s about a dispute in Congress over raising the debt ceiling. If this is not raised, there is a risk of default in the first two weeks of June.
The closer the time gets, the greater the panic,” he said. “Markets will become volatile, maybe the stock market will fall, government bond markets will have their own problems.”
Everyone listens when Jamie Dimon speaks. And now the CEO said the investment bank JPMorgan said there is a risk of widespread panic unless US lawmakers pull together and hammer out a debt deal.
This panic “affects contracts, securities, clearing houses and customers,” according to Dimon, who is now the only major bank chief who was in the 2008 financial crisis and is still in the game today.
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It’s about a dispute in Congress over raising the debt ceiling. If this is not raised, according to estimates by the independent budget office of the US Congress, the government in Washington is threatened with a payment default in the first two weeks of June.
In an interview with Bloomberg, Dimon said he had set up a “war room” at JPMorgan to plan for contingencies related to a possible US default.
“The closer the time gets, the greater the panic”
He said his team currently meets once a week but could soon meet up to three times a day as negotiations in Washington drag on.
While Dimon doesn’t expect the country’s first default in history to happen, he did acknowledge that time is running out.
“The closer the time gets, the greater the panic,” he said. “Markets will become volatile, maybe the stock market will fall, government bond markets will have their own problems.”
Dimon, whose bank bought the assets of the failed First Republic earlier this month, said things were never meant to be done this way and that any uproar in America impacts markets around the world.
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