JPMorgan Chase & Co. will begin a review of all of its contracts on Monday, including those tied to repo markets, as part of preparations for a potential default by the United States government.
“We start on Monday,” Chief Executive Officer Jamie Dimon told President Joe Biden at a meeting on Wednesday. “We’re going to start reviewing all our contracts, repo, collateral requirements. There will be huge demands of people selling Treasurys, wanting financing in Treasurys, interest rates will start going up, it will get worse as we get closer to the brink.”
Dimon’s stark warning came at a meeting between the White House and the CEOs of the largest U.S. banks and financial firms amid a deepening partisan stand-off over how to address the Treasury’s looming deadline for running out of cash. Biden spent much of the meeting calling on Republicans to stop blocking a vote on addressing the debt ceiling.
This article was provided by Bloomberg News.