JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said Wednesday the US government “probably” will not default on its debts.
Dimon, Citigroup Inc. CEO Jane Fraser, and other top executives of major banks met with Senate Majority Leader Chuck Schumer and discussed the debt limit, with the government potentially just two weeks away from a catastrophic payments default.
“The US should not and probably will not default,” Dimon told reporters after the meeting. Dimon has said his bank has a war room set up for the possibility of default.
“Whatever it is, we will be prepared,” he told reporters.
Schumer said he had a direct request of the bank CEOs.
“I asked them to make sure that they tell everybody that default should not be an option.” Schumer said.
Also this week, Treasury Secretary Janet Yellen is expected to gather with finance chiefs, as the clock ticks down to her department potentially running out of sufficient cash to make good on all federal obligations.
There has been little reaction in financial markets to Yellen’s latest warnings, though Treasury bills maturing in early June continued to trade at a discount to other securities. Investors have historically demanded higher yields on securities that are due to be repaid shortly after the US is seen as running out of borrowing capacity.
--With assistance from Jarrell Dillard, Kailey Leinz and Laura Litvan.
This article was provided by Bloomberg News.