Jamie Dimon, CEO of Jepimorgan Chase, speaks to the New York Economic Club in New York on January 16, 2019.
Carlo Allegri | Reuters
JPMorgan Chase The United States is preparing to hit its debt ceiling, CEO Jamie Dimon told Reuters on Tuesday, but policymakers expect a solution to the “terrible” event.
In an interview, Dimon said the country’s largest lender has begun planning how the US debt default capacity will affect repo and cash markets, consumer contracts, capital ratios and rating agencies.
“This is the third time we have done this. It could be a tragedy,” he said.
“This will be corrected every time it is raised, but we should not even approach it. I think all of this is wrong and one day we only need to get rid of the binary account and the debt ceiling. This is all politics. ”
Democrats are scrambling to find a way to raise the government’s $ 28.4 trillion debt cap before the Treasury Department depletes the country’s debt. Treasury Secretary Janet Yellen says the treasury will run out of unusual measures by October 18 (Full Story)
Democrats hoped to partially close the government and unanimously lift the federal debt ceiling. But Republicans in the Senate on Monday said the two issues should be considered separately.
A.D. Fiscal corruption has become a regular feature of American politics over the past decade, with debt consolidation agreements in 2011 and 2017.
According to Dimon, the bank was struggling with customer contracts and assets.
You have to check the contracts to try to predict … If I remember correctly, we spent $ 100 million last time preparing for this event. ”
He told Reuters before a ceremony to cut ribbon at the bank’s new branch in southeast Washington in an effort to promote racial equity by increasing its presence in underprivileged communities.
Branch is the 11th JPMorgan to open in cities including New York, Detroit, Los Angeles and Chicago since 2019. In addition to providing traditional services, the branches provide free skills training and other small business support.
“It’s not a traditional bank branch, we want it to be very welcoming, attractive,” he said.
Following last year’s nationwide “Black Life” protests, JPMorgan pledged $ 30 billion over five years to promote racial equality. That includes providing 40,000 new loans and 15,000 small business loans to black and Latino communities.
The investment highlights how large corporations are responding to social, environmental and administrative or ESG issues under pressure from investors.
Resolving racial inequality is also a priority for the administration of President Joe Biden, who says banking “deserts” promote equality by reducing access to credit.
Binden spokesman Michael Hussein said this month he would overturn controversial changes to Trump’s equity lending rules and begin a new review with other bank regulators.
He said the general law is good for the country.
Contrary to a few years of review, he said: “It is very complex, very slow, very late, very difficult to measure.”
“Does it really cover everything? No. Is it real time? Isn’t it politically correct? Absolutely not.”