JPMorgan’s Dimon cautions on US default

The country’s largest lender has begun scenario-planning for how a potential US credit default would affect the repo and money markets, client contracts, its capital ratios, and how ratings agencies would react, Dimon said.

WASHINGTON: JPMorgan Chase & Co has begun preparing for the possibility of the United States hitting its debt limit, chief executive Jamie Dimon told Reuters, adding he nevertheless expected policymakers to find a solution to avoid that “potentially catastrophic” event.

The country’s largest lender has begun scenario-planning for how a potential US credit default would affect the repo and money markets, client contracts, its capital ratios, and how ratings agencies would react, Dimon said in an interview.