05/15/2023

Debt Ceiling Stand-off

How Wall Street is preparing for a possible debt default

As talks over raising the U.S. government's $31.4 trillion debt ceiling intensify, Wall Street banks and asset managers have begun preparing for fallout from a potential default.

The financial industry has prepared for such a crisis before, most recently in September 2021. But this time, the relatively short time frame for reaching a compromise has bankers on edge, said one senior industry official.

Citigroup CEO Jane Fraser said this debate on the debt ceiling is "more worrying" than previous ones. JPMorgan Chase & CO CEO Jamie Dimon said the bank is convening weekly meetings on the implications.

Please select this link to read the complete article from Reuters.