Jamie Dimon warns panic will overtake markets as U.S. approaches debt default

JPMorgan Chase CEO Jamie Dimon said Thursday that markets volition beryllium gripped by panic arsenic the U.S. approaches a imaginable default connected its sovereign debt.

An existent default would beryllium "potentially catastrophic" for the country, Dimon told Bloomberg successful a televised interview. Dimon said helium expects that worst-case script volition beryllium avoided, however, due to the fact that lawmakers volition beryllium forced to respond to increasing concern.

"The person you get to it, you volition person panic" successful the signifier of banal marketplace volatility and upheaval successful Treasurys, helium said.

Dimon joined a big of concern figures and medication officials making dire predictions astir the consequences of failing to rise oregon suspend the U.S. indebtedness bounds and allowing the world's largest system to default connected its bonds. Treasury Secretary Janet Yellen has said the thought that the state could default should beryllium "unthinkable" and would pb to economical disaster.

"If it gets to that panic point, radical person to react, we've seen that before," Dimon said.

But "it's a truly atrocious idea, due to the fact that panic becomes thing that is not good," helium added. "It could impact different markets astir the world."

JPMorgan, the biggest U.S. slope with astir $3.7 trillion successful assets, has been preparing for the hazard of an American default, Dimon said.

Such an lawsuit would ripple done the fiscal world, impacting "contracts, collateral, clearing houses, and impact clients decidedly astir the world," helium said.

The bank's alleged warfare country has been gathering erstwhile weekly, a complaint that volition displacement to regular meetings astir May 21 and past 3 meetings regular aft that, helium said.

He exhorted politicians from some large U.S. parties to compromise and debar a ruinous outcome.

"Please negociate a deal," Dimon said.

In the wide-ranging interview, Dimon said helium speaks regular to determination slope executives amid concerns sparked by the Silicon Valley Bank collapse successful March. Last week, JPMorgan emerged arsenic the winner successful the government-brokered auction for First Republic.

Regional banks are "quite strong" and volition person bully fiscal results, but managers are disquieted due to the fact that of the slope runs that person taken down 3 firms, helium said.