JPMorgan’s Dimon Cautions a US Default Would Be ‘Potentially Catastrophic’

JPMorgan’s Dimon Cautions a US Default Would Be ‘Potentially Catastrophic’
Jamie Dimon, CEO of JPMorgan Chase, takes part in a panel discussion about investing in Detroit at the Kennedy School of Government at Harvard University in Cambridge, Mass., on April 11, 2018. Brian Snyder/Reuters
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WASHINGTON—JPMorgan Chase & Co. has begun preparing for the possibility of the United States hitting its debt limit, Chief Executive Jamie Dimon told Reuters on Tuesday, 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 U.S. 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.