World top bankers warn of dire consequences if U.S. defaults

(Reuters) – Three of the world’s most powerful bankers warned of terrible consequences if the United States defaults on its debt, with Deutsche Bank chief executive Anshu Jain claiming default would be “utterly catastrophic.”

“This would be a very rapidly spreading, fatal disease,” Jain said on Saturday at a conference hosted by the Institute of International Finance in Washington.

“I have no recommendations for this audience…about putting band aids on a gaping wound,” he said.

Jain, JPMorgan Chase chief executive Jamie Dimon and Baudouin Prot, chairman of BNP Paribas, said a default would have dramatic consequences on the value of U.S. debt and the dollar, and likely would plunge the world into another recession.

On Saturday, Dimon said banks are already spending “huge amounts” of money preparing for the possibility of a default, which he said would threaten the global recovery after the 2007-2009 financial crisis.

“We need global growth,” he said. “We are on the verge of getting it. Please let’s not shoot ourselves in the foot.”

Full article: World top bankers warn of dire consequences if U.S. defaults (Reuters)

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