U.S Cannot Take Risk Of Default Says JPMorgan Chase & Co (NYSE:JPM)

Posted by admin October 13, 2013 0 Comment 1060 views

The JPMorgan Chase & Co (NYSE:JPM) and Deutsche Bank AG Chief Executive Officers, both said that lawmakers in the U.S could not risk any default on debt in the country as the impact would be catastrophic and it is not possible to judge in advance, how bad that damage would be.

Both the heads were speaking at a panel discussion at the financial industry forum that was held in Washington. Jamie Dimon, the JPMorgan Chase & Co (NYSE:JPM)’s CEO said that in his opinion, the U.S cannot default and it will not and said that the effects would run through the global economy in a way that would be incomprehensible.

A default disaster

Dimon said that the economy has been looking up and a default at this point would only mean backtracking on that progress. Anshu Jain, the Deutshe Bank CEO said that the prospect of even a tiny default would be disastrous.

U.S lawmakers have been struggling in vain to reach a certain agreement that would avert any kind of default and bring an end to the 12 day government shutdown. The Senate had rejected the Democratic plan of pushing the fight for the debt limit right into 2015 and the United States may not be able to pay-off its bills by 17 October.

Friday’s trading

In Friday’s trading, JPMorgan Chase & Co (NYSE:JPM) dropped by 0.02%. The opening price of the shares was $52.96, which climbed to an intraday high of $53.35 and dipped to a close of $52.51. Approximately 32.50 million shares were traded on Friday while an average volume of 21.57 million shares were traded over a 30 day period. The 52-week low of JPMorgan Chase & Co (NYSE:JPM) shares is $38.83 and its 52-week high is $56.93. The company has a market capitalization of $197.40 billion.

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