US Treasury Secretary Janet Yellen told senior bank executives on Thursday that not raising the debt ceiling would be “disastrous” for the financial system and reiterated that the stakes must be addressed without delay.
In a statement following Yellen’s meeting with the bank’s CEO, Yellen said that “Congress needs to address the debt limit quickly and underlines the real and valuable consequences of default on the banking system and the local and global economy.”
Jamie Dimon of JPMorgan Chase & Co., Jane Fraser of Citigroup Inc., and Brian Moynihan of Bank of America Corp. are scheduled to attend the session. On Wednesday, top bankers came to a meeting with Senate Majority Leader Chuck Schumer and other lawmakers amid simmering talks over addressing the debt limit.
At Thursday’s meeting, Yellen also discussed recent issues on the finance side and measures taken by regulators after the failures of several regional banks over the past two months.
Yellen reaffirmed the strength and soundness of the US financial system and made it clear that the Treasury continues to closely monitor the rules on the banking side.
