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 issue should be addressed without delay.
In a statement following Yellen’s meeting with the bank’s CEO, Yellen said she “underlined the urgent need for Congress to address the debt limit and underscored the real and serious 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 met with Senate Majority Leader Chuck Schumer and other lawmakers amid intensifying talks on addressing the debt limit.
At Thursday’s meeting, Yellen also discussed recent problems in the financial sector 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 conditions in the banking sector.