Wall Street Execs na-akwado maka mbinye ụgwọ US, enwere ike ịdaba na nnyefe na ahịa ngwaahịa: mkpesa

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Wall Street Execs na-akwado maka mbinye ụgwọ US, enwere ike ịdaba na nnyefe na ahịa ngwaahịa: mkpesa

Wall Street executives are reportedly preparing for the worst in regard to the looming US debt ceiling deadline.

Citigroup chief executive Jane Fraser says the ongoing partisan debate is “more worrying” than arguments over previous debt ceiling deadlines, according to Reuters.

U.S. Treasury Secretary Janet Yellen has dọrọ aka ná ntị that the US will tumble into an “economic calamity” if Congress fails to raise the debt ceiling. She also projected that the government could run out of cash by June 1st if the issue isn’t dealt with.

Reuters reports that big bond investors are stressing the importance of liquidity to remain durable amid potential market volatility.

The Securities Industry and Financial Markets Association (SIFMA), a trade group for broker-dealers, investment banks and asset managers, is reportedly gaming out multiple routes the government might choose to go down in the event it runs out of cash, including one where the Treasury Department extends maturing securities by one day at a time.

Reuters reports would be “the most disruptive scenario” would be if the Treasury doesn’t offer extensions and fails to pay bonds.

Says Rob Toomey, SIFMA’s managing director and associate general counsel for capital markets,

“It is difficult because this is unprecedented but all we’re trying to do is make sure we develop a plan with our members to help them navigate through what would be a disruptive situation.”

Negotiations between House Republicans and the Biden Administration nọgidere on Tuesday, though it remains unclear how close the opposing sides are to reaching a deal.

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