Bank of America CEO Says the Company is Preparing for Potential US Debt Default

In a conversation with CNN, Bank of America CEO Brian Moynihan says the company is preparing for possible US debt default. The financial institution is the second largest bank in the country and is reportedly preparing for the worst regarding Congressional conflict over the nation’s debt ceiling.

Moynihan spoke about the Congressional debate, and specifically how that impacts corporate America. Subsequently, defaulting on the country’s debt remains a very real possibility that entities, like Bank of America, cannot disregard.

Bank of America Preparing for the Worst.

In the first few months of the new year, the National debt has reached unprecedented levels. Thus, that development has led to debates on both sides of the political aisle on whether or not the national debt ceiling should be increased before the summer months.

Amidos that longing debate, Bank of America CEO Brian Moynihan says the company is preparing for a possible US debt default. Speaking to CNN, Moynihan stated that the debt action is a very real possibility that corporate America cannot disregard.

Source: Britannica

“We have to be prepared for that, not only in this country but in other countries around the world,” Moynihan told CNN. Additionally stating, “You hope it doesn’t happen, but hope is nota. strategy- so you prepare for it.”

There is some expectation that President Joe Biden could address the debt ceiling debate during Tuesday’s State of the Union Address. Conversely, US Treasury Secretary Janet Yellen has already expressed a warning over the nation’s debt crisis. Noting the possible default as soon as June, if the ceiling is not raised.