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IPFS News Link • Central Banks/Banking

Bank of America Is Preparing for Possible US Debt Default, Says CEO Brian Moynihan

•, by Kevin Helms

He is not a fan of eliminating the debt ceiling altogether as some lawmakers have proposed. Meanwhile, Treasury Secretary Janet Yellen says "every responsible member of Congress must agree to raise the debt ceiling."

Bank of America CEO Brian Moynihan on Possible US Debt Default

The CEO of Bank of America, Brian Moynihan, talked about the prospect of the U.S. defaulting on its debt in an interview with CNN Monday as Congress is in conflict over raising the debt ceiling again.

While emphasizing that he hopes lawmakers resolve their issues, the Bank of America executive warned that defaulting on the country's debt remains a possibility that cannot be ignored. He was quoted as saying:

"We have to be prepared for that, not only in this country but in other countries around the world … You hope it doesn't happen, but hope is not a strategy — so you prepare for it."

A number of lawmakers have proposed legislation that would eliminate the U.S. debt ceiling altogether. Moynihan is not a fan of the idea. When asked about whether the U.S. should eliminate its debt ceiling, the Bank of America boss said: "There's got to be an argument about how we make sure we live within our means as a country … I think we should leave it alone and make sure it operates correctly."