Yellen warns bank CEOs of ‘severe' economic consequences if debt ceiling isn't addressed

New York CNN

According to a Treasury Department readout, during a meeting on Thursday with over two dozen CEOs of banks, Treasury Secretary Janet Yellen emphasized the urgency for Congress to deal with the debt ceiling.

The discussion, which was held in Washington, included JPMorgan Chase CEO Jamie Dimon, and Citigroup CEO Jane Fraser. It focused primarily on the risks associated with the debt ceiling.

Yellen stressed the 'urgent necessity for Congress to address debt limits and highlighted the real and serious consequences of default on the banking system, the domestic and international economy'. Yellen said that a failure to increase or suspend the current debt limit would have a 'catastrophic effect' on the financial system, businesses and families. Dimon and others executives also made public statements about this.

Yellen, the Wall Street CEOs and others discussed more than just the debt ceiling.

Treasury reported that Yellen reaffirmed the strength of the US banking sector, pointing out its strong liquidity and capitalization.

Yellen thanked'many of the participants' for their leadership, and support, in responding to market developments', according to a readout.