Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Top U.S. bankers warn against prioritizing interest payments: WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/08/2013 | 10:59am CEST

Top U.S. bankers have warned the Obama administration and Republican lawmakers that any move to pay interest on debt before obligations such as Social Security and payments to veterans would pose severe risks to financial markets and the economy, the Wall Street Journal reported.

Some lawmakers think prioritizing interest payments would placate bond investors if the government breaches its borrowing limit, the Journal said.

However, heads of the nation's largest financial institutions told the officials in meetings that prioritizing some payments would create insurmountable uncertainty for investors, drive up borrowing costs and disrupt markets, the Journal said, citing people familiar with the meetings.

As the U.S. government moved into the second week of a shutdown on Monday with no end in sight, a deadlocked Congress also faced an October 17 deadline to increase the nation's borrowing power or risk defaulting on its debt.

If no deal is reached, many outside observers including debt-ratings firms assume the government will begin prioritizing payments to bondholders over others, rather than risk defaulting on its debt, the Journal said.

(Reporting by Sakthi Prasad in Bangalore; Editing by Supriya Kurane)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
03:54a LVMH : Put Your Foot Down for LV
03:52a XPRESS : Have you Bean There?
03:49a SEAWORLD ENTERTAINMENT : Disney, Universal, SeaWorld to start providing free mosquito repellent as Zika comes closer
03:49a SONAE SGPS : 22 August 2016 Read Press Release
03:48a The FTSE Russell Semi Annual Index Review Update and amendment Add the Gulf International Services to the primary list
03:48a FACEBOOK : makes trending news feature more automated
03:46a BANK OF CHINA : World Bank to issue SDR bonds in China for first time
03:46a RETAILMENOT : Tfs Capital buys $2,554,861 stake in RetailMeNot Inc (SALE)
03:46a Banking assets rise to 212.7 trillion yuan
03:41a MANCHESTER UNITED : Mirko Vucinic happy to see former Juventus team-mate Paul Pogba become global star at Manchester United
Latest news
Advertisement
Hot News 
-10.63%GAMESTOP : quarterly revenue misses on weak video game sales
4.35%TATA MOTORS : India's Tata Motors first-quarter net profit halves on forex loss post-Brexit vote
-2.31%HERBALIFE : Ackman approached to buy Herbalife shares owned by Icahn
-6.63%DONGFENG MOTOR : 1st Half Net Profit Falls 1.8% to CNY6.76 Billion
3.58%RESTAURANT : to sell or close 33 outlets
Most Read News
06:04p BANK OF VALLETTA P L C : 185 BOV employees graduate from the BOV Training Academy
09:29p ECOPETROL : informs the resignation of a member of the Board of Directors
06:07p BARCLAYS : Flawless Fowler builds 1-shot lead at Barclays
06:38p IMAX USA : State might knock down Imax Theater for rail bridge replacement
07:04p PERSONAL ASSETS TRUST : Issue of Equity (link is external)
Most recommended articles
03:21pDJTRANSCRIPT : Bank of Mexico Gov. Agustín Carstens Interview in Jackson Hole, Wyo.
09:22a Stada shareholder AOC pushes through board reshuffle
09:12aDJBOEING : FAA Tightens Safeguards on Lithium Batteries on Jetliners, Smaller Planes
07:34a Exlusive - Iraq plans to sell oil through Iran if talks with Kurds fail
06:11a Jobs data to be a big deal for record-high stocks