Citigroup Inc. is bracing for a possible U.S. default by avoiding some short-term Treasury investments amid what Chief Executive Officer Michael Corbat called “a dangerous flirtation with the debt ceiling.”
The U.S. shouldn’t risk defaulting on its debt because doing so would wreak havoc in the world’s economy and financial markets, said the heads of JPMorgan Chase & Co., Deutsche Bank AG and Pacific Investment Management Co.
Lawmakers shouldn’t risk a default on U.S. debt because the impact would be devastating and the full extent of the damage isn’t knowable in advance, said the heads of JPMorgan Chase & Co. and Deutsche Bank AG.
BNP Paribas SA Chief Executive Officer Baudouin Prot said he doesn’t expect the Greek fiscal crisis to spread and that investors’ concerns over potential losses at European banks risk are “totally overdone.”
BNP Paribas SA, France’s largest bank, plans “significant” staff reductions at its investment- banking unit as the lender cuts total assets by about 10 percent, Chief Executive Officer Baudouin Prot said.
Jean-Laurent Bonnafe ’s route to the top job at BNP Paribas SA led through Rome and Brussels, where he spent much of the last five years overseeing takeovers that turned the Paris-based lender into Europe’s largest bank.
BNP Paribas SA, France’s largest bank, said third-quarter profit fell 72 percent because of a 2.26 billion-euro ($3.1 billion) writedown on Greek sovereign debt and losses from selling European government bonds.