SEC’s Gensler Warns About ‘Lasting Effects’ of US Debt Default – Bloomberg

Securities and Exchange Commission Chair Gary Gensler on Wednesday warned that a failure by Democrats and Republicans in Washington to reach a deal on raising the US debt ceiling would impact trading, the ability of businesses to raise money, and investors. Gensler, a Democrat who was appointed by President Joe Biden, said the standoff has already affected short-dated US Treasury bills.

“If the U.S. Treasury as an issuer were actually to default, it would have very significant, hard to predict, and likely lasting effects on investors, issuers, and markets alike,” Gensler said in prepared remarks for a conference hosted by the International Swaps and Derivatives Association in Chicago. “It would make the Cyclone Roller Coaster at the 1933 Chicago World’s Fair look like a kiddie ride.”

Source: SEC’s Gensler Warns About ‘Lasting Effects’ of US Debt Default – Bloomberg