November 15, 2013
As U.S. default threatened, banks took extraordinary stepsi
In October when the partial Federal Government shutdown happened and the United States debt default loomed, the U.S. banks spent millions of dollars on contingency planning. JP Morgan spent over a $100 million dollars alone due to the recent budget crises. With the most recent budget crises it was noticed that many people were prepared, whereas in the previous crises people thought it would pass. This past crises has top bank executives worried about what could happen if the United States does default on its debts. Due to these concerns the banks are taking extraordinary precautions.
Many people depend on government benefits each month. If government programs like Social Security, food stamps and Medicaid cease to exist, the outcome could possibly be tragic. That’s why the U.S. banks have prepared to fund these recipients, they feel as if it’s the right thing to do. Even when facing the potential hurdle of paying out $5 billion dollars in welfare benefits, it’s impossible to completely safeguard an entire nation. At the end of the day you just don’t know what is going to happen, if it happens. There is no foolproof way to determine these types of things, you just have go with what you know.
With all of this money going into planning, it’s possible we may soon benefit from these precautions. With the temporary budget agreement being signed by Barack Obama on October 17th, we are potentially creating a problem in the future. As this agreement is set to expire on January 15th and the debt limit will have to be increased by February 7th. The United States may be looking at a rough beginning to the New Year. But with the U.S. banks in place and prepared, we may successfully dampen this potential crises.
The reason I chose this particular article was due to Chapter 11: Marketing and Chapter 15: Human Resources. U.S. banks have definitely taken initiative in...
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