Top bankers warn of dire consequences if US defaults

Three of the world's most powerful bankers warned of terrible consequences if the US defaults on its debt, with Deutsche Bankchief executive Anshu Jain claiming default would be "utterly catastrophic". "This would be a very rapidly spreading, fatal disease," Jain said on Saturday at a conference hosted by the Institute of International Finance in Washington. 

"I have no recommendations for this audience...about putting band aids on a gaping wound," he said. Jain, JPMorgan Chase Chief Executive Jamie Dimon and Baudouin Prot, chairman of BNP Paribas, said a default would have dramatic consequences on the value of US debt and the dollar, and likely would plunge the world into another recession. Dimon warned that the US needs to avoid defaulting on its debt, saying the possible repercussions are unfathomable.

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