JP Morgan Chase CEO warns of US defaulting

By the Associated Press | May 20, 2011 | 12:45 AM EDT

DENVER (AP) — JPMorgan Chase & Co. CEO Jamie Dimon says it would be a "moral disaster" if the U.S. defaults and can't pay its obligations.

Dimon says the U.S. is the financial linchpin of the world and its default would be potentially catastrophic.

He spoke Thursday at a dinner for the University of Colorado-Denver business school. His comments came in response to a question from moderator Tom Petrie, a vice chairman of Bank of America Merrill Lynch.

Congress is debating whether to raise the country's $14.3 trillion debt ceiling, which allows the federal government to borrow to pay its bills.