White House monitoring China’s Evergrande

Chinese lender Evergrande’s position has stirred US financial markets in one of the worst sessions for stocks since July.

Investors are puzzled over whether a potential default, reportedly in the billions, would affect the US economy and potentially its financial institutions.

Yellen warns again as debt limits loom

“Let me first note that this is a company based in China whose activities are highly concentrated in China. That being said, we are always monitoring global markets, obviously from the Treasury Department, primarily for the US economy. Be prepared to respond, including any risk assessments, and if necessary. But that monitoring will be primarily from the Treasury Department and our Treasury Secretary,” White House Press Secretary Jen Psaki said during Monday’s briefing.

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Granthshala Business’ inquiries to the Treasury Department were not immediately returned.

US financial institutions, Goldman Sachs, Morgan Stanley and BlackRock, are believed to have partial or less exposure to Evergrande. Sources reveal that Granthshala Business JP Morgan has not been disclosed.

Inquiries made by Granthshala Business to these banks were not immediately returned.

Carlyle Group co-founder David Rubenstein said Monday during an appearance on “Mornings with Maria” that US exposure is zero.

“I don’t think the major US banks are on the hook for too much money,” Rubenstein said.