JPMorgan lays out the nightmare election scenario that could send markets into a tailspin
November 18, 2020. Summarized by summa-bot.
US President Donald Trump looks on after delivering an update on "Operation Warp Speed" in the Rose Garden of the White House in Washington, DC on November 13, 2020. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Much of Wall Street views the Trump campaign's efforts to overturn the election results as a desperate sideshow destined to fail. But JPMorgan is telling clients there's still a chance that this process descends into chaos. It is 2020, after all.
New York (CNN Business)Much of Wall Street views the Trump campaign's efforts to overturn the election results as a desperate sideshow destined to fail.
Cembalest, who helps oversee $2. 2 trillion in assets, pointed to President Donald Trump's Tuesday night firing of the top US election security official, Attorney General William Barr's decision to authorize prosecutors to probe alleged voter fraud and the fleeting drama over certifying election results in Michigan's largest county.
"Markets might react negatively if the US as the world's reserve currency nation is seen as sliding down a path toward electoral illegitimacy due to post-election maneuvers by political parties," Cembalest wrote.
As Cembalest notes, Trump would need to "reverse or impede results in three states" to prevent Joe Biden from reaching the 270 electoral votes required by the Constitution.
Biden will be sworn in on January 20," Ohio State constitutional election law expert Edward Foley wrote in a Washington Post op-ed last week, which was cited by Cembalest.