Latest news with #JimEsposito
Reuters
5 days ago
- Business
- Reuters
Citadel's Esposito says US deficit is a 'ticking time bomb'
NEW YORK, June 5 (Reuters) - The U.S. government's growing debt pile is a "ticking time bomb" and how the Trump administration reacts to this crisis is going to be "super important", Citadel President Jim Esposito said on Thursday. Several other leaders of the financial services industry have issued similar warnings about the current U.S. deficit in recent weeks. Earlier in June, JPMorgan Chase (JPM.N), opens new tab CEO Jamie Dimon said the U.S. national debt is a "big deal" that could create a "tough time" for the bond market that causes spreads to widen. "The stock of debt and the budget deficit is a ticking time bomb. No one is smart enough to predict when exactly it will rear its ugly head. We've been talking about this for more than 20 years, so in some ways the market's gone into complacency, but over a multi-year period we can't work this out," Esposito said at the Piper Sandler Global Exchange & Trading Conference. Shifting U.S. economic policies have sent bond markets tumbling in recent weeks. In May, ratings agency Moody's downgraded the U.S. sovereign credit rating. Long-dated bonds have been under pressure due to deficit concerns, with investors delivering a tepid response to a 20-year auction in May and sending the 30-year bond yield to its highest level since October 2023. Higher bond yields can translate into higher borrowing costs for consumers, businesses and governments. Citadel, a market-making behemoth that was founded by hedge fund billionaire Ken Griffin, plans to double down on cryptocurrency trading this year under a new regulatory framework. "This year you'll see us getting more active providing liquidity on specific crypto exchanges. So that's a part of our strategic plan. I think we'll execute on that in this calendar year, like everybody else," said Esposito. "We're excited by the prospects of the SEC (U.S. Securities and Exchange Commission) coming out with the rule set. So crypto is definitely a space we're going to get bigger in, and we're excited about the prospects," he added. The market volatility this year has boosted the fortunes of large market makers like Citadel and Jane Street. During the first quarter of 2025, Citadel's net trading revenue surged 45% to $3.4 billion, while its profit jumped 70% - a record for the firm, according to people familiar with the matter.
Bloomberg
5 days ago
- Business
- Bloomberg
US Deficit Is a ‘Ticking Time Bomb,' Citadel Securities President Says
By and Bernard Goyder Save Citadel Securities President Jim Esposito said the US deficit and mounting government debt levels are a 'ticking time bomb,' adding his voice to the chorus of financial executives soundings warnings about America's deteriorating fiscal outlook. Esposito, who joined Citadel Securities from Goldman Sachs Group Inc. last year, said how President Donald Trump's administration responds to the situation will be 'super important.'
