Risk Disclosure Reveals Corporate Outlook on Debt Ceiling Stalemate
House Speaker John Boehner announced this afternoon that today’s scheduled vote on debt ceiling legislation would be delayed. The New York Times reports that our nation’s House of Representatives spent their time in session naming post offices as Boehner systematically met with a throng of freshman House Republicans. With the August 2nd deadline looming, it seems everyone is weighing in on what should be done; practical solutions can even be found in The Onion at this point.
Many are preparing for the worst. A quick search on our SEC Filings page for the term “debt ceiling” over the last 90 days returns dozens of records; viewing results in “Hits Preview” shows these keywords in close proximity with words like “failure” and “uncertainty.” It’s therefore no surprise that our Risk Factors page, which pulls and categorizes risk disclosure language from the SEC filings, now exhibits recent instances of financial risk directly related to our seemingly crippled Congress. The latest, filed last week by Government Properties Income Trust, sums up the whole kerfuffle rather succinctly:
Ongoing negotiations among the U.S. Congressional parties and the Obama Administration over a budget and legislation to raise the debt ceiling are currently described as contentious.