Debt Deal Warnings From Bank CEOs Lloyd Blankfein, Jamie Dimon, Brian Moynihan

Chief executives from the nation's largest financial firms Thursday pressured the White House and Congress to reach a deal on the debt ceiling and deficit reduction, saying the consequences of inaction ''would be very grave.''

JPMorgan's Jamie Dimon, Goldman Sachs' Lloyd Blankfein and Bank of America's Brian Moynihan, among others, said in a letter that an agreement needs to be reached this week.

"A default on our nation's obligations, or a downgrade of America's credit rating, would be a tremendous blow to business and investor confidence -- raising interest rates for everyone who borrows, undermining the value of the dollar, and roiling stock and bond markets -- and, therefore, dramatically worsening our nation's already difficult economic circumstances,'' the letter said.

The letter from the chief executives come as Congress and the White House struggle to broker a deal to raise the country's $14.3 trillion debt cap before Aug. 2 when the U.S. Treasury will no longer be able to borrow funds to pay all of its bills.

That has raised the specter of default and businesses from the big banks to manufacturers are alarmed by the potential fallout.

Citigroup's Vikram Pandit, Metlife Inc's Steven Kandarian and Morgan Stanley's James Gorman were also among the chief executives who signed the letter. (Reporting by Dave Clarke and Rachelle Younglai; Editing by Andrea Ricci)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[wright4ulg]

07:26 PM on 08/12/2011

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[leftLibertarian]

08:06 AM on 08/03/2011

Lord Blankfein is a big cry baby girlie man.

[hypnotoad72]

09:11 AM on 07/30/2011

Well then - you lot can return every form of taxpayer-funded subsidy, tax cut, BAILOUT, with interest, if you're really sooooooooooo concerned about the US economy and the debt because your free ride is a fair portion of it as well.

But it's always the fault of the working class, who have had to take pay cuts, devalued wages, devalued home prices, cost of living increases, ARMs, and other things - it's NEVER anyone else's fault.

Yeah, the American people are beyond LIVID right now. 

[El Chingaso]

07:16 AM on 07/30/2011

Who cares. It's all an illusion anyway. Time to pay the piper, boys -- and stand on your own without the U.S. taxpayer underwriting your respective houses of cards. I say, let the default roll on. Doing the right thing now is imperative because financial Armageddon is going to occur...regardless.

[Renlim]

07:36 AM on 07/30/2011

What do you mean? default to clean house on Wall Street & the Fed? Then we would have too restructure or return our markets to a earlier time that has the program of corporate consolidation & market regulation install in it.

[Renlim]

06:43 AM on 07/30/2011

Oh,,How Patriotic and Concerned for the Economic Heath of the U.S. Economy and the American People Blankfein.Dimon & Moynihan is ,,,oh wait,,,there"s also the Power Position and Profits of the Banking Investment Housing Institutions as well as,,,It might effect Blankfein"s,,Dimon"s,, Moynihan's & other Captains of Industries bonuses..Oh May God!!

[FreeSpeech4All]

01:20 AM on 07/30/2011

Maybe the companies who are sounding the alarm on the debt ceiling, the very companies that crashed our economy back in 2008, could put some of that TARP bailout money towards avoiding a default. No? Didn't think so.

[Tiggy]

12:17 AM on 07/30/2011

To those Wall Street execs...Why don't you use your mega bonuses to bail out the Government, i.e. the people? After all, they saved your sorry rum*s!

[wondering246]

11:37 PM on 07/29/2011

Wall Street billionaires created and bankrolled the tea party monster (and Fox News catered their parties), and now you can't control them. It would be hilarious if America's economy wasn't about to be flushed down the toilet.

[dragonladywaltham]

10:49 PM on 07/29/2011

Hey, cancel the checks you sent your Republican cronies.

[arkymorgan]

10:18 PM on 07/29/2011

Oh, sure. NOW - when it becomes clear to them what was clear to everyone else (that the economies of the world are no longer separate entities) - NOW they think this wasn't such a great idea anymore.

What rich people don't seem to understand about economics...you could fill a freaking 12 volume encyclopedia.

[hypnotoad72]

09:11 AM on 07/30/2011

Well said, thank you!

[kamact]

10:15 PM on 07/29/2011

Put these CEOs in jail now,...or the public will have to do this for real justice

[JBaker]

09:02 PM on 07/29/2011

The CEOs are talking to the wrong crowd. They need to talk to David Koch and Rupert Murdoch, since those two billionaires are creators of the Mad Tea Party movement.

Let those puppeteers pull the strings since that is their speciality. But since David and Rupert lobby vigorously for default, one must wonder what their gain would be, for clearly they have a game plan.

[castlemike]

08:27 PM on 07/29/2011

Wall Street Financial Terrorists starting to realize the looting gravy train may be coming to a stop. Last week an agreement had to be reached by Monday and now it's Friday. Sovereign Governments should treat these guys like the terrorists they are. They have done much more harm than any nut with a gun.

[parrotfish]

08:12 PM on 07/29/2011

He is only concerned his bonus won't get to one billion by years end. Acting like he cares about people.

When is this ball headed bankster going to jail ? Why isn't he there already ?

[Oginikwe]

07:12 PM on 07/29/2011

They could help out by paying some personal and corporate taxes. Otherwise, let them eat cake.