WASHINGTON, July 28 Chief executives from the
nation's largest financial firms on 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 (JPM.N) Jamie Dimon, Goldman Sachs' (GS.N) Lloyd
Blankfein and Bank of America's (BAC.N) Brian Moynihan, among
others, said in a letter that an agreement needs to be reached
"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
That has raised the specter of default and businesses from
the big banks to manufacturers are alarmed by the potential
Citigroup's (C.N) Vikram Pandit, Metlife Inc's (MET.N)
Steven Kandarian and Morgan Stanley's (MS.N) James Gorman were
also among the chief executives who signed the letter.
(Reporting by Dave Clarke and Rachelle Younglai; Editing by