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Top Wall Street CEOs warn Obama, Congress on debt ceiling

July 28, 2011 |  8:37 am

Jamiedimon A group of leading financial chief executives warned President Obama and Congress on Thursday of "very grave" consequences if they fail to raise the debt ceiling.

The executives, including Lloyd Blankfein of Goldman Sachs Group Inc., Jamie Dimon of JPMorgan Chase & Co., and Brian Moynihan of Bank of America Corp., said the struggling economy would take another serious hit if the $14.3-trillion debt ceiling wasn't raised by Tuesday's deadline and strongly urged the White House and congressional leaders to strike a deal.

"Our economic recovery remains very fragile," they wrote in a letter organized by the Financial Services Forum, a trade organization of top financial CEOs. "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 is one of many flooding into Washington from organizations and individuals pressing for a resolution to the debt-ceiling crisis. Thursday's letter comes as Wall Street has become increasingly nervous that the U.S. is on the verge of a default or a credit downgrade.


Debt-ceiling threat has Wall Street scrambling

-- Jim Puzzanghera

Photo: JPMorgan Chase CEO Jamie Dimon. Credit: Associated Press