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 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 joins the drumbeat from corporate America urging Washington to come to an agreement before the August 2 deadline to raise the nation's borrowing authority so Uncle Sam can pay its bills.
If Washington fails to come to an agreement, credit ratings agencies have warned that the U.S. is at risk of losing its triple-A rating. In the worst case scenario, the U.S. could default on its debt obligations.
On Wednesday, the CEOs of Wal-Mart and other major U.S. companies weighed in on the debate. They told Congress that they'd give up tax breaks if they could get a drop in the country's 35 percent corporate tax rate in return.
Tax reform has entered into the debate over the debt ceiling, with President Barack Obama and lawmakers discussing about putting tax reform on the table in 2012.
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.
Their letter echoed sentiments expressed by chief executives from other companies.
"As an American, I worry about it a great deal. As the CEO of Ryder, you worry that that might have an impact on the economic environment," Greg Swienton told Reuters.
"I hope we get some sanity in Washington. I hope they figure it all out for everyone's benefit and we'll all be much better off," said the transportation company's chief.
