July 28, 2011 / 1:43 PM / in 7 years

Bank CEOs warn "grave" consequences if no debt deal

WASHINGTON (Reuters) - 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.”

Storm clouds gather above the Capitol in Washington July 11, 2011. REUTERS/Jonathan Ernst

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 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.

    Reporting by Dave Clarke and Rachelle Younglai; Editing by Derek Caney

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