Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein left a White House meeting with President Barack Obama and said lawmakers are risking the economic recovery if they don’t raise the federal debt ceiling.
Blankfein was among a group of financial industry executives including JPMorgan Chase & Co. (JPM) CEO Jamie Dimon and Brian Moynihan, CEO of Bank of America Corp., who met with the president on the second day of a partial government shutdown. Democrats and Republicans are deadlocked on spending legislation and already are battling over raising the U.S. debt limit, which is required by later this month to avoid a default.
“There’s a consensus that we shouldn’t do anything that hurts this recovery,” Blankfein said as he left the White House today. “They shouldn’t use the threat of causing the U.S. to fail on its obligations to repay its debt as a cudgel.”
The meeting, set up by the Financial Services Forum, a Washington-based trade group representing CEOs for the largest Wall Street banks, was part of an effort by the Obama administration to leverage the business community’s clout in breaking the stalemate. Administration officials said pressure from the business community was effective in past fiscal fights.
“The financial community is in an excellent position to educate the public about the consequences to every day folks in the event we default,” Valerie Jarrett, a senior adviser to the president, said.
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