The CEO's of the nation's largest banks have sent a letter to President Obama and members of Congress urging them to take action this week on resolving the debt ceiling crises.
Concerned that the current deadlock could lead to in action, the letter suggests that the resulting impacts would deeply threaten the economy, still struggling job market and over all economy.
"Our economic recovery remains very fragile," the letter stated. "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."
Top financial institution executives who were signatories to the letter, including Steven Kandarian of MetLife, John Stumpf of Wells Fargo, Vikram Pandit of Citigroup and Brian Monihan of Bank of America said policymakers need to recognize the real risks presented by the government pushing this debate to the very debt deadline and called on them to prove their ability to set aside differences and reach a real compromise to solve the most challenging problems.
"A credible and predictable path forward, entailing tough decisions on the budget, will create the needed environment for businesses and entrepreneurs to start, grow, innovate, and create high quality jobs for Americans, now and in generations to come."
The letter was coordinated by the Financial Services Forum, a group comprised of the CEO's of the largest financial services institutions doing business in the United States. The organization states its goal to promote policies that encourage savings and investment and promote an open and competitive marketplace.
The Mortgage Bankers association also issued a statement calling on the government to quickly resolve the debt ceiling impasse. "The Mortgage Bankers Association is very concerned about the implications to the financial system of the United States if the U.S. defaults on its debt. The likely impact to the financial markets, interest rates, and to every family in America will be costly if the ceiling is not raised. We implore policymakers to act swiftly and find a workable solution, given the short time left, to take this step and not put the credit rating of the United States in jeopardy."