UPDATE 1-Biden to meet with America’s biggest banks and CEOs as debt limit chaos looms
(Updates with memo from the White House)
By Steve Holland and Nandita Bose
WASHINGTON, Oct.6 (Reuters) – U.S. President Joe Biden on Wednesday called bank and business executives to White House talks, as part of a strategy to pressure Congressional Republicans to quash ‘they are voting for an increase in the debt ceiling.
The White House said executives from JPMorgan Chase & Co, Intel Corp, Citigroup, Bank of America, Raytheon Technologies Corp, Nasdaq Inc and Deloitte will meet with Biden.
Biden plans to “detail the Republican obstruction that got us to this point,” according to a memo released by the White House. The head of AARP, a powerful lobby group for older Americans, will detail the impact on social programs for the elderly caused “by a Republican-created default and the resulting economic disaster,” said -he.
Republicans want Democrats to raise the debt ceiling using reconciliation, a process that does not require Republican votes; Democrats refused, saying Republicans should vote to increase the limit because the debt includes roughly $ 8 trillion in spending approved during Republican Donald Trump’s presidency.
A debt limit disagreement has grown between U.S. businesses and congressional Republicans traditionally aligned on economics.
A default on US debt would seriously damage the country’s credit rating, plunge the global financial system into turmoil, and pose a major risk https://www.reuters.com/world/us/what-watch-market -stress-us-debt- ceiling-deadline-near-2021-10-05 to the company’s stock prices.
Treasury Secretary Janet Yellen estimated that a US debt default could occur around Oct. 18 if Congress does not give the government additional borrowing authority beyond the current legal limit of $ 28.4 trillion. of dollars, which was re-imposed after the expiration of a two-year suspension in late July.
A coalition of groups representing investment firms and banks warned congressional leaders in a letter last week that a default would seriously damage financial markets.
“The failure of the United States of America to meet its obligations is not an option; we are counting on Congress to take the necessary action to tackle the debt ceiling, ”wrote Neil Bradley, executive vice president and director of policy at the United States Chamber of Commerce, said the larger group lobbying companies across the country.
The House spent $ 82 million on corporate lobbying in 2020, according to OpenSecrets, a research group that tracks political donations. Three-quarters of the House’s campaign contributions went to Republicans in 2020, the group found.
“I didn’t even know the House was there anymore,” Republican House Leader Kevin McCarthy told reporters on Wednesday when asked about the corporate group’s position. He said the lobby group would have no influence if Republicans won a majority in the congressional election next year. (Reporting by Steve Holland and Nandita Bose; Editing by Heather Timmons, Andrew Heavens and Howard Goller)