Nearly 500 Business Leaders Urge Congress, White House to Act on Debt

(Wall Street Journal) - WASHINGTON -- Nearly 500 top US business leaders urged the White House and congressional leaders Tuesday to reach a compromise that raises the debt ceiling and tackles the country's deficit problems to avoid a financial crisis.

"Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards and student debt," the business leaders wrote in a letter. The leaders included the chief executives of Alcoa, Bayer, Caterpillar, Citigroup, Cisco Systems, DuPont, International Paper, Koch Enterprises and Procter & Gamble.

"A default would risk both disarray in those markets and a host of unintended consequences. The debt ceiling trigger does offer a needed catalyst for serious negotiations on budget discipline but avoiding even a technical default is essential. This is a risk our country must not take," the letter said.

White House Chief of Staff Bill Daley on Sunday called on business groups to become more vocal in pushing Congress to reach a deal that would raise the $14.29 trillion debt ceiling by Aug. 2, when Treasury Department officials believe the US could begin defaulting on its debt if actions are not taken.

"Now is the time for our political leaders to put aside partisan differences and act in the nation's best interests," the letter said.

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