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| Goldman Sachs' Blankfein warns on debt ceiling impasse | Goldman Sachs' Blankfein warns on debt ceiling impasse |
| (35 minutes later) | |
| Goldman Sachs' boss Lloyd Blankfein has warned that a failure to raise the nation's borrowing limit would be "extremely adverse". | Goldman Sachs' boss Lloyd Blankfein has warned that a failure to raise the nation's borrowing limit would be "extremely adverse". |
| The warning came after a meeting between US President Barack Obama and 15 heads of large companies on Wednesday. | |
| Business leaders want Washington to understand "the long-term consequences of a shutdown," said Mr Blankfein. | Business leaders want Washington to understand "the long-term consequences of a shutdown," said Mr Blankfein. |
| The US government has been shut down since Tuesday, 1 October. | |
| Other well-known business leaders who attended the meeting included Michael Corbat of Citigroup, Jamie Dimon of JPMorgan Chase, and Brian Moynihan of Bank of America. | |
| By some estimates, the government shutdown is costing the US economy $300m (£185m) per day. If it continues, it could shave as much as 0.9% off third-quarter GDP growth. | |
| Mr Blankfein and his banking counterparts have expressed concern that there is a possibility the impasse over the US budget could bleed into efforts to raise the so-called debt ceiling, which allows the US government to borrow money to pay back its debts. | Mr Blankfein and his banking counterparts have expressed concern that there is a possibility the impasse over the US budget could bleed into efforts to raise the so-called debt ceiling, which allows the US government to borrow money to pay back its debts. |
| The current debt ceiling of $16.7 trillion has already been breached in 2013, and the US Treasury has been engaging in a series of "extraordinary measures" since the summer to continue paying the nation's bills. | |
| US Treasury Secretary Jack Lew has warned that those measures will be exhausted by 17 October, and then the nation would be forced to default on its debts. | |
| Mr Obama is scheduled to meet Congressional leaders later on Wednesday. |