ABA, Groups Urge Congress to Raise Debt Limit

ABA and a handful of national trade groups representing financial institutions and businesses last night urged congressional leaders to raise the federal debt limit, warning that a failure to do so would undermine international confidence in the creditworthiness of the United States.

“We cannot afford to jeopardize the on-going, but not fully established economic recovery of our nation,” the groups wrote. “A failure to increase the debt ceiling will result in a massive increase in borrowing costs and create tremendous uncertainty about the willingness and ability of our government to meet its financial obligations.”

The groups also stressed their concerns about the federal debt level and large annual budget deficits. “The U.S. government must spend less and more wisely to restore balance to our fiscal position.”