US faces downgrade threat with or without debt deal

WASHINGTON — Republican lawmakers on Thursday pressed on with a vote on a plan to avert a calamitous US default, ignoring White House warnings of a veto as the political wrangling infected global markets. Republican House Speaker John Boehner was to put his two-step plan to raise the nation’s $14.3 trillion debt limit to the House of Representatives.

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Published: Fri 29 Jul 2011, 1:36 AM

Last updated: Tue 7 Apr 2015, 2:58 AM

Even if a deal is reached to lift the debt ceiling, a budget plan that flinches from hefty cuts in the deficit may result in a downgrade of the top-notch US credit rating, which could sow financial chaos worldwide. The heads of Wall Street’s top banks urged President Barack Obama and Congress to reach a deal on the debt ceiling, warning of “very grave” dangers if agreement is not reached. “We strongly urge you to reach an agreement this week,” the chief executives of Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo and other top financial firms wrote in a joint letter.

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