State Street Corp. chief executive Joseph “Jay” L. Hooley said Tuesday he’s hopeful that lawmakers in Washington will not allow the next round of talks about the debt ceiling and the budget “to get to the 11th hour.’’
Hooley, who was with a group of bankers who meet with President Obama two weeks ago amid the government shutdown, said, “We expressed very directly not only our concern about the debt ceiling crisis, but even leading up to it.’’
He added, “There’s a great danger that if the markets lost confidence, you could lose control of the situation.’’
State Street, a Boston-based financial services giant, often has a front-row seat on problems in the market, because its clients are large instutions that move billions of dollars around the globe each day. In the days leading up to last week’s deadline to avoid defaulting on the government’s debt, State Street saw a surge in deposits from clients who were looking to stash their money in the safest possible accounts, he said.
Hooley said he hoped the voices of bankers, Wall Street executives, and other business people had resonated with policymakers in Washington, and that the pressure would “result in a plan way ahead of the next deadline.’’
Repeated fiscal crises are bad for investor confidence, and for the economy, Hooley said. “If we don’t get out of this loop, we’re going to put futher pressure on this economic recovery, and that’s going to hurt everyone in this country.’’