Over the last few weeks, banks have more or less remained on the sidelines in terms of the debt ceiling debate.
Industry representatives told American Banker that they don’t have the political clout to advance a solution and “fear advocating for a particular plan could open them up to criticism or reprisals, such as tax increases.”
As both sides of the aisle continue to argue over how to extend the debt limit before the August 2nd deadline, banks are waiting by the sideline and keeping their fingers crossed on the sideline, rather than risk undercutting negotiations at the last minute.
“I wish this was the days where we could run up to the Hill and we could scream and people would listen to us, but sometimes people don’t care what we think,” said one lobbyist for a large bank, who spoke on condition of anonymity with American Banker. “The people that need to be convinced that raising the debt ceiling is important don’t like big, Wall Street banks.”