Wall Street CEOs and the Fiscal Cliff
Friday, October 12, 2012
As the November election approaches, lawmakers are spending more time campaigning and less time working to avoid the "fiscal cliff," the trigger set to send Americans' taxes higher and slash federal spending by more than a trillion dollars at midnight on December 31.
"Taxmageddon," as it's also called, is expected to inflate the unemployment numbers and slow economic growth, facts the titans of Wall Street are having a hard time digesting.
"JPMorgan will survive a fiscal cliff. I just think it's terrible policy to allow it to get close," JPMorgan Chase CEO Jamie Dimon said at the Council on Foreign Relations Wednesday.
Dimon and other Wall Street CEOs are spending millions on an ad campaign to get support for a deal that would prevent the cliff.
On CNBC Thursday, Goldman Sachs CEO Lloyd Blankfein put an even finer point on the issue.
"The fiscal cliff, specifically, is one of the major ways in which the slow recovery that we have could be completely derailed," he said.
This week on WNYC's Money Talking, Rana Foroohar of Time and Ben White of Politico weigh in on whether Wall Street executives still have the clout with legislators to spur Congress into making a deal.
Plus, employees at Goldman Sachs and other financial firms shifted their campaign donations to Mitt Romney this election season after supporting candidate Barack Obama in 2008.
Money Talking examines whether the president will feel free to ignore Wall Street when it comes to bank regulation if he wins a second term.