A U.S. default would slam financial system: NYC mayor Bloomberg

Reuters News
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Posted: Jul 12, 2011 11:53 AM
A U.S. default would slam financial system: NYC mayor Bloomberg

NEW YORK (Reuters) - New York City Mayor Michael Bloomberg on Tuesday said a U.S. default on its debt "would have a catastrophic effect on our financial system" and deal the still-mending city economy a "huge setback."

Bloomberg, a political independent who had flirted with a presidential run, said in a statement the federal government must avoid damaging the nation's economy and its credibility around the world with a first-ever U.S. default.

"America's good name and credit are just too important to be held hostage to Washington gridlock, and I hope that in the end cooler heads will prevail and an agreement will be reached quickly," said Bloomberg.

(Reporting by Joan Gralla; Editing by James Dalgleish)