Goldman CEO David Solomon Says Debt-Ceiling Crisis Should Be Taken Seriously: 'Consequence Of Getting It Wrong Will Be Real'

Goldman Sachs Group Inc (NYSE: GS) Chief Executive David Solomon is concerned that a political stand-off over the U.S. debt ceiling may lead to a fiscal crisis.

"This is something that we should take very seriously because the consequence of getting it wrong will be real," he told Reuters in an interview on the sidelines of the World Economic Forum at Davos.

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Solomon also hinted that Goldman and he would try to “engage” with Washington officials. "I'm concerned and I'm going to take any opportunity that I can, and we can as a firm, to engage with people in Washington to try to make sure they understand that we don't think that this is something that should be played with," he said according to the report.

Extraordinary Measures: The U.S. government reached its $31.4 trillion borrowing limit on Thursday with Treasury Secretary Janet Yellen reportedly informing Congressional leaders her department had commenced using extraordinary cash management measures that could stave off default until June 5.

The so-called extraordinary measures, or accounting maneuvers, include suspending investments for certain government accounts to allow the Treasury to keep making payments to bondholders and social security recipients until June, according to a report from The Wall Street Journal.

Not only Solomon but other experts, too, have voiced their concerns over the looming crisis. Former Treasury Secretary Lawrence Summers said it would be "catastrophic" for the United States to default on its debt. "I think at the end of the day we will meet our obligations and not cause substantial disruption. But God, I wish we could move past this," Summers said.

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Read more Davos Summit coverage by Benzinga here.

Photo by World Bank on Flickr