NEW YORK (TheStreet) -- The Standard & Poor's downgrade earlier this week of U.S. sovereign debt sent shock waves through the financial world.
Against this backdrop of ongoing budget and deficit battles in Washington, which likely will continue until the next presidential election in 2012, TheStreet asked First Niagara CEO John Koelmel how he sees the issue playing out.
When do you expect interest rates to rise and what impact do you see on your business?
First Niagara Financial Group (FNFG) CEO John Koelmel: "It will be a while before rates rise," said the chief of the Buffalo, N.Y.-based retail banking outfit. "They only have one way to go, and that is up. It is not a question of if, but when. I continue to believe that until the economic recovery, narrowly and broadly defined, is much more stable than it is to date -- rising rates on top of rising gas prices and uncertainties in the regulatory arena would compound the problem, not be part of the solution. It will be a while before we see some rise in rates."S&P downgraded its outlook for U.S. sovereign debt to negative. How do you think the deficit and economy will affect the banking business?
|First Niagara CEO John Koelmel|
What are America's corporate leaders saying about the issues of the day? TheStreet's reporters, during the course of their weekly coverage, will pose a thematic question to the business executives they interview. Have a question you'd like to see TheStreet ask the CEOs? Send it to email@example.com. Follow TheStreet on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV