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'Start acting as leaders' and fix things: Morgan Stanley CEO

Morgan Stanley CEO James Gorman urged Congress and the White House to "start talking today" about the nation's ongoing debt and spending troubles, adding that it was time for policymakers in the world's largest economy to "start acting as leaders."

In the wake of an 11th hour agreement that averted a potentially devastating debt default, Gorman told CNBC's "Street Signs" on Friday that "everybody is frustrated" with Washington. He said now was the time to begin ironing out differences, rather than waiting for the next deadlines—Jan. 15 for government funding and Feb 7 for the debt ceiling.

"Both sides [should] start talking today, other than ... before whatever the final date is," Gorman said. He said Congress and President Barack Obama needed to undertake "a comprehensive relook at the balance sheet of the country."

What that would entail is a balanced approach, he added. "You aren't going to solve this problem by just increasing taxes ... [or] just reducing entitlements."

Congress is now suffering through historically low approval ratings because it is not doing "a lot it is supposed to have done," Gorman said. Because Wall Street spends millions on lobbying Washington, Gorman said it was clear his bank hadn't gotten its money's worth.

—By CNBC's Javier E. David.

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