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War rooms and bailouts: How banks and the Fed are preparing for a US default – and the chaos expected to follow

  • Written by John W. Diamond, Director of the Center for Public Finance at the Baker Institute, Rice University
War rooms and bailouts: How banks and the Fed are preparing for a US default – and the chaos expected to follow'Default doomscrolling' again, Mr. Powell? Kimimasa Mayama/Pool Photo via AP

Convening war rooms, planning speedy bailouts and raising house-on-fire alarm bells: Those are a few of the ways the biggest banks and financial regulators are preparing for a potential default on U.S. debt.

“You hope it doesn’t happen, but hope is not a...

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