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Big Firms Rush to Ease Trading
Banks are scrambling to design emergency plans to avoid a trading logjam in the markets for Treasurys and short-term funding facilities if Congress fails to raise U.S. borrowing limits by next Tuesday's deadline.
For weeks, Wall Street executives have called a U.S. default on its debt an "unthinkable scenario." In recent days, the Washington stalemate has prompted the large securities firms that dominate bond trading to come together to prevent a market breakdown.
Senior executives said that over the past two days, the largest dealers have held conference calls to discuss the consequences of a potential default on the markets, ... |
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