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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

By John W. Diamond, Director of the Center for Public Finance at the Baker Institute, Rice University

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…

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