UK Banks Prepare Contingency For U.S. Debt Ceiling Failure

Some of the UK banks are readying contingency plans to cope in the event of the U.S. failing to lift its debt ceiling. Margot Patrick of The Wall Street Journal reports that some of the UK banks’ senior executives are in touch with Bank of England’s Prudential Regulation Authority on how potential disruption in the U.S. bond market could affect their business. UK banks avoiding treasury bills Some of the UK banks’ top executives indicated they have been avoiding treasury bills nearing maturity, while stockpiling cash. Their fear stems from the news that the U.S. government contemplates a scenario of…