Banks are discussing concerns about the consequences, particularly related to Treasury bonds, should the U.S. breach the debt ceiling. Rob Toomey, managing director and associate general counsel at SIFMA, said one concern is whether Treasury bonds will continue to be transferable between entities. "Essentially, whatever the size is of the obligation that Treasury is unable to pay, that kind of liquidity would just disappear from the market for whatever time the payment is not made," Toomey said. Read SIFMA's statement and fact sheets on the debt-default threat.
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