US Treasury, Fed meet dealers as debt clock ticks

The US Treasury and New York Federal Reserve used a hastily expanded meeting with Wall Street's biggest banks on Friday to discuss a potential default by the United States on its debt. The Treasury officials confirmed the meeting was originally to be with representatives of around half of the 20 primary dealers, but at the last minute it was expanded to include all of the banks and securities firms authorised to deal directly with the Federal Reserve and the Treasury.
The Treasury has said after Tuesday it will no longer be able to pay all the government's bills and will be at risk of default. Short-term lending markets have seen the greatest levels of fear, with rates on Treasury debt maturing in August jumping to 6-month highs as investors dumped the debt on fears the government may choose not to repay them.