Banks and financial regulators are preparing for a potential default on U.S. debt by convening war rooms and planning speedy bailouts 

Brian Moynihan, CEO of Bank of America, emphasized the importance of preparation for a potential default rather than relying on hope 

The lack of progress in talks between President Joe Biden and House Republicans over raising the debt ceiling has prompted doomsday planning 

Negotiations for raising the $31.4 trillion debt ceiling are set for May 16, 2023 

Without an increase in the debt limit, the U.S. would be unable to borrow more money to cover its bills, potentially leading to a default 

Economists predict financial chaos in the event of a default, with restricted access to credit and higher borrowing costs for companies and consumers 

A default could result in a severe and prolonged global economic recession 

The reputation of the U.S. and the dollar as symbols of stability and safety would be further damaged by a default