Fed, Wall Street Prepare for Default

Charles Plosser, the president of the Philadelphia Federal Reserve Bank, tells Reuters that, for the past several months, the U.S. central bank and the Treasury have been working together on a contingency plan if no deal is in place by August 2nd, when Treasury expects the country to run out of cash.

"We are developing processes and procedures by which the Treasury communicates to us what we are going to do," Plosser said. "How the Fed is going to go about clearing government checks. Which ones are going to be good? Which ones are not going to be good?"