WASHINGTON—Wall Street firms are sounding alarm bells and dusting off contingency plans as fears grow that Congress may fail to reach a deal to raise the country’s debt limit in time, executives said. Federal government funding is due to expire on Thursday and borrowing authority is set to run out on Oct. 18. A failure to raise the legal cap on how much money the government can borrow to fund its budget deficits and meet debt obligations, currently set at $28.4 trillion, could send shockwaves across global markets. “If there were to be some kind of failure to pay Treasury securities, we honestly don’t know what would happen,” said Rob Toomey, managing director and associate general counsel for capital markets at the Securities Industry and Financial Markets Association (SIFMA). “Certainly, you can expect significant volatility were this to occur, and the market needs to be prepared for that.” JPMorgan Chase …
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