TheCorporateCounsel.net

As can be expected these days, our trusty lawmakers in Washington have turned the debt ceiling into a political football, so now we are greeted each day with dire warnings of our nation’s imminent default on its obligations and the cataclysmic consequences that action could bring. For some reason, we are all conditioned at this point to go about our business with the optimistic viewpoint that the geniuses on Capitol Hill will somehow reach a resolution.

Even with this outlook, it never hurts to have a backup plan, and this recent memo from Cleary outlines considerations for directors and management of corporations in light of the impasse over the debt ceiling, even if the situation is ultimately resolved. You should also consider the guidance from Davis Polk that Liz blogged about back in January, now that the “deadline” approaches and the impasse continues. Let’s hope this all gets resolved soon.

– Dave Lynn