US risks first default in history - today's papers

America risks sending the world's financial system into chaos if it fails to increase its legal borrowing limits, President Barack Obama has warned. As the US nears its $14.3trn debt ceiling, which Congress needs to increase in weeks to prevent the government defaulting on its borrowings for the first time in history, Obama told CBS: "We could have a worse recession than we already had, a worse financial crisis than we already had." MORE The British government could see returns on the taxpayer bail-out of British banks as early as H1 2012, after senior figures close to the process r...