America's Treasury Department stopped American banks from facilitating repayment of Russian debt, in effect blocking Russia from reimbursing holders of its bonds.
He also proposed having the federal government assume state debt, which would transfer bondholders' loyalty to the federal rather than state governments.
This week regulators in America and Britain gave more details of plans to impose losses on bank bondholders to spare taxpayers the cost of resolving failing lenders.
A US treasury and Federal Reserve official added that equity and bondholders with SVB as well as Signature Bank of New York, which is also failed, would be wiped out.