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Several multinational banks reportedly discuss plan that could end Argentina default

Several international banks are reportedly in talks that could end the legal battle that pushed Argentina into a default that threatens its economy.

The banks are said to be negotiating to buy some of the Argentine bonds held by U.S. investors whose demand for a higher payment from the government led to a bruising court battle.

That court battle ended with a U.S. judge blocking Argentina's interest payments to other bondholders, triggering a default on July 30.

A bank buyout may allow Argentina to exit default before it is pushed deeper into recession or it faces other potentially severe economic consequences.

The negotiations were reported Monday by Argentine financial paper Ambito Financiero and other media. The banks are said to include J.P. Morgan and Citibank and HSBC. They declined comment.