Chapter 9, Where and how to place (June 8 - June 13) the question of the placement of the government loan comes front and center. Since the second BIS loan to ANB is conditional upon the placement of the bond loan, the National Bank is increasingly under pressure and the money supply has increased as it has rediscounted for the Credit Anstalt. The CA has no more solid collateral and ANB is losing foreign exchange at an increasing rate. Meantime, Hungary is also suffering from capital flight and the nervousness over contagion and the psychology of the crisis is increasing. The conflicts between the Austrian government and the central banks increases and information is still very hard to come by, all of which contributes to the uncertainty of the situation.

In chapter 3, preparing for crisis, the narrative begins. It is told mainly chronologically and this chapter deals with the period between May 11 and May 19, but only after a brief focus on January 1931 where Harry Siepmann on the basis of the socalled Bagehot model considers what to do in case of a major financial crisis in Europe. The Bagehot model for a lender of last resort and its inadequacy in the face of an international crisis, is a theme that goes through the book’s narrative. On May 11 the Credit Anstalt failure is made known and the central bankers get ready to make sense of the information they get from Austria and elsewhere. The BIS sends Francis Rodd to Vienna and the chapter follows him closely as he communicates his findings back to the BIS and Bank of England. In a world where debt is abundant and credit scarce, Rodd presents a plan to the upcoming BIS board meeting.

In chapter 4, Foreign creditors (May 16 - May 25) the actors deal with the problem of raising an Austrian government bond loan, while at the same time Credit Anstalt’s foreign creditors are getting involved. Conflicts begin to disappear between Austrian actors and central bankers and international creditors, and it becomes increasingly clear to the latter that the situation may well be more problematic than they imagined in the first place. On the Austrian side talks of a moratorium upsets central bankers and creditors who favor a guarantee. It’s getting increasingly difficult for the central bankers to emplot a narrative that can make sense of the situation and enable action to dodge the crisis. The fear of contagion becomes widespread, adding to the uncertainty.

Chapter 8, Surrounded with trouble (June 5 - June 10). The BIS board decides to grant a second credit to the BIS, but only after a prolonged discussion and it is made conditional on the placement of the Austrian government loan. There is increasing concern about the schilling as capital flows out of the country and the government issues take increasing priority, without being placed. At the same time, Germany’s reparations issues become ever more present as the German Chancellor Brüning meets with Prime Minister MacDonals at Chequers. Shortly before, Brüning published a statement saying that the burden on the German people has reached its limit. The international creditors too become increasingly nervous about the Austrian situation.