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FTX Meltdown Has ‘Whiffs’ of Enron-Like Scandal, Summers Says

  • Former Treasury secretary calls for more forensic accountants
  • Summers says issues are less about regulatory complexity
Bloomberg business news
WATCH: Summers says the FTX meltdown “whiffs of fraud.”Source: Bloomberg
Updated on

Former Treasury Secretary Lawrence Summers called for an expansion in the number of forensic accountants -- though not necessarily an increase in regulation -- in the wake of the meltdown in Sam Bankman-Fried’s crypto empire.

“A lot of people have compared this to Lehman. I would compare it to Enron,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “The smartest guys in the room. Not just financial error but -- certainly from the reports -- whiffs of fraud. Stadium namings very early in a company’s history. Vast explosion of wealth that nobody quite understands where it comes from.”