Summers Warns Consequences ‘Severe’ If SVB Deposits Not Released
- Former Treasury chief says SVB collapse not a systemic risk
- Summers says it’s not a time for moral-hazard lectures
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Former Treasury Secretary Lawrence Summers warned that there will be “severe” consequences for the innovation sector of the US economy if regulators don’t smoothly work out the collapse of Silicon Valley Bank.
“It certainly is going to have very substantial consequences for Silicon Valley — and for the economy of the whole venture sector, which has been dynamic — unless the government is able to assure that this situation is worked through,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin.