‘A lot of people have compared this to Lehman. I’ll Compare It To Enron’: Larry Summers Comments On FTX Bankruptcy
Former U.S. Treasury Secretary Larry Summers is likening the collapse of troubled crypto exchange FTX to the crisis that engulfed Houston-based energy company Enron two decades ago.
In an interview with “Wall Street Week” by Bloomberg Television, Summers said managers should take some lessons from the FTX episode. One is that “more forensic accountants” are needed to help uncover problems at both the corporate and national levels, he said.
FTX’s rapid demise was underscored on Friday by the company’s announcement that it started Chapter 11 bankruptcy proceedings in a Delaware courthouse and its chief executive, Sam Bankman-Fried, resigned. John J. Ray III, attorney brought in Clean up the mess left Enron, was appointed to succeed Bankman-Fried. This announcement has shaken the crypto sector, where the price of Bitcoin
BTCUSD,
hit a two-year low following the FTX announcement.
