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Summers: Troubled firms should be allowed to fail

Summers: Troubled firms should be allowed to fail

President Barack Obama's top economic adviser says the financial system can only be viable if the government discourages private sector institutions from becoming too intertwined and allows troubled firms to fail.
Lawrence Summers, who is the director of Obama's National Economic Council, pressed the Obama administration's case Friday for new financial regulations that would require large and heavily leveraged firms to have more capital and to confront the likelihood that government would not come to their rescue.
How governments respond to the crisis that brought financial systems to the brink last year will be one of the top issue next week when leaders of the top 20 leading economies meet for a summit in Pittsburgh.


Updated : 2021-10-24 06:02 GMT+08:00