Former Treasury Secretary Lawrence Summers said he was less worried about continuing turmoil in the US banking sector than he is about the partisan impasse in Washington over raising the federal debt limit. “We are probably over the vast majority of the banking traumas,” Summers said in an interview with Bloomberg Television’s David Westin. “I’m not highly alarmed by what’s happening in the banking sector.” Summers spoke after a selloff in bank stocks Tuesday that suggested investor concerns...

Former Treasury Secretary Lawrence Summers said it’s too soon to be confident that the US has turned a corner on financial troubles that were sparked by the Federal Reserve’s rapid interest-rate hikes. “When you have a series of earthquake tremors, it’s a fairly long time before you should be in a position to be confident that you’ve seen the last of them,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin. “That’s why the Fed’s got such a difficult job.” There’s...

Congress kicks off hearings to examine recent bank turmoil Fed, FDIC officials hint at regulatory, capital-rule changes Listen to this article Top US financial officials on Tuesday outlined what’s likely to be the biggest regulatory overhaul of the banking sector in years, in an initiative aimed at addressing underlying issues that contributed to the collapse of Silicon Valley Bank and other US regional lenders. “I anticipate the need to strengthen capital and liquidity standards” for banks...

Former Federal Reserve Bank of New York President William Dudley anticipates that the US central bank will keep going with the runoff of its bond portfolio, despite the sudden surge of problems in the banking sector. “I expect that quantitative tightening will continue,” Dudley said in an interview on Bloomberg Surveillance Monday. That program is “very separate and different” from the steps that the Fed is taking to shore up confidence in the banking system, he said. Fed policymakers start a...

LISTEN TO ARTICLE 1:59 SHARE THIS ARTICLE Share Tweet Post Email Photographer: Cooper Neill/Bloomberg Morgan Stanley strategists added a bet on a steeper Treasury yield curve, seeing the potential for a “regime shift” in the wake of a rapidly improving U.S. economy. “In the blink of an eye, that seems about how quickly the economic narrative has tilted in favor of a V-shaped recovery versus a slow and prolonged one,” Guneet Dhingra, head of U.S. interest-rates strategy in New York, wrote in a...