Former Goldman CEO Lloyd Blankfein says bank rout may depress growth, even with robust capital

Turmoil successful the banking assemblage volition astir apt measurement connected economical maturation arsenic lenders go much conservative, erstwhile Goldman Sachs CEO Lloyd Blankfein said connected Sunday.

"The greater hazard situation for financials leads to husbanding of superior and risk-taking, little and much blimpish investing and lending, and inevitably, little growth," Blankfein, who besides served arsenic Goldman's chairman, told Reuters.

"While immoderate banks person been hung up by poorly managed, concentrated risk, the wide banking strategy is highly good capitalized and substantially much tightly regulated than successful anterior challenging times," helium said.

Blankfein was president and CEO of the storied Wall Street steadfast from 2006 to 2018, steering it done the planetary fiscal situation of 2008 and its aftermath.

He spoke aft immoderate of the world's largest cardinal banks came unneurotic connected Sunday to halt a banking situation from spreading arsenic Swiss authorities persuaded UBS connected Sunday to bargain rival Credit Suisse successful a historical deal.