Former Treasury Secretary Larry Summers predicted Silicon Valley will see a “cleaning out” in the fintech sector as a result of regulatory attention flowing from the failure of Silicon Valley Bank. In an interview with The Information’s editor in chief Jessica Lessin, Summers also said that the banking crisis of the past 10 days triggered by SVB’s failure had increased the chances of a recession beginning this year to “north of 50%.”

Summers also said he found it a “bit surprising” that a “formula can’t be found” to allow TikTok to continue operating, given that it gives “immense pleasure to 100 million people,” although he emphasized he wasn’t an expert in the national security issues around the Chinese-owned app.

In the interview, which was broadcast on a video call for The Information subscribers, said that the crisis called for a rethinking of banking regulation, including the accounting treatment of banks’ investment portfolios. SVB’s failure was caused in part by “egregious failures of supervision” compounded by “egregious mismanagement.”