Larry Summers may have just violated Square's pre-IPO quiet period
But on Tuesday at the Economist Buttonwood conference in midtown Manhattan, the former Treasury sectetary might have gone too far.
"He should not be saying anything that could be perceived as hyping or promoting the financials of the company," said one tech IPO veteran, who asked to be not named.
"Companies don't always get reprimanded for this but the prudent course is always to err on the side of caution."
A former Securities and Exchange Commission lawyer said Summers and Square are "probably safe," adding companies going public "need to be hyper-vigilant these days," and said the statement was still "close to [the] line."
To be sure Square isn't in the critical period of marketing its IPO yet. Were that the case the public comments could actually cause a delay in the debut.
Square did not respond to emails late on Tuesday seeking comment in time for publication. A representative for Summers didn't immediately respond for comment.
His comments came during the conference's afternoon one-on-one interview with Economist editor-in-chief Zanny Minton Beddoes, aptly titled: What will the fintech revolution mean for the economy? (His comments on Square begin just before the 7:32 mark).
It said in the filing: "We believe small businesses will continue to drive the economy as entrepreneurial activity creates millions of businesses each year."
This wouldn't be the first time a major tech company regretted a big interview leading up to an IPO.
When Google co-founders Sergey Brin and Larry Page granted Playboy an interview more than 10 years ago, it turned out they mistakenly violated Google's quiet period.
They made up for it - by never granting another interview.
But, it's highly unlikely that Summers will go down that route.