According to the panel (established by the US government) that aims to prevent the repeat of the 2008 financial crisis, banks and other financial institutions are becoming stronger today, however regulators should stay alert to the dangers that are posed by cyber-attacks.
In their annual report to the Congress, the Financial Stability Oversight Council stated that these cyber-attacks have intensified concerns regarding the possibility of more dangerous attacks that may significantly destroy the inner workings of the financial system.
San Diego bankruptcy attorneys agree to what the panel said regarding the giving of more attention to the development of new methods that will help in preventing and combatting hackers and they also encouraged collaborative efforts among various financial institutions and government agencies to share information that will help counter this growing threat.
The panel said in its report, “Over the past year, financial sector organizations and other US businesses experienced numerous cyber incidents, including large-scale data breaches that compromised financial information.”
The Dodd-Frank Act
The council was established by the 2010 Dodd-Frank Act which was passed by the Congress during the wake of the worst financial situation in approximately 70 years. Its chairman is Jacob Lew, the Treasury Secretary, and it has representatives from various government financial regulatory agencies such as Federal Reserve, Securities Exchange Commission, and the Federal Deposit Insurance Corporation.
Lew on Shelby’s Bill
Lew was critical of the legislation that is currently being passed by Richard Shelby, the Senate banking Committee Chairman, in which Lew said that it would put the country at major risk for another financial crisis.
Lew said, “Senator Shelby’s bill… contains changes to our financial regulatory framework that would roll back the clock and leave us with weakened oversight, fewer consumer protections and less effective tools to address risks in the system. It would also needlessly tie this council in knots with delays and hurdles that would significantly impair our ability to identify and mitigate threats to financial stability, while leaving potential risk unchecked.”