Fed's Quarles says US failing to build cyberattack defenses

3 October 2018 9:40pm
US Federal Reserve regulatory chief Randal Quarles said the US is failing to adequately shore up defenses against potential cyberattacks on the financial sector.

Responding to a senator’s question about the biggest threat to US financial stability, Quarles said: “Cyber risk is the issue that we should be focusing on that we have not.”

“We have taken a number of measures with respect to financial stability risk, and those have been effective in my view,” the Fed’s vice chairman for supervision told the Senate Banking Committee on Tuesday. “The risk we really need to focus on is cyber.”

Two other leading financial regulators agreed that cybersecurity should be a priority.

“We need to be cognizant of potential exposures that companies have and financial institutions have to cybersecurity and cyber breaches,” Jelena McWilliams, the US Federal Deposit Insurance Corporation chief, said at the same hearing. “A colossal breach could bring a financial institution down for a number of days.”