Overheard: Banking Bill Overlooks Cyber threats
The Senate Banking Committee may be barking up the wrong risk tree.
This week, committee Chairman Richard Shelby proposed regulatory relief legislation. This will now be the subject of much debate. And the issue of bank regulation, in particular the Dodd-Frank Act, is likely to get a good going over as the presidential election campaign moves into higher gear.
But legislators might be better off if they worried a bit less about the regulatory threat to banks and the financial system and more to the cyber threat facing them. That after all is what seems to be happening in the financial-services industry. The Depository Trust & Clearing Corporation on Wednesday released its Systemic Risk Barometer for the first quarter of 2015. This is based on responses from over 250 financial-markets participants.
Asked to rate the top risks, cyber threats came in at No. 1. The impact of new regulation was at No. 3. That is a switch from two years ago. Back then, regulation was seen as the No. 1 risk and cyber trailed in third.
Congress likewise might want to recalibrate its risk radar.
Click here for original article.