FSOC: Cyberthreats to financial institutions growing

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Dec. 11, 2013 – The Financial Stability Oversight Council, which includes the heads of Treasury, FDIC, NCUA, CFPB and others, warned on Monday about the threat of cyberattacks against the nation’s financial institutions.

A draft proposal of President Obama’s executive order, issued in February, to improve information channels between the government and financial industry regarding cybersecurity issues is now available for public comment, but FSOC said congressional action is still needed.

NAFCU strongly agrees. The association has urged congressional action on cybersecurity measures – particularly in the area of financial data protection – as part of its five-point plan for comprehensive regulatory relief. It has also urged better coordination among federal agencies on rulemaking affecting credit unions.

NAFCU, with 11 other financial industry groups, wrote the Senate Commerce Committee this July in support of S. 1353, the “Cybersecurity Act,” introduced by the committee’s Chairman Jay Rockefeller, D-W.Va., and Ranking Member John Thune, R-S.D. The measure, which still awaits action of the full Senate, would implement the objectives of Obama’s executive order, which address information sharing, privacy and the development of voluntary standards with industry partners.

Monday’s meeting of FSOC was the last for its current chair, Federal Reserve Chairman Ben Bernanke, before he retires in January. Along with Bernanke, most of the panel members will be replaced by the next FSOC meeting, including Commodity Futures Trading Commission Chairman Gary Gensler and most likely Federal Housing Finance Agency Acting Director Edward DeMarco, who is due to be replaced by Rep. Mel Watt, D-N.C., after being confirmed by the Senate. NCUA Chairman Debbie Matz will be the only member left out of 10 who has served on the panel since its beginning in 2010.

Related Links:
NAFCU's five-point plan for credit union regulatory relief
The Hill article on FSOC meeting