US Government Now Backstops Bank Cyber-Crime Risk

A new level of cyber warfare is threatening the economic system, prompting the US government to quietly provide the largest banks a new risk backstop guaranteed by the taxpayers, according to a Bloomberg report.

Bank cyber-crime: Mary Galligan steps-up

Recent hacking attacks on four major banks, including JPMorgan Chase & Co. (NYSE:JPM), as well as attacks on various stock and derivatives exchanges, are evidence that cyber criminals, with potential backing from a nation state, have the capability to crack even the most secure companies, said Deloitte’s Cyber Risk Services Directory Mary Galligan, who participated in the recent government investigation of the NASDAQ hacking attack.

Cyber criminals have demonstrated through these hacks they have...