Feds float cybersecurity regs for Wall Street

Wall Street is facing new cybersecurity standards.

The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Comptroller of the Currency are teaming up on new cybersecurity regulations for the nation’s largest banks and financial institutions.

The cybersecurity standards for banks are in the early stages of development and come in the form of an advanced notice of proposed rulemaking. They were announced last week, but will now be formally published in the Federal Register.

The financial regulators are responding to rising concerns over cybersecurity threats. Because banks are “interconnected” with each other, a cyber attack at one could spread to many others and shake the U.S. economy, they warn.

“With advances in financial technology, financial institutions and consumers alike have become increasingly dependent on technology to facilitate financial transactions,” the banking regulators wrote in the Federal Register.

“The largest, most complex financial institutions rely heavily on technology to engage in national and international banking activities and to provide critical services to the financial sector and the U.S. economy,” they added.

“As technology dependence in the financial sector continues to grow, so do opportunities for high-impact technology failures and cyber attacks.”

The public has until Jan. 17, 2017 to comment.