Call us now:
Thanks for posting Ted Dziekanowski, this article is an amazing read (paywall). With the U.S subsidiary of ICBC bank dealing with a cyber attack (ICBC has an 80% controlling interest). A bank that forms part of U.S treasury markets as a member of government-securities division of the Fixed Income Clearing Corporation, that clears all government bonds. Occurring on the same day as a meeting between Secretary Janet Yellen and Chinese Vice Premier He Lifeng. The same day as weak U.S Treasury auction, where the U.S government had to entice investors to buy 30 year government debt. (https://lnkd.in/eWbdWspJ). By a Russian hacking group. Is that allot of stars to align by chance?
The attack may have prevented ICBC from settling Treasury trades on behalf of other market participants, that in turn effects liquidity of U.S treasuries. AKA the money owed can’t be paid, and we’re not talking a few $. FICC processes around $750Billion a day (https://lnkd.in/eaxmwahn).
The hack raises many questions. Why did it target the New York ICBC subsidiary and treasury business? How did the hacker get in, how long were they there and the timing of the attack. Was there any effect on U.S Treasury liquidity? Will there be ripples across regulators and the markets if it is demonstrated that a cyber attack can bugger things up?
One can expect U.S regulators to be all over this.
Brian D. McCarthy Rachel V. Rose, JD, MBA Bob Dix
#paravasecuritysolutions #cybersecurity #cyberriskmanagement
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