Ceos of the banking industry. The secretary of treasury was kind enough to hold a briefing in march that was an eyeopener for the ceos in terms of the risks. Table the roundtable exposed the ceos in september. We are making a lot of progress in terms of pulling the industry together and making everyone aware and investing a lot of money on behalf of the industry to develop capabilities. Help fromsk for some the council, we need to continue as the risks are becoming more substantial everyday. We need help in terms of ensuring the private sector and key Government Agencies are really cooperating. We need to have more coordinated information coming from the intelligent intelligence toncies through treasury the industries to be able to effectively use and medicaid mitigate these efforts. When you help in declassifying information so that the information can be gotten to the banks. Points a very important that one when carried out will reduce that risk. We need support from the telecommunication sector. What happens in these attacks is as all this information comes in from these attackers, it comes in through the internet and telecoms and the telecoms in many cases are the only ones who can really filter this malicious data and reduce the amount of data that is coming into the banks. The banks cannot shut down because then they will be shutting down the support from all her clients. We need all their help. We need to work with government securityto expedite clearances. When he more people in the industry who a proper levels of clearance is so we can do a better job of protecting our clients and mitigating the risks. We suggest we continue and expand briefing to the industry. Build a support and have a mechanism in place so that if a catastrophe occurs, we arty have the channels established to be able to take care of it. We need to work closely with the large banks but also the small banks out there. They really do not have the capacity today that many of the large institutions have to be able to defend themselves and so we need to have a collaborative effort to work with intelligence and the telecoms and Service Providers to provide a protocol that can be developed that will allow us to standardize and make effective a way for the small banks to have defenses because we do not want to expose ourselves to the risks that a perpetrator could gain entry. That is very important. To continue to support effective cybersecurity legislation. We need to focus on information sharing that provides liability to protection. We have today some real limitations from illegals from a legal point of view. That needs to be clarified legislatively. I want to thank all of the Council Members and the Government Agencies. Everybody has been great in helping us a lot. We havent had great support everybody is working really hard and has given us great support. I want to ask the council submitter consider making a task force that includes the city members and government help in that can really this copy has a battle comprehensive battle. We have made a lot of progress and have a long way to go. We are in this together and we have shared goals and i believe working together we can mitigate the risks and make this a safe place for our clients do business in the future. Thank you. Enqueue very much thank you very much. Staff of thenk the regulatory agencies for the dedication to this issue and the work of the financial and banking information and if the structure committee. I have been deeply involved in this since coming here. I was involved in cybersecurity before i got here. What is striking is when i meet with agencies or bankers, and that it doesnt matter if you are small or large, this is a issue on your radar. We have more progress to make. We need to work that the right people have the right clearances. That we have information flowing smoothly where it needs to. I think the point you make is remus the case is very much the case. At thetrying to work limit of what the executive order permits. I would like to invite for members of the council if there are questions or comments. Thank you. Consistsairman, which of the Federal Reserve system and the state members of the state bas on committee, i thought it might be helpful to on what thete committee has been doing. The ff ice did establish a cybersecurity goal infrastructure working cruel and this primary goal is to comprehensively assess and analyze the security and resilience of Financial Institutions and technology Service Providers and to provide information to other entities. One of the primary objectives is to review current regulatory examinations to identify and address gaps. One of the key issues that mr. King is highlighted. Ffice has a long history and correlating policies related to information technology, Business Continuity landing and recovery, and has wellestablished programs for correlating the examination. It is particularly wellsuited for this important task. Other objectives of the working group include training, identifying the relevant skills and knowledge needed by examiners and gaps in examiner training. Awareness to develop external outreach initiatives. Information sharing augmenting maintaining relationships to enhance information sharing and calibration and collaboration. As a communication and coronation channel among our members in response to domestic and International Incidents capable of impacting the Critical Infrastructure security. These latter two areas i think of regarding information sharing are areas that i believe we can we canbenefit it. Blatantly and if benefit. We are assisting smaller Financial Institutions in meeting cybersecurity challenges. This is why much of the initial focus of the working group will be geared tour at towards assessing how prepared committee banks, credit unions, and the critical Service Providers are to identify threats, protecting themselves and their customers, mitigating risks before attacks occur, and to respond to Cyber Attacks today in the future today and the future. The working group has already developed plans for additional educational materials and training and conducting the aforementioned risks. I also want to recognize and thanks my colleagues and their staffs for the support they are providing on these initiatives which are in addition to their independent work that they do. Finally, i want to underscore by mr. King that cybersecurity is an ongoing issue that demands nation in Partnership Among all of the agencies including the Critical Role of the telik the telik communication sector and various Financial Market utilities. This is another area where treasury plays lays an Important Role. Are there other comments . If not, i would ask that we move to the next item on our agenda. Thank you for those presentations information this an ongoing effort because it truly is an ongoing issue that we have to deal with and keep dealing with. Thank you. Item is to have a burner have dick burner give us analysis. I appreciate the opportunity to report to the council. Today i will discuss three broad areas of our work. First i would ascribe tools we use to monitor threats to financial stability. A report on the assessment of those threats. I will report on Financial Data priorities and preliminary research we have done with data and last i will report on data standard initiatives that are important. Let me focus on the analysis and monitoring the financial stability. We developed a new tool to monitor threats. We have version 1. 0 of that tool. Risks. Yzed functions of they are credit, funding, and contagion risks. We believe this functional breakdown is best suited to look at risks across the Financial System. We quantify these risks with a mix of economic indicators, ket indicative dax mark market indexes. Limitations are the metrics we employ them on in this heat map are largely contemporaneous. We will put new indicators in this framework as a developed. For example, the connection between volatility and leverage may offer insight. Second, they do a loan may fail to capture emerging risks. We, lament the monitoring tools we complement the monitoring tools with development. Some risks are hard to measure. Operational risk is clearly one of those. We start by applying judgment what we will work to develop ways to better quantify these risks. Informed by the sickening tool signaling tool will magnify the stability. Three are familiar from that report. The threat of runs and fire sales in funding markets. The exposure of a sudden and unanticipated rise in Interest Rates given still high duration and high fixed income portfolio. Third is exposure to shocks in a low volatility environment. We discussed related forth risk which is a sudden shock to market liquidity. These are closely related in the occur together oftenly. It identifies her symptoms but also the cause. Let me conclude this section by talking about our work. We delivered the work by the committee. It is aimed to inform the councils analysis of how that industries and activities can create risks and financial instability. I want to give you a brief update on how we are filling data gaps and mentioned some results on our data research. Our process for addressing data gaps is three parts. First to identify data needs. Second we catalog existing data to determine where the gas may be. Prior tries those gaps with Council Member organizations. Probably reflects the needs to monitoring some of the risks i just described. Repo markets and other transactions including security blending. Mention the limoneira results preliminary results. These results confirm your intuition. First is an analysis of money Fund Investing which suggests the portfolio managing drove the decline in exposures over the past three years during the european crisis. In thes of activity market are banks arm marketmakers. More work is needed here to assess both sides of that market. Lastly we analyze Hedge Fund Leverage and using those Data Collected under the forms. This work suggest that hedge funds were leverages are proportional to their assets. Those are considered level three assets under accounting rules. That is a good thing under the limoneira basis preliminary basis. I know you all agree that data standards are important. We are making needed investments in the development and in their implementation. I focus on them today because work on development and implementation is needed and deserves roof deserves your support. It compares, hydrates, links data. They reduce collection costs and duplication. We do let developed a framework for promoting data standards. Not surprisingly, key conclusion standards should be adopted universally. We all need to use the same standards or translate one sat in one set uniquely to another. The global legal entity identifier initiative is a signature effort. Identification of parties to financial transactions. Collaboration from primary relators, some of who are members of the council. We are seeking broader implementation in u. S. Financial reporting to sink efforts going on abroad. Second, a universal mortgage identifier has long been needed. The collaboration is now paying off. From severalelp agencies here, we just published a concert paper. Assesses characteristics it should have in the criteria for implementation. Cases, industry participants strongly favor the use of standards to help make your internal data and reporting activities coherent and efficient. Our Standards Initiative covers a range of issues. Dixon to collaboration of across Council Member organizations. First is the adoption of best dataices to like sensitive so that we can better assure them. Collaboratep to to improve the standards of the quality of Data Collected and swap data suppositories. Those are my remarks. I will be happy to take any questions. I would ask of other members have questions for him on the work. I think it is important work that you do. That new body that was created out of dodd frank and the report that will be issued that we look for to we look forward to. I will ask one question. To the extent that you have now got a body of work behind you, does it give you a different view in terms of what the kinds of risks that we need to be analyzing are . It was designed to grade a mechanism to support this councils working kind of thinking a little bit outside the box looking ahead at the risks that may not come through each of the independent bodies independently. I ask you the question what are the things that you take away from the experiences you have had as being the most important takeaways . There are a lot of a lot of important work going on. I think our job is to till in the gaps between the work that is going on among the agencies and to look across the Financial System along with other Council Member organizations and agencies. Some of the work that were doing that relates to these granular data is really important. Looking at the some of the risks in Operational Risk and the plumbing of the Financial System are report and and we are starting to do some work on that along with others. Looking at how the connections and liquidity and funding i talked a lot about those in what i just mentioned. I think that the connections between and among institutions and Market Participants are really important. It is the connections across the Financial System that i think we need to focus on and that really enables us to look at the system as a whole. Thank you. If there are no further questions, i would just close with a matter of housekeeping business. Look for a motion to improve the resolution of the minutes from the last Council Meeting on october 31. Move. All in favor . Aye. They are approved. Unless there are other items that he won the like to raise, i would like to ask for motion to adjourn. Second . I look forward to seeing everyone at the next meeting of this council. Thank you. Cspan we bring public a pair of events to from washington directly to you foring you in the room briefings and conferences and offering complete coverage of the u. S. House all as a Public Service of private industry. We are cspan created by the cable tv industry and funded by your local cable or satellite provider. Hd. You go watch is aus in president obama is reading a delegation to Nelson MandelasMemorial Service that includes former president s. The former president of south africa died last thursday. Our coverage of the memorial will be on cspan2 tomorrow morning. Weve also have live coverage of cspan radio and cspan. Org. We will take your comments at cspanchat and on facebook. British Prime MinisterDavid Cameron and other members of parliament celebrated the life of Nelson Mandela with a special tribute session. Join 100 worldl leaders in johannesburg at the Memorial Service. Order. Order. Know how will wish to we intend to proceed today. The questions will be persona until postpone until next monday. The present list will be carried over. The table office will announce consequential changes shortly. This is a special day. A special tribute to a special statement Nelson Mandela. I hope that as many many as many members of possible can contribute. Tributes may continue until 10 p. M. There will be no end of day adjournment debate. The house will also wish to know that there will be an event to commemorate and celebrate the life and achievements of Nelson Mandela taking place in Westminster Hall at 2 p. M. On thursday. I called up Prime Minister. Thank you, mr. Speaker. Nelson mandela was a towering feature figure in our lifetime. It is right that we meet in this parliament to pay tribute to his character, his achievements, and his legacy. The union and South African flags flew at half mast. They will do so again on the day of his funeral. Condolence books have been organized by the South African high commission. This evening the deputy Prime Minister and i will fly to south africa to attend the Memorial Service in johannesburg and on sunday, his royal highness, the prince of wales, will represent his country. Everyones thoughts are for the families of Nelson Mandela and the millions who were morning and today. When looking back over history, it can be easy to see victories over hatred as inevitable. Receded, it seem as though a natural tide of as upwardsntinued away from brutality and darkness and toward something better. It is not so. Progress is not handed down as a gift, it is one through struggle. The struggle of many women anmen and women who believe things can be better. Nelson mandela was the embodiment of that struggle. He did not see himself as a helpless victim of history, he wrote it. We may never forget the evils of apartheid. Separate benches, separate buses, separate schools, even settled a separate pews in church. Passed laws. All language of segregation that expressed inhumanity to man. Nelson mandela struggle was made more active. His was a journey that spanned six decades from an activism in the 1940s and 50s through nearly