The country’s biggest banks are monitoring the escalating conflict between Russia and Ukraine in response to potential economic sanctions or cyberattacks.
The Biden administration is in regular contact with banks about the possibility economic penalty about Russia, according to a bank executive briefed on those discussions, who asked to remain anonymous because of the sensitivity of the situation. Those negotiations are intended to prepare lenders and minimize the possibility of financial market disruption if broad-based sanctions are imposed.
The implementation of severe economic sanctions would be a complicated undertaking, requiring American banks to cut lending to Russian companies, sales Government bonds and potentially cross-border payments. Such harsh measures have never been applied to an economy as large as Russia.
Lenders could be affected if the conflict escalates causing volatility in stock markets and commodity prices. But a major emerging threat for banks is the threat of cyberattacks, which could be Russia’s way of retaliation if financial and economic sanctions are imposed.
The Financial Services Information Sharing and Analysis Center, a group that shares cyber information across the financial industry, said it was looking for threats.
Steve Silberstein, CEO of FS-ISACsaid in a statement.
Ministry of Treasury Meet the bank manager, including Brian Moynihan of Bank of America and Charles W. Scharf of Wells Fargo, on Wednesday for a previously scheduled meeting to discuss cybercrimes. The next day, government officials from the White House and several agencies met with executives from major U.S. lenders to discuss their response to the attack threats. latent of Russia, CNN reported.
Jeremy Barnum, JPMorgan Chase’s chief financial officer, told investors the bank was watching for “increasing geopolitical tensions” and said it was a good sign that Secretary of State Antony J. Blinken and Russian Foreign Minister Sergey V. Lavrov, plan to meet. “It is definitely a watch item,” Mr. Barnum said at a conference on Friday.
https://www.nytimes.com/2022/02/22/business/russia-ukraine-banks.html Major banks are keeping a close eye on Russia-Ukraine tensions.