Cybersecurity

Regulation Can't Solve Cybersecurity Problems, Fed Official Says

Arthur Lindo says regulators backing away from 2016 proposal
Government needs to co-operate with private sector, he says

Cables run into the back of a server unit inside the data center of FinTech Group AG's campus offices in Frankfurt, Germany, on Tuesday, April 12, 2016. The volume of investment in Germany's fintech industry will probably quadruple to 2 billion euros ($2.2 billion) in the next five years, said Hubertus Vaeth, managing director of Frankfurt Main Finance.
Photographer: Krisztian Bocsi/Bloomberg

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By Yalman Onaran

November 6, 2017 at 10:16 PM UTC

This article is for subscribers only.

More rules may not be the best answer to protecting the financial system against cyber attacks, a Federal Reserve official said.

“I don’t think the solution to the cybersecurity problem rests in regulation,” Arthur Lindo, senior associate director of the Fed’s division of supervision and regulation, said Monday at a banking conference in New York. “We’re going to try a more flexible approach.”