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00:00SECURITIES SPACE. MATTIS IS AN INTERESTING CHOICE GIVEN THAT HE IS NOT A CIVILIAN CANDIDATE. HE'S A DECORATED VETERAN. WHAT DOES THAT MEAN FOR HIS VIEWS ON CYBER SECURITY, TECHNOLOGICAL WARFARE ON THE GROUND? DAVE: SO, GENERAL MATTIS HAS A TERRIFIC REPUTATION AS AN INTELLECTUAL, HE IS STRATEGIC. HE HAS ADVOCATED FORCE ONLY WHEN NECESSARY. I THINK HE STANDS OUT AS A CONFIDENT PICK AMONG THE CABINET. THE QUESTION IS REALLY NOT ABOUT THE PARTICULAR BUT WHY IT IS DONALD TRUMP WOULD SAY HE IS LOOKING TO THE DEFENSE DEPARTMENT AND JOINT CHIEFS OF STAFF IN THIS PLAN TO PROTECT THE VITAL INFRASTRUCTURE AGAINST CYBER ATTACKS. LOOKING TO THE DEFENSE DEPARTMENT TO GET ON MATTIS, OR THE JOINT CHIEFS OF STAFF TO PROTECT OUR INDUSTRIAL SECURE SYSTEMS, DAMS, NUCLEAR REACTORS. -- THAT IS NOT THE RIGHT SOLUTION. CALLING IN MARINES TO STOP MALWARE IS LIKE TRYING TO STOP A TERMITE INFESTATION WITH A SHOTGUN. EMILY: WHAT DOES IT MEAN FOR THE NSA? THEY EXPECT THE NSA TO FOCUS MORE ON THREATS FROM RUSSIA OR WITHIN THE U.S.? DAVE: IT HAS ALWAYS BEEN TO MONITOR THREATS FROM EXTERNAL ENEMIES. WHAT IS SCARY IS PRESIDENT-ELECT TRUMP DOES NOT SEE RUSSIA AS AN ENEMY AS MUCH AS THOSE ON THE HOMELAND. JIHADISTS, CONSPIRING JOURNALISTS. EMILY: OR ANYBODY ON "SNL." DAVE: THE CONCERN IS IS HE GOING TO REDIRECT THOSE CYBER CAPABILITIES AGAINST THE AMERICAN POPULATION? GIVEN WHO HIS ADVISERS ARE, RUDY GIULIANI WHO PROPOSED TO STOP AND FRISK ON THE STREETS OF AMERICA, WHY NOT CYBERSPACE? PETER THIEL, THE BILLIO NAIRE , WHOSE MAIN POSITION WAS IN THE COMPANY HE FOUNDED MAKES THE SOFTWARE TO MONITOR LARGE POPULATIONS. WHAT IS GOING TO STOP THE NSA, WHICH IS PART OF THE DEFENSE DEPARTMENT, TURNING ITS SIGHTS ON AMERICANS? THE CONCERN I HAVE IS WHETHER GENERAL MATTIS WILL HOPEFULLY STOP THAT KIND OF USE OF THE NSA, BUT THERE ARE OTHER SPY AGENCIES. EMILY: GENERAL MATTIS IS INTERESTING. HE'S ON THE BOARD OF THE VERY CONTROVERSIAL BLOOD TESTING COMPANY THERANOS. HE IS STILL ON THE BOARD TODAY. YOU WOULD HAVE TO STEP DOWN IF HE BECOMES SECRETARY OF DEFENSE. HE ALSO TRIED TO GET THE MILITARY TO USE THERANOS TECHNOLOGY UNSUCCESSFULLY. WHAT DO YOU MAKE OF THIS? DAVE: I'M SURE YET NO IDEA THE TESTS DIDN'T WORK. IT IS A GOOD THING THAT WE HAVE THE FDA TO SET THE RULES AND TO APPLY SCRUTINY AS TO WHAT IT IS THE COMPANIES ARE GOING TO SELL TO THE PUBLIC. WHEN WE TALK ABOUT CYBER SECURITY, THIS IS AN AREA WHERE WE NEED THOSE RULES. WE NEED THESE REGULATORY AGENCIES LIKE THE FTC AND FCC AND SEC AND THE CMS FOR HEALTH CARE AND THE REGULATORY COMMISSIONS. THESE AGENCIES ARE TRYING TO IDENTIFY, PROMOTE AND ENFORCE CYBER STANDARDS AMONG COMPANIES AND GOVERNMENT AGENCIES IN ORDER TO MAKE CYBERSPACE SAFER FOR EVERYBODY. I'M HOPING GENERAL MATTIS WILL BE -- WILL PAY MORE ATTENTION TO

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What Trump’s Choice of Mattis Means for Cyber Security

David Cowan, partner at Bessemer Venture Partners, discusses the president-elect’s choice of retired Marine General James Mattis to lead the Defense Department. He speaks with Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

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