Banks Simulate Another Crisis šŸ’£

Table of Contents

Banks Simulate Another Crisis

Three of the world’s ā€œtoo big to failā€ banking institutions just ran a drill for the next great financial crisis, and it went about as well as expected! They say the threat is cyber, and that it falls to Wall Street to stop our portfolios from being reset to zero.

Ransomware is a weapon of mass destruction. ā€˜Petya’ targeted Microsoft in 2016, freezing banks and metro systems. A year later, ā€˜WannaCry’ spread the globe like a virus, holding hostage Britain’s National Health Service, multiple auto-makers, nuclear power stations, and even FedEx. To “decrypt your files,” the crims wanted billions of dollars in, you guessed it, Bitcoin!

Now, in an effort to prevent the global financial system from falling prey, a catastrophic ā€œQuantum Dawn Vā€ training simulation was run yesterday. Thomas Price, boss of industry trade group SIFMA, can give us the inside scoop!

At 7 a.m. yesterday, 800 bankers from the US, Europe, and Asia joined a convenient conference call together and then pretended it was business as usual. Then, dun, dun, dun, a ā€œsystemically important financial institution was attacked by malicious ransomware and knocked offline!ā€ With America under siege, a timely and decisive response was required.

ā€œThe initial scenario was followed by a number of questions and a discussion of rules about public disclosure.ā€ Well, thank God for that! But as US banks grappled with whom to blame and the wording of their press releases, two more major banks in Asia and the UK were hit and also taken offline.

At this point in the sim, our global financial system is at breaking point, stocks are plummeting, and the public is making a run on the bank. So, how do we respond? Unfortunately, that’s where the exercise ended. Perhaps someone forgot to top up the meter? Anyway, we assume there were ongoing efforts to resuscitate your grandparents’ 401ks, but we will have to wait for Protivi, chronically understaffed cybersecurity firm, to release its public report on Quantum Dawn to see the full observations on how banks performed. That should be a fun read!

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr VisaĀ® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.