New York state is proposing regulations aimed at protecting your money from criminal hackers, and the initiative is already drawing criticism from Wall Street.
Critics say the proposal is unlikely to improve security at Wall Street giants. They say big firms are already forced to comply with any number of federal cybersecurity laws and largely adhere to industry-wide guidelines. The proposed regulations, they say, will simply result in more paperwork tying up valuable time that could be spent on more serious problems.
"All the legwork that's required to comply with all these different regulations takes on a life of its own," said Steven Grossman, an executive at cyber risk analytics firm Bay Dynamics.
"It would be great to get a consolidation of requirements and reporting across the different governing bodies," said Grossman, whose company makes software that automates the reporting process and alleviates this pain point.
The view is widely shared across the banking industry.
"We recognize that individual organizations that regulate financial services are going to put in some level of cybersecurity regulation," said Doug Johnson, senior vice president of payments and cybersecurity policy at the American Bankers Association. "We just want to have them as similar as possible."