(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
JS-114Contact Rob Nichols at 202-622-2910.
The financial markets are the engine of our free enterprise economy. At Treasury, we are determined that the financial markets continue to conduct business even during times of hostilities abroad or adversity at home. We continue to work with the financial and banking communities so that our financial system remains functioning efficiently and effectively. We are confident America’s financial infrastructure is strong and resilient.
Treasury Fact Sheet on Measures to
Protect the Financial Markets during Hostilities with Iraq
Operational security prevents Treasury from disclosing in detail the precise measures that it and others are taking to protect our critical financial infrastructure. Treasury can, however, disclose that Treasury and the federal financial regulators have taken the following steps to protect our critical financial infrastructure:
- Identified the payments, custodial, clearing, exchange, banking, trading, and other financial institutions that are most critical to our financial infrastructure.
- Upon request, arranged for expert assessments of physical and cyber-vulnerabilities in critical financial institutions.
- Arranged for these and other critical financial institutions to have access to priority telecommunications services – both land-based and wireless – to help their communications get through during times of crisis.
- Assisted in coordinating the protective response of state and local authorities with critical financial institutions.
- Arranged for additional physical protection of critical institutions, depending on available federal and National Guard resources.
- Established systems and procedures to enable the federal financial regulators to communicate among themselves and with the private sector during times of crisis as well as promoted industry measures to maintain their own crucial financial communications with each other.
In the event that hostilities abroad lead to an increase in the threat level at home, Treasury will communicate regularly with the other federal financial regulators regarding the situation and whether any additional appropriate actions are necessary.
In addition to these federal activities, the private sector has taken important actions to protect the critical financial infrastructure. For example, the private sector has:
- Largely eliminated single points of failure in the telecommunications infrastructure that supports the financial markets.
- Established improved business continuity plans.
- Created new backup facilities at greater distance from their primary operations centers.
In the event hostilities abroad lead to a change in the threat level at home, critical financial institutions will, among other measures:
- Increase their physical and cyber-security measures including increasing security forces, increasing identity checks, and restricting access.
- Work with state and local authorities to enhance physical security for specific institutions.
Treasury and the other federal financial regulators have taken steps to protect the government’s critical financial functions including: the government’s ability to borrow; the government’s ability to make payments - including social security payments; the government’s ability to raise revenue through the Internal Revenue Service. In the event that hostilities abroad lead to an increase in the threat level at home, agencies responsible for the government’s critical financial infrastructure will, among other things:
- Increase physical and cyber-security measures including increasing security forces, increasing the frequency of security patrols, increasing identity checks, and restricting access.
- Work with state and local authorities to enhance physical security for specific physical assets.
- In some circumstances, disperse individuals critical to continuing operations.
- Use backup facilities as appropriate.
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