Democrats target big banks for more details on data breaches

by MPA18 Nov 2014
Sen. Elizabeth Warren (D-Mass.) and Rep. Elijah Cummings (D-Md.) have sent letters to 16 major banks and other financial firms requesting detailed information about recent data breaches. Bank of America, Citigroup, Goldman Sachs, Wells Fargo and Morgan Stanley were among the policymakers' targets.

The duo is asking the financial institutions to explain how the hacking happened and to be transparent about what they lost. Warren and Cummings said their goal is to gather information to inform possible new federal cybersecurity legislation.

The news comes a month after JPMorgan announced  it had no plans to notify the estimated 76 million affected by its most recent security breach. When asked why, a spokesman said, “That’s just what we’re doing,” according to MarketWatch.

In their letter, Warren and Cummings wrote that law enforcement officials believe the U.S. financial sector is one of the most targeted in the world. “Your ability to protect consumers and safeguard their personal information is central to earning and maintaining consumer confidence in our economic system.”

Federal officials warned companies last month that hackers have stolen around 519 million financial records over the past 12 months. Out of that number, nearly 439 million of those records were stolen in the past six months,

Warren, who is active in Washington’s fight for financial reform, also helped establish the Consumer Financial Protection Bureau. She has urged Congress to give the Federal Trade Commission more authority to regulate data breaches.

 In October, the two lawmakers called on the U.S. Government Accountability Office to investigate nonbank mortgage lenders and the risks they pose to consumers.

Click here to read about how to hacker-proof your client’s data.

Click here to read their letters.


  • by GARY H | 11/18/2014 3:39:00 PM

    If brokers weren't filling out so many BARNEY Frank Forms and going through so much "red tape" maybe they would have time to meet "face to face". Especially if all rules applied to all> Including the great untouchable Jamie DIMON. Forget the internet go to the meet, make a decision based on the four C's, amend the Fair Credit Reporting to have the bureaus accountable and maybe even do the scoring system differently. Somehow it makes more sense that someone who has never missed a beat in their life and has 25 years of credit is truly a better risk than someone out of college with a $500 line of credit who got the card through their mom and dad.


  • by Alex | 11/19/2014 10:46:24 AM

    Chase's comment that they aren't notifying the 76 million customers affected by the breach and "that's just what we're doing" is unbelievable. Shows a complete lack of care about their customer and only focused on their pay checks and investors. No wonder they are constantly getting sued billions of dollars for their arrogance. Jamie Dimon needs to stop throwing stones in his glass house and look in the mirror instead of pointing fingers at everybody else.


Should CFPB have more supervision over credit agencies?