Morning Scan: Supercharged Spending on Cybersecurity; Robo-Signers Return

5-banks-robo-signersAmerican BankerBy Andy Peters

Banks and other financial-services companies will increase spending on cybersecurity by $2 billion over the next two years, according to a PricewaterhouseCoopers study. Citigroup, for example, now spends about $300 million yearly on cybersecurity, an anonymous source told the Journal. Wells Fargo spends about $250 million per year. JPMorgan Chase now spends about $250 million, but that could double over the next years, CEO Jamie Dimon has said. JPMorgan has about 1,000 workers focused on cybersecurity.

The paper looks at the state-owned Bank of North Dakota, noting the bank is riding high thanks to the state’s oil industry. The article reveals no new information, but it points out various curiosities, such as the fact the bank is more profitable than Goldman Sachs and has a better credit rating than JPMorgan Chase. Because of the state’s gusher of oil revenue, BND’s its customary $30 million annual payment into the state’s general fund hasn’t been requested by the state since 2010. The Journal article notes one BND failure: in the early 2000s the bank lent money to a movie set in North Dakota starring Kris Kristofferson in a bid to spur tourism. The movie flopped and the bank wrote off the loss.

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