Fed’s Powell, Scott Bessent warn bank CEOs of Anthropic AI risk: BBG

00:00 Speaker A

Maybe this is all moot because AI models will steal all our money anyway.

00:02 Speaker B

Very good.

00:03 Speaker A

It’s like we can address the risk in the market, but guess what? Mythos is coming to wipe everything out. I mean and I say this because

00:14 Speaker B

We’ve turned this camera around before. Just before going live, the camera panned.

00:17 Speaker A

Definitely. The camera was almost capturing the purple background behind us throughout the entire show. Looks like this is an interesting couple, Scott Beson and Jay Powell.

00:32 Speaker B

Yes.

00:33 Speaker A

This was part of this report; If something is serious enough to bring Scott Beson and J. Powell together, maybe we should pay attention to it. They summoned a group of bank CEOs to Washington. Normally you’ll see a group of bank CEOs being personally summoned to a meeting in Washington.

00:48 Speaker B

Yes.

00:48 Speaker A

They, you know, have driven the market crazy. It’s not like they’re going crazy in this case, but behind it is this anthropic model that they’ve released very carefully to just a few big tech companies because they say this model could be potentially dangerous because of its risks to cybersecurity.

01:03 Speaker B

Yes.

01:04 Speaker A

Um and so they called these bank CEOs. They did not seek out CEOs from other industries. They specifically called bank CEOs. And we don’t know much about him beyond that, right?

01:14 Speaker B

But the point is that maybe this seems like something we should be worried about.

01:19 Speaker A

Well,

01:21 Speaker B

Maybe that’s why I’m right or we’re right to keep talking about private credit because

01:31 Speaker B

What this report points out is that the biggest risks remain on the financial system.

01:42 Speaker B

Like yeah, you know cybersecurity cybersecurity breaches are bad, blah blah blah. but it’s like calling these executives with Jay Powell and of course the Fed is the regulator of the financial system, that’s the biggest problem we can have with rogue software or whatever it is, they wipe out all the numbers and all the money is gone, right? Because money is mostly just digital numbers on a ledger, right?

02:07 Speaker B

So if all of this goes away then obviously this is a big problem. I see it in some ways as financial superiority versus technological superiority, right? Because if the first alarm bell rings, and yes, I think the tech world’s discourse this week has two parts. The first of these was about the power of the model itself. These vulnerabilities, called zero-day vulnerabilities, all these problems are problems that this model may or may not introduce in the technology ecosystem. The second part is that the idea that there is a pattern so powerful that other people can’t see it is also part of the public relations efforts of the AI ​​industry.

02:35 Speaker A

Certainly.

02:36 Speaker B

It will be released in a few years. So to see the financial industry or their regulators say we need to talk about this.

02:44 Speaker B

It seems to me, once again, finance makes the world go around and, you know, all these other things are at the bottom of the financial system, is the financial system sound and functioning? This is the real fear that there may be a problem in the banking system caused by artificial intelligence.

02:59 Speaker B

If your work day is ruined by something bad, I think it’s okay. I think you will live.

03:03 Speaker A

True, true.

03:04 Speaker B

But if the money disappears from your accounts,

03:06 Speaker A

Yes.

03:07 Speaker B

bigger problem.

03:07 Speaker A

I think up to this point, if it’s not just that you’re having a bad workday, if the person who’s going into the workday is getting all of your information, all of your information, I think we all assume that all of our personal information is there, but our financial information is not there, right?

03:20 Speaker B

Right. like

03:22 Speaker A

My bank, not everyone has my bank account number and password. Yes, they know where I live. I assume these are all publicly available at the moment. It’s very hard not to be, but they don’t have that. They don’t have my money.

03:32 Speaker B

Yet.

03:33 Speaker A

Yet.