The Fed's AI Panic: Why Institutional Defenses Are Running on 2019 Architecture

The Financial Stability Board (FSB) just issued a global warning: AI-driven cyber risks are now a direct threat to financial stability. The ledger doesn't lie. In the last quarter, I tracked 17 exploits targeting DeFi bridges using AI-powered vulnerability discovery. The traditional banking sector is far more exposed. They run on legacy systems that are slowing down exactly as the attack vectors accelerate. Volatility is just unpriced fear wearing a mask. Right now, the market is pricing this as a regulatory footnote. It's not. This is a structural shift in the threat landscape.