Bank of England governor and FSB chair Andrew Bailey told G20 finance ministers
and central bank governors in a letter that frontier AI models’ cyber risks are
increasing the risk of a market crash and called for more countries to control
model releases. He said financial firms and tech groups must prepare for a
“scenario in which multiple firms or shared‑technology dependencies are
simultaneously more severely disrupted.” Bailey warned AI cyber risk is
amplifying existing financial vulnerabilities — energy‑driven inflation, higher
interest rates, elevated investor leverage and rich equity valuations. He urged
countries to take “appropriate steps” to regulate releases of frontier AI
models, an appeal that appears aimed at persuading the US to rethink its
relatively light‑touch stance; President Trump’s recent executive order does not
grant the government authority to block model releases.
