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No one really knows what an AI driven banking crisis is, so of course no one is prepared
Germany bails out Italy => pays off the debt Italy owns deutche => Deutche offers financing for Italian businesses => deutche still goes under => acquired by comemerzbank => Unicredit strives => buys out Comerzbank. The vicious cycle of bailouts.
GERMANY’S FINANCE MINISTER LINDNER EXPRESSED HIS CONCERN TO ITALIAN GOVERNMENT ABOUT TAKEOVER APPROACH BY UNICREDIT FOR COMMERZBANK
*Walter Bloomberg @DeItaone
CENTRAL BANKS ARE UNPREPARED TO HANDLE AN AI-DRIVEN BANKING SECTOR CRISIS
An AI-driven crisis in the global banking sector would likely unravel at a faster pace than past crises have, a scenario which central banks are unprepared for, Jon Danielsson, director of the Systemic Risk Centre and reader in finance at the London School of Economics says at the S&P Global Ratings European Financial Institutions Conference 2024 in London. “Central banks are not ready to deal with an AI-driven crisis in the banking industry,” he says. An AI-driven crisis in the financial industry would likely be “characterized by speed”
@WhaleHeadlines
BANKS ARE LOCKED IN A CUTTHROAT COMPETITION, DESPERATELY CHASING AFTER THE NEXT BIG FINANCIAL SCHEME. THIS CHAOTIC SCRAMBLE FEELS LIKE THE PERFECT SETUP FOR A BLACK SWAN EVENT, AND THE SENSE OF URGENCY AND PANIC IS HARD TO IGNORE.
The observation by Jon Danielsson from the London School of Economics that central banks might be unprepared for an AI-driven banking crisis underscores a critical aspect of our rapidly evolving financial landscape. Here’s a speculative outline of what such a crisis might entail:
@Monsen_P https://x.com/Monsen_P/status/1839317602029678626
The observation by Jon Danielsson from the London School of Economics that central banks might be unprepared for an AI-driven banking crisis underscores a critical aspect of our rapidly evolving financial landscape. Here’s a speculative outline of what such a crisis might entail:
**1. *Speed of Spread:***
– **High-Frequency Trading (HFT) Errors:** AI systems, particularly those involved in HFT, could initiate massive trades in milliseconds. If an AI misinterprets market signals or makes an error in judgment, it could lead to sudden, massive sell-offs or buying sprees that traditional human intervention might not catch in time.
**2. *Algorithmic Failures:***
– **Cascading Failures:** If one AI system fails due to a bug or a miscalculation, given the interconnected nature of modern banking through APIs and data sharing, this error could propagate through other systems at an unprecedented speed. This could lead to a rapid domino effect, destabilizing markets before human decision-makers can react.
**3. *Feedback Loops:***
– **Reinforcing Market Trends:** AI systems might inadvertently create feedback loops where, for example, selling triggers further automated selling based on AI analysis of market sentiment or price drops, spiraling into a flash crash scenario.
**4. *Cybersecurity Risks:***
– **AI in Cyber Attacks:** Sophisticated AI could be used by malicious actors to launch cyberattacks that are more targeted and harder to detect, potentially crippling banking infrastructure or manipulating markets directly.
**5. *Lack of Transparency:***
– **Black Box Decision Making:** Many AI systems, especially deep learning models, operate with decisions that are not easily interpretable. In a crisis, understanding why certain actions were taken by AI could be crucial but might be opaque, complicating response strategies.
**6. *Regulatory and Ethical Challenges:***
– **Regulatory Arbitrage:** Banks might use AI to navigate or exploit gaps in regulation faster than regulations can evolve, leading to risky behaviors that only become apparent after a crisis has begun.
**7. *Consumer Trust and Panic:***
– **Public Perception and Panic:** If an AI-driven crisis becomes public, the speed at which information (and misinformation) spreads could lead to widespread panic, withdrawals, or shifts in consumer behavior, exacerbating the crisis.
**8. *Systemic Risk:***
– **Interconnectedness:** The AI systems across different banks could be trained on similar data or use similar algorithms, creating a systemic risk where a failure in one AI’s logic might be replicated across the sector.
**Response Preparation:**
For central banks to prepare:
– **Stress Testing AI Systems:** Regularly test AI systems under extreme scenarios to understand their failure modes.
– **Human-in-the-Loop:** Ensure there are always human oversight mechanisms that can override AI decisions in critical times, though this needs to be almost as fast as AI.
– **Regulatory Sandboxes for AI:** Develop environments where AI banking applications can be tested in controlled conditions to identify potential systemic risks.
– **Enhanced Cybersecurity:** Invest heavily in AI-driven security measures to counter AI-driven threats.
– **Education and Training:** Train financial sector workers and regulators on AI to understand its capabilities and limitations thoroughly.
The essence of an AI-driven crisis in banking would be its unpredictability and speed, challenging the very frameworks of risk management and regulatory oversight that currently exist.
*******
Olivier, or one of Ethereums largest Whales, funded from what appears to be stolen Mt. Gox funds, married the Grandaughter of the last King of Italy.
I guess we can throw accountability out of the Window…
https://x.com/BoringSleuth/status/1839076994115408240
Who is Olivier Janssens, aka Anarchystar?
Anarchy5, behind the Stolen Mt. Gox Crypto, sends the ETH they minted during the ICO to an OlivierJanssens.eth address.Could it be? Cold Case not so Cold.
https://x.com/BoringSleuth/status/1838608953573359997
@BoringSleuth
https://x.com/BoringSleuth/status/1839173206462312474
https://threadreaderapp.com/thread/1839173206462312474.html
“Let me say it again, the same man that ends up with Stolen Mt. Gox Bitcoin, who took the seat on the Bitcoin Foundation of a person who lost his seat due to that same theft, then uses that theft to Smear the very same foundation he was just elected to, while offering an alternative solution. That man also happens to be the inlaw of the last King of Italy.” – Quote from Below – Continue reading to learn the History of the Infiltration of the Bitcoin Foundation
From 2012 until January of 2014, Mt. Gox was slowly exploited from within for over 850K Bitcoin. When researching on-chain, some of this stolen Bitcoin goes on to Mint the Ethereum ICO, becoming one of its Largest Whales. The Ethereum received from this purchase goes to a wallet with only 1 ENS Domain name, OlivierJanssens.eth. Olivier Janssens, who later goes on to sit on the Bitcoin Foundation Board in March 2015, became married to the Granddaughter of Italy’s last King in 2002, and at the time was allegedly Mt. Gox’s largest “investor”.
In January 2014, Bitcoin Foundation Board Member, Charlie Shrem, was arrested for aiding and abetting the operation of an unlicensed money-transmitting business related to his role in assisting the online marketplace Silk Road. He received a prison sentence of just 2 years. Silk Road’s “alleged” Founder, Ross Ulbricht received 2 Life Sentences.
In February 2014, Mark Karpeles, then CEO of the Mt. Gox exchange, resigned from the Bitcoin Foundation board after it was reported that Mt. Gox lost 850,000 of its customers’ bitcoins and went bankrupt, causing the value of bitcoin to crash.
In May of 2014, Bitcoin China CEO Bobby Lee and Tether Founder, Brock Pierce took the Board Seats left behind from Charlie Shrem (Silk Road Fraud) and Mark Karpeles (Mt. Gox Theft/Bankruptcy).
In March of 2015, just 6 Years after Bitcoins creation, Olivier Janssens, in-law to the last King of Italy, who supposedly became wealthy because he mined bitcoin in 2010, but is without a doubt, tied to the stolen Mt. Gox 850K Bitcoin, was elected to the Bitcoin Foundation Board, along with Jim Harper.
Effectively, the in-law of the King of Italy, who seems to be a part of where the 850K BTC went, took a Board seat on the Bitcoin Foundation, essentially filling the void of Mark Karpeles, the CEO of Mt. Gox, who lost his board seat because of the Theft.
Then, once Olivier Janssens attained his Board Position, publicly makes statements saying the Bitcoin Foundation is Broke and out of runway, the foundation is censored, and goes on to offer a $100K bounty to replace the Bitcoin Foundation.
Janssens stated that ” “The Foundation will support core development” vision didn’t work; I took a couple of weeks off from doing technical work to meet with people capable of funding that vision and it very quickly became clear most “deep pockets” don’t trust that the Foundation would stick to that vision, or aren’t willing to risk their reputations being closely associated with an organization that had two of its Board members resign in disgrace last year.”
Yes, the man that I linked to the Stolen Bitcoin, uses the theft against the same Foundation that effectively infiltrated so that he could destroy it.
Let me say it again, the same man that ends up with Stolen Mt. Gox Bitcoin, who took the seat on the Bitcoin Foundation of a person who lost his seat due to that same theft, then uses that theft to Smear the very same foundation he was just elected to, while offering an alternative solution. That man also happens to be the in0law of the last King of Italy.
This is infiltration at its finest.
Janssens post was coupled with ex-board member Andresen publicly placed doubt on the Foundation, and Jim Harper, who was elected to the Board with Janssens aligned with all of Janssens statements and votes. Harper was brought in prior to the board as Global Policy Council.
Both Janssens and Harper were forcibly removed from the Foundation just 8 months after being elected to their seats, 16 months short of their 2 Year Term.
Since that date, the Bitcoin Foundation arguably has never been the same.
Of note, Janssens is currently partnered with Roger Ver in a Startup that seeks to lease land from a Government in an effort to start their own Libertarian Government in exchange for money (makes zero sense, and me question everything Roger is). It’s been 7 Years, and I believe its just Storytelling to the Plebs.
Always, and Forever, Stay Curious, and Align with The Spirit of Truth.
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