orlov is ; nevertheless, according to no less an authority than orlov! ), stalin celebrated the arrival of the [ spanish ] gold with a banquet at which he [ toasted ], “ the spaniards will never see their gold again, just as one cannot see one ’ s own ears. ” sometimes there is illustrative power in a negative example, even from one whose transgressions went exceedingly beyond being an untrustworthy custodian. the antithesis of what this bank stands for could not be expressed with more force or greater clarity. the ultimate foundation of this institution, you see, far beyond its technical capacities in monetary policy execution, or its supervision of financial institutions, or its provision of financial services, is trust. this trust must be earned, every day, across every mandate, especially in an era in which confidence in public institutions has waned. the nature of this trust is fickle : it accrues slowly, and can evaporate instantly. it is a charge we take very seriously, especially when it comes to the resiliency and security of the foundational elements of our nation ’ s payment system. thank you for your generous attention today. i ’ d be pleased to respond to a few questions. 3 / 4 bis central bankers'speeches 4 / 4

a function of regulatory pressure, or capital demands, or an evolving economy, or compliance challenges, or the proliferation of new technologies, or an unprecedented season of payments innovation, or the challenging competitive landscape. all of these may represent very real risks, and no doubt occupy your consciousness, to borrow the lyrics of a prior generation, “ eight days a week ”. rather, building upon the theme of your prior panel discussion, the risk that dominates from my parochial view is the escalating and evolving cyber threat to our financial and payment systems, representing the challenge of our generation. the orientation that i want to pursue, reflecting this audience, is not what we are doing within the federal reserve to harden our critical infrastructure. while that is a manic and consuming preoccupation it is not my focus today. instead, i want to concentrate on endpoint security vulnerabilities to the payments system, in which partnership with the institutions in this room represents an indispensable element of success. historically, market infrastructures have operated on the presumption that endpoint security is 1 / 4 bis central bankers'speeches principally the responsibility of the endpoint, and infrastructure security is principally the responsibility of the operator. in the united states, the legal framework for wholesale funds transfers codifies that presumption, with each actor assigned responsibility for that part of security most within its control. yet, in the present environment endpoint security breaches can have serious implications for public confidence in the integrity of the network as a whole, even in circumstances when the operator ’ s infrastructure, applications, and security perimeter have not been compromised. a series of recent high profile events have underscored dramatically this endpoint security risk, a theme that has also captured the attention of global policy makers. as operator of a payment system in which a fedwire funds transfer is immediate, final, and irrevocable, and for which a single transfer can be affected for a penny shy of $ 10 billion, the federal reserve banks recognize that the stakes for public confidence are incomprehensibly large ; as users of said payment system, you realize the stakes for endpoints in terms of reputational risk and financial viability are equally profound. our fates in this domain are inextricably linked. work to mitigate endpoint security risks in support of our collective interest proceeds across multiple fronts, including efforts to enhance end - to - end understanding of the security relationships within a network ; initiatives to enhance assurance