Central Bank Leaders Conduct War Game to Address Potential Financial Collapse
Senior officials from the central banks and treasuries of the UK, US, and EU are participating in a war game in Washington. This exercise is designed to test their response to the potential collapse of a globally significant bank, reminiscent of the Lehman Brothers collapse in 2008. The event, held at the Federal Deposit Insurance Commission (FDIC) offices, is part of a broader effort to enhance understanding and coordination among global regulators. The exercise follows discussions at the International Monetary Fund and World Bank meetings, where concerns about financial stability risks, including those posed by advanced AI models, were highlighted. The FDIC describes the event as a 'trilateral principal level exercise' aimed at strengthening cross-border resolution strategies for global systemically important banks. 
