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Congressman asks Fed for exam details following Capital One breach


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Congressman asks Fed for exam details following Capital One breach

The ranking member of the House Financial Services Committee is demanding answers from a banking regulator following the massive data breach at Capital One Financial Corp.

In an Aug. 5 letter, Rep. Patrick McHenry, R-N.C., asked Federal Reserve Vice Chair for Supervision Randal Quarles to disclose whether any suspicious activity was detected during regular bank exams at the company before a breach that affected more than 100 million U.S. and Canadian consumers.

"Given the magnitude of this incident and the dangerous trend seen with an increasing number of data breaches, it is vital that Congress fully understand not only the details of this specific event but also the comprehensive supervisory approach taken by the Federal Reserve," McHenry wrote.

McHenry also pushed Quarles to share with Congress how the regulator examines financial institutions' third-party service provider relationships.

The FBI arrested a suspect who allegedly exploited a vulnerability through third-party data service provider Inc. to access consumers' personal information. According to reports, the Fed conducted an inspection in April of Amazon's facility in Virginia. McHenry also asked the Fed to share if examiners found any suspicious activity during that inspection.

"Such information will not only provide Congress with a better understanding of this incident but also the authorities and potential limitations the Federal Reserve has in protecting the financial information of American consumers," McHenry wrote.