The Federal Reserve said it is an “operational error”, spread over a dozen areas, including check clearing and Fedwire, which was thrown offline on Wednesday to trillions of dollars in transactions daily for the world’s largest banks. Does business.
“Federal Reserve Operational Error Interrupted Service on Many Business Lines,” Fed Told Reuters in an email statement. “We are restoring services and communicating with all Federal Reserve Financial Services customers about operating conditions.”
All nine of the Fed’s electronic services crashed later in the afternoon, and were restored at 2:30 pm EST, but the major Fedwire fund system that allows banks to settle large payments such as mortgages or commercial loans, and financials Serves as a clearhouse for. The institutions that carried out the major transactions were still down.
The affected services form a hidden backbone for the US banking system, facilitating check clearing and allowing billions of dollars of payments per day through the financial system, including credit and loan transfers, and all of US Treasury bonds Transactions are included.
The outage was mocked and celebrated on social media by cryptocurrency advocates, who have long supported electronic laser blockchain technology as a better and safer alternative to the current federal system.