The growing threat posed by advanced artificial intelligence models could trigger a disorderly correction in global financial markets, according to Bank of England Governor Andrew Bailey.
In a two-page letter published Monday to G20 finance ministers and central bank governors, Bailey said the emergence of so-called “frontier AI models” is showing “increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities.”
Writing in his capacity as chair of the Financial Stability Board, an international body that coordinates policy and makes recommendations to national authorities, Bailey identified the potential impact of frontier AI — which refers to the most advanced AI models — on cyber risk as “the most immediate concern” for the financial system.
“Frontier AI may have the ability materially to alter the speed, scale and economics of cyber risk, which could undermine market confidence system-wide, especially due to highly concentrated third-party service providers,” Bailey said.
“Recent developments have also highlighted to me that many jurisdictions do not have the protocols in place to manage the development, release, and deployment of advanced frontier AI models, heightening risks for the financial sector and beyond,” he added.
The letter adds to a growing chorus of warnings about the dangers associated with advanced AI and comes shortly after a series of high-profile incidents in which flagship models tested by Anthropic and OpenAI breached testing safeguards.
Financial institutions and technology providers will need to improve vulnerability management, response and recovery capabilities — “and prepare for more severe scenarios involving simultaneous disruption across multiple firms or shared technology dependencies,” Bailey said.
Alongside new AI models, Bailey cited “fragilities” in sovereign debt markets, the growing use of debt by investors in equity markets and stretched asset valuations, particularly AI-related investments, as among his concerns.

The singer had a private family funeral in Nashville on Friday, following her death earlier in the week at the age of 80.
Lainey Parton posted an emotional tribute a day after the burial, saying: “It still doesn’t feel real that she’s gone. I’m going to miss her voice, her laugh, her hugs, and just knowing she was there.”
She referred to Parton as “granny” and wrote: “Because she couldn’t have kids of her own, she always made us feel like we were hers. She loved us that way, and I’ll forever be grateful for that.”
Lainey remembered: “From the time I was little, my granny always had a way of making me feel like I was enough. She never made my dreams feel too big or made me feel like I couldn’t do something. She believed in me before I even knew how to believe in myself.”
Lainey also remembered how Parton had supported her through beauty school, explaining: “She didn’t just tell me to chase my dreams, she helped me get there.”
“I feel incredibly lucky that I got to call her my granny,” she added. “Thank you for always believing in me, loving me, and making me feel like I could do anything. I love you, Granny. Always.”
An obituary posted by Woodlawn Memorial Park and Mausoleum remembered “her timeless music and prolific songwriting, but also her wit, warmth, and kindness that made us all feel like family”.
It continued: “Dolly Parton’s legacy is one of love, kindness, and resilience. With a seven-decade career, she inspired multiple generations of artists and fans with her music and an unwavering commitment to making the world a better place.”
It added: “In lieu of flowers, the family asks for donations to be made to Dolly Parton’s Imagination Library.” The Imagination Library was Parton’s scheme to send free books to young children.
Amelia Young, a reporter for Nashville’s NewsChannel 5, posted photos of flowers and a book of condolence at the tomb, which features a brass plaque showing Parton and Dean’s names and engravings of their childhood homes.
On Saturday, one of Parton’s nieces, Jada Star, performed as part of a tribute concert at Nashville’s Grand Ole Opry House, regarded as the home of country music.
“I am walking around in a fog of sadness, like all of you have,” Star posted before the performance alongside a broken heart emoji. “I do not take this honor lightly.”
Country superstar Jelly Roll made a surprise appearance during the event’s finale – a group performance of Parton’s 9 to 5 – while other participants included Carly Pearce, who has gone from being a performer at Parton’s Dollywood theme park to a Grammy-winning singer.
In the UK, 9 to 5 is on course to be number one in the singles chart this week, according to the Official Chart Company, after fans streamed it in big numbers following Parton’s death.

The number of 9/11 cancer victims has skyrocketed 1,680% over the past decade — fueled by rare variations of the disease, according to new statistics released as the grim 25th anniversary of the attacks nears.
Cancer certifications among Twin Tower survivors, downtown Manhattan residents and workers on and near The Pile have exploded from 3,204 in 2015 to 57,044 this year, reveal figures compiled by the World Trade Center Health Program.
“Sadly, we lose roughly two clients a day and see a new cancer certification every 50 minutes,” said lawyer Michael Barasch, whose firm represents thousands of people enrolled in the World Trade Center Health Program.
For the first time, the number of cancer cases among survivors who resided, worked or attended school near Ground Zero has now surpassed the amount of emergency responders such as firefighters and police who had prolonged exposure, statistics show.
Survivors accounted for 28,913 of the overall cancer cases to date, a staggering 4,066% increase from the 694 cases reported in 2015. Responders made up 28,131 of the cancer cases.
A growing number of survivors and responders are meanwhile being diagnosed with rare cancers.
For example, there are 82 cases of cancer of the thymus gland, a small organ located in the upper chest behind the breastbone. Such tumors represent fewer than 1 percent of all cancer cases.
There also are 591 cases of neuroendocrine cancers, which are uncommon tumors found most often in the pancreas, bowel, lungs or adrenal glands, affecting the stomach and bowels. The number of such cases jumped 6% from March through June among 9/11 survivors.
The Post also previously reported an alarming number of male survivors being stricken with breast cancer after being exposed to the toxic air around Ground Zero. There are now 188 victims of male breast cancer.
There also are 163 victims of brain cancer, an increase of 14 cases, or 9%, in the past quarter.
The cancer surge is attributed partly to the advancing age of the population of Ground Zero responders and survivors — with most now in their late 50s, 60s or early 70s.
Data from the US Centers for Disease Control and Prevention through June of this year show that 67% of the 145,275 current World Trade Center Health Program members are certified for at least one of 69 cancers linked to 9/11 toxins, well above the national rate of around 40% for Americans overall, according to the National Cancer Institute.
Twenty-five years after the 9/11 attacks, there is another terrifying new reality, too: At least 9,425 are now dying from post-9/11-related illnesses, more than triple the 2,977 lives lost Sept. 11, 2001.
“9/11 did not end on 9/11. The cancer clock is ticking 24/7,” Barasch said.
Leslie Lane, now 76, worked in the World Financial Center Building for Merrill Lynch across from the World Trade Center and was in her office when the planes rammed into the towers.
Lane recalled seeing the “dust cloud” while evacuating.
“You could taste the dust. You could taste the fuel, greasy gas,” she told The Post.
She went to another office at 222 Broadway two days later to plan for relocation of Merrill Lynch’s lawyers and returned downtown that November.
Lane was diagnosed with thymus cancer during a check-up in 2020.
“I was lucky. The cancer was caught early,” she said.
She had the tumor removed during surgery at Memorial Sloan Kettering, and it has not recurred.
Lane has no doubt that inhaling contaminants from Ground Zero caused her cancer.
“Thymus cancer is a very rare form of cancer. I don’t drink. I don’t smoke,” she said.
“For months afterward, you could taste the fuel in the air in the back of your throat and mouth. They kept telling us the air was safe. I don’t think it was,” she said.
James Ryan, 65, an electrician, helped light up sites at Ground Zero, including in and around the Pile, and rewiring the WTC PATH train sites.
He said he later went for a regular check-up and that blood was found in his urine. He underwent an MRI, and his pancreatic cancer was discovered in an early stage.
He had part of his pancreas removed in 2019.
“I got very lucky,” Ryan said.
Barasch said there’s more work to be done.
He said only about 15% of the civilians who had exposure to the 9/11 toxins have enrolled in the World Trade Center health program.
His firm represents former students who attended high schools and colleges near the World Trade Center who have been stricken with illnesses at a young age. Students from Stuyvesant High School, Borough of Manhattan Community College, PACE University and elementary and middle schools were in the danger zone.
He said it’s best to join the WTC Health Program and get checked out.
“Early detection is the difference between life and death,” Barasch said.

Aaliyah’s uncle claims his son is partly to blame for the late singer’s death … lobbing the bombshell allegation as the two fight over money in court.
TMZ obtained a lawsuit filed by Jomo Hankerson against Barry Hankerson and his record label Blackground Records. Barry is Aaliyah’s uncle and longtime manager. Jomo is Barry’s son and Aaliyah’s cousin.
In the docs, Barry claims Aaliyah’s cousin was paid to coordinate travel for her music video shoot in the Bahamas … referring to the fateful August 2001 trip where she died in a plane crash.
Aaliyah’s uncle says his son “failed in his responsibility” to handle travel plans … and she instead took a private jet that crashed and killed everyone onboard.
Barry says the fatal crash “may have been avoided had [Jomo] followed through on his compensated task of travel coordination.”
Aaliyah’s uncle said his relationship with his son was never the same after Aaliyah’s death.
Blame game aside, the rest of the family war is pretty interesting too.
Jomo claims his dad breached a settlement over music rights … specifically, recording masters and music publishing copyrights for Aaliyah, Toni Braxton, DMX, and Timbaland.
Jomo says he is owed 12% of the money Barry made from the music assets per a settlement deal … but claims his dad used the record label to hide money and “manufacture expenses that have nothing to do with the music assets, all for the purpose of pressuring [him] into accepting less than what he is owed.” Jomo is seeking over $1.2 million in damages.
Barry denied all allegations of wrongdoing in the suit, claiming the settlement in question is not valid because it was executed under fraud.
Barry also claimed his son once threatened to release unreleased Aaliyah music if his financial demands were not met.

Fans of an iconic Canadian rock band have humiliated U.S. President Donald Trump by refusing to comply with his geographical fantasy.
Canadian band Blue Rodeo performed at Toronto’s RBC Amphitheater on Saturday. The iconic venue is located directly on the Lake Ontario waterfront.
Blue Rodeo’s performance at the venue, which holds 16,000 people, saw the band play their 1993 fan favorite, “Hasn’t Hit Me Yet,” which features the lyrics, “Watching the snow fall on this cold December night, and out in the middle of Lake Ontario, the same snow is falling on the deep silent water.”
On Saturday, before lead vocalist Greg Keelor played the tune, he told the audience, “At the end of this song, there’s a mention of a lake. It’s a lake right behind us right there.” Fans could also watch Keelor’s comments via a YouTube livestream.
Pointing to the lake and noting that its name has “become a little controversial,” Keelor added, “I would just like you to sing tonight with full authority and ownership. And we’ll sing this one for the shining waters that have been there long before any of us were ever here.”
The crowd dutifully obliged, and could be heard shouting “Lake Ontario” and gleefully cheering at using the original name of the lake in defiance of Trump.
To hammer the point home, screens behind the band displayed a map of the area, still labeled “Lake Ontario,” despite Google changing the name on the map for users in America. Fans in the audience had shared footage of the maps online.
After the song ended, Keelor said, “That was some good singing, folks. You’re good Canadians. God bless you. We love you for it.” Saturday also happened to be Keelor’s 72nd birthday.
His bandmate, Jim Cuddy, told the audience after the singalong, “that was chilling, folks. We are who we are, right? F— ‘em.”
Blue Rodeo shared a string of fan-shot videos to its Instagram stories, taken from different vantage points in the crowd, showing the audience gleefully singing “Lake Ontario.”
One social media user pointed out the moment was “perfection,” while another said Blue Rodeo fans showed up for “Canada and Lake Ontario” at the show.
The Daily Beast has contacted reps for Blue Rodeo and the White House for comment.
Canada has already pushed back against Trump’s latest name change. On Saturday, Ontario Premier Doug Ford erected a large sign in his province with Lake Ontario’s name and reading “Now and Always.”
“You may have heard that President Trump is trying to rename this lake, all because he doesn’t like Ontario and Canada standing up for ourselves,” Ford said. “But let’s be serious. Long before President Trump, this lake was called Lake Ontario, and long after President Trump is gone, it will still be called Lake Ontario.”
Canadian Prime Minister Mark Carney also made his feelings clear.
“This lake is called Lake Ontario-today and forever,” Carney wrote on X, adding that the name “dates well before the Canadian Confederation and the Declaration of Independence of the United States of America.”
Trump posted a bizarre AI-generated video to his Truth Social on Saturday, where he kicks a “Welcome to Lake Ontario” sign over, replaces it with “Welcome to Lake America,” while dancing to the Village People’s “Y.M.C.A.”
Trump was still salty about Canada on his Truth Social on Sunday.
He began by trying to justify his feud with Canada over tariffs, including his threat to double tariffs on Canadian vehicles from 25 percent to 50 percent from January 1.
“I don’t want Canadian cars, I don’t want Canadian parts, I don’t want Canadian anything,” Trump said. “They’ve been ripping us off for decades, and it’s going to stop.”
He claimed, “I deal with the Leadership of many Countries, but I find Canada to be the worst. They are entitled no longer!”