The Financial Stability Board (FSB), which coordinates national financial authorities across 24 countries, highlighted that frontier AI models can discover vulnerabilities, generate exploits, and execute full-scale attacks at unprecedented speed and accuracy. This could materially alter the speed, scale, and economics of cyber risk, potentially undermining market confidence system-wide. The FSB's warning follows the European Systemic Risk Board (ESRB) upgrading its systemic cyber risk assessment to "severe" in June, and eurozone lenders being given an Oct. 31 deadline to file plans detailing how they will harden themselves against AI-enabled attacks. The FSB also noted rising leverage in equity markets, partly driven by leveraged ETFs and AI-linked names, which could exacerbate market corrections.