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U.S. senators ask consumer watchdog head for details on Equifax probe

reuters.com

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Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#11

Post by cat199 »

guelo wrote: post #9
rectang wrote: post #2

Was it inevitable that the Equifax situation became partisan? I'm a market constructivist, and I'd prefer the simplest possible solution which regulates Equifax and its immense externalities out of existence. But isn't there also a libertarian case to be made that the credit authorities are a cartel and should be deregulated out of existence? And if that's the case, can't at least some of us find common ground?

I feel like it is inevitable because the current crop of right wing politicians are hard core ideologues. Pragmatism is not in their vocabulary.

absolutely, uuuge contrast to the fair, non-partisan and balanced pragmatism of say, HRC, Feinstein, etc.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#12

Post by arca_vorago »

linsomniac wrote: post #6

A previous HN discussion, possibly on Equifax now that I think about it, had a comment recommending the book "The Chickenshit Club", about why the justice department doesn't prosecute. I just finished in it a discussion of Enron and their auditors, Arthur Andersen. The justice department prosecuted Andersen (one of the "big 5" accounting firms at the time), and there was a lot of backlash about the Justice Dept "kill…

"all this backlash"

I think you need to source that backlash. I find it highly likely certain people/groups used their media contacts to push that narrative, but I don't know a single actual person besides some Wall Street types who disagreed with the Andersen prosecution... then to extraplote that to "country have trained the government not to." I think is a mistake.

The DOJ problems are not from the public.. they are lack of internal willpower, among other things. They should be doing their job regardless.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#13

Post by rectang »

sp332 wrote: post #5
rectang wrote: post #2

Was it inevitable that the Equifax situation became partisan? I'm a market constructivist, and I'd prefer the simplest possible solution which regulates Equifax and its immense externalities out of existence. But isn't there also a libertarian case to be made that the credit authorities are a cartel and should be deregulated out of existence? And if that's the case, can't at least some of us find common ground?

No, the Equifax breach hurt tons of constituents on both sides of the aisle. The parties had every reason to come together on this. Especially the Republicans, because the lack of trust will be bad for business. But it seems the ones elected at the moment are beholden to specific donors and not accountable to the people they're supposed to represent. I'm not clear on how deregulation would hurt Equifax and the other…

I realize this isn't immediately realistic, but please brainstorm with me:

1. Change privacy laws so that consumers own their own data. (Something like Germany's BDSG?)

2. Repeal the Fair Credit Reporting Act.

The idea is that once consumers have the weapons and wherewithal to sue irresponsible credit rating authorities out of existence, perhaps fewer "regulations" will be needed.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#14

Post by arca_vorago »

cat199 wrote: post #10
creaghpatr wrote: post #8

Earlier quoted context omitted.

Second the recommendation for Chickenshit Club (also helps interpret the speed and proceedings of other DOJ cases in play). Equifax is largely embedded in our business/credit infrastructure and there would be collateral consequences for all of the businesses who would have to change as a result of their punishment/demise. This in no way absolves them from responsibility but DOJ pragmatism towards corporations is they…

1775 USA: If we don't like the king, we shouldn't get rid of the monarchy - think of the impacts to the wider society! 2018 USA: If we don't like the executive, we shouldn't get rid of foocorp - think of the impacts to the wider society! systemic/structural answers to specific problems are rarely the solution, but they sure do help you avoid the cost of dealing with the specific problem..

"We need to look forward, not behind"...

I hate that attitude so much.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#15

Post by protomyth »

tptacek wrote: post #3

"US senators" here referring to most of the minority party, and none of the majority party, meaning nothing is likely to come of this until after 2018.

The letter, which was dated Feb. 7, was led by Hawaii's Democratic Senator Brian Schatz and signed by 29 Democrats, including all those on the Senate Banking Committee, and two independents. per Reuters, but no actual letter text.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#16

Post by 1001101 »

creaghpatr wrote: post #8
linsomniac wrote: post #6

A previous HN discussion, possibly on Equifax now that I think about it, had a comment recommending the book "The Chickenshit Club", about why the justice department doesn't prosecute. I just finished in it a discussion of Enron and their auditors, Arthur Andersen. The justice department prosecuted Andersen (one of the "big 5" accounting firms at the time), and there was a lot of backlash about the Justice Dept "kill…

Second the recommendation for Chickenshit Club (also helps interpret the speed and proceedings of other DOJ cases in play). Equifax is largely embedded in our business/credit infrastructure and there would be collateral consequences for all of the businesses who would have to change as a result of their punishment/demise. This in no way absolves them from responsibility but DOJ pragmatism towards corporations is they…

The cost of this approach is measured in moral hazard.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#17

Post by dragonwriter »

protomyth wrote: post #15
tptacek wrote: post #3

"US senators" here referring to most of the minority party, and none of the majority party, meaning nothing is likely to come of this until after 2018.

The letter, which was dated Feb. 7, was led by Hawaii's Democratic Senator Brian Schatz and signed by 29 Democrats, including all those on the Senate Banking Committee, and two independents. per Reuters, but no actual letter text.

Source press release, including text of the letter and list of signatories:

https://www.schatz.senate.gov/press-releases/schatz-leads-gr...

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#19

Post by pasbesoin »

linsomniac wrote: post #6

A previous HN discussion, possibly on Equifax now that I think about it, had a comment recommending the book "The Chickenshit Club", about why the justice department doesn't prosecute. I just finished in it a discussion of Enron and their auditors, Arthur Andersen. The justice department prosecuted Andersen (one of the "big 5" accounting firms at the time), and there was a lot of backlash about the Justice Dept "kill…

Well, if Congress and the Administration ever were to really flip (2018, etc...)

It would be wildly unpopular amongst legal scholars, and would itself somewhat threaten the republic.

Nonetheless, as a first order of business, I'd recommend retro-actively eliminating some of the statutes of limitation covering our last few crises.

Then, investigating with full transparency and hanging them out to dry.

And if, really, we can't lift those statutes of limitation, nonetheless forcing such full transparency through aggressive investigation -- and writing laws to support same and hanging those who obstruct in any way, out to dry.

I'm not for micro-managing society through legal action. But, we've selectively enforced basic laws, creating different classes based upon effective legal exposure and risk.

Fundamentally, we've stopped -- to the extent we ever were -- being a society and governance of laws.

I'm more concerned about other economic and power matters, but right now the U.S. is all het up over "immigration". The missing piece in the whole conversation, or particularly "legal enforcement"? Demand. For decades, effectively nothing has been done to those employers who engage in illegal employment.

Which include, by the way, Herr Trump, using and apparently abusing undocumented workers e.g. in his NY construction affairs.

This country, the U.S., is getting to the point of needing a South African type intervention. A truth commission. Because while parts of society feel whole and privileged, it's come with devastating consequences for those who are, after all, supposed to be their fellow citizens.

Just like Puerto Ricans are.

And since we're nowhere near flushing the chickenshits out of government, we have to do the investigation and truth-telling ourselves. And try to bullwark the last bastions for same: The free press and a free Internet.

And in that regard, it seems the race is on.

Re: U.S. senators ask consumer watchdog head for details on Equifax probe

#20

Post by tptacek »

protomyth wrote: post #15
tptacek wrote: post #3

"US senators" here referring to most of the minority party, and none of the majority party, meaning nothing is likely to come of this until after 2018.

The letter, which was dated Feb. 7, was led by Hawaii's Democratic Senator Brian Schatz and signed by 29 Democrats, including all those on the Senate Banking Committee, and two independents. per Reuters, but no actual letter text.

Right, but the two I's caucus with the Democrats.

There's an argument to be made that the Democrats (who I'm a stalwart supporter of) have happily polarized this issue, rather than doing something more quiet while collecting bipartisan support. That what they're doing looks helpful but really isn't.

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