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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

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 way it goes, for now. If AWS (for example) experienced some significant breach, would the DOJ and/or the public want them punished out of existence? Execs go to jail vs. large corporate fine? Should punitive damages go towards patching the breach or refunding customers? It's a delicate balance and I'm personally undecided on how to scope the fix, even after reading Chickenshit Club.

cat199 9y ago
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..
- arca_vorago 9y ago
  "We need to look forward, not behind"... I hate that attitude so much.
  - IntronExon 9y ago
    Anyone who tries to convince you to not study history is not looking out for your best interests.
1001101 9y ago
The cost of this approach is measured in moral hazard.
majormajor 9y ago
The bigger danger here just sounds like size in general. If AWS maliciously screwed people over in a blatant way and was only 3% of the market, there's a lot less incentive to let them keep on keeping on than if they're 50% of the market. I think a lot of ills of the current system could be avoided if you had tax penalties or such that scaled aggressively with company size and revenue. Intentionally give up some economies of scale in exchange for flexibility, competitive pressures, and resiliency.
ikeboy 9y ago
Fine that represents the actual societal harm. If they can't pay it, shut down - fine cannot be discharged in bankruptcy. If the services in question are so essential that the government doesn't want it to shut down, then the government should take it over like they did with Freddie and Fannie
grigjd3 9y ago
I think you are overestimating their importance. The credit agencies have already pretty much proven to us that they can't accurately rate risk when their fees are on the line.

cat199 9y ago

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..

arca_vorago 9y ago
"We need to look forward, not behind"... I hate that attitude so much.
- IntronExon 9y ago
  Anyone who tries to convince you to not study history is not looking out for your best interests.

1001101 9y ago

The cost of this approach is measured in moral hazard.

majormajor 9y ago

The bigger danger here just sounds like size in general. If AWS maliciously screwed people over in a blatant way and was only 3% of the market, there's a lot less incentive to let them keep on keeping on than if they're 50% of the market. I think a lot of ills of the current system could be avoided if you had tax penalties or such that scaled aggressively with company size and revenue. Intentionally give up some economies of scale in exchange for flexibility, competitive pressures, and resiliency.

ikeboy 9y ago

Fine that represents the actual societal harm. If they can't pay it, shut down - fine cannot be discharged in bankruptcy. If the services in question are so essential that the government doesn't want it to shut down, then the government should take it over like they did with Freddie and Fannie

grigjd3 9y ago

I think you are overestimating their importance. The credit agencies have already pretty much proven to us that they can't accurately rate risk when their fees are on the line.