Corporate arrogance should be punished

Bob Diamond, the CEO of Barclays, has resigned. Now he is claiming that he is being penalized for owning up first.

Perhaps he should revisit some of the other things he has said in the last few days. For example, that Barclays had acted as soon as senior management were aware of the manipulation. Now it appears that Mr Diamond was aware of the manipulation as early as 2008, and that he believed that Barclays was operating under instruction from Paul Tucker, deputy governor of the Bank of England. The conflicting stories suggest that Mr Diamond has not yet realized that lying is what caused this problem in the first place.

Barclays is being brought to book, but another large corporate is quietly slipping under the radar.

Wyndham hotels allowed hundreds of thousands of hotel customers’credit card details to be stolen from their computer systems in at least three breaches. The most basic security measures were not followed. The critical data was not encrypted. On a modern database encrypting the data is a matter of ticking a box.

Their defense: “They were unaware of any customers losing money as a result of the breach”.

Anyone who has had the experience of being defrauded will know that the perpetrators aren’t very communicative about where they obtained the credit card details. When it happened to me, my card had only ever been used for five transactions, none of them online. It wasn’t possible to figure out which purchase had exposed me to the fraud.

The lack of concern for customers is evidenced by the carelessness. That’s bad enough, but it’s their arrogance that deserves to be punished.

More at:
What did Bank of England say to Barclays about Libor?
The elusive truth about Barclays’ lie
Diamond Pays Penalty For Being First Mover In Libor Probe
Wyndham hotels face FTC complaint after multi-hack attacks
A spook speaks

Since this was originally published:
The settlers