IP: Treasury Secretary Larry Summers, privacy hypocrite

[David Farber <farber () cis upenn edu>]

> Date: Wed, 6 Oct 1999 16:16:17 -0700 (PDT)
> From: Declan McCullagh <declan () well com>
>
>
> This is a fine example of hypocrisy. Treasury Secretary Larry Summers says
> Americans don't expect "a bank processing a check to record, store and
> evaluate their personal behavior" and suggests he'd like to prohibit banks
> from doing so. Fair enough.
>
> BUT the truth is that current law and regulations require banks to
> extensively monitor customers and turn that info to the Feds. A massive
> government database administered by the IRS' Detroit computing center
> receives and records these reports. Details at:
>   http://www.wired.com/news/news/politics/story/18821.html
>
> AND the Treasury Department (and Justice Department and FBI) opposed a
> plan this summer to nix that surveillance:
>   http://www.wired.com/news/news/politics/story/20554.html
>
> Geez, I mean if you're going to be a regulatory enthusiast and invade
> Americans' privacy, at least be upfront about it. Hypocrisy stinks.
>
> -Declan
>
> ====
>
> http://www.ustreas.gov/press/releases/ps141.htm
>
>
> FOR IMMEDIATE RELEASE
> October 5, 1999
> LS-141
>
>         "TOWARD A 21st CENTURY FINANCIAL REGULATORY SYSTEM"
>               TREASURY SECRETARY LAWRENCE H. SUMMERS
>          REMARKS BEFORE THE WOMEN IN HOUSING AND FINANCE
>                               WASHINGTON, DC
>
> [...]
>
>
> Financial privacy has gained much greater prominence as an issue since the
> last Congress. Much of the benefit of financial modernization is synergy,
> and part of that synergy is derived from the sharing of information B from
> developing innovative products to relieving customers of the burden of
> reintroducing themselves to an institution each time they do business.
>
> Nonetheless, revelations about financial service industry practices have
> come as a shock to policy makers and many consumers, who thought that
> financial services firms preserved the confidentiality of personal
> customer information. Our challenge is to protect the privacy of consumers
> while preserving the benefits of competition and innovation.
>
> Americans should have the opportunity to participate in the modern means
> of electronic payments and receipts without subjecting themselves to
> behavioral profiling. Just as they would not expect a letter carrier to
> read their mail or record their correspondence, they do not expect a bank
> processing a check to record, store and evaluate their personal behavior.
> Consumers applying for mortgage loans should not have to worry that their
> bank is mining their checks to determine how many are written out to
> doctors or pharmacies.
>
> Providing consumers with notice and choice on the use of their financial
> information represents an important counterbalance to the increased
> breadth of financial institutions permitted under the bills. Consumer
> privacy safeguards should apply to sharing or sale of information both
> outside and within financial organizations.
>
> [...]
>
>
>
>
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