Monthly Archives: January 2018

Law school exam question

I was struck by the headline: “CFTC Takes Aim At Crypto Fraud,” The Wall Street Journal, Saturday January 20, 2018 B5.  The article is about the government charging people with fraud in connection with bitcoin futures.

Forget about the article for a second, as that’s not my point.  When the currency has no inherent value, is the information that the bitcoin represents itself something of value?  And that value can change.

I’m not sure the case is different for paper currency, even if backed by the full faith and credit of the government.  Is money something different than information? Why are money assets “governed” differently than information assets?  How is money different from information.  Discuss; limit three pages.

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Filed under Definition, Information, Value

Self-test

How do you know that information provided by someone else is accurate/reliable?  How reliable do others find that source?

“Facebook To Alter Its News Feed,” The Wall Street Journal, January 20, 2018 B1. FB will “start ranking news sources it its feed based on user evaluations of credibility….”

So, your reputation for truth and veracity affects how highly information you provide gets placed.  What ever did we do before Facebook?  Trust newspapers to verify before they published?

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Filed under Accuracy, Controls, Data quality, Information, Internal controls, Third parties, Value

Catching up

I’ve taken a bit of a break; one of the readers of this blog asked if I’d stopped writing it.  Not that there aren’t issues on governance, information, or (and) compliance that come up daily.

Is this blog of value?  Is it worth your time?  Let me know.  How can I improve this?  Let me know by posting a comment.

Some recent stories:

  1. “Subaru Probes if Fuel Data Was Fake,” The Wall Street Journal, December 21, 2017 B1.  Company investigating whether workers fudged the numbers on fuel economy.  Another black eye for the Japanese quality objectives.  Is there/was there a culture problem?  Or did management apply too much pressure?
  2. “Wells Fargo Earns New Ire From Bank’s Overseers,” The Wall Street Journal, January 6, 2018 B10.  Bank regulators marked Wells Fargo down because of its management, and as a result the bank will pay higher insurance and be subjected to higher regulatory scrutiny.  2017 wasn’t a good year for the bank.
  3. “Court to Review SEC Judges,” The Wall Street Journal, January 13, 2018 B10.  The Court accepted an appeal that will look at whether SEC’s judges are unconstitutional, having been selected by the HR Department.  Do government agencies need to comply with the US Constitution?  Can one be “governed” by someone who wasn’t properly appointed or supervised?  Is the common law writ of quo warranto still effective?
  4. “Parents’ Dilemma: When to Give the Children Smartphones,” The Wall Street Journal, January 13, 2018 A1.  Giving your child a smartphone also gives them access to a whole bunch of stuff you might wish they didn’t have so much access to.  Are you properly governing how much information your kids can see?  Do you also provide them a handgun (without bullets, of course)?  (The article talks about teaching your children to use cocaine, but in a balanced way). Not all information accessible by smartphone is of equal value, and different parties in the transaction value different information differently.

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Filed under Access, Accuracy, Compliance, Controls, Corporation, Culture, Data quality, Directors, Duty, Duty of Care, Governance, Government, Information, Internal controls, Oversight, Security, Third parties, Value