SPOILER ALERT: At the end of the movie Catch Me If You Can, Leonardo di Caprio’s character Frank Abagnale, Jr., a master forger, ends up working for the FBI. Why? Because he knew the counterfeit game better than most of the other criminals the FBI pursued.
I’ve been thinking about this movie a lot lately. Last August, organizers conducted DEF CON 24, the oldest and largest hackers convention in the U.S. On their FAQ page, there is the following question, “Do criminals go to DEF CON?” The response?
Yes. They also go to high school, college, work in your workplace, and the government. There are also lawyers, law enforcement agents, civil libertarians, cryptographers, and hackers in attendance. Ssshhh. Don’t tell anyone.
Guess who else goes to DEF CON. Every major technology company and the U.S. military. Many are sponsors and host lavish parties where they wine and dine the best of the best among the attendees. Why? They are recruiting new hires. Surprised? You shouldn’t be. As Michael Carleone tells a confidante in Godfather II, “My father taught me many things. He taught me — keep your friends close but your enemies closer.”
As I read excerpts from the WikiLeaks alledged transcripts of Hillary Clinton’s speeches, I was reminded of Frank Abagnale and Michael Corleone. Below is an excerpt of a speech at a Goldman Sachs symposium, which has come under attacks from both the far right and far left.
There’s nothing magic about regulations, too much is bad, too little is bad. How do you get to the golden key, how do we figure out what works? And the people that know the industry better than anybody are the people who work in the industry. [Goldman Sachs AIMS Alternative Investments Symposium, 10/24/13]
As I did in my last post, I again have to draw on personal experience. In 1996, I was named lead staff for the National Governors Association to recommend the rules and regulations to implement the Hazardous Materials Transportation Uniform Safety Act (HMTUSA). The trucking industry had petitioned Congress to preempt state regulation of the movement of hazardous materials because the administration burden of keeping track of and complying with 48 different standards within the mainland states was overly burdensome.
And they were right. I needed no more proof than seeing the multiple loose-leaf binders of state and local regulations submitted as evidence by a lobbyist for the American Trucking Associations. In lieu of preempting state authority, HMTUSA charged the states with developing a uniform set of standards.
The staff was assisted by a steering committee consisting of representatives from several state executive and legislative branches. In addition, representatives of the trucking industry and environmental community were invited to all of the working sessions. Unexpectedly, many of the staff recommendations which led to the final agreement among the states began as private conversations with the trucking industry. For example, the uniform safety standards approved by the steering committee were more stringent than those imposed by the federal government and the overwhelming majority of states prior to the Act’s passage. This would not have happened without communications with the trucking representatives outside of regular committee meetings. As Secretary Clinton suggests above, the “golden key” to finding common ground came partially from those who knew their industry best.
There was one other industry concession which sealed the deal. The trucking companies acknowledged the individual states had the right to set the penalties for violation of the uniform standards when a vehicle traveled on their respective highways. In other words, leaders in the trucking industry recognized their role and responsibility to ensure the safe transportation of dangerous substances. Furthermore, they expected their drivers and companies would be punished for violations and assessed damages.
So, there is value in having representatives of the banking industry at the table to address some of the legitimate issues which have been raised about Dodd-Frank. IF AND ONLY IF, they agree they are bound to the new standards and are liable personally and organizationally for criminal and civil violations.
For what it’s worth.
Dr. ESP