>>> MY FAVORITE PART OF THE SHOW.
SHOW. TIME FOR MONEY, POWER, POLITICS.
"THE WALL STREET JOURNAL"
REPORTS FACEBOOK IS NOW ASKING
BANKS TO SHARE CUSTOMER’S
FINANCIAL AND TRANSACTION
INFORMATION.
INFORMATION. OVER THE PAST YEAR, FACEBOOK HAS
REACHED OUT TO JPMORGAN, WELLS
FARGO, CITIGROUP AND U.S.
BANCORP TO DISCUSS POTENTIAL
OFFERINGS LIKE CONNECTING
CUSTOMERS WITH FACEBOOK
MESSENGER.
MESSENGER. DISPLAYING ACCOUNT BALANCES AND
WOULD NOOLD -- NEED TO OPT IN.
JOINING ME IS SCOTT GALLOWAY.
>> FACEBOOK WANTS TO BE MORE
THAN THE SERVICE THEY ARE.
THEY WANT TO GET INTO THIS
BUSINESS IN TERMS OF COLLECTING
CUSTOMER DATA FROM BANKS.
I UNDERSTAND THEY HAVE LOTS OF
DIVISIONS IN FACEBOOK.
GIVEN THE MASSIVE FIRE THEY NEED
TO PUT OUT, WHY WOULD THEY BE
SAYING LET’S GET MORE
INFORMATION.
INFORMATION. FINANCIAL INFORMATION.
FINANCIAL INFORMATION. >> IT’S SORT OF WHAT COULDN’T GO
WRONG.
WRONG. THEIR STOCK WAS UP AND UP AGAIN
YESTERDAY.
YESTERDAY. IT MAKES SENSE FOR MESSAGING AND
VOICE.
VOICE. THE ISSUE IS FACEBOOK THE ONE
THAT SHOULD BE MANAGING YOUR
FINANCIAL INFORMATION?
FINANCIAL INFORMATION? IMAGINE YOUR THE HEAD OF A BANK
AND FACEBOOK IS WEAPONIZED
BECAUSE THEY DON’T PUT UP THE
RECOMMENDED SAFEGUARDS.
RECOMMENDED SAFEGUARDS. HOW DOES ANYONE SAY WE HAVE NO
IDEA THIS WAS GOING TO HAPPEN.
I DON’T SEE HOW YOU DOUGH THIS T
BANK EXECUTIVE.
BANK EXECUTIVE. YOU WERE WARNED.
>> BANKS ARE HIGHLY REGULATED.
BANKS HAVE KNOW YOUR CUSTOMER
RULES AROUND IT.
IS THE ISSUE REGULATION?
AS IT RELATES TAO FACEBOOK.
THEIR JOB IS TO MAKE MONEY FOR
SHAREHOLDERS.
SHAREHOLDERS. AT THIS TIME, THEY ARE NOT
BREAKING THE LAW AND THEIR STOCK
PRICE IS GOING UP.
THAT’S WHAT MARK ZUCKERBERG’S
PRIORITY IS.
PRIORITY IS. >> WE HAVE SO MUCH CLOUD COVER
FROM OTHER PARTS OF OUR SOCIETY
AND GOVERNMENT THAT IT SHIELDS
BEHAVIOR.
BEHAVIOR. FACEBOOK WOULD HAVE WHAT IS A
SUBTERFUGE OF OUR DEMOCRACY.
PEOPLE GET UPSET BUT THE STOCK
IS UP.
IS UP. PEOPLE GET UPSET AT AMAZON’S
DOMINANCE, BUT EVERYONE IS
GETTING STUFF THERE.
>> AT SOME POINT, I POSE THE
QUESTION, DOES FACEBOOK NEED TO
SHUT IT DOWN UNTIL THEY HAVE
THIS ISSUE RESOLVED.
I COMPARE IT TO TYLENOL.
YOU CAN HAVE ONE BOTTLE
CONTAMINATED AND THEY OF
CORRECTED AND TOOK EVERY BOTTLE
OFF THE SHELF UNTIL THEY FIGURE
IT OUT.
IT OUT. THEY SAID THAT’S CRAZY.
THERE ARE PEOPLE DEPENDING ON
FACEBOOK TO RUN THEIR BUSINESS
AND COMMUNICATE WITH OTHERS.
>> LEADERSHIP RIGHT OUT FRONT
RESPONDED IMMEDIATELY AND OVER
CORRECT.
CORRECT. FACEBOOK’S PRIMARY RESPONSE HAS
BEEN TO DELAY AND SAY WE WANT TO
GIVE VOICE TO THE UNHEARD OR
LIMIT THE AMOUNT OF FORWARDING
AND MESSAGING.
AND MESSAGING. >> TYLENOL COULD SAY I WANT TO
HELP AN OLD GRANNY WHO HAS A
HEADACHE AND HER TYLENOL IS
OKAY.
OKAY. >> THEY COULD HAVE SAID IT’S AN
ISOLATED INCIDENT.
ISOLATED INCIDENT. FACEBOOK IS DOING ITS JOB.
WOOEDS
WOOEDS WE’D LIKE TO THINK THE THIRD
WEALTHIEST WOMAN IN THE WORLD
WOULD HAVE MORE CONCERN FOR THE
COMMONWEALTH BUT THEY DON’T.
A KEY COMPONENT OF CAPITALISM --
>> IT’S NOT THEIR JOB TO.
>> IT’S FOR PROFIT FIRMS.
WE’RE GOING TO RUN UNCHECKED.
IT’S A MORE PERIOD OF TIMABLE
BUSINESS MODEL TO PORE MERCURY
INTO THE RIVER.
WE DECIDE THE REASON WE HAVE $23
ON THE GOVERNMENT IS THEY THINK
LONG TERM.
LONG TERM. WE DECIDED THAT’S A BAD IDEA
WE’RE GOING TO REGULATE THEM.
FOR SOME REASON WE DECIDED NOT
TO HOLD BIG TECH TO THE SAME
SCRUTINY WE’VE HELD EVERY OTHER
INDUSTRY.
INDUSTRY. THERE’S BEEN NO REGULATION.
4% HAVE A BACKGROUND IN
TECHNOLOGY OR ENGINEERING.
THEY DON’T KNOW WHERE TO START.
WE HAVE DECIDED TO NOT HOLD THEM