Analysis: An elite Wall Street banker learns a $35 million lesson: Call tech support

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The big Wall Street banks are notorious for having trained people drawn from the top performers in the world’s best business schools and universities. They are elite and powerful. And sometimes, like all humans, they do very silly things.

Here’s the deal: Morgan Stanley was just hit with a $35 million fine for “shocking” failures that led to the mishandling of sensitive data on 15 million clients, writes colleague Matt Egan.

mistake? Throwing away old computers without wiping hard drives.

In one episode described by the Securities and Exchange Commission, Morgan Stanley hired a moving company — with “no experience or expertise” in data destruction — to offload thousands of hard drives and servers containing client data.

The company later sold thousands of devices to a third party, some of which contained personally identifiable information. Eventually, the devices, still loaded with sensitive data, ended up on an auction site.

The SEC was tight-lipped about Morgan Stanley’s wrongdoing.

Its “failures in this case are shocking,” Gurbir Grewal, director of the SEC’s enforcement division, said in a statement. “If not properly protected, this sensitive information can fall into the wrong hands and have disastrous consequences for investors.”

So yeah, it was pretty dumb. But it’s important to note that the SEC is not reporting anything criminal did just happened could be

Morgan Stanley agreed to pay the fine without admitting or denying the consequences of the settlement.

“We have notified applicable clients of these matters that occurred several years ago, and we have not detected any unauthorized access or misuse of clients’ personal information,” Morgan Stanley said in a statement.

Another way of saying that is that we’ve been lucky and no bad actor has managed to exploit the data we carelessly released to the public, as far as we know.

Free advice for next time, everyone: call tech support! We can all be playful, guys, there’s no need to be ashamed.

We’re three-quarters of the way to 2022, and the 2020 hangover is still weighing on the auto industry.

Here’s the deal: Ford is now stuck with 45,000 large pickups and SUVs it can’t finish because it doesn’t have all the parts…sound familiar? It should, because it has been going on for over two years.

The company warned late Monday that supply shortages and rising prices will cost it an additional $1 trillion this quarter. Ford shares fell 12% on Tuesday.

The $25 trillion a year question has been some variation of a) are we still in a recession? and b) how bad will it be?

we had one really A fun time trying to explain why the US isn’t in a recession, technically speaking, right now, even after two quarters of negative growth. ICYMI: That oft-cited guideline has a bunch of caveats, and isn’t a hard and fast rule. And looking at today’s job market, with near-record low unemployment as well as resilient consumer spending, one would not logically call this a recession.

This does not mean that the fears have disappeared.

Take FedEx, which led to a dramatic sell-off late last week, cut its guidance and warned of a global recession. He is not alone. Earlier this month, the CEO of luxury home appliance retailer RH (Restoration Hardware) said that “anyone who thinks we’re not in a recession is crazy” and added that the housing market is in a “starting” downturn. ” Best Buy’s CFO avoided the R-word, but used business jargon — “trends in the current macro environment may be even more challenging” — is an alarm bell.

Chip equipment leader Applied Materials had other euphemisms to spook investors last month, saying some of its customers are in slowdown mode as “macro uncertainty and weakness in consumer electronics and PCs causes these companies to delay some orders.”

These are ominous signs, my colleague Paul R. La Monica reports. And more are likely to come as the company prepares for third-quarter earnings season next month.

Analysts and companies are already cutting forecasts, saying the third quarter could be the worst for earnings since 2020, when the pandemic shut down the economy.

So yeah, not great. But it’s not bad for 2008. And there is one potential bright spot, Paul explains. The housing market looks set to slow rather than crash like the subprime crisis of 07-08.

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