Equifax Bonds Crash As FTC Confirms Investigation Into Massive Hack

Tyler Durden's picture

While not entirely surprising given the demands from politicians, The Hill reports that The Federal Trade Commission on Thursday announced that it had launched an investigation into the Equifax breach that left sensitive information for 143 million Americans exposed to hackers.

"The FTC typically does not comment on ongoing investigations," FTC spokesman Peter Kaplan said in an email.

 

"However, in light of the intense public interest and the potential impact of this matter, I can confirm that FTC staff is investigating the Equifax data breach."

It is extremely rare for the agency to publicly confirm an investigation.

As The Hill notes, Congress has also been scrutinizing the credit reporting agency. Multiple committees have announced hearings on the breach and on Wednesday the House Commerce Committee invited Equifax CEO Richard Smith to testify before on the company's handling of the crisis.

While many have focused on the chaos in the company's stock price, we note that Equifax bonds have collapsed (with no dead cat bounce) to record lows (record high yields)...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
wisehiney's picture

What dumbass bond holder did not see this coming?

Winston Churchill's picture

Probably no bid when they wanted to sell.

Should have asked the PPT.

cossack55's picture

And the execs who sold in July?

Winston Churchill's picture

The very definition of "insider trading".

Got to be worth a $20 fine and a very stern warning not to do it again.

Maybe not, as they aren't bankers covered by BIS rules.

ParkAveFlasher's picture

Good thing Equifax couldn't get my personal data right in twenty years.  (and yet they would base my mortgage on its validity).

mrdenis's picture

Martha Stewart thinks not .....

Ghost of PartysOver's picture

Interesting on how "Mad" the Federal Government is considering Equifax is a cousin of Big Brother.  And if you don't think the Alphabet Soup Agencies don't have access to every single bit stored on Equifax computers then you are not paying attention.

GUS100CORRINA's picture

Equifax Bonds Crash As FTC Confirms Investigation Into Massive Hack

My response: GOOD!!! Since 143 million americans are SCREWED, Equifax and its BOND HOLDERS might as well be SCREWED TOO!!!

UNBELIEVABLE INCOMPETENCE!!!!!

Ladies and Gentlemen of ZH: This looks like a CURSE from GOD!!!!! 

buzzsaw99's picture

the only time the gubbermint gets mad about this shit is when their own info is part of the breach.

fulliautomatix's picture

Even then I don't think they're actually mad, more likely virtue signalling.

buzzsaw99's picture

congress is too busy shorting the stock before they start ripping them a new one.

Lumberjack's picture

News reporter calls Equifax to see if their info was compromised. Here's what happened.

http://www.centralmaine.com/2017/09/13/first-person-i-called-equifax-wit...

...1:17 p.m.

My eyes were just about to glaze over, listening to my rights, when a slight noise in the background cut off the recorded voice. “Please hold while I connect you to an agent,” a voice said, even though I hadn’t asked for one.

“Good,” we thought. “At least this person may be able to help – despite the fact that we’ll never know what the rest of the recording was about to tell us about our rights.”

But our optimism was misplaced. Thirty seconds of ringing later, the call simply led to a busy tone – before finally going dead. It may not be a metaphor for anything, but it sure feels like one.

NoWayJose's picture

Transunion did that same thing to me!

JLee2027's picture

The credit reporting system is permanently compromised and cannot recover.

 

This could be the atom bomb that blows up everything. 

 

blue51's picture

Maybe a NEW Amazon credit rating agency , to the rescue ! Ha

BidnessMan's picture

The only way to clean out all the mis-information that is impossible to get corrected. Time for a Jubilee. Press the Big Red Reset button.

GunnerySgtHartman's picture

The shorts made a killing on the data breach news, stock price down 33% since the breach was announced.

Lumberjack's picture

Not just equifax either, all of them are taking a hit. It would be interesting to see if they also had problems that are not being discussed.

Canada and UK also affected..

https://krebsonsecurity.com/tag/trans-union/

Q: Was the breach limited to Americans?

A: No. Equifax said it believes the intruders got access to “limited personal information for certain UK and Canadian residents.” It has not disclosed what information for those residents was at risk or how many from Canada and the UK may be impacted.

NoWayJose's picture

The FTC will find negligence (but not intent), and what they do is entirely 'legal' because all 143 million customers signed or agreed to some fine print in a credit application that lets them collect this data.

If the FTC takes any action the obvious thought is - why didn't take any action against all the dozens of earlier reported 'hacks'?

Max Cynical's picture

It was reported last night (on Tucker Carlson) that all Equifax had to do to prevent this hack was apply a Microsoft software patch they've had since March.

fulliautomatix's picture

So sue Microsoft? There's gotta be an angle here.

NoWayJose's picture

I saw where LifeLock credit monitoring got 10 times the usual number of customers this week. Just saying... what if a credit monitoring company - one that already has access into the computer systems of all 3 rating agencies - and one that lives on paid subscriptions - actually helped with the hack? There are also a lot of smaller credit monitoring companies that would LOVE to sign up 143 million customers for a year - paid for by Equifax!

fulliautomatix's picture

You's gotta pay the insurance. It's a shame when a going concern burns down - isn't it? Nobody wants that to happen.

Who'd they hire to manage their data security? Recently, I mean.

Lumberjack's picture

DWS inc....or maybe the DNC itself.

Archibald Buttle's picture

the chief information security officer at equifax was a music major in college.

WillyGroper's picture

this is all merely the parasite transmorphing into another protection racket.

would you trust a used condom?

skunzie's picture

would you trust a used condom?

Only if it were a three ply, steel belted one!

just the tip's picture

that would depend on what the definition of "used" is.

dark pools of soros's picture

crashed all the way back to 2016... sometimes I wonder if I'm not sophisticated enough for this bullshit

cherry picker's picture

I think I will have to report Equifax credit rating to TransUnion at - 100

skunzie's picture

Bonds crash, now I hope everyone who holds Equifax stock will sell it.  Show the bastards we mean business.  I hope this would be a lesson to the remaining two credit rating companies.

Also, why the hell do we need three separate credit rating bureaus????????

acheron2016's picture

Sounds like a buying opportunity.  There is no chance at all there will be significant penalties.  Especially NOT forthcoming will be criminal negligence indictment for their ART major head of security.  She must be fantastic in bed to get $2,000,000 / yr with no IT experience.  Bet the FTC "BLOWS" off her culpability. 

BidnessMan's picture

Undergrad and Masters degree in Music from University of Georgia. Junior League type with a smooth interview, where skills and expertise don't matter? Maybe she can sing her way out of culpability. Go Dawgs.

Mr. Schmilkies's picture

Do we really need these credit agencies?  Who spoke to God and gave these agencies such power?  I hope they all go out of business and we can go back to the old fashioned way of getting a loan - with your small local bank. 

surf@jm's picture

Maybe they will nationalize the credit agencies.......LMAO!.......

Ask any politician how well that works for healthcare.......

John Mccain thinks so.......

just the tip's picture

darn.  i read a whole page of comments, and not a single reference to "equifux".  what is this site coming to?