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Post Office Bailout or Refund?

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Post Office BailoutThe U.S. Postal Service just may get a bail out it so desperately needs that is being offered up by Senators like Joe Liberman (Independent – Connecticut), Scott Brown (Republican – Massechusettes), Tom Carper (Democrat – Delware) and Susan Collins (Republican – Maine). Some people, especially the Postmaster General Patrick Donahoe are against this being labeled as a post office bailout.

The reason many feel this wouldn’t be a bailout to help the in debt U.S. Post Office is that the Post Office is claiming it overpaid into a retirement fund called the Federal Employee Retirment System. In fact Joe Lieberman was quoted as saying this, “is not a bailout. It’s the result of a legal analysis that everybody agrees with, that this was in fact an overpayment by the Postal Service.”

The total amount that this bill would refund to the post offices operating capital would be around $7 billion dollars. While this amount of money could help postpone Saturday mail cancelations and laying off some employees it wouldn’t make a dent in the reported loss of last year. Last year it is estimated the US Postal Service lost $10 billion. The post office has been trying to fight off this loss by closing 4,850 locations and laying off up to 220,000 employees and axing Saturday mail.

Post Office RefundThe new post office rescue plan would also reduce current payments the Postal Service has to pay to plan for future worker retirments. This would reduce a total payment of about $5.5 billion to a lot less while also allowing the post office to make new deals for health insurance with it’s main unions. Currently the USPS is owing a payment for this future worker prefunding on November 18th, 2011 and officials are already wondering whether they’ll get an extension. The current November 18th deadline was the result a previous extension.

One way the post office has been trying slow down the debt piling up around it’s mal delivery is by raising postage for all it’s classes of mail. The postal rates are to be raised in January 2012. A major ad campaign is also being directed towards businesses telling them that refrigerators and corkboards can’t be hacked, unlike email and digital communications. The US Postal Service is trying to slow it’s decline by at least 1% which would keep them from losing an estimated $300 million. The next couple weeks will show whether the post office gets the new bill passed in their favor and get their bailout or as some are calling it, refund.

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  1. kurt

    November 6, 2011 at 12:36 pm

    hey, at least the mail i get to my door gets looked at,not deleted automatically.and i like these people who pay bills online for free.what, do you get free internet that i don`t know about?and yes,when you have paid more than your share in taxes,don`t you get a refund back?use your head, some of you people just have no common sense at all,or i should say a lot of you people.i think you all are just getting too much free money from the tea party people,whom i have yet to meet one,which i`m sure that reason is i don`t make enough money.you are a puppet, i can see the strings…..

  2. Cassie

    November 5, 2011 at 8:54 pm

    Really? raising rates a penny is going to upset people makes me sick. peanut butter has been increased by 40% because of the summer heat. Milk is always high and getting even higher. Lets not talk about gas. AND people want to complain about a penny?!?! Why dont they get in their car and drive their letter from NC to CA for 45 cents. Or better yet anywhere in the USA to Europe for 98 cents. People need to get thier mind right.

  3. RandyF

    November 5, 2011 at 5:55 pm

    The overpayment was discovered by entities outside the Postal Service. If you overpaid your utility bill by $100, would you not expect a refund, or at least a credit on your bill?

    I won’t bother going in to anything else. It is not a bailout.

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2.2 Million More Patient-Victims Of AMCA Data Breach Came Forward

Clinical Pathology Laboratories blamed AMCA for not providing them enough information back in June.

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Photo: Thirteen Of Clubs Follow | Flickr | CC BY-SA 2.0

A month after the medical collection portal owned by the American Medical Collection Agency (AMCA) fell victim to a data breach that has affected more than 20 million of their users from different blood testing laboratories and medical institutions around the country, a new AMCA partner lab came forward and said that their clients were also affected by the data breach.

According to Clinical Pathology Laboratories (CPL), 2.2 million clients may have had their names, addresses, phone numbers, dates of birth, dates of service, balance information, and treatment provider information stolen from the previously reported data breach involving AMCA.

Last month, data were stolen from users of the AMCA payment portal that was used to pay for laboratory fees by more than 20 million victims. These data include their names, phone numbers, dates of birth, home addresses, social security numbers, credit card numbers, and other bank details.

The list of impacted testing laboratories includes Quest Diagnostics (11.9 million patients), LabCorp (7.7 million patients), BioReference Laboratories (Opko Health subsidiary, 422,600 patients), Carecentrix (500,000 patients), and Sunrise Laboratories (undisclosed number of patients).

This time, Clinical Pathology Laboratories (CPL) says that an additional 2.2 million victims of the data breach come from their client list, and another 34,500 patients had their credit card or banking information compromised.

The company blamed the late announcement from CPL to AMCA for not providing them with enough information regarding the breach when it was first disclosed in June.

“At the time of AMCA’s initial notification, AMCA did not provide CPL with enough information for CPL to identify potentially affected patients or confirm the nature of patient information potentially involved in the incident, and CPL’s investigation is on-going,” said the company in a statement.

As of today, it is still unclear whether AMCA nor its partner companies have reached out to their clients to personally notify them about the data breach. Back in June, AMCA first disclosed that only 200,000 clients had their data compromised. However, reports from its partners have confirmed that the victim tally reaches 20 million.

AMCA and partners were slapped with lawsuits

AMCA, Quest, and LabCorp in June were slapped with at least 19 lawsuits concerning the data leak. More than 19 class-suite actions have been filed against the three companies for their involvement in the breach and their inability to fulfill the promise of protecting their clients’ sensitive information.

According to one of the lawyers in one of the lawsuits hurdled against the involved companies, healthcare providers are one of the most susceptible entities, but they have lackluster data protection systems.

“Healthcare companies are especially susceptible to data breaches not only because they aggregate a tremendous amount of important and sensitive data, but also because they tend to be less focused on cybersecurity protection than other industries,” said John Yanchunis of Morgan and Morgan, one of the firms who filed lawsuits against Quest Diagnostics.

Yanchunis said that these companies “know [that] they are at an increased risk and yet have not taken the proper steps to protect their patients’ data.”

AMCA filed for bankruptcy

Amid the data breach that centers the American Medical Collection Agency, the company has filed for bankruptcy and laid off more than 70% of its workforce, as cost in mitigating the impacts of the leak has to lead the company to lose a massive amount of money.

According to the company, the data breach “resulted in enormous expenses that were beyond the ability of the Debtor to bear.”

“Almost immediately upon learning of the breach, LabCorp unqualifiedly and indefinitely terminated its relationship with the Debtor,” the filing reads.

“Soon after, Quest Diagnostics, Conduent, Inc., and CareCentrix, Inc. which together with LabCorp were the Debtor’s four largest clients, stopped sending new work to the Debtor, and all terminated or substantially curtailed their business relationships with the Debtor.”

Cybersecurity experts have estimated that the company most likely to spend at least $400,000 for cyber forensics alone. Add to that the cost of IT support, severe restrictions that were put in place to protect AMCA’s network from further intrusion, looming court cases, and the loss of valuable business partners; it is most likely that the company was driven to the abyss of bankruptcy by the data breach.

Of course, to cut cost, AMCA has also laid off employees and only retained those who are significant in the legal battles it faces, including the lawsuits and its request for bankruptcy. AMCA’s current employee count is down from 113 to 25, which practically cut of 78% of its human resources. Fuchs has asked the court to consider a motion which will ensure the firm’s remaining staff will be paid during the process.

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Treasury Chief Says Crypto Is A “National Security Risk”

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Secretary of the Treasury Steven Mnuchin | 7/25/17 (Official White House Photo by Ricky Harris)

A new jab was thrown against Bitcoin and cryptocurrencies from the US government after statements from the U.S. Treasury Secretary branded the industry as a “national security threat.”

Facebook’s announcement of Libra has brought crypto and blockchain technology in the center stage, as governments around the world have heightened their scrutiny on the alternative financial system that the industry is offering.

Government executives and high ranking officials have raised concerns on the volatility of the technology, and how it is being used by malicious actors to facilitate illegal transactions such as money laundering and illegal drugs.

Now, US Treasury Secretary Steven Mnuchin chimed in the conversation and echoed earlier apprehensions versus Bitcoin and cryptocurrencies. The Secretary warns that Bitcoin, as well as, Facebook’s plans for Libra, pose a “national security issue” for the United States.

“This is indeed a national security issue,” Mnuchin told reporters at a press conference yesterday. “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking,” adding that Facebook’s Libra “could be misused by money launderers and terrorist financiers.”

Mnuchin echoed other politicians stance on Facebook’s Libra venture and said that he was “not comfortable” by the idea of it.

Trump vs. Crypto

In a series of tweets on last week, the POTUS said that he is not a “fan” of cryptocurrencies, asserted that America has only one currency, criticized bitcoin, as well as told Facebook that they need a banking charter if they want to launch their newly announced crypto-based money called Libra.

Trump said cryptocurrencies are not money, and “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”

“If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations,” said the president.

Related: Trump Vs. Crypto: Dollar Is The Only Currency Of The USA

According to the President, the dollar is the only currency in America, and Libra, among other cryptocurrencies, are not “real money.”

“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!” Trump said in a tweet.

Trump’s anti-crypto stand was agreed upon by Mnuchin saying that “the president does have concerns as it relates to bitcoin and cryptocurrencies—those are legitimate concerns that we have been working on for a long period of time.”

Democrats vs. Crypto

Joining Trump’s army against cryptocurrencies and Facebook’s Libra plans are Democrats from the Senate who recently circulated a draft proposal that bans big tech companies from issuing digital money.

The bill, which was bluntly named as “Keep Big Tech Out Of Finance Act,” circulates among Democrats majority that leads the U.S. House Financial Services Committee, proves that the US government is not joking about its position against Libra and other similar ventures in the future.

Read More: Democrats Move To Ban Big Techs From Issuing Digital Money

According to the proposed bill, no tech company should be allowed to issue any form of financial services. “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System,” reads a copy of the bill obtained by Z6Mag.

Furthermore, while the bill does not specify any company, it clearly refers to Facebook, and it’s planned blockchain-based currency, Libra. The “large platform utility” is defined as a technology company with “[an] annual global revenue of $25,000,000,000 or more” and one that is “predominately engaged in the business of offering to the public an online marketplace, an exchange, or a platform for connecting third parties.” This definition seems to be crafted to include Facebook rather than exclude other companies.

It is also worth noting that the proposed legislation also prohibits “large platform utilities” from affiliation with “persons who are a financial institution.” This further includes Facebook’s proactive workaround against possible future laws that may prohibit them from owning Libra.

Nonetheless, the bill is still in its earliest phase yet, and many could happen to move forward. For it to become a law, it still has to withstand the possible opposition by Republicans in both the House and the Senate.

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Senator To Facebook’s Libra: ‘Can People Trust You?’

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Photo: BTC Keychain | Flickr | CC BY 2.0

When it comes to Facebook’s Libra, the US government has made one thing clear: they don’t trust the tech giant and its plan to release an alternative financial system based on the highly debated blockchain technology.

In a Senate hearing today, a Facebook executive was grilled by lawmakers in the Senate Banking Committee over the plan to issue its digital currency and its possible effect on the global banking and financial ecosystem.

Facebook announced a month ago that it would roll out a new form of digital money, called Libra, which the tech superpower claims to be a stable coin. Unlike its predecessor, Bitcoin, the Silicon Valley giant claims that Libra is a cryptocurrency backed by real-world money and government certificates, and is also supported by a group of corporations such as Mastercard, Paypal, and VISA.

Libra is set to be available for circulation early next year, but a few weeks following Facebook’s announcement, staunch government opposition has proved difficult for Libra to push through with its most ambitious plan.

“Facebook has said ‘just trust us’” Senator Sherrod Brown, Democrat of Ohio, said at the hearing. “And every time Americans trust you, they seem to get burned.”

Many governments around the world have echoed concerns on how Facebook will handle such an ambitious feat. Many claims that because of the company’s reputation in data security, it is hard to trust Facebook in handling people’s money.

“Trust is primordial”

“Do you really think people should trust Facebook with their hard-earned money?” Senator Brown asked Facebook’s exec, David Marcus.

As a response, Marcus said that the company would do its best to protect people’s money, as well as, prevent fraud and other illegal activities that malicious actors may carry out using Facebook’s Libra.

One of the significant critiques against Facebook’s digital money comes from the fact that cryptocurrencies are not well regulated and criminal element can leverage the technology and use Libra for money laundering and other forms of illegal payments.

“We’ve made mistakes in the past,” Mr. Marcus said. “We have been working, and are working hard to get better.”

“Trust is primordial,” he added.

Keep Big Tech Out Of Finance Act

The Senate hearing comes a day after a copy of a draft proposal in the Senate penned by Democrat senators surfaced that practically bans major tech companies from issuing digital currencies.

Read: [Breaking] Democrats Move To Ban Big Techs From Issuing Digital Money

A new draft proposal for the bill, bluntly named as “Keep Big Tech Out Of Finance Act,” that circulates among Democrats majority that leads the U.S. House Financial Services Committee, proves that the US government is serious about its position against Libra and other similar ventures in the future.

According to the proposed bill, no tech company should be allowed to issue any form of financial services. “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System,” reads a copy of the bill obtained by Z6Mag.

Global fiscal and legislative resistance vs. Libra

Furthermore, while the bill does not specify any company, it clearly refers to Facebook, and it’s planned blockchain-based currency, Libra. The “large platform utility” is defined as a technology company with “[an] annual global revenue of $25,000,000,000 or more” and one that is “predominately engaged in the business of offering to the public an online marketplace, an exchange, or a platform for connecting third parties.” This definition seems to be crafted to include Facebook rather than exclude other companies.

It is also worth noting that the proposed legislation also prohibits “large platform utilities” from affiliation with “persons who are a financial institution.” This further includes Facebook’s proactive workaround against possible future laws that may prohibit them from owning Libra.

European officials have also expressed concern regarding Libra, citing that the system, if widely adopted, could shake the global economy and rival national banks. French Finance Minister Bruno Le Maire sent a letter to officials from the G7 and International Monetary Fund calling for a group to examine Libra’s impact on the global financial system. Le Maire said that Libra must not become a “sovereign currency,” while a German politician noted Facebook’s potential to become a “shadow bank” to the global financial system.

Aside from European officials, Japanese lawmakers are also investigating the possible impact of Facebook’s Libra in global banking and financial systems ahead of the G-7 Meeting of the country’s finance ministry to be held in France this week.

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