From: terrell@sam.neosoft.com (Buford Terrell)
Date: Mon, 4 Sep 95 11:02:38 PDT
To: cypherpunks@toad.com
Subject: Re: A problem with anonymity
Message-ID: <199509041812.NAA06959@sam.neosoft.com>
MIME-Version: 1.0
Content-Type: text/plain


>To: TCMAY@GOT.NET, CYPHERPUNKS@toad.com
>Subject: Re: A problem with anonymity
>From: monty.harder@famend.com (MONTY HARDER)

>
>
>  But if the escrow agent is anonymous, we simply recurse, moving now to
>the question of whether anyone can trust the Anonymous Escrow Agency not
>to take the money and run.
>
>TC> (I mention banks because, when you look at it closely, today's banks can
>TC> quite easily claim that a customer made a withdrawal when he didn't. That
>TC> they don't says more about the nature of persistent businesses than about
>TC> any government oversight or security features. This is a side point, but it
>TC> bears keeping in mind that the real world of banks and businesses, etc., is
>TC> not fully secure, either. And yet it mostly works pretty well. The reasons
>TC> for this are interesting to consider.)
>
>  A bank has $$ invested in impressive-looking buildings, (so that
>vanishing into the ether and setting up shop elsewhere is rather
>difficult) and several officers whose TrueNames are registered with the
>appropriate agencies, so that they may be sued if they pull this
>crap.
>
>  While individual stockholders might appreciate the anonymity (and
>protection from legal action) of owning stock in a bank or escrow agency
>(might just combine the functions, while we're at it), they demand
>onymity of the officers with whom they entrust the keys to the
>corporation.
>Monster@FAmend.Com *    
>
>
The real secret is that for most banks the individual transaction
is << than the total stream of transactions.  Defaulting on a single
transaction will show a profit that is miniscule compared to the
over-all earnings at stake if the bank's credibility is jeopardized.
When banks have gotten into trouble it is frequently when they allow
one customer or one transaction to represent a significant share
of their business.  You have a high probability of being able to
trust an escrowee with your $1 if you know he intends to collect
commissions on holding $1million for others based on his "trusted"
representation.

Buford C. Terrell                       1303 San Jacinto Street
Professor of Law                              Houston, TX 77002
South Texas College of Law                voice   (713)646-1857
terrell@sam.neosoft.com                     fax   (713)646-1766