Complex Systems with Patrick McKenzie (patio11) True Crime, banking edition
21 snips
Sep 12, 2024 A thought-provoking discussion unveils the intricacies of banking and money laundering. Dive into the three stages of money laundering: placement, layering, and integration. Explore how the financial system acts as law enforcement while facing unintended consequences of stringent regulations. The dynamics of big tech versus traditional banking reveal tensions between innovation and compliance. With a focus on KYC and AML regulations, the conversation highlights their impact on businesses and access to financial services, raising questions about the future of regulatory practices.
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Big Tech Strengths and Weaknesses
- Big tech excels in logistics and supply chain management, exceeding any past human institution.
- However, it struggles with internal organizational challenges, such as employee incentives and new product development.
Centralization, AI, and Information Processing
- AI might improve centralized systems' ability to process vast information, potentially challenging Hayek's view on decentralized systems.
- However, truncating information for processing might still limit understanding and control over complex realities.
Banking and Customer Service
- Banks excel at ledger management but struggle with other truths, like customer service.
- Call centers use tiered systems, with junior staff handling basic inquiries and escalating complex issues.
