Writing for Technology Review, Peter Wayner takes a look back at financial cryptography.

Paul Strassman reports in Baseline about JP Morgan Chase's decision in August 2004 to cancel its $5 billion, seven year outsourcing contract with IBM. Why? Because growth in the bank's spending on technology was out of line with peer banks in the industry. [Tnx: Phil Windley]

Hypercom announced yesterday that it has to restate its 2004 financial results as a result of incorrectly accounting for certain equipment leases by the company's UK subsidiary.

The Company has also determined that the internal control deficiency that gave rise to this restatement represents a material weakness, as defined by the PCAOB's Auditing Standard No. 2.

Consequently, management will be unable to conclude that the Company's internal controls over financial reporting are effective as of December 31, 2004, and the Company's independent auditors, Ernst & Young LLP, are expected to issue an adverse opinion with respect to the Company's internal controls over financial reporting.

Hypercom's stock closed down over 18% yesterday on the news.

William McLeod writes an op-ed piece in this morning's Boston Globe about bankruptcy reform legislation now under consideration in Congress.

What's missing in this new legislation? Any change to the current practice of lending money to just about anyone. These days, there is little difference between some credit card companies and a loan shark. Of course, credit card companies do not break legs, they just increase the percentage rate if a payment is late, add a late fee, add an overlimit fee, and some even charge an annual fee for the privilege of getting more fees. There are many people trying to get out of debt, but they are being thwarted by the perfectly legal fees and interest being levied against them.