Equifax stock plunged despite the company's CEO annoucing changes after a security breach that may have exposed the data of up to 143 million people. Fred Katayama reports.
Equifax stock plunged Wednesday even though its chief executive Richard Smith apologized in an USA Today opinion piece. Last week, the credit rating agency disclosed a data breach that may have compromised personal information of 143 million Americans. Cyber security experts say it was one of the largest hacks ever exposed. Equifax got a lot of heat for how it has dealt with it. NYU's economics professor Joe Foudy says the company gets a failing grade. (SOUNDBITE) JOSEPH FOUDY, CLINICAL ASSOCIATE PROFESSOR OF ECONOMICS, LEONARD N. STERN SCHOOL OF BUSINESS, NEW YORK UNIVERSITY (ENGLISH) SAYING: "I think it's shocking that this data breach happened this summer and we're hearing about it in September, you know, just a really slow corporate response, knowing they had the ability to sort of time the disclose, you would have thought that they have formulate a coherent plan ahead of time, and they have not. To put it another way, if this had happened five years ago, the CEO would have already be out." Capitol Hill is upset, too. Thirty-six U.S. senators called on federal authorities to investigate the sale of nearly $2 million worth of Equifax shares by the company's top executives. They sold the stocks in the period between July 29 when Equifax leanred its systems were hacked and when they made it last week.