Our hottest two posts read on Wall Street and in Washington, DC in the past week have been about Southern Company and the third party risk of Balch and Bingham. The reality is severely regulated companies like Southern Company cannot afford to have a third-party vendor that engages in alleged unscrupulous, racist, or criminal activities.
The alleged actions by Balch & Bingham go beyond a breach of a database; they are legal representatives of the utility that appear to have manipulated the legal and political system dishonestly.
Although another piece of satirical art, the point is Tom Fanning, the CEO of Southern Company, cannot rely on Balch & Bingham anymore. He must do what is best for the company and his shareholders.