Patrick McKenzie (@patio11) reads his latest Bits about Money essay explaining why he “loves Regulation E more than any rational person does.” He explains how Reg E created a privately-administered legal system processing over 100 million complaints annually—dwarfing the formal U.S. court system—and why banks are now trying to avoid these obligations for Zelle's nine figure fraud problem.
–

Full transcript available here: www.complexsystemspodcast.com/the-magic-spell-reg-e/

–
Sponsors: MongoDB & Framer
Tired of database limitations and architectures that break when you scale? MongoDB is the database built for developers, by developers: ACID compliant, Enterprise-ready, and fluent in AI. Start building faster at mongodb.com/build

Building and maintaining marketing websites shouldn’t slow down your engineers. Framer gives design and marketing teams an all-in-one platform to ship landing pages, microsites, or full site redesigns instantly—without engineering bottlenecks. Get 30% off Framer Pro at framer.com/complexsystems.

–

Links:

Bits about Money, One Regulation E, Two Very Different Regimes
Full version of "Doesn't Matter, That's Reg E": https://suno.com/song/173bbd67-92f7-4868-930f-efeca4b373c0

–

Timestamps:

(00:00) Introduction

(02:46) These newfangled computers might steal our money

(12:45) The contractual liability waterfall in card payments
(20:35) Sponsors: MongoDB and Framer

(22:23) The contractual liability waterfall in card payments (continued)

(23:47) Enter Zelle

(25:46) Zelle is an enormous fraud target

(32:23) Banks may attempt to extend the Zelle precedent

(35:02) Reg E encompasses almost every technology which exists and many which don’t yet

The magic spell that makes banks give you your money back

Complex Systems with Patrick McKenzie (patio11)