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"The attempted attack on a Detroit-bound flight last week, along with the events preceding and following it, has provided a snapshot of the ongoing struggle to balance civil liberties and national security. President Obama on Tuesday admitted a "systemic failure" on multiple levels in the run-up to the attempted bombing. Suspect Umar Farouk Abdulmutallab was in a terror database of more than a half-million people but was not on a "no-fly" list. The administration has initiated a review of airport security and the watch-list system in the wake of the failed plot. But so far, analysts say what happened is emblematic of the struggle between privacy and security interests. "It's just (an) inability to understand the right way to strike the balance that's at fault," said constitutional attorney David Rivkin. Airlines don't have access to the government's comprehensive terrorist database. They screen travelers based on the smaller, "no-fly" list."

Perhaps this is more a question of trust (not privacy) versus security. Do we really trust our government and its agents to handle private information securely?

A former Goldman Sachs computer programer accused of stealing secret trading codes from the investment bank was being held in federal custody on Monday, pending the posting of $750,000 bail. Sergey Aleynikov, 39, was ordered by U.S. Magistrate Kevin Nathaniel Fox in Manhattan on Saturday to post a $750,000 personal recognizance bond to be secured by three financially responsible people, according to court documents. The bond also was to include $75,000 in cash, and Aleynikov was ordered to surrender his passport and not to access the computer data at issue in the case. A preliminary hearing in his case was scheduled for August 3. Aleynikov, a Russian immigrant living in New Jersey, was arrested on Friday night by FBI agents as he got off a flight at Newark Liberty International Airport, according to court documents. He is accused of "theft of trade secrets" related to computer codes used for sophisticated automated stock and commodities trading at an unspecified, New York-based financial institution, according to the court affidavit filed by FBI special agent Michael McSwain. Sources familiar with the situation have told Reuters columnist Matthew Goldstein that the financial institution is Goldman Sachs. A Goldman representative declined to comment on Monday. A lawyer for Aleynikov, Sabrina Shroff, also declined to comment.

TSA terrorist watchlist changes affect travel industry, document coordination requirements, security & privacy concerns. Over-strengthening one set of regulations and ignoring others simply means that the terrorists will move to safer (for them) modes of attack.

The Transportation Security Administration is getting ready to take over responsibility from the airlines for checking passengers' names against terrorist watch lists, and is advising travelers to start booking airline tickets using their full name as it appears on their driver's license or passport.