To Disclose Or Not To Disclose

Companies traditionally like to keep security breaches quiet because they don't want the negative publicity to affect their customer trust or their stock value. The Bush Administration and the Department of Homeland Security want to exempt corporations from the US Freedom of Information Act to persuade them to disclose information about security incidents without fear of the public finding out. Senator Feinstein has introduced a bill that would require corporations that are hacked to notify customers if certain personal or confidential information is compromised. Should companies disclose such information or not?