And the Journal's version:
September 22, 1999
US Congress Panel: Fincl Services
Sector Beats Y2K Bug
By MARK WIGFIELD
WASHINGTON -- The financial services industry gets
five stars -- the highest rating of any sector -- in a
congressional report on preparedness for Year 2000
computer problems.
Utilities and telecommunications were awarded four
stars, while government transportation and business got
three. Health care and the international community were
at the bottom, with two stars.
The star rating system is the latest update on so-called
Y2K compliance issued by the Senate's Special
Committee on the Year 2000 Technology Problem.
Functioning as a Senate bully pulpit, the committee has
been urging government and business to prevent
computer catastrophes at the dawn of the new year, when
some systems that use only two digits to designate the
year could incorrectly interpret the year 2000 as 1900.
Bennett's report reiterated the panel's message that Y2K
failures "will match neither the most optimistic nor the
most apocalyptic predictions. Rather, Y2K problems
will hit sporadically, based on geography, size of
organization and level of preparedness, and will cause
more inconveniences than tragedies."
The panel's main concern remains the preparedness of
foreign countries, especially Russia, China, Italy and
several oil producing countries. Other weak points: local
911 answering centers; physicians offices, rural and
inner-city hospitals, and small and medium-sized
businesses.
Ironically, high-tech companies which sent computer
code overseas for a Y2K fix should be wary of booby
traps planted in the code by cyber-terrorists. Study of the
Y2K issue has "heightened awareness of vulnerabilities
in America's high-tech infrastructure," the report said.
Even the top-rated financial services industry didn't get
away without a warning. Fund managers and brokers
"have only recently started to consider the implication of
corporate Y2K vulnerability on investment decisions,"
the report chided.
But overall, the financial services sector "will be
prepared for the millennium date change," the report
declared.
Automatic tellers will work, and banks should have
enough cash to meet the demand of Y2K-worried
consumers. Nearly all banks, thrifts and credit unions
have received satisfactory government ratings for their
preparations.
Still, regulators "are encouraging financial institutions to
communicate their preparedness to customers in order to
reduce the potential for panic," the report said.
-By Mark Wigfield
And the AP version:
September 21, 1999
US Senate Report Predicts Y2K
Inconvenience,Not Disaster
WASHINGTON (AP)--With 100 days left until Jan. 1,
2000, the Senate's Y2K panel says health-care systems,
local governments and small businesses remain
vulnerable, but computer breakdowns probably will
"cause more inconveniences than tragedies." The
situation is more serious outside the country, it says.
"The true extent of Y2K failures will match neither the
most optimistic nor the most apocalyptic predictions,"
the Senate special committee on the Y2K problem said
in a summary of its final report before the new year.
Rather, it said, Y2K problems will be sporadic, based
more on geography, size of the organization involved and
levels of preparation.
The panel, headed by Sens. Robert Bennett, R-Utah, and
Christopher Dodd, D-Conn., is issuing the report
Wednesday. Its report, distributed in advance, noted that
the Y2K problem has been likened to a winter storm, and
Americans should prepare accordingly.
The findings emphasized that while federal agencies and
the nation's transportation and communications systems
are in good shape, it remains difficult to judge how
computer problems will affect individual lives. "The
Y2K problem still has the potential to be very
disruptive, necessitating continued, intensive preparation
in the time remaining," it said.
Many doctors' offices, small hospitals, school districts,
911 emergency systems and local bus systems could face
temporary disruptions because of failures to fix
computers, it said.
Some older computer systems use only two digits to
designate years, and could mistake the year 2000, or
"00," as 1900, which some experts fear could cause
computers to malfunction or break down.
The federal government will spend more than $8 billion
to fix the problem, and wholesale failure of federal
services is unlikely to occur.
Generally that's true of other large public services and
businesses. A nationwide blackout will not occur, the
telecommunications industry has spent billions on Y2K
fixes, air traffic control systems are ready and banks will
have functioning ATM machines and plenty of money on
hand, the report concluded.
John Koskinen, President Clinton's chief Y2K adviser,
agreed with the Senate assessment. The bottom line, he
said, is that "there will be some glitches, and nobody is
guaranteeing perfection even in the sectors" where much
money and technical expertise has been employed.
Koskinen said he and the panel had had some differences
in perspective earlier, but "It is clear, now that we are
into the last 100 days, that we are pretty much in
agreement on where the risks are."
According to the report, those risks include:
-Many physicians' offices, nursing homes and inner-city
and small rural hospitals have high-risk exposure.
Conversely, pharmaceutical manufacturers and
distributors and large-scale hospitals are in good shape.
-While the Federal Aviation Administration has
succeeded in ensuring air traffic control functions, risks
remain in areas such as jetway security systems and
runway lighting. Disruptions resulting in delays at some
U.S. airports are likely.
-Several states and many local governments lag behind.
Some 10 states are not prepared to deliver such services
as unemployment insurance and other benefits. Of great
concern is local 911 public safety answering points.
-Among business sectors, insurance, investment and
banking are doing well, but others, including education,
agriculture and construction, are not. It could take three
to 15 days to regain lost operational capabilities.
-Internationally, the Y2K picture is disturbing in Russia,
China, Italy and several oil-producing countries. Some
important trading partners are months behind in
addressing the problem and economic repercussions
could result in requests for humanitarian aid. |
