Housing banking panel to consider Year 2000 bill
WASHINGTON, Jan 28 (Reuters) - House Banking Committee Chairman James Leach on Wednesday introduced legislation that directs bank regulators to help U.S. financial institutions prepare for potential computer problems arising at the turn of the century.
The Iowa Republican said his panel will consider the legislation next week.
The problem, often called the ''Millennium Bug,'' arises because many computer programs record dates using only the last two digits of the year. Such programs could treat the year 2000 as 1900, causing miscalculations, unexpected errors or system crashes.
Leach's bill, would require federal financial regulators to offer seminars to financial institutions on the implications of the Year 2000 problems and help provide model approaches for solving common Year 2000 problems.
The bill also extends authority to the Office of Thrift Supervision and the National Credit Union Administration to examine the operations of service corporations or other entities that perform services under contract for thrifts and credit unions, giving those agencies statutory parity with the Federal Reserve, the Comptroller of the Currency and the Federal Deposit Insurance Corp.
The bill is co-sponsored by subcommittee chairmen Reps. Marge Roukema, a New Jersey Republican, Michael Castle, a Delaware Republican, Spencer Bachus, an Alabama Republican, and Richard Baker, a Louisiana Republican.
Bank regulators have already taken several steps to help banks and other financial institutions prepare their computers for potential computer chaos.
The Office of the Comptroller of the Currency last week issued guidance and said it would heighten its inquiries into Year 2000 preparations in its bank examinations.
As part of its year 2000 preparation, the Federal Reserve said it plans a comprehensive program for banks to test computers used for Fed wire transfers, automated clearing house transactions, and other central bank services for compliance with date changes. |
