'Sighting: Senator Bob Bennett's speech to the DC Y2K users group'
From: "Higgins, Anthony"
To: year2000-discuss@year2000.com
Subject: Sighting: Senator Bob Bennett's speech to the DC Y2K
users group
Date: Thu, 19 Mar 98
At the Great Hall at Fannie Mae headquarters in Washington D.C.,
Senator Bob Bennett (R. Utah) provided some new insights into the
extent of the Y2K problems facing our nation before a standing room
only crowd of 300+ members of the DC Y2K users group. Here
are the highlights.
1) Senator Bennett has spoken with Alan Greenspan who has
assured the Senator that Federal Reserve Banks and branches
throughout the country will have substantial cash on hand in the event
of a liquidity crisis due to the Y2K problem. Senator Bennett has
stated that he himself will have sufficient cash in his pocket to see
himself through the crisis. (Did someone say Bank panic of 1907?).
2) Senator Bennett quoted Alan Greenspan as saying "We will have
problems in the banking industry."
3) Senator Bennett stated that the banking industry MUST recognize
that it will not fix all of the Y2K problems and that it must implement
contingency planning and enter into a "triage" mentality, in his words
keep the financial system alive, barely, at all costs until the problem is
ultimately fixed after the Year 2000. Banks must decide what is
mission critical and what is not. For those systems that are not
mission critical, financial institutions MUST implement contingency
plans for the manual performance of all functions formally performed
by defunct computer systems.
4) Senator Bennett stated that on New Year's Eve 1999, he will do
his best to not be in an elevator, airplane or a hospital.
5) In response to a question by a computer programmer, he said he
will begin to consider Y2K safe harbor legislation that will provide
liability protection to companies and computer programmers such
that if they do x, y, & z, they may not be held liable in subsequent
Y2K lawsuits. Write to your Congressman & Senator!
6) Arthur Levitt has stated that the heads of stock exchanges
worldwide have no idea about Y2K. In addition, the conversion to
the Euro is hampering Europe's Y2K conversion
7) The three federal agencies with the most Y2K problems are the
IRS, FAA and HCFA (Health Care Financing Administration ...the
Medicare & Medicaid agency).
8) Senator Bennett stated: "I believe this will set off a worldwide
recession." He cited Ed Yardeni's recent estimate of a 60% chance
a global recession.
9) Finally, Senator Bennett stated, although no official announcement
has been made, next week Senator Trent Lott (R-Mississippi) and
Senator Tom Daschle (D-South Dakota) will request the formation
of a new Senate Committee that will have jurisdiction across all
industries and and all federal agencies with the single task of looking
into the Y2K problem. The Committee will not have authority to
refer legislation to the floor of the Senate, however, it will make
policy recommendations to other Senate Committees.
Anthony S. Higgins Staff Attorney Fried, Frank, Harris, Shriver &
Jacobson 1001 Pennsylvania Avenue Washington, DC 20004
(higgian@ffhsj.com) (202) 639-7294 |
