GAO: FEDERAL REGULATORY EFFORTS TO ENSURE FINANCIAL INSTITUTION SYSTEMS ARE YEAR 2000 COMPLIANT Excerpt
This initial assessment was completed during November and December 1997. Among other things, it revealed that most institutions were aware of Year 2000 and taking actions to correct their systems. However, the three regulators we reviewed reported--based on the initial assessment--that in total, over 5,000 institutions were NOT adequately addressing the problem.
For example, OTS designated about 170 thrifts as being at high risk due to poor performance in conducting awareness and assessment phase activities. Additionally, FDIC identified over 200 banks that were not adequately addressing Year 2000 risks and 500 banks that were very reliant on third-party servicers and software providers but had not followed up with them to determine their Year 2000 readiness.
Furthermore, NCUA reported that it had formal agreements for corrective action with 4,862 credit unions deemed not to be making sufficient progress in at least one awareness or assessment phase activity.
gao.gov
GAO/T-AIMD-98-116, Mar. 24 (16 pages)
House Committee on Banking and Financial Services
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GAO: OFFICE OF THRIFT SUPERVISION'S EFFORTS TO ENSURE THRIFT SYSTEMS ARE YEAR 2000 COMPLIANT Excerpt
If Year 2000 issues are not adequately addressed, key automated thrift systems affecting hundreds of billions of dollars in assets, transactions, and insured deposits are vulnerable to serious consequences -- from malfunction to failure.
At a minimum, banks and their customers would be inconvenienced. More ominously, system failure could lead to thrift closings and serious disruptions for both the thrift industry and its customers. GAO also discusses OTS' progress in addressing Year 2000 issues affecting its own internal systems.
gao.gov
GAO/T-AIMD-98-102, Mar. 18 (20 pages).
Subcommittee on Financial Services and Technology
Senate Committee on Banking, Housing, and Urban Affairs.
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