The C-SPAN program lasted 3 hours and was very informative. The panel included Senator Bob Bennett (R-Utah), Peter de Jager, Ed Yardeni (Deutche Morgan Grenfell), Alan Simpson (Communications Link), Howard Rubin (Hunter College), and Keith Rhodes (General Accounting Office).
Senator Bennett:
1)There is a significant awareness problem. President Clinton and VP Gore must assume leadership over the seriousness of this problem. Can't wait until after the November elections.
2)G8 Summit took no real action, only issued a communique. A high profile internationally recognized person must talk out on this issue.
3)May consider "Safe-Harbor" legislation to prevent Y2K class actions.
4)Interestingly, mentioned Milberg Weiss as the "King of class actions." Partner of firm was quoted as saying: "I have the perfect law practice. I have no clients." Expressed disdain over class action law suits.
Peter de Jager
1)Stated that Wall Streeters, by nature, are an optimistic group. They are oblivious to the dangers of Y2K.
2)Stated that it is sheer lunacy for Europe to force IT professionals to work on EMU on top of Y2K.
3)Definite shortage of IT professionals.
4)However, not an IT problem, rather its a CEO problem. Today, CEOs are giddy over mergers/acquisitions, market share and earnings, the Y2K problem is an annoyance. Plus, non-technical CEOs are incapable of assessing whether IT professionals are exaggerating or telling the truth.
5)Stated that IT projects never come in on time, but CEOs always tell him: "Don't worry. Our problem will be fixed by 1/1/00."
6)Very worried about embedded Y2K problem.
Ed Yardeni
1)Y2K is a systems cross-over problem. Can't just fix your system. If your system connects to other's systems, they have to work too!
2)Feels that there is a 60% chance of a serious global recession as a result of Y2K.
3)Foreign countries are behind even our slow responding private and public sectors.
4)Stated that CitiBank just started its Y2K assessment and remediation last year.
5)By the way, AT&T plans to spend $500 million on its Y2K remediation effort (Go PTUS!).
6)Disgusted over Fortune 500 companies disclosure policies on Y2K remediation efforts.
7)Notwithstanding all of his speeches on Y2K for the past two years, its only been in the last two months that institutional money managers have started asking him questions about the issue.
Alan Simpson
1)Recent satellite problem is a wake-up call of the possible disruptions that Y2K will cause.
2)Takes 18 months to set-up a new mainframe system. Some companies were using companies, such as, Peoplesoft, to move away from legacy systems, but now realize that the transition can't be made in time. So, Y2K remediation and testing has begun.
3)Law firms have established task forces to commence Y2K lawsuits against Fortune 500 companies who have waited until now to take Y2K remediation efforts.
Bruce Webster
1)Because of fiscal years and operational needs, the Y2K problem will start to show up beginning on January 1, 1999 and develop in waves throughout the year culminating on January 1, 2000.
2)Doesn't believe that some of these previously announced mega-mergers should be allowed to go forward. The two companies already have incompatible computer systems. How he asks can the Y2K remediation take place at the same time as the integration efforts.
Hope that helps. |
