Watch the Euro in 1Q 1999 for preview of Y2K banking problems...
This could be a good indicator of either "better than expected" or "worse than expected" scenerios for Y2K.
Usenet post on this follows:
From: ape@desupernet.net
Newsgroups: comp.software.year-2000
Subject: Euro Chaos
Date: Wed, 26 Aug 1998 14:09:52 GMT
begin quote==================
infoseek.com;
lk=lb&col=NX&kt=A&ak=news1486
Central Bank urged to beware of potential euro chaos
06:13 a.m. Aug 26, 1998 Eastern
By Henry Engler
LONDON, Aug 26 (Reuters) - European central bankers display an
unsettling lack of awareness of the risk of disruptive payments problems
when a single currency is launched at the start of next year, bankers
say.
''Many banks have taken a minimalist approach toward preparing for the
euro and I don't think the ECB (European Central Bank) is fully aware of
what could go wrong on day one and day two,'' said one banker at a large
international bank.
**snipo**
London bankers say official silence on the issue is for a variety of
reasons, not least the desire not to cause panic. But most say the
dearth of public discussion results from a lack of communication between
central bankers and the banking community.
The simple fact, say bankers, is that there has been little initiative
on the part of the national central banks to visit commerical banks to
see how they are doing. And even when such visits occur there is a
natural tendency among bankers to say preparations are proceeding
smoothly even if they are not.
[This sounds just like Y2K PR]
''The fact is that there is no incentive for a bank to be up front to
the world or the regulator and say, 'I'm not actually going to be able
to service my client's needs on day one.''' added another banker.
While some of the largest international banks are seen as well advanced,
others are considered far behind and some have not even completed a
necessary review of what has to be done.
Unless turned around, this lack of readiness could lead to sizeable
disruptions in trading and the settlement of payments during the first
few days of the euro's arrival.
[Why only in the **first few days**? If the software wasn't rewritten
by December 31, how could it possibly be corrected on January 5?]
The critical days in question run from December 31 to January 4, the
first full day of trading in the new single currency. The so-called
conversion weekend will include vast changes to computer and payment
systems and many say it is essential that everyone acts together,
particularly in relation to standard settlement instructions (SSI).
Such instructions are critical since they show agreed settlement
instructions with counterparties. They can include information on a
bank, branch or specific department. Bankers say SSIs need to be
clarified well in advance of the conversion weekend so that banks know
where euro payments should be sent.
**snip**
end quote=====================
Is this another nail in the coffin?
John T. Frimenko |
