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Technology Stocks : Y2K (Year 2000): Is Wall Street & Banking Vulnerable? -- Ignore unavailable to you. Want to Upgrade?

To: C.K. Houston who wrote (54)	6/25/1999 1:34:00 PM
From: C.K. Houston	Respond to of 158

LONDON (CNNfn) - A major international financial company operating in Britain is at serious risk from the millennium bug, the nation's financial watchdog warned Friday. In addition to the unidentified firm, seven smaller finance houses are also in serious danger, according to Michael Foot, head of the Financial Services Authority's supervision unit. The FSA, which regulates all investment activity in Britain, reported that there were now only eight companies in its high-risk category concerning preparations for the consequences of the date-induced glitch that might affect computers on Jan. 1, 2000. Two months ago, the agency listed 32 companies as high risk out of the 400 or so it monitors as so-called high and medium impact groups. The difficulties are far from over, Foot warned. "We see the next couple of months as crucial…[for the most at-risk firms] time is very short indeed." He expects all financial institutions operating in Britain to complete their preparations for the millennium by the end of September, "or if not, to tell us why not, what remains to be done, and by when." cnnfn.com

To: C.K. Houston who wrote (54)	6/25/1999 1:38:00 PM
From: C.K. Houston	Read Replies (1) \| Respond to of 158

FED WANTS BETTER RISK MONITORING AT BIG BANKS WASHINGTON, June 24 (Reuters) - The Federal Reserve said on Thursday it has asked banking supervisors to improve their monitoring of risk-taking by big, complex banks that account for a growing share of U.S. banking assets. In a statement, the Fed said it was felt a letter of guidance to supervisory staff and to bankers was needed ''during a time of dramatic change in the financial system'' as a small number of banks assume a growing role in the nation's banking system. Fed officials have said recently that they were putting increasing importance on supervison of the activities of a small number of big banks to ensure the safety and soundness of the banking system. Fed Governor Laurence Meyer mentioned it earlier this month at a conference of state banking supervisors in Williamsburg, Va. The Fed said its latest supervisory letter ''builds upon the Federal Reserve's existing risk-focused supervision program by providing more specific guidance on the applicability of this program to LCBOs (Large Complex Banking Organizations).'' The letter said a central component of supervision should be ''assignment to each LCBO of a dedicated supervisory team comprising individuals with specialized skills'' to judge a particular bank's business lines and risk profile. It called for ''a full-time deicated cadre'' of experts for each bank that could also do examinations and targeted reviews as necessary. The Fed said this type of supervisory expertise is needed as big banks move into nontraditional areas like securities underwriting and dealing, derivatives trading and the packaging of loans as securities for sale. As banks expand across state and international borders and use increasingly sophisticated information technology, it has ''heightened the potential for swift changes in the risks confronting these institutions,'' the Fed cautioned. biz.yahoo.com