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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 (63)	7/14/1999 4:47:00 PM
From: C.K. Houston	Read Replies (2) \| Respond to of 158

"We are going to protect shareholders and investors and that is our prime concern." Eight UK financial institutions, including one classified as a "high-impact" household name, may have left it too late to avert severe disruption to their computers from the Millennium bug. Any financial institution that is not Millennium-compliant risks losing customer records or being unable to transfer funds electronically. The companies, which the Financial Services Authority refused to identify at a meeting yesterday for fear of triggering a run by investors on their deposits, were rated as "red" in the latest report by the National Infrastructure Forum. The red rating means they are at "severe risk of material disruption and that timely rectification may not be possible", according to Action 2000, the Government's Millennium bug watchdog. Following City rumours that the "high-impact" company might be a High Street bank, Gwynneth Flower, managing director of Action 2000, said she had pressed the Treasury to circumvent the FSA and act in the consumer's interest. She added: "The Treasury is increasingly on our side and pressure is mounting for something to be done. We cannot afford any loss of public confidence in the banking system." The FSA, the Treasury and Action 2000 face a Catch-22 situation. They risk a run on any bank or financial institution they name as being at severe risk; but they also risk a loss of confidence in the banking sector as a whole if they do not name those institutions that are lagging behind. Michael Foot, managing director of the Financial Services Authority, ruled out naming institutions that are facing difficulties because, he said, he had to protect investors and shareholders. He added: "The companies would face a gratuitous crisis of confidence but we know who they are and they know that time is short. They also know that we will act if necessary by taking appropriate measures." Mr Foot said the measures could include transferring or closing parts of the affected businesses. He added: "We are going to protect shareholders and investors and that is our prime concern." telegraph.co.uk Cheryl