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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 (96)	7/21/1999 11:58:00 AM
From: flatsville	Read Replies (2) \| Respond to of 158

I think I found my notes (no url yet) on that recent High Street troubled bank article where the writer, by process of elimination, narrows down the list and speculates as to which of the two or three remaining banks is the likely suspect. (The article that you think doesn't exist <ggg>) (If any other posters recognizes the above description of the article, please post. A few more details: It was a UK publication, the article hit the web within the past two weeks.) New bobby beara weekly VIX chart on Chicken Trading Page: bway.net (love those annotations, though I wish he had retained the over-bought and over-sold lines) Let me know if you got my email.

To: C.K. Houston who wrote (96)	7/21/1999 8:31:00 PM
From: C.K. Houston	Read Replies (1) \| Respond to of 158

"Options Moves Portend a Nightmare in 55 Days" thestreet.com While most U.S. brokerages appear to have most of their year 2000 work completed, only 22% of foreign investment banks, clearinghouses and stock exchanges have fixed, tested and implemented their systems, according to a recent study. The study, conducted by the Securities Industry Association and the International Operations Association, was cited in the latest report on the year 2000 readiness of the securities industry and public companies by the U.S. Securities and Exchange Commission (SEC)...The SEC, meanwhile, still seems to have a lot of year 2000 work of its own to complete. Of the agency's 52 mission-critical systems, only 18 were deemed year 2000-compliant as of June 1... computerworld.com FEDERAL RESERVE CLEARS LOAN FACILITY TO Y2K COMPUTER PROBLEMS Dow Jones Newswires - July 21, 1999 WASHINGTON -- The Federal Reserve Board approved a special loan facility to ease any liquidity pressures on banks that arise at the end of this year. But the board denied bankers' requests to lower the interest rate that will be charged on the loans. The board voted unanimously to create a Century Date Change Special Liquidity Facility, which will let banks borrow funds at a rate 1.5 percentage points above the Fed's target for the federal funds rate, currently 5%. The program will be available from Oct. 1, 1999, through April 7, 2000, one month longer than originally proposed. [Thru April 7, 2000? Hmmm] Some [most?] banks anticipate great demand for cash toward the year's end as a result of the year-2000 computer problem, which strikes software unable to differentiate between 2000 and 1900. Recognizing the uncertainty surrounding the date change, the Fed has promised to have extra cash on hand to avoid potential disruptions. "Where there are strange distributions or unusual distributions of reserves, banks under pressure that ordinarily wouldn't be under pressure, this will be there to help them out," a Fed official told reporters. "By ensuring the ready availability of funds, the facility should enable depositories and their customers to enter into agreements to meet possible credit needs with greater confidence," the Fed said in a memorandum. "The facility also should help to damp any tendency for money markets to tighten owing to inevitable difficulties ... in gauging the overall supply and demand for reserves each day." But in approving the program, the Fed didn't reduce the spread on loans under the facility, which was a request made by dozens of banks that responded to the Fed's May call for public comment on the new loan window. Banks complained that the proposed spread would cut into profits and discourage use of the facility. Some feared the rate would translate into higher pricing for year-end lines of credit. The Fed said it wanted a rate high enough to encourage banks to look elsewhere for funds, but low enough to provide "a reasonable backstop if concerns about the century date change or disruptions associated with the change itself begin to put strains on funding and credit markets," according to a staff memorandum. interactive.wsj.com Anyone know where else banks go to get additional funds? This can't help their profit line. Time to short banks? Cheryl 163 Days until 2000