To: Ken who wrote (7016 ) 7/23/1999 4:42:00 PM From: Ken Respond to of 9818
< Foreign Brokerage Industry and Banks Are on the Wrong Side of Pareto's 80-20 Law> cnn.com . A recent study indicates that 22% of foreign brokerage houses and banks are fully compliant. That means 78% are not. The stock market goes up. No one is worried. It is as if the U.S. were not connected to the world outside. Nothing is said about the U.S. financial industry's compliance rate, which is way, way under 10%. Not one major brokerage firm or money center bank has announced compliance. Yet this industry is said to be the most advanced in the U.S., which it probably is. If the figures for foreign companies is correct, which I sincerely doubt, they are ahead of the U.S. Where is the case for optimism? It must be in John Koskinen's desk, marked "For Your Eyes Only." Check out the introductory clause of the first sentence: "While most U.S. brokerages appear to have most of their year 2000 work completed. . . ." Spin? The better to bankrupt you with. CNN/IN (July 22). 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).Only 78 out of 650 foreign brokerages and stock exchanges targeted for the survey actually participated in the study. Still, the "majority" of those firms polled had completed less than half of their year 2000 projects. The survey was conducted between February and May this year