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Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: foobert who wrote (8087)	8/19/1999 2:07:00 AM
From: C.K. Houston	Respond to of 9818

"the loss occurred as money market instability increased ahead of expected interest rate rises in the U.S. and Europe, and investors and banks became more risk averse in anticipation of computer millennium bug fears" ========================================================= LONDON, Aug 19 ( Reuters ) - U.S. investment bank Goldman Sachs has lost money after being caught out in the money derivatives market, the Financial Times reported on Thursday. The FT report said the loss was incurred last month at Goldman's London swaps operation. Goldman refused to comment but rumours of a $100 million loss have been dismissed as far too high, the report said. It said the loss occurred as money market instability increased ahead of expected interest rate rises in the U.S. and Europe, and investors and banks became more risk averse in anticipation of computer millennium bug fears. The report added Goldman's swaps operation in London remained comfortably profitable despite the setback. Goldman could not be reached for comment on the report. ========================================================= YEN RISE SEEN FUELLED BY Y2K-RELATED RISK AVERSION LONDON (August 17) -- Mounting risk aversion among global investors, not least because of jitters before the millennium, could create a headache for Japan which is already confronted with a recovery-threatening rally in the yen. The premium that investors are demanding to hold anything but top-rated government debt has risen above levels hit after last year's Russian default while concern about the havoc Y2K could wreak on the world's markets is boosting demand for cash ... Meanwhile, there are already signs that investors are beginning to batten down the hatches in preparation for possible computer glitches at the end of the year. "Some people are already getting out of stocks and bonds and moving into cash as they don't want to revalue and deal with volatility before Y2K," said a dealer at a U.S. bank in London. "Rather than revaluing, they are taking profits, sticking their money into cash, and sitting tight." [...] y2ktoday.com