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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (8477)	12/21/1997 7:12:00 PM
From: jgibbs	Read Replies (1) \| Respond to of 13949

Josef To add to your list of newspaper reports re y2k, there was a Bloomberg News report in today's News & Observer out of Raleigh, North Carolina entitled "2000 Problem Likely to Slow Bank, Brokerage Takeovers." A couple of interesting paragraphs: "Arthur Levitt, chairman of the SEC, told Wall Street last month to make year 2000 projects their 'highest priority.' In other words, mergers should take a back seat." "The looming deadline could accelerate merger activity, at least for a couple months. A bank that is far behind in upgrading its systems might try to sell before costs skyrocket, profits shrink and its allure to buyers dims." "Federal Reserve officials have pledged to visit every bank to check on year 2000 progress by the midddle of next year. Spot inspections have already resulted in a 'cease and desist' order against Putnam- Greene holding company, last month. William Rybeck, the associate director of banking supervision, even threatened to shut down electronic links with foreign countries whose banks aren't prepared starting in 1999." "Those few banks that are well prepared for the century date change will have a limited window to prusue buyouts according to the Basle Committee. As 2000 approaches, 'There is a decreasing ability for any organization to absorb a noncompliant one and make the necessary changes,' the Basle report said." Some y2k costs for banks were also noted, though for some reason, I would guess they would be on the low side: Chase Manhattan and Bank America Corp plan to spend more than $200 million on the problem. Norwest should top out at $50 million. Donaldson, Lufkin & Jenrette, Inc, the nations's eighth largest brokerage, plans to spend up to $90 million (on top of the $27 million spent so far). CoreStates said it faced up to $60 million in year 2000 costs.