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Technology Stocks : Y2k Why the stock-market will collapse within days/week -- Ignore unavailable to you. Want to Upgrade?

To: david sosiak who wrote (154)	5/27/1998 4:46:00 PM
From: Henry Volquardsen	Respond to of 185

David, To address your comments in order: small banks are in unique situ to benefit from Y2K banking problems because they are not/not technology based,they are not networked,interconnected or plague by computer technology or designer software like the big banks. Moreover,many,many of these banks still do things by old fashion methods,like pen and paper,seems rather interesting but they will benefit the most like all other companies than can and still use the old proven methods. Not true. Small banks are not throwbacks to the 19th century. They use technology just like everyone else and are just as exposed. To be clear, I repeat, I did not say the small banks would fail but that they would have less resources to address the issue. The banking industry is not plagued with issues such as imbedded chips which are an issue for industrial applications. It is a much more straight forward problem for the banks and one that we have been aware of for awhile. The core of my business is doing long term transactions. I have been doing transactions that go well past 1/1/2000 for some time now. The bulk of our systems needed to accept these dates and treat them correctly for valauation and risks assessment some time ago. This is not a surprise issue and one we have been dealing with. Secondly I disagree that a run on the banks is in any way inevitable. And since the small banks are absolutely dependant on the money center banks for corresponding bank services and interbak payment systems there is no way the small banks would avoid such a run if one occurred. The only thing that could cause a run related to Y2K would be problems with interbank payments. As I already have indicated the Fed has made it quite clear that they stand prepared to provide whatever liquidity is needed in such an event. I want to be clear that I am not trying to be dismissive of the need for concern regarding Y2K but the US fininacial system is far from the major concern. Henry