Look Who's Taking Their Money Out of the Bankgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Source: London Times, March 20 1999
http://www.sunday-times.co.uk/news/pages/tim/99/03/20/timbizbli02004.html?2215803 "Banking industry regulators do not go in for scare-mongering. But with a few carefully chosen words, Michael Foot has sent shock waves reverberating round the City and sent savers scurrying for safety.
......Suddenly, those individuals who have insisted that they will be withdrawing all their cash from the bank before the end of the year do not seem quite so misguided. The prospect of the millennium bug eating your savings may be more than just the nightmare of overactive imaginations. At a high-powered millennium meeting in Washington recently, delegates were stunned to hear Henry Kissinger announce that he intended to withdraw all his money from the bank as 2000 nears. Mr Foot's statement this week has fuelled fears that lesser mortals will follow the former United States Secretary of State's lead, precipitating a dangerous run on the banks."
This one is worth reading.
-- running (email@example.com), March 20, 1999
That link didn't work for me. Said it had moved and requested I explain how I got there.
I have noticed that serious articles about Y2K that suggest problems tend to disappear off news source sites at the speed of light. I'm getting to the point where I'm considering saving a copy of stuff like that so when it vanishes I can at least still send it to people.
Hope you can resolve the link. A guy I know who works for the NSA tells me that Henry Kissinger is the most powerful man in this country. Which was quite a surprise to ME. But he was serious. Hmmmn.
PJ in TX
-- PJ Gaenir (firstname.lastname@example.org), March 20, 1999.
It's always the "insiders," that get to save their butts. The company my husband works for CEO several years ago cashed in all his stock before the company stocks took a nose dive, a lot of employees were pretty disgruntled over that. But this time, everyone has been warned and if people don't trust themselves with their own money, nothing more can be said. What's amazing to me is that people are saying that they'll take their money out when everyone lines up at the bank. Since I'm dealing strictly with cash now, it's quite liberating.
-- bardou (email@example.com), March 20, 1999.
I second the opinion. Definitely a "must read". The British are certainly being a lot more candid than are the American news services.
Link: http://www.sunday-times.co.uk/news/pages/tim/99/03/ 20/timbizbli02004.html?2215803
-- Dan (DanTCC@Yahoo.com), March 20, 1999.
The link didn't work, but I was able to get there by copy and paste.
Try the http://www.sunday-times.co.uk/news/pages/tim/99/03/20/timbizbli02004.html?2215803
-- flb (firstname.lastname@example.org), March 20, 1999.
Here is the article, just in case the link goes dead...
The year 2000 looms and all is not well, says Caroline Merrell
Headaches start as the bug bears down on banks
Will the dawning of the year 2000 bring financial chaos? This week the man who should know raised just that spectre.
Banking industry regulators do not go in for scare-mongering. But with a few carefully chosen words, Michael Foot has sent shock waves reverberating round the City and sent savers scurrying for safety.
The quiet, bespectacled man from the Financial Services Authority admitted that 12 large financial institutions are so far behind with their preparations to cope with the millennium bug that they could pose a serious risk to their customers and the markets. He is so worried by their potential to do damage that he is threatening to close them down.
This grim warning is the first real admission from the City of the potential horrors that lie in store when the year changes. Until now, the Bank of England has insisted that Britain's financial institutions were coping with the bug. That is what the institutions themselves maintained. Now it is clear that the truth is very different. And so intertwined are the various financial institutions that if one fails, the entire system may be put at risk. "The financial industry is like a house of cards," shuddered one insider yesterday. "If one business founders, the others feel it."
Suddenly, those individuals who have insisted that they will be withdrawing all their cash from the bank before the end of the year do not seem quite so misguided. The prospect of the millennium bug eating your savings may be more than just the nightmare of overactive imaginations. At a high-powered millennium meeting in Washington recently, delegates were stunned to hear Henry Kissinger announce that he intended to withdraw all his money from the bank as 2000 nears. Mr Foot's statement this week has fuelled fears that lesser mortals will follow the former United States Secretary of State's lead, precipitating a dangerous run on the banks.
There are fears that computer breakdown will wipe out details of people's investments, transfer sums to the wrong accounts and generally put the finances of individuals and corporations in jeopardy. The FSA is insistent that companies must have full back-up systems in case of a massive computer breakdown and it is by no means confident that all yet do.
It was inevitable that a few small businesses would fail to prepare adequately for the arrival of the new millennium. But Mr Foot was not talking about small businesses. What was so stunning about his revelations was that they related to 12 of the most important 160 businesses in the financial services sector. These, on the regulator's own definition, are "high-impact" companies, banks and insurers whose failure to be bug-proof would have serious consequences not just for customers but for the entire financial markets.
Yet we are left to guess the identity of the dirty dozen. Mr Foot dare not name and shame them for fear of legal action. His secrecy led to frantic speculation in the City as bankers tried to identify the culprits. There were equally frantic efforts to insist that they were not the guilty ones. The favourite line from many British banks was that all the 12 offenders are foreign-owned. That, says the Financial Services Authority, is certainly not the case.
At Action 2000, the Government's anti-bug unit, the director-general, Gwynneth Flower, is trying to play down fears of financial disaster. The former army major proclaimed: "If I have confidence in any sector in Britain it is the banking sector. But it would be foolish to say that everything in the garden is rosy."
She believes that the financial services industry has spent more time and effort dealing with the bug than any other industry and that Britain is ahead of any other country in seeking to cope with the problem.
Robin Guenier, the man whom the last Government first asked to help the country to cope with the bug, is less sanguine than Ms Flower. He was widely derided as the Cassandra of the millennium because of the dreadful picture he painted of national chaos. Now his predictions are coming dangerously close to being borne out. He says: "If the financial services industry is leading Britain, then that does not say much for the rest. And if Britain is leading the world, then heaven help us."
The international nature of the financial services industry does exaggerate the risks it faces for much of the rest of the world certainly has lagged behind the UK in year 2000 preparations. Abbey National, for instance, confident that its own systems are compliant, has a small operation in France which was recently checked for compliance under the French Government's criteria. It was, said the Abbey, "one of the few businesses to meet the deadline". There is widespread scepticism in the City about the ability of many European institutions to address the problem adequately.
The potential computer problems have been compounded for the financial services industry by the introduction of the euro. Many were deflected from the year 2000 issue as they struggled to prepare for the new currency. Now that they need to finish preparing for the end of the millennium, they cannot find the people to do the job.
Mike Hudgell, marketing director of Gresham Computing, which specialises in testing IT systems, says: "A lot of firms have left it too late to do their year 2000 work. They know what needs to be done but simply do not have enough time to do it and test that it will work. Almost every major IT project ends up being delivered late. This is the one that cannot be."
Robin Guenier believes that the first casualties could begin to appear very soon. As many financial companies operate an accounting year that runs from April to March, their software will soon be covering the period to March 31, 2000, triggering the bug's early appearance.
Mr Guenier does not sound like a scaremonger to Nick Bottomley, of the Swiss banking software group Fin'Objects. "I have never heard of a firm that has admitted it has a year 2000 problem yet everyone in the City has it and, up till now, they have been hiding it," he says. He argues that companies have tried to take shortcuts and the results could be disastrous. Commerzbank, one of Fin'Objects's clients, was forced to ditch virtually all its computers and start again with a new system to cope with the euro and year 2000.
Mr Bottomley fears that the 12 companies that feature on Mr Foot's list are only the most visible offenders. "The others, who have been hiding their problems, will be found out later," he says.
That is why he will be removing all the cash from his bank accounts before the century ends.
-- Nabi Davidson (email@example.com), March 20, 1999.
-- html (firstname.lastname@example.org), March 20, 1999.
Ouch. April is 12 days away. Have to withdraw $$ incrementally if you have it; $10,000 or more at once is a no-no. Bleed it out by ATMs?
-- nervous nellie (email@example.com), March 20, 1999.
One of the guys I work with pulled his money out the first week in Jan and his biggest bitch was converting all those hundreds into 20's and smaller.And since the 5's and 1's took up so much volume he says he had to wash and iron them. I kid you not.
-- nine (firstname.lastname@example.org), March 20, 1999.
I posted an earlier thread 5 or 6 weeks ago asking, in essence, "what is everyone waiting for?" concerning the stall to make prudent financial changes/withdrawals/portfolio liquidation etc.
I was wondering why it would take a sudden stun like this to make everyone run all at once. I do not use banks at the moment except to cash the checks I do get. It doesn't sit in the bank. Sure it is a nusance to get money orders, but I am not waiting around for something like this to hit the media.
It just doesn't make sense to wait around, if you KNOW there are things that you want to do to protect or save your savings, assets, and investments. Why wait until other people have a knee-jerk reaction that will trigger things off? That doesn't hold water for true preparation believers.
Just my opinion. I certainly can't advise others what to do with finances. I'm just stating that I don't understand the mentality that is holding people back from getting finances under control before the masses are spooked.
***counting cash and waiting for the stampede....moo***
-- Mr. Kennedy (email@example.com), March 20, 1999.
It also occurred to me that Mr. Kissinger more than likely has a substantial> amount of money/investments. His withdrawal alone would probably be enough to cripple one small bank (although it is doubtful he banks with a "local" bank of small town magnitude).
Mr. K *** is considering the percentages...***
-- Mr. Kennedy (firstname.lastname@example.org), March 20, 1999.
-- Mr. Kennedy (email@example.com), March 20, 1999.
If Kissinger made such a statement at this meeting then he probably has said it elsewhere. I would like to read a direct quote or see another article substantiating this.
It is very hard to beleive that Kissinger would say he will be withdrawing his money from the bank. He might say and do it in private, but unbeleivable to say it publicly.
Will US news media jump on this?
-- Linda A. (firstname.lastname@example.org), March 20, 1999.
after the latimes/yardeni debacle i do not trust the us media one bit.
will they report it? i doubt it. remember they were told to be 'responsible' in the way they report y2k...we wouldn't want to have bank runs would we?
ashley dunn distorted what ed yardeni said in order to make the picture rosier...i don't believe that was an accident. it was picked up by other papers nationwide.
if you listen to the bbc you will get a slant on the us news not available in the states. you would be amazed at what you hear and this was before y2k entered onto the radar screen.
paranoia or perception? you decide.
-- marianne (email@example.com), March 20, 1999.
The link at the top of this thread was correct. The tag was not closed. It was missing the > at the end of Mr. K
-- Mr. Kennedy (firstname.lastname@example.org), March 20, 1999.
LOL, THAT didn't come out right either! lol It's just that the end tag was improperly closed. The URL is correct. lol.
***laughing at himself***
-- Mr. K (email@example.com), March 20, 1999.
According to some Brits who responded to a post above, the once esteemed Times is now little more than a tabloid.
-- Puddintame (firstname.lastname@example.org), March 22, 1999.