Y2K + Bank Mergers = One Huge Messgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Big banks trying to merge are so screwed up by Y2K that the government is giving them more time to finish merging, although it didn't stop them from laying off thousands of employees.
-- @ (@@@.@), March 23, 1999
you're lucky we have Y2K + mergers + euro
NB euro is going to cost more than y2k (though it doesn't affect so many systems so they say)
-- dick of the dale (email@example.com), March 24, 1999.
They are 'so screwed up' ? Presumably you can provide evidence for this. My reading of the article was that two banks which were already compliant would be allowed to keep their current systems until after the rollover. Were we reading the same article ?
-- (firstname.lastname@example.org), March 24, 1999.
Why would the government be giving them more time if they weren't having serious problems? Duuuuhhh! Can you add 2 + 2?
-- @ (@@@.@), March 25, 1999.
The excerpt in question ...
BofA Reveals Post-Merger Layoff Figures
Peter Sinton, Chronicle Senior Writer
Thursday, March 25, 1999
)1999 San Francisco Chronicle
... The task of merging the two banks is far from complete. For example, by the end of 1998, BankAmerica had spent $7 million of the $150 million it allocated to convert computer and other systems, and spent only $106 million of the $300 million it budgeted to get out of certain businesses and contracts.
``Most of the major conversions are not going to happen until later this year and next year, in part to avoid Y2K problems,'' said Joseph Morford, a bank analyst with First Security Van Kasper. However, he believes that ``the integration is proceeding on track, and some cost savings should begin to emerge in the first-quarter results.'' ...
My understanding from a discussion with a banker, (see thread) is ...
Y2K, Banking, Small Business (SBA) And Discussing Our Near Future (Conversation With A GI Banker)
... The banker flatly stated that most, not all, of the the banking industry mergers weve seen recently are directly Y2K related. For many banks when they completed assessment, the costs of fixing the IT problems were so high and prohibitive, that merging with a bank supporting better information technology systems was the best strategy for Y2K problems. Also said expect to see continuing mergers up until October. The not ready are likely to move under the umbrellas of the Y2K compliant and ready before years end. Said the biggest problems would be with the smaller banks, and that we are likely to see bank closings in that sector. Also, this person expects to see their own bank taken over, since the banks size is ripe for the bigger pickings. Its possible this individual could be out of a job, IF the bank is taken over, so they are preparing for that unknown as well. ...
I suspect, the reason Nations Bank bought Bank of America, was partly due to Y2K IT problems. Note B of As expenditures. Or lack thereof.
-- Diane J. Squire (email@example.com), March 26, 1999.