Fed Reserve advise for banksgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
This is a letter sent by Bruce Beach to those on his mailing list. I don't have any way to validate the information he has here, but I wouldn't doubt its truthfulness. Just thought some of you would find it interesting reading in these unsure times.
Subject: The Silly and the Serious >Date: 7 Jul 1999 00:42:53 -0000 > >Y2K People Finding People - http://www.webpal.org/list.htm > >The Japanese banking crisis >shows no signs of ameliorating. >If anything, it's getting worse. > >Following last week's news that Origami Bank had folded, we >are hearing that Sumo Bank has gone belly up and Bonsai >Bank plans to cut back some of its branches. Karaoke Bank is >up for sale and is (you guessed it!) going for a song. > >Meanwhile, shares in Kamikaze Bank have nose-dived and 500 >back-office staff at Karate Bank got the chop. Analysts report >that there is something fishy going on at Sushi Bank and staff >there fear they may get a raw deal. > >-------------------------------------------------- >Compare that to this. >It was at the following Federal Reserve Bank location: > http://www.frbsf.org/fiservices/cdc.local/cash/contingency.html >But it isn't there now, >which may tell you something in itself. >My correspondent received the following and verified it >before sending it to me. >Very similar to the one that I read about 2 weeks ago, >but more specific in its recommendations. >-------------------------> > The Federal Reserve sent a Y2K warning letter to banks >on Friday. In that letter they advised banks to: > > 1. Sell securities - > anything maturing after 12/31/99 should be sold. > > 2. Raise liquidity - > call in loans, sell assets, raise and store cash in the bank vault. > ( Yes, they said store cash!!! ) > > 3. Close extended lines of credit - > shut off potential drains of capital. > Let businesses know now that their may be no liquidity after >Y2K. > Cut off their lines of credit now. > > 4. Find collateral to use to raise more cash. > ( Including bank real estate, office furniture - > anything that can be pledged now to raise cash. ) > >The Federal Reserve is warning bankers to plan for the >worse case Y2K scenario. >They say get out of the market now to avoid the turmoil >at the beginning of the year. > Raise cash now. > Sell assets now. > >My question - if this is good advice for banks, >why wouldn't it also be good advice for businesses and individuals? >And why are the PR releases from the banking industry >so different from the private warnings being issued to the banks? > >I think it is a positive sign that the Federal Reserve is >urging banks to prepare for the worst. > >---------------------------------------- >I feel like I am writing >Ripley's "Believe It Or Not". > >Peace and love, >Bruce Beach >email@example.com > >
-- winna (??@??.com), July 07, 1999
This is VERY alarming! Is there anyone on the forum who can verify this information - perhaps someone who works for a bank and may have access to this sort of information??????
-- Scarlett (firstname.lastname@example.org), July 07, 1999.
The alleged FED letter to banks has been discussed in the thread named: Federal Reserve's letter to banks. q.v.
-- Jerry B (email@example.com), July 07, 1999.
Yawn.....wasted 4.5 seconds again on another post of drivel...
-- I'm (firstname.lastname@example.org), July 07, 1999.
Sorry for the wasted space. I haven't had time to do much reading lately. I did go to the other thread, though. Thanks!
-- winnq (??@??.com), July 07, 1999.
>Following last week's news that Origami Bank had folded
Origami is the Japanese art of paper folding.
>Sumo Bank has gone belly up
You know those 500 lb. wrestlers in diapers?
>and Bonsai >Bank plans to cut back some of its branches.
And put them in very small flat pots...
Anyway as David Letterman would say, "It's a JOKE!"
Now, as for this frbsf.org thing. It's not actually the Federal Reserve Board's web page. It's the "Federal Reserve Bank of San Francisco" web page. Could have been posted by anyone from anywhere.
Yes, I do believe we're not hearing the "whole truth" on this thing. But let's not spend a lot of time spinning tales ourselves, okay? The truth is hard enough to come by as it is.
-- Mommacares (harringtondesignX@earthlink.net), July 07, 1999.