Elec. Telegraph: Millennium bug may hit financial institutionsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
From the Electronic Telegraph:
ISSUE 1509, Tuesday, 13 July 1999
Millennium bug may hit financial institutions By Robert Uhlig, Technology Correspondent
EIGHT financial institutions, including one classified as a "high-impact" household name, may have left it too late to avert severe disruption to their computers from the Millennium bug.
Any financial institution that is not Millennium-compliant risks losing customer records or being unable to transfer funds electronically.
The companies, which the Financial Services Authority refused to identify at a meeting yesterday for fear of triggering a run by investors on their deposits, were rated as "red" in the latest report by the National Infrastructure Forum.
The red rating means they are at "severe risk of material disruption and that timely rectification may not be possible", according to Action 2000, the Government's Millennium bug watchdog.
Following City rumours that the "high-impact" company might be a high street bank, Gwynneth Flower, managing director of Action 2000, said she had pressed the Treasury to circumvent the FSA and act in the consumer's interest. She added: "The Treasury is increasingly on our side and pressure is mounting for something to be done. We cannot afford any loss of public confidence in the banking system."
The FSA, the Treasury and Action 2000 face a Catch-22 situation. They risk a run on any bank or financial institution they name as being at severe risk; but they also risk a loss of confidence in the banking sector as a whole if they do not name those institutions that are lagging behind.
Michael Foot, managing director of the Financial Services Authority, ruled out naming institutions that are facing difficulties because, he said, he had to protect investors and shareholders. He added: "The companies would face a gratuitous crisis of confidence but we know who they are and they know that time is short. They also know that we will act if necessary by taking appropriate measures."
Mr Foot said the measures could include transferring or closing parts of the affected businesses. He added: "We are going to protect shareholders and investors and that is our prime concern."
Mrs Flowers believes the public will eventually lose confidence in financial institutions that have not announced that they are 100 per cent ready and will move their investments to those that have made public declarations of preparedness.
Following City rumours that Lloyds TSB is the "high-impact" institution rated as a red risk, the bank broke with FSA protocol to state that it was not behind in its preparations for the Millennium bug. A spokesman said: "We are confident that it will be business as usual and these rumours are untrue." A spokesman for the Halifax, which has also been subject to City rumours, said: "It is not the Halifax at risk at all."
The National Infrastructure Forum report also disclosed that six local authorities received red ratings and that many other vital services have not yet completed their Millennium bug preparations.
All but one police force and 97 per cent of NHS hospitals and trusts were rated as amber, meaning there is some risk of material disruption to the national infrastructure, but that there is an agreed containment plan to rectify shortcomings.
The six local authorities criticised by Action 2000 were Charnwood borough council, Leicestershire; East Northamptonshire district council; Hart district council, Hants; Restormel borough council, Cornwall; Rugby borough council; and Warwick district council.
-- Old Git (email@example.com), July 14, 1999
The title of that article cracks me up:
"Millennium bug may hit financial institutions"
NO SHIT!!! ROTFLMAO!
-- Clyde (firstname.lastname@example.org), July 15, 1999.
"The FSA, the Treasury and Action 2000 face a Catch-22 situation. They risk a run on any bank or financial institution they name as being at severe risk; but they also risk a loss of confidence in the banking sector as a whole if they do not name those institutions that are lagging behind. "
As Ned Flanders would say, that's a dilly of a pickle.
" He added: "We are going to protect shareholders and investors and that is our prime concern."
This should be written on the civilisation's gravestone, iff it all goes infomagic.
-- number six (Iam_not_a_number@hotmail.com), July 15, 1999.