Corporate Financial Preparedness : LUSENET : TimeBomb 2000 (Y2000) : One Thread

I'm curious: Has the need for corporate financial preparedness been adequately addressed at your company?

Has your company completed plans with vendors and customers to establish a payment schedule that bypasses the week following the rollover to reduce the stress to a potentially stressed system?

Has your company increased its reserve as a guard against cash-flow problems resulting from delays in receivables?

Has your bank taken independent steps to increase its capital base or is it hoping the Fed will bail it out of a liquidity crunch?

Has your company made its financial preparedness plans public?

Have I asked enough questions? Thanks in advance for any answers or anecdotes. I was hoping to see more disclosure and reporting of corporate financial preparedness planning by now.

-- PNG (Peter Gauthier) (, August 12, 1999


I suppose a lack of answers is in itself an answer. IMO the larger the organization the less it would consider having a cash position. I've heard of a very few small business owners who might keep a few weeks cash in a safe place, but nothing from anything bigger.

The Federal Reserve has a page published which talks to banks about freeing up liquidity via bond redemptions and rearranging bond maturities. But all this seems to be in system, not cash. One of the local S&L's here has put in its order for a 'large' amount of cash compared to deposits. The CFO told me he was pretty stunned by the idea of having as much cash in the vaults as they had ordered. I think they are about $300 million in deposits. This from him last year. He talked about having to arrange for vault space to secure it all.

CoryH implies that he knows of some Corps which are doing the cash thing.

-- ..- (dit@dot.dash), August 13, 1999.

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