FED to overhaul FEDNET computer systems

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Tuesday January 11, 6:23 pm Eastern Time Fed announces computer network upgrade for mid-2000 NEW YORK, Jan 11 (Reuters) - The Federal Reserve announced on Tuesday that it would overhaul FEDNET, the computer network that hooks up the various regional Fed banks and commercial banks, allowing for faster data transfer in the banking system.

``Significant technological advances in the telecommunications industry now offer faster, more efficient communications, without compromising the Federal Reserve's high standards for availability and security,'' said Bruce Summers, the Fed's director of information technology, in a statement.

The Fed said the upgrade will support larger data flows, increased security protection, and will use Internet Protocol (IP) transmissions, the standard used for common data transfer over the Internet.

The FEDNET upgrade, which replaces a system last redesigned in the late 1980s, will be implemented by mid-year 2000, with selected pilot testing before then.

The Fed said the upgrade would most immediately affect leased line connections between depository institutions and the Fed, as well as the Fed's own internal connections.

Comment: If all is Y2K-OK than why the need to upgrade? SECURITY???

-- Bill P (porterwn@one.net), January 11, 2000


Ah, replace it because the present one is 20 years old?

-- (I'm@pol.ly), January 11, 2000.


I'm a programmer at the Federal Reserve. I think the reasons for their upgrading to a new system is spelled out in the article. With the move to internet based stuff, the changing financial environmental needs of their customerts and the need for internet security, protocols need to change.

Keep in mind that these various systems are upgraded all the time. I've worked on ones that have changed. It was due to business needs, not Y2K. This is normal. Upgrades to software will never end for any organization I suspect!

It's obviously not Y2K related...since it's scheduled for mid 2000. I've always found the FRB to be honest in it's public communications. If you have questions, call up the local branch near you and ask them whatever you want.

If the events of Y2K have proven anything, it's that the communications from TPTB were truthful...not spin, lies and coverup as so many here thought. I've never know the FED to lie. What they have said matches my "insider knowledge" FWIW. Know the truth...and the truth shall set you free! BTW, I'm just a low level employee, not an official spokesperson. This is my personal opinion; call the bank near you for more details.

Happy in 2000,

-- programmer (employee@the.fed), January 11, 2000.

Translation from Fedspeak into plain English:

"We got past the rollover by the skin of our teeth, through band- aiding and kluge-ing the system. But now we're really worried about the end of this year. We're gonna replace the whole shebang so we can get our end-of-year runs done without computers that think every year rolls over into 2000."

WW ;)

-- Wildweasel (vtmldm@epix.net), January 12, 2000.

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