The Year 2000 Problem is a matter of survival for individual banks. This assessment is from the Board of Governors of the Federal Reserve System.
Notice how the FED has shifted responsibility for compliance to the board members of the banks.
Behind the FED is an army of private, salivating lawyers who will apply the FED's implied threat.
When the exodus from these boards begins late in 1998 and early in 1999, you will know what's ahead: a banking collapse.
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TO THE OFFICER IN CHARGE OF SUPERVISION AND APPROPRIATE SUPERVISORY AND EXAMINATION STAFF AT EACH FEDERAL RESERVE BANK AND TO EACH DOMESTIC AND FOREIGN BANKING ORGANIZATION SUPERVISED BY THE FEDERAL RESERVE SUBJECT: The Federal Reserve's Intensified Year 2000 Compliance Efforts
Assuring that computer systems and applications are Year 2000 compliant presents a complex managerial and technological challenge for all enterprises, both public and private. For entities such as financial institutions that rely heavily on computers to provide financial services to customers, achieving Year 2000 compliance in mission critical systems is essential not only for maintaining the quality and continuity of the services, but also for assuring the very survival of the entity itself.
While bank supervisors can provide guidance, encouragement, and strong formal and informal supervisory incentives to the banking industry to address this challenge, the supervisors cannot be responsible for ensuring or guaranteeing the Year 2000 readiness and viability of each system used by the banking institutions they supervise. Rather, the boards of directors and senior management of banks and other financial institutions must shoulder the responsibility for ensuring that the institutions they manage are able to provide high quality and continuous services beginning on the first business day in January of the Year 2000 and beyond. This critical obligation must be among the very highest of priorities for bank management and boards of directors.