Chase Manhattan Bank, the largest US bank, is not yet at the code repair stage, according to a March 30 Reuters report. "In Chase's annual report filed with the Securities and Exchange Commission, the company said it has already completed three phases of its year 2000 project began several years ago -- inventory, assessment and strategy."
According to the
California White Paper, awareness takes 1% of the project's resources, inventory takes 1%, assessment takes 5%. The rest is code repair and testing.
The bank has
200 million lines to correct. The bank began its y2k project in
1995. If it took three years to get to code remediation, and code remediation and testing account for at least 90% of the project, what can we conclude about the likelihood of Chase being compliant by January 1, 2000?
If the public reaches the same conclusion that I do, bank runs will begin in 1999.
Maybe the report misinterpreted Chase's SEC filing. Perhaps Chase really is close to having its code fully repaired, and all of its vendors' software programs nearly compliant. Perhaps.
The bank has raised its y2k repair cost estimate from $250m to $300m.
This is from a Reuters story (March 30). Don't expect this link to last very long.
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WASHINGTON, March 30 (Reuters) - Chase Manhattan Corp. said Monday it would now spend about $300 million, revised from about $250 million, on fixing the year 2000 computer bug, and said it had already made ``significant progress.''
In Chase's annual report filed with the Securities and Exchange Commission, the company said it has already completed three phases of its year 2000 project began several years ago -- inventory, assessment and strategy.
Chase said that while many of its business applications and external interfaces are already able to handle post-year 2000 data processing, ``much work remains to be completed.'' . . .
``During 1998, year 2000 activities are being given highest priority,'' the company said.
Chase said it was working in concert with its customers to prepare for the year 2000 and develop contingency plans that it hopes will minimize the impact that may result from the century date change.