Moody's has issued a warning based on the low estimates of what it will cost to repair the banks' code.
These are the largest banks on earth. If they go down, there will be an international banking panic.
I wonder when Moody's will make rthat conclusion and start issuing downgrades for all banks.
My guess: December 31, 1999.
Moody's did not get the story straight: "Chase Manhattan and CitiCorp have spent $ 300 million and $600 million respectively in the area." They have BUDGETED this amount of money; they have not spent it.
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Moody's Investment Service announced on May 20 that the company judges that the major Japanese banks have taken insufficient actions toward dealing with the year 2000 problem. They point out an example of a Japanese bank whose budget for the problem is only $ 60 million while Chase Manhattan and CitiCorp have spent $ 300 million and $600 million respectively in the area. Moody's emphasizes that if the banks do not use their resources to deal with this problem, the risk will be felt throughout the financial industry and effect the worldwide economic market.