Senator Bennett, Chairman of the Banking Committee, warns that U.S. corporations are not telling the whole truth about their y2k problems and costs. If he is correct, then the stock market is in for a drubbing, either when the y2k repairs begin or because they have not begun. The SEC requires such statements, but it only formalized this rule in early October.
The full report appeared at MSNBC.
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WASHINGTON -- America’s businesses are resisting telling regulators, their customers and shareholders the whole truth about the potential impact of the Year 2000 problem. That conclusion was aired Wednesday during a Senate hearing. To force full disclosure, legislation might be needed, warned Sen. Bob Bennett, R-Utah.
Testimony presented Wednesday included the assertion that lawsuits from Year 2000 problems could top $1 trillion. "Despite that incredible figure, individual companies are not talking about what specific liabilities they face, or how they plan to manage their litigation risk," Bennett said. "I believe investors have a right to know."
Bennett said he’s considering legislation that would require companies to fully disclose their potential risk and the financial impact they face as a result of dealing with the problem. . . .
Bennett’s staff searched SEC records to determine what kind of disclosure companies had made about the Year 2000 problem. Result: not much. Some had a single sentence; others were vague.