Flint and Hoffy have taken me task many times over my belief that the banking system of systems will hose wether there are bank runs or not - see VISA is toast in the archives, plus several follow-up banking threads.

Guys/Gals, Maria, Cherri, Anita, y2k pro - feel fee to take a crack at this one - point by point.

BEANO! - you are in the mortgage industry, you allegedly have some expertise in this area. Now's your chance to shine...

Bonkers! You hold the wishy washy middle ground - what say you?

Letter to the Editor Council Bluffs NonPareil Council Bluffs, IA

"As a former community bank stock owner, bank stock acquisition consultant, problem bank turn-around consultant and author in a popular banking publication, I challenge Iowa Superintendent of Banking Michael K. Guttau, and also any other bank owners to answer the following questions.

7 Is it true that Federal Reserve Chairman and former mainframe programmer Alan Greenspan, testified to Congress that "no less than 100% of money center banks have to be compliant" for bank payment systems computer networks to avoid serious problems?

7 Is it true that to date, not one money center bank has announced they are fully tested and Y2K compliant?

7 If one or more money center bank(s) does not achieve Y2k compliance by 01/01/00 what will stop the "cascading cross-defaults", as Greenspan has testified to Congress about?

7 If such "cascading cross-defaults" begin, especially if dozens of money center banks would see their mainframes collapse, would this impact your local bank? If not, why not? If so, how? At that time, will you still be able to perform as a bank and be able to return depositor's money?

7 Is it true that the international financial payments network known as S.W.I.F.T. (which settles 4 million transactions for 6,648 member financial institutions, in 184 nations, totaling trillions of dollars, each day) as of July 1 had a "relatively low" level of completion of the Y2K "mandatory testing" from their 6,648 member banks and brokerage houses around the world? If so, with only six months left why haven't these money center banks tested with S.W.I.F.T.? Are their computers still not repaired? Why would these major banks let us form a poor perception about their Y2K compliance, if their systems were truly ready to go?

7 Is it true that the Chairman of the U.S. House Banking Committee, Congressman James Leach (R-IA) told a group of bankers in April, "that [Federal banking regulatory] agency inspectors general have questions about the thoroughness and accuracy of bank [Y2k] examinations." If he did, then I would ask, if the banking regulatory agencies own internal auditors are concerned about the accuracy of the Y2K exams being conducted by their very own examiners, shouldn't depositors share that concern?

7 In an interview published in the 8/11/99 Credit Union Times, FDIC chairwoman, Donna Tanoue, spoke in mixed tenses when she responding to questions about the Y2K compliance of ATMs. First she said, "the ATMS are ready." In the next breath she said, "They're going to be ready. They're going to have cash for customers and they're going to have the means available to service consumers." Has anything been published?

7 Is it true that no independent auditors have done a Y2K compliance audit of a local bank? (FDIC does not qualify - see below.)

7 Is it true that the FDIC has about 1.4 cents of assets to cover every dollar they have insured in the American banking system and couldn't possibly repay most depositors if a "cascading cross-defaults" began?

7 Is it true, that the FDIC is telling the public to keep their account statements, deposit slips, canceled checks, etc. for any potential Y2k disruptions? Yet, if a bank would fail due to a Y2k computer collapse and the depositors would have to put in a claim for their money with the FDIC, is it true that the FDIC's Financial Institution Employee's Guide to Deposit Insurance (Page 11, Fall 1996) says that "The FDIC uses the deposit account records of the institution to determine both the identity of the owner(s) and the right and capacity in which the funds are held?" Doesn't this say that the computerized records of the bank are what the FDIC would employ to determine eligibility for pay back to customers of Y2K failed banks? If so, and these very computers are collapsed due to Y2K, how will the FDIC determine the ownership of and amounts to pay depositors? Would they then use the records that they told the depositors to keep? Not according to question 8 in their Q&A publication (available in most bank lobbies) where it states, "However, account statements, deposit slips, items deposited, and cancelled checks are not considered deposit account records for purposes of calculating deposit insurance." If so, aren't these the very documents that they are telling American depositors to keep for such an event? Why would they tell bankers just the opposite?

7 To protect their life-savings if depositors withdrew their money in currency and waited until January to see how banks respond to the Y2K, how would potential robbers even know that any one depositor(s) has done this? Certainly the depositor would be very discreet about it. Who else would even tell these "robbers"? Besides the local banker, who else would even know the depositor has taken a large amount of currency out of the bank?

7 Is it true that the average bank has about one penny of currency and coin in their vaults for every dollar they have on deposit? How will they fund large currency withdrawals in the next few months?

7 How many bank "deposit agreements" (legal contracts) state that the customer may not have their money back under the terms of the agreement, if more than 10%, for example, of the depositors would ask for currency all at the same time? How many bank depositors really understand this? Of those who do, how many will forget they knew it if there is a systemic bank computer collapse and their money is gone?

Bank owners, your depositors await the answers to the above questions."

Sincerely,

Paul Dorr P.O. Box 115 Ocheyedan, IA 51354 712/758-3660

-- Andy (2000EOD@prodigy.net), August 27, 1999

Answers

Hey, mANDY! Nice trick, including my "new nickname" in the thread title, to try to get me to read one of your long winded posts, which I just told you I didn't bother with anymore, in another thread. Got to give you credit for the old college try, but maybe tomorrow, or the next day, if I find myself having a reeeeeeeeal slow weekend.

I did get as far as line seven, though. Keeping your options open, is not wishy-washy. It's called sur-vi-val. I'm surprised that someone as "learned" as you has missed the concept. In the face of a mighty storm, you bend like the willow or else you snap like the oak.

-- Bokonon (bok0non@my-Deja.com), August 27, 1999.

BONKERS!

I still see you are in the wishy washy murky lurky middle ground on banking. I guess you must believe the Kosky and ABA spin.

-- Andy (2000EOD@prodigy.net), August 27, 1999.

OK, lets see if we can make some educated guesses:

Hoffmeister: "The answer to each and every one of these 'Is it true...' questions is 'No'; the answer to each and ever question that requires a numerical value is '0'. Andy, are my airplane tickets for New Years ready yet?"

Beano: "Duhhh. Keep your money in the bank. Or the cops will get yuh. Yeah, keep your money in the bank or the cops will take yuh money. Yeah you don't want to start trouble, so keep yuh money in the bank. Duhhh."

Flint: "[**disk cache overflow error, amount of data exceeds available allocation, please contact your system administrator, %F-DISK-CACHE-ALLO**]"

Bonkerson: "Yeah, what Flint said. Flint, you are always right. I want to be just like you, Flint! You tell 'em, Flint. Woof, woof!!"



-- King of Spain (madrid@aol.com), August 28, 1999.

Andy, another great post on banking, thanks. I have made many copies of the VISA is toast thread and given it to DWGI relatives and friends. They often react with the denial and childish anger of the Polly because their cocoon has been invaded with a politically incorrect thought. Our banking system is based on an entrenched belief system first and a computer super-system second. I only began to realize fully when Y2k came along just how shaky it really is. I do know one thing, bankers are scared @#$%less over y2k. People who are confident do not run expensive adds with comforting picollo music in the backgroud saying we are Wachovia and we are here, as if tomorrow they might not be! The obvious truth will not be seen until withdrawal restrictions are in place to combat "scare mongers", and "enemies of the people" or mamon as it were.

.

-- doktorbob (downsouth@dixie.com), August 28, 1999.

Threads about to drop off. Doesn't look like anybody took the bait, Andy. Must be losing your touch.

Oh...on the off chance that this was an attempt at generating a serious discussion, and not just a flame attractor, next time try using the names people post with, instead of these Junior High variations you and your cadre of Flame Fairies came up with.

I don't get the impression that Gordon thinks much of me or my opinions, but he asked me a question, in another thread, in a nice way, so I answered as seriously and sincerely as I could. No flames, I just answered his question. You wanna talk to me? You call me Bokonon. You don't wanna call me Bokonon? Then kiss my ass.

-- Bokonon (bok0non@my-Deja.com), August 29, 1999.

So Bozonon...what you're saying is that you can't answer the question, but you'll blame it on a lack of online etiquette, is that it?

-- a (a@a.a), August 29, 1999.

Well Bonkers, your true colors are showing tonight!!

I still think there is a GOOD possibility that you and Flint went to the same school of PROPAGANDA. You folks could be SIAMESE twins.

Your Pal, Ray

-- Ray (ray@totacc.com), August 29, 1999.

Kiss-kiss Bonkers!

Serious question, as expected no answer from you cartoon characters :)

-- Andy (2000EOD@prodigy.net), August 29, 1999.

"As I understand it, Mr. Kemp is simply suggesting we take precautionary measures to provide an anchor for our currency and all the world currencies that wish to link with the dollar in order to simplify financial transactions and record-keeping. The simple fact of the matter is that the global banking network, which not long ago relied on calculators and pen-and-ink ledgers, is now completely reliant on computers. "Money" is now largely electronic. Even if our financial markets are the most Y2K compliant in the world, a breakdown anywhere in this incredibly complex system may feed back to us in ways we cannot foresee or imagine. We need to think through what steps we can take right now to ensure the integrity of this system."

Dan Quayle...

At least one of 'em is a GI...

-- Andy (2000EOD@prodigy.net), August 30, 1999.

BEANO! we're waiting :)

-- Andy (2000EOD@prodigy.net), August 30, 1999.

Why bother Andy?

Doesn't make any difference what any of us say. You have made up your mind and your fingers are crossed. You've already made your choice of 'loser' with the way things are now. You don't fit in, so you want it all to change. I doubt you could 'fit in' in any society. You're that much of a loser. Sorry, but fact is fact, right?

Tell everyone to drain their accounts and literally 'sit' on their money. Yeah, that's good advice Andy boy........real good advice!

You're a genius son.........I'm in awe (again!)

Deano

-- Deano (deano@luvthebeach.com), August 30, 1999.

Still waiting for an answer...

just took delivery of mor phys...

bought more DROOY...

-- Andy (2000EOD@prodigy.net), August 31, 1999.

Gawd, even if Deano KNEW that the banks were going to tank, I think that he would still DO NOTHING. I mean, to DO SOMETHING that would be DIFFERENT from anything he has ever done before is absolutely inconceivable to him.

Deano, you are a stupid, idiotic moron, who not only could never think "outside the box" but will probably find that "the box" may literally end up being your coffin.

But I do respect your principles, at least you have seen the evidence, and made your decision. Thats a lot more than can be said for the vast majority of people.

-- King of Spain (madrid@aol.com), August 31, 1999.

KOS

'stupid, idiotic moron'??

Is that the best you can do?? Probably took you all night to think that one up. Again, very impressive!! My daughter tells me Middle School IS tougher than Elementary. What do you think?

Deano

-- Deano (deano@luvthebeach.com), August 31, 1999.

Hey Deano, don't bother with these gloomy guys any more. Come on over to the bright side of Y2K,

http://www.insidetheweb.com/mbs.cgi/mb723589.

-- Maria (anon@ymous.com), September 01, 1999.