The fdic took the extraordinary measure of issuing cease and desist orders against three affiliated Georgia banks and their parent holding company, Putnam-Greene Foundation, accusing them of unsafe and unsound banking practices because of their lack of Year 2000 planning. To some, this was the culmination of low murmurs amplified to insistent urging, which, in turn, escalated to a cacophony of catastrophic predictions, about the effect of the Year 2000 date change on financial services institutions' computer systems.

The order outlines all the places the banks allegedly went wrong-from an inadequate electronic information system to failing to develop a disaster recovery plan-and requires the banks to install a new computer system, hire new management and develop a comprehensive Year 2000 plan with strict reporting deadlines.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.