RR-2572 Statement of Treasury Deputy Secretary Lawrence H. Summers before the United States Senate Special Committee on the Year 2000 Technology Problem Mr. Chairman, and Members of the Committee, the Department of the Treasury wishes to thank you for conducting this important hearing and supports your efforts to review the year 2000 problems and its ramifications on international banking and finance. Unless fixed, year 2000 problems will pervade every aspect of our financial system, including the settlement of financial trades, the processing of routine financial transactions, and the dispensing of funds by ATM systems.
All financial firms are potentially at risk.
If the failures are widespread, they can pose a threat to central markets such as an exchange or clearinghouse. Today's hearing on this issue comes at a propitious time. There has been a flurry of international action on the year 2000 matter over the past few months. At that meeting, each country provided a brief overview of its domestic efforts, along with an analysis relating to progress in other countries. Other international fora, including the World Bank, OECD and regional organizations are also undertaking significant programs to help in the coordinate international activities in this area.