That makes privacy advocates nervous. Bankers across America have been diligently making special, secretive lists and checking them twice. But the naughty companies they identify could end up with more than just coal in their stocking. Federal Express, for instance, has used a system of so-called green, yellow or red lights to assess the Y2K status of suppliers, vendors and airports. But companies may feel more obliged to share proprietary information with a bank, which may control their line of credit or mortgage.
Federal regulators say the inquiries are necessary.
They are satisfied that most banks are ready for 2000, but they don't know if major borrowers could default on a loan or go bankrupt because of a Y2K problem. And critics do not begrudge banks their right to protect their assets. Still, banks have a history of sharing confidential information with others, and that makes privacy advocates nervous. The banking industry has been criticized in recent months for selling customer information to third-party marketers or using it internally to target customers for insurance or brokerage services. In fact, Congress is considering legislation that would give consumers the right to prevent banks from sharing financial information with the banks' insurance and securities affiliates.