Date: Mon, 8 Feb 1999 19:34:12 -0500 (EST)
From: "Prof. Ken Phillips" To: Dave Farber

Declan's note citing sources in California advising consumers to hoard their cash etc. in connection with Y2K is ironic, if not unfounded. I have a pro bono job chairing a committee of money center bank CIO's addressing the potential effects of Y2K on interbank Electronic Funds Transfer Networks (EFTS), CHIPS,SPINS,FedWire, etc, as well as VISA/MasterCard. Bottom Line: Of all industries, the banks are in the best shape. (Back up data sites have already been tested under Y2K conditions with success, except at Mellon and some credit card private label operations.)

"Private Label" is a practice largely unknown to the consumer by which the largest banks and American Express buy factored receivables from department stores. They then collect the receivables paying the original credit $.60- $.85 on the dollar and then sell information re purchasing patters and demographics. The next time you receive a call from "Macys" it is actually a money center bank employee reading a script. Selling this information, it would seem to this non-lawyer, flies in the face of the original Brandeis decision re personal privacy.

Interesting that the West Coast folk are reportedly stashing their $s for Y2K, but they have been told for years to stash water and food for the big earthquake while less than 8% have done it. They may have their fortunes, but no place to spend it!

Prof. Ken Phillips/ NYU=Tisch School of the Arts / Psychology of Creativity. 212-477-4370 / 6847 (FAX) 41 Fifth Avenue, New York, New York 10003 USA


Last updated 99/02/10