Remarks by
Donna Tanoue
Chairman
Federal Deposit Insurance Corporation
Before the Annual Convention of
The American Society on Aging
Orlando, Florida
March 4, 1999
Every time you walk into a bank, you see this sign - the FDIC's symbol of confidence.
There are few guarantees in life. The FDIC offers one of them. Our guarantee gives
millions of people peace of mind. It tells people that we are there for them.
About one-out-of-every-five residents of Florida is 65 or older. Some of them have
childhood memories of what life was like before the FDIC was created. Back then,
putting your money in the bank was a risky business. When banks failed, it often took
years for depositors to see any of their money again. And when they did, they often saw
only a portion of what they had deposited. The FDIC changed that.
Over the last 66 years, the FDIC has made bank failures a non-event for most people.
As a result, three generations of Americans have been able to sleep at night secure in
the knowledge that their insured deposits are safe. This sign means that insured
deposits at banks and savings associations will continue to be safe in the Year 2000.
I am here today to talk with you about the Year 2000 issue - or Y2K as it is commonly
known. As I am sure you know, Y2K involves reprogramming computers to make sure
they don't mistake the year 2000 for the year 1900. This reprogramming must be done
by January 1.
I will make three points this afternoon:
One, money is safe in an FDIC-insured account, no ifs, ands, or buts. That is our
message, day in and day out.
Two, federal bank regulators and bankers have spent years working on the Y2K issue:
Preparing financial institutions to become Y2K ready - almost all are on schedule. And
informing the public about what Y2K means for banks - and for consumers.
And, three, we need your help - help in reassuring an important part of the public that
their insured money in the bank is secure. You can do your clients - the aging -- a
service by telling them what we've done and that we are there for them. They can
continue to be confident that their insured deposits will be safe next January 1, and
thereafter. Why? No one has ever lost a penny of an FDIC-insured deposit. No one.
Donna Tanoue
Chairman
Federal Deposit Insurance Corporation
Before the Annual Convention of
The American Society on Aging
Orlando, Florida
March 4, 1999
Every time you walk into a bank, you see this sign - the FDIC's symbol of confidence.
There are few guarantees in life. The FDIC offers one of them. Our guarantee gives
millions of people peace of mind. It tells people that we are there for them.
About one-out-of-every-five residents of Florida is 65 or older. Some of them have
childhood memories of what life was like before the FDIC was created. Back then,
putting your money in the bank was a risky business. When banks failed, it often took
years for depositors to see any of their money again. And when they did, they often saw
only a portion of what they had deposited. The FDIC changed that.
Over the last 66 years, the FDIC has made bank failures a non-event for most people.
As a result, three generations of Americans have been able to sleep at night secure in
the knowledge that their insured deposits are safe. This sign means that insured
deposits at banks and savings associations will continue to be safe in the Year 2000.
I am here today to talk with you about the Year 2000 issue - or Y2K as it is commonly
known. As I am sure you know, Y2K involves reprogramming computers to make sure
they don't mistake the year 2000 for the year 1900. This reprogramming must be done
by January 1.
I will make three points this afternoon:
One, money is safe in an FDIC-insured account, no ifs, ands, or buts. That is our
message, day in and day out.
Two, federal bank regulators and bankers have spent years working on the Y2K issue:
Preparing financial institutions to become Y2K ready - almost all are on schedule. And
informing the public about what Y2K means for banks - and for consumers.
And, three, we need your help - help in reassuring an important part of the public that
their insured money in the bank is secure. You can do your clients - the aging -- a
service by telling them what we've done and that we are there for them. They can
continue to be confident that their insured deposits will be safe next January 1, and
thereafter. Why? No one has ever lost a penny of an FDIC-insured deposit. No one.
If anyone knows about money, it's the financial writer Jane Bryant Quinn. In writing
about the Y2K issue recently, she asked: "Would I take savings out of the bank, lose the
interest it's earning and risk total loss if I had a fire?" And she answered: "My money
stays put, where it's FDIC-insured."
Jane Bryant Quinn knows that we stand behind our guarantee.
In addition to deposit insurance, people can take comfort from the fact that bank
regulators and bankers have been working aggressively to make sure that banks are
ready for Y2K. Examiners have visited - and are revisiting - every bank and thrift
institution in the country to make sure that banks are preparing for the date change. And
if banks are behind schedule, there are a wide range of supervisory actions we can take
to focus their attention on their problems.
While we cannot guarantee that every one of the more than 10,000 banks and savings
institutions we insure will have absolutely no problems come January 1, the results of
our visits are encouraging. Our latest figures show that 97 percent of the banks are on
track. Do I find that reassuring? Absolutely.
Let me tell you what I personally intend to do at the end of the year. I am going to take
out only enough money for the long holiday weekend. And I plan on using my ATM card
to do it.
That's my decision - a decision based on information. Consumers need information to
make good decisions. So while we have been examining banks for Y2K readiness, we
have also prepared educational material to give bank customers the information they
need.
This is an FDIC guide - an issue of FDIC Consumer News - that details what bank
customers need to know. It is the most comprehensive guide available on Y2K and
banking. It includes questions and answers on the Y2K issue, a Bank Customer's Y2K
"To-Do" list, and government resources for Y2K help and information. It gives good
advice - practical tips the consumer can use. We're telling consumers: Keep good
records of all banking transactions, especially for the last six months of 1999 and into
the year 2000. Check transaction receipts against statements and to contact the bank
immediately if there is a discrepancy. And make sure that deposit accounts are within
insurance limits.
We also have published this pamphlet, "The Year 2000 Date Change," both in English
and in Spanish. Banks have also reprinted the pamphlet and have distributed millions of
copies. You can pick up copies of both the guide and the pamphlet at our booth in the
exhibit hall.
I also want to mention that we will soon open a toll-free consumer hotline, 1-877-FDIC-
Y2K, to provide a direct contact point for the public. The call center will be dedicated
exclusively to Year 2000 matters.
about the Y2K issue recently, she asked: "Would I take savings out of the bank, lose the
interest it's earning and risk total loss if I had a fire?" And she answered: "My money
stays put, where it's FDIC-insured."
Jane Bryant Quinn knows that we stand behind our guarantee.
In addition to deposit insurance, people can take comfort from the fact that bank
regulators and bankers have been working aggressively to make sure that banks are
ready for Y2K. Examiners have visited - and are revisiting - every bank and thrift
institution in the country to make sure that banks are preparing for the date change. And
if banks are behind schedule, there are a wide range of supervisory actions we can take
to focus their attention on their problems.
While we cannot guarantee that every one of the more than 10,000 banks and savings
institutions we insure will have absolutely no problems come January 1, the results of
our visits are encouraging. Our latest figures show that 97 percent of the banks are on
track. Do I find that reassuring? Absolutely.
Let me tell you what I personally intend to do at the end of the year. I am going to take
out only enough money for the long holiday weekend. And I plan on using my ATM card
to do it.
That's my decision - a decision based on information. Consumers need information to
make good decisions. So while we have been examining banks for Y2K readiness, we
have also prepared educational material to give bank customers the information they
need.
This is an FDIC guide - an issue of FDIC Consumer News - that details what bank
customers need to know. It is the most comprehensive guide available on Y2K and
banking. It includes questions and answers on the Y2K issue, a Bank Customer's Y2K
"To-Do" list, and government resources for Y2K help and information. It gives good
advice - practical tips the consumer can use. We're telling consumers: Keep good
records of all banking transactions, especially for the last six months of 1999 and into
the year 2000. Check transaction receipts against statements and to contact the bank
immediately if there is a discrepancy. And make sure that deposit accounts are within
insurance limits.
We also have published this pamphlet, "The Year 2000 Date Change," both in English
and in Spanish. Banks have also reprinted the pamphlet and have distributed millions of
copies. You can pick up copies of both the guide and the pamphlet at our booth in the
exhibit hall.
I also want to mention that we will soon open a toll-free consumer hotline, 1-877-FDIC-
Y2K, to provide a direct contact point for the public. The call center will be dedicated
exclusively to Year 2000 matters.