It's the Final Countdown! Consumers Should Take Simple Financial Precautions; Incident of Y2K-related Theft Reported.

NEW ORLEANS--(BUSINESS WIRE)--Dec. 1, 1999--

The beginning of December marks more than the beginning of the holiday season this year; it starts the final countdown to the year 2000.

Today, Hibernia National Bank (NYSE:HIB) officials urged consumers to make their own financial preparations, now that banks, government agencies and most major U.S. industries are ready.

"The biggest risk of all could come from consumers taking unnecessary chances by holding large amounts of unprotected cash," said Ben Gautreaux, Hibernia's Year 2000 coordinator. "It's not a good idea to expose yourself and your property to that risk."

Already, one banking customer has reported the theft from his home of a large sum of cash, which he had withdrawn, against Hibernia bankers' counseling, in preparation for Y2K. Hibernia's corporate security manager, Peter Baldassaro, says that Y2K-related theft has occurred and is expected to increase throughout the United States as well as in east Texas and Louisiana.

Louisiana regulators have announced that 100% of the state's federally insured financial institutions are ready, and Texas officials said 99.9% of that state's banks are ready.

"Our bankers report that most clients are very optimistic about Y2K," Gautreaux said.

Since 1997, banks have worked to solve potential millennium bugs while federal regulators monitored their progress. To prepare, most banks updated their computer hardware and software in mission-critical systems, including deposit and loan accounts, automated teller machines (ATMs) and telephones. All 37 of Hibernia's mission-critical systems are in compliance and will continue to be tested through the end of this year, according to Gautreaux.

Now, consumers should do their part and take a few precautions. Gautreaux offers some simple steps to prepare for Y2K:

Save your financial records. For the rest of 1999 and the first few months of 2000, save all of your financial statements, ATM receipts, deposit slips, credit-card bills, stock-transaction records and other documents. Then, track your transactions to ensure your records agree with those of the institution, whether a bank, broker or mutual-fund firm. It's particularly important to balance your checkbook and compare it to your bank statement and deposit slips. If any discrepancies exist, contact your institution.

As a regular part of business, federal regulators require all financial institutions to back up sensitive records in case of a computer-system failure. So, if the millennium bug does bite, they will a have copy of your financial data.

In addition, the Federal Deposit Insurance Corp. (FDIC) insures deposit accounts up to $100,000 in member banks. Since the FDIC's formation in 1933, no one has lost money in an FDIC-insured institution.

Stay safe. Some people may be tempted to take out extra cash because of Y2K and the three-day holiday weekend. The Federal Reserve is making available $50 billion of extra U.S. currency at year's end but recommends withdrawing only what you would normally need. Also, you have several financial options, including checks, credit and debit cards, and ATMs.

Consider converting your cash into traveler's checks, which are replaceable if stolen. Carrying cash puts you at risk for theft, and insurance policies may not cover all of the cash stolen from your home.

Find out if your employer's payroll system is Y2K-ready. Although banks have tested their direct-deposit systems, they can only complete payroll deposits if the employer's system is functioning properly. Federal regulators require anyone who receives and transfers funds electronically with a bank to be Y2K-complaint -- even your employer.

Make sure your personal computer is compliant. Contact your computer's hardware and software manufacturers to make sure your system is ready for the date change, especially if you keep financial records on it or do online banking.

Have your travel documents ready before Dec. 31. If you are traveling during the New Year, make sure you have all of your travel documents with you, such as ticket and hotel confirmations. These papers should help avoid any confusion.

U.S. banks are planning for business as usual when they reopen their doors Jan. 3, 2000. And, by following Gautreaux's advice, consumers should be able to make a smooth financial transition to the new millennium.