The Honorable James F. Hinchman
Acting Comptroller General
General Accounting Office
441 G Street, N.W.
Washington, D.C. 20548

Dear Mr. Hinchman:

I am writing to thank you for GAO's prompt review of the SEC staff's Second Report on The Readiness Of The United States Securities Industry And Public Companies To Meet The Information Processing Challenges Of The Year 2000. I appreciate the detailed briefing that GAO staff provided last week. I understand that it is GAO's conclusion that the second SEC report is vastly improved and complies with the spirit, if not in all cases the letter, of the recommendations in GAO's March 1998 report, SEC Year 2000 Report: Future Reports Could Provide More Detailed Information.

With respect to next steps, I request that GAO undertake: (1) an assessment of the Year 2000 risks in the international activities of U.S. securities and other financial institutions, and (2) an assessment of the Year 2000 readiness of U.S. insurance firms. Given the absence of a federal regulator for the insurance industry and the serious lack of coordinated information in this area, the insurance-industry assignment is critical. To the extent appropriate and that time allows, GAO could also consider monitoring securities industry testing and provide Congressional updates. I have no problem with GAO combining any of these projects with work requested by the Senate Special Committee on the Year 2000 Technology Problem to produce a joint report or reports.

Thank you for your cooperation and attention to my request.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

cc: The Honorable Tom Bliley
The Honorable Michael Oxley
The Honorable Thomas J. Manton

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