Federally regulated financial institutions were generically analyzed to determine their ability to continue to promote essential services in the event of a major earthquake like those that have been postulated for this assessment. The conclusion reached thus far is that large-magnitude earthquakes pose no significant or unanticipated problems of solvency and liquidity for such institutions. The Federal Reserve System and other regulatory entities have procedures in place that are designed—and have been tested—specifically to provide for the continued operation of financial institutions immediately following an earthquake or other emergency.
CHAPTER IV[ToC]
AN ASSESSMENT OF THE CURRENT STATE OF READINESS CAPABILITY OF FEDERAL,
STATE, AND LOCAL GOVERNMENTS FOR EARTHQUAKE RESPONSE
A. INTRODUCTION
An earthquake of catastrophic magnitude, with or without credible warning, happens suddenly. The potential for disaster, however, does not occur suddenly. The degree of preparedness and commitment to comprehensive planning and mitigation programs for the inevitable event will largely determine the degree of hardship to be experienced through loss of life, human suffering, property destruction, and the other related economic, social, and psychological aspects of disruption to day-to-day community activities. The impacts can be reduced substantially from current expected levels through the development and implementation of improved and more widely practiced earthquake hazards reduction measures. These include coordinated emergency preparedness plans and procedures, earthquake prediction and warning systems, improved construction techniques, and effective public education and information programs.
The State of California Office of Emergency Services (OES) and FEMA conducted an analysis of the readiness capability for potential catastrophic earthquakes in California at the Federal, State, and local government levels. The planning of 22 counties and 38 cities, of 34 State agencies, and of 17 Federal organizations were reviewed with the following objectives: (a) identify opportunities for improvement; (b) provide a basis for making decisions that would strengthen program direction and planning efforts; and (c) specify resource needs and potential legislative initiatives. Annex 2 summarizes current Federal and California earthquake planning.
The environment in which preparedness planning in California occurs is characterized by the following observations of public expectations and attitudes: