Skip to comments.Stock certificates feared damaged by Sandy
Posted on 11/04/2012 7:09:13 PM PST by DeaconBenjamin
Trillions of dollars worth of stock certificates and other paper securities that were stored in a vault in lower Manhattan may have suffered water damage from Superstorm Sandy.
The Depository Trust & Clearing Corp., an industry-run clearing house for Wall Street, said the contents of its vault "are likely damaged," after its building at 55 Water Street "sustained significant water damage" from the storm that battered New York City's financial district earlier this week.
The DTCC provides "custody and asset servicing" for more than 3.6 million securities worth an estimated $36.5 trillion, according to its website.
"At this point, it is premature to make an accurate assessment as to the full impact of the water damage nor would it be helpful to project on what specific actions need to be taken with respect to our vault," said DTCC Chief Executive Michael Bodson in a statement. "We are aggressively working on this situation to minimize disruption to our clients and will provide additional updates as more information becomes available."
Bodson said the DTCC's computer records are intact and that the corporation has "detailed inventory files of the contents of the vault."
The building remains inaccessible, but the lower floors are believed to be flooded. The full extent of the damage cannot be assessed until power is restored and the building is deemed safe to enter.
The DTCC has been operating from remote facilities since the onset of the storm and has maintained clearing, settlement and other services that are crucial to the functioning of Wall Street, according to Bodson.
Bodson said the DTCC is working with couriers to ensure that all deliveries are rerouted to a facility in Brooklyn, and the group expects all other services related to physical securities processing to resume "in the next several days," he added.
(Excerpt) Read more at buzz.money.cnn.com ...
All of this is George W. Bush’s fault. I’m looking forward to 2013 when the time comes we can stop blaming poor George for everything.
After 9/11, who in their right mind would store important things in NYC?
Water Street, as Alanis said: isn’t it ironic, don’t you think?
36.5 trillion in paper left in an underground vault in the path of a super storm. What could possibly go wrong? Think anybody will get fired, or just promoted?
Wall Street “Paper” lives in more than one place. Don’t be ridiculous.
About what? All i said was it was pretty stupid to leave it there to get wet. I never said anything about it not being backed up, in fact the article says it is backed up.
(hope the computers are not under water in the next room).
Where do I go to get my IPO shares of Microsoft reissued?
If they’re printed with decent paper & ink they can be restored.
Well, the NY Fed ‘s gold lives in exactly one place. How’s that vault doing?
So it gets wet. It is still in other locations. You made it sound like all was lost. That’s all.
If trillions in fiat currency vanished.....
... might that help the economy in some way?
sorry just thinking aloud
Gold can survive under water for hundreds or even thousands of years.
Lot’s of treasure was lost during 9-11. No disputing that.
The original thread was based on certificates. Let’s keep to the topic at hand.
Maybe Sandy Burglar was there first. He’s been handy before.
River Street, Water Street, Ocean View Drive! What were they thinking?
So if I hold stock in book form at the brokerage house then the certificate is stored in the vaults of this firm?
. . . at 55 Water Street “sustained significant water damage”
You know, my old aunt used to say the most outrageous things. Ticked off so many people. I would visit her when my siblings would say you go see her on your own time.
She was born in 1908, was married to a guy who owned a seat on the stock exchange.
She read the business section.
Used to say there was something “radically wrong” with the traders today (she died jyust a few years ago), that they wee out for themselves and she couldn’t talk to them at a party - too uneducated, knew only numbers and nothing about life and they were corrupt.
she would say, “New York City is in for a very bad Hurrycaine; one that hadn’t happened yet, that it would be very destructive to NYC.
This one hit about 100 mi south. It WAS husge, though. They say the size of Europe.
She would not have stored her important papers there.
The thread ‘s about underground depositories in nyc. I think its interesting to consider the gold may be hard to manage if electronic vaults are rendered inoperable by sea water.
Could have fooled me. Anything in the ground is recoverable. Unless it is smashed and burned by 110 stories of freefall.
“About what? All i said was it was pretty stupid to leave it there to get wet. I never said anything about it not being backed up, in fact the article says it is backed up.
(hope the computers are not under water in the next room).”
That is so subtley comical it’s genius, lol!
It depends on the paper the stock certificate is printed on. For example, my Enron stock was printed on toilet paper and dissolved quite easily.
Your ENRON stock was printed with vanishing ink.