Goldman Sachs Group Inc and Citigroup Inc, whose offices in New York’s evacuation zone for Hurricane Irene escaped major damage, are among Wall Street banks that will resume business today as exchanges open. Employees still face a gauntlet getting there.
Sandbags remained piled around the entrance to Goldman Sachs’s headquarters at 200 West St yesterday, with security guards standing by. The firm’s buildings are “functioning normally” and will be open, Stephen Cohen, a Goldman Sachs spokesman, said in a phone interview.
Across the street, American Express Co’s headquarters will remain closed today. AmEx, the biggest credit-card issuer by purchases, advised its New York-based employees to work from home. While US stock, bond and commodities markets plan to do business, the Metropolitan Transportation Authority is still working to fully restore rail and bus service.
“Given ongoing repairs to mass-transit systems, street flooding and cleanup work currently underway in the surrounding areas, the American Express Tower will be closed for business,” Joanna Lambert, a spokeswoman said. “Business and customer service will continue as usual.”
Almost a quarter of financial companies in the Standard & Poor’s 500 Index are based in New York, data compiled by Bloomberg show. Financial firms including banks, brokerages and insurers employ 437,600 people in the city, according to July data from the state Department of Labour.
‘FULLY FUNCTIONAL’
The buildings that house Citigroup’s main trading floors at 388-390 Greenwich St “are fully functional,” Danielle Romero-Apsilos, a spokeswoman for the firm, said yesterday in an email. JPMorgan Chase & Co said it was contacting workers after its Midtown headquarters avoided serious damage.
“All branch managers are calling employees one-by-one to see if they’re okay,” Kristin Lemkau, a spokeswoman for JPMorgan, said in an email. “As soon as mass transit is up and running and we know they can get to work safely, we’ll update the message that it’s business-as-usual.”
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Bank of America Corp, the biggest US lender, sustained minimal impact to its facilities in downtown New York and expects its headquarters in Charlotte, North Carolina to be open for business, said Kelli Cishek, a spokeswoman for the firm. The company’s main New York office is adjacent to Bryant Park in Midtown Manhattan, away from evacuation zones.
“We encourage our employees to use their best judgment and to proceed with caution if they are in impacted areas and to check with their managers regarding contingency plans,” Cishek said in an email.
MORGAN STANLEY
The Times Square headquarters of Morgan Stanley, operator of the world’s biggest retail brokerage, wasn’t damaged and the company is prepared for “business as usual,” Mark Lake, a spokesman for the firm, said in an email.
The MTA, which operates rail and bus lines serving the largest US city, will begin restoring subway service starting at 6 am, according to a release from New York Governor Andrew Cuomo and MTA Chairman Jay Walder.
New Jersey Governor Chris Christie discouraged people from attempting this morning’s commute, and said New Jersey Transit trains into New York will be suspended today, while buses will operate on a modified schedule and PATH trains will reopen.
Irene had been downgraded to a tropical storm with winds of 65 (105 kilometres) miles per hour when it struck the city about 9 am. The storm killed at least 18 people from Puerto Rico to Connecticut, caused an estimated $2.6 billion in damage and cut electric power to more than four million homes and businesses.
EQUITY EXCHANGES
JPMorgan, the second-biggest US bank by assets, and Citigroup, the third-biggest, both have their headquarters on Park Avenue in Midtown Manhattan. Goldman Sachs and AmEx are located along the Hudson River, adjacent to the World Trade Centre site.
NYSE Euronext, Nasdaq OMX Group, Bats Global Markets and Direct Edge Holdings LLC — the four biggest operators of equity exchanges in the world’s largest capital market — said in statements that they plan normal trading sessions today. The Securities Industry and Financial Markets Association recommended no change to bond-market schedules, and CME Group Inc said the New York Mercantile Exchange will open.
Citigroup was determining yesterday how employees will commute and checking bank branches for damage. The lender had 263,000 employees on June 30, data compiled by Bloomberg show.
‘TRANSPORTATION OPTIONS’
“Pending the lift of the evacuation and pending updates on mass transit, we are investigating transportation options for employees.” Romero-Apsilos said. The company is reviewing damage to retail branches, Sean Kevelighan, a spokesman for Citigroup’s consumer bank, said in a separate email.
Security guards were posted at the entrances and exits of Goldman Sachs and American Express headquarters buildings yesterday afternoon, as well as in front of the Federal Reserve Bank of New York. There was little visible evidence of flooding, downed trees or other damage in the area.
Most local businesses and restaurants around Wall Street, including a McDonald’s Corp franchise and Sprint Nextel Corp store, were closed, with taped-up windows or boarded-up storefronts around noon local time.
As the skies began to clear, New Yorkers returned to the streets of lower Manhattan to enjoy the waterfront by biking, jogging, walking, taking photographs and using inline skates.