Financial Markets in U.S. May Stay Shut For Days After Terrorist Strikes
09/11 14:33
U.S. Financial Markets' Shutdown May Extend Beyond Today
By Philip Boroff
New York, Sept. 11 (Bloomberg) -- U.S. financial markets may remain shut beyond today after the destruction of the World Trade Center in the worst terrorist attack in U.S. history.
While authorities at the Securities and Exchange Commission and New York Stock Exchange declined to comment on the duration of the closure, traders and analysts said a reopening tomorrow wasn't likely. The Big Board's new trading floor at 30 Broad St. was being used to treat those injured in the attack.
``The markets will reopen in due time and I don't think it should be tomorrow,'' said Robert Fagenson, vice chairman of Van der Moolen Specialists USA, an NYSE trading firm. Fagenson, who saw one of the planes fly into the Trade Center and the towers' subsequent collapse, said ``national security'' is more important than resuming trading.
The Bond Market Association recommended closing the market indefinitely ``until we've had a chance to contact our members, consult with them, assess the situation, and be able to make further recommendations,'' spokesman Michael Dorfsman said.
U.S. markets didn't open today and offices in lower Manhattan -- and throughout the city and nation -- were evacuated. Thousands of people streamed out of buildings and walked North along the East Side and West Side highways, many covered in white and gray soot. About 40,000 people worked in the World Trade Center.
Frightful Sight
Before the twin towers collapsed -- one toppled at 10 a.m., the second at 10:28 a.m. -- witnesses saw bodies flying out of the windows. ``I will never get rid of that sight,'' said Tom Russo, Lehman Brothers Holdings Inc.'s chief legal officer.
When the towers fell, the billowing smoke and dust turned day into night for several minutes. Throughout Manhattan people were seen lining up at Automated Teller Machines, supermarkets and pay telephones.
Cantor Fitzgerald LP, which trades about one-quarter of the U.S. government bond market, was headquartered on the 32nd floor of 1 World Trade Center.
American Express Co. and Lehman Brothers employees evacuated their headquarters at the World Financial Center, across the street from the World Trade Center. All staff at Credit Suisse First Boston at 5 World Trade were safely evacuated, according to a firm memo distributed to staff.
Some 150,000 to 200,000 people pass through the complex on a typical weekday, including 40,000 who work there and 50,000 taking the PATH trains that connect New York and New Jersey, according to the Port Authority of New York and New Jersey.
Morgan Stanley Dean Witter & Co. established an emergency telephone number for employees of the firm and their families to call for information regarding staff, a spokeswoman said.
The number is 1-888-883-4391.
When asked if Morgan Stanley knew if the employees who work at 2 World Trade Center -- which housed its brokerage and asset management divisions -- had been evacuated, Judy Hitchen, a spokeswoman, said, ``We have no idea.''
Trading Suspended
The attack ill likely result in the worst losses from a man- made disaster in the U.S., insurance analysts say. The World Trade Center's worth was evaluated at $1.2 billion this year by property broker CB Richard Ellis. Taking damage to neighboring buildings into account, losses may exceed $2 billion, analysts said.
Trading in futures and options linked to Treasuries and interest rates at the Chicago Board of Trade continued uninterrupted, though trading in Dow Jones Industrial Average futures has been suspended, said CBOT spokeswoman Maria Gemske.
The New York Mercantile Exchange, an exchange a block from the WTC that trades crude oil and gold futures and options, didn't open for trading.
The Coffee, Sugar & Cocoa Exchange in New York, at 4 World Trade Center, trades about $135 million a day in cocoa futures, $165 million a day in sugar futures and $215 million a day in coffee futures. The exchange will be closed at least until Monday.
As for the broader markets, ``I'd hope the markets would reopen as quickly as possible,'' sad former Securities and Exchange Chairman Arthur Levitt. ``It depends on whether people can come to work. The worst thing you can do as far as terrorists are concerned would be to give in to them.''
Best Regards, J.T. |
