‘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’
November 4th, 2012[???]
Via: CNN:
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 vault contains certificates registered to Cede & Co., a subsidiary of DTCC, as well as “custody certificates” in sealed envelopes that belong to clients.
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.”
Can someone please explain to me how the vault, the door to which would have logically been closed before the storm made landfall, could have possibly take on water? This doesn’t make sense to me. It is a vault. What am I missing here?
If it’s a large place, maybe there’s ducting for ventilation that allowed the water to get in??? Someone out there will know the answer to this question. I’m just guessing.
For a while now I’ve figured that the next big ratchet effect would have to coincide with war or catastrophe, if for no other reason, to provide force majeure. But this storm puts yet another twist on the kaleidoscope; distraction, timing, force majeure, and crisis for dialectic manipulation.
But Christ, “trillions of dollars worth of stock certificates and other paper securities” were ruined in the washing machine. Wow.
Rewind: U.S. SEIZES FANNIE MAE AND FREDDIE MAC / This represents a crime of such gigantic proportions that many people won’t even be able to fathom what has happened. Kevin
It is highly unlikely that the interface between the door and the door jamb was designed to be water tight. Gaskets wear out and make doors difficult to close.
Interesting, thanks Kevin.