Title

The September 11 tragedy & the response of the banking industry.

Poster Number

44

Format

Poster Presentation

Abstract/Artist Statement

The September 11th tragedy is a disaster that goes beyond saying, one of the worst days the world has ever seen. One industry in particular that was immensely affected by the events that unfolded that day was the banking industry. Many large banks are headquartered in New York City, so when the World Trade Centers went down, the banking industry also went down. During the week of September 11, 2001, the widespread destruction of physical communications supporting financial institutions in and around the World Trade Center and extensive telecommunications breakdowns throughout the region caused dislocations in the financial market. U.S. equity markets were closed for four days and most bond trading, including government securities trading, halted for two days. There were significant disruptions in the clearing and settlement mechanisms for government securities, repurchase agreements, and commercial paper. At the same time, the extraordinary levels of cooperation by the financial industry in the aftermath of the September 11th events, helped overcome limitations within the companies. Some firms were accommodated by other organizations (including competitors) in New York City by finding office space for staff. Customers and counter parties helped re-create transaction records that were lost. Institutions extended credit to customers and counter parties vulnerable by liquidity shortfalls despite the inherent uncertainty and lack of reliable information in the marketplace about their current financial condition. Large numbers of people inside and outside the financial industry worked long hours to restore communication links that had failed. In fact, the most often cited lesson learned from the tragedy is the importance of people, including considerations for their personal safety.

Location

Pacific Geosciences Center

Start Date

26-4-2003 9:00 AM

End Date

26-4-2003 5:00 PM

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Apr 26th, 9:00 AM Apr 26th, 5:00 PM

The September 11 tragedy & the response of the banking industry.

Pacific Geosciences Center

The September 11th tragedy is a disaster that goes beyond saying, one of the worst days the world has ever seen. One industry in particular that was immensely affected by the events that unfolded that day was the banking industry. Many large banks are headquartered in New York City, so when the World Trade Centers went down, the banking industry also went down. During the week of September 11, 2001, the widespread destruction of physical communications supporting financial institutions in and around the World Trade Center and extensive telecommunications breakdowns throughout the region caused dislocations in the financial market. U.S. equity markets were closed for four days and most bond trading, including government securities trading, halted for two days. There were significant disruptions in the clearing and settlement mechanisms for government securities, repurchase agreements, and commercial paper. At the same time, the extraordinary levels of cooperation by the financial industry in the aftermath of the September 11th events, helped overcome limitations within the companies. Some firms were accommodated by other organizations (including competitors) in New York City by finding office space for staff. Customers and counter parties helped re-create transaction records that were lost. Institutions extended credit to customers and counter parties vulnerable by liquidity shortfalls despite the inherent uncertainty and lack of reliable information in the marketplace about their current financial condition. Large numbers of people inside and outside the financial industry worked long hours to restore communication links that had failed. In fact, the most often cited lesson learned from the tragedy is the importance of people, including considerations for their personal safety.