Sandy will not lead to brokerage firm liquidations
Superstorm Sandy may have destroyed homes and businesses in the New York metro area, but not a single brokerage was forced to liquidate due to the late October storm, according to a financial services industry report issued today.
"No brokerage firms liquidations have been initiated so far as a result of Hurricane Sandy and none are expected to emerge," the Securities Investor Protection Corporation announced in a press statement.
SIPC President Stephen Harbeck says that, "Although the New York Stock Exchange was forced to close for 48 hours due to Hurricane Sandy, we have seen no brokerage firm liquidations initiated as a result of the storm. This is thanks to the extensive preparations the financial services industry has undertaken for any and all contingencies."
The industry was fortified by the preparations from the "Y2K bug" computer issue arose in the late 1990s and the 9/11 attack on New York City, according to Harbeck.
Harbeck adds that, "Even though some SIPC member firm facilities on the ground suffered a great deal of physical damage and individuals working in the brokerage community suffered through storm-battered homes, lack of electricity, transportation issues and, in some cases, injury or death, no brokerage firm was incapable of returning cash or securities as a result of this unprecedented weather event."
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