1 vote

Storm Sandy cast wrath on 55 Water Street, NY. Securities vault? $37 Trillion?

DTCC per year:

  • $1.7 quadrillion. securities transactions
  • $39.5 trillion. securities issues
  • $500 trillion value of transactions... [Over the Counter] OTC derivatives

DTCC transactions per year:

  • 2005. $1.4 Quadrillion
  • 2006 $1.5 quadrillion
  • 2007. $1.8 Quadrillion
  • 2008. $1.88 Quadrillion [During the Great Recession, ]
  • 2009. $1.48 Quadrillion [they somehow managed to eek by.]
  • 2010. $1.66 Quadrillion
  • 2011. $1.7 Quadrillion

Did Hurricane Sandy Cause $36.5 Trillion In Damage? NOVEMBER 05, 2012

The answer to the title question is... [prehaps] no. But it's almost certainly a whole lot more than the $50 billion reported today, and that $36.5 trillion amount doesn’t come from thin air; it appears in a number of news articles about Sandy. All in all, the story raises a few more questions, allows you to play with a bunch of numbers, and leaves you puzzled, amazed and at times easily bewildered ...

The vault... belongs to the Depository Trust & Clearing Corporation (DTCC), a clearing house for Wall Street firms, owned by Wall Street firms. On its own website , the DTCC describes itself in press release footnotes, like this:

    DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks.

    DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US $36.5 trillion.

    In 2010, DTCC settled nearly US $1.66 quadrillion in securities transactions.

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DTCC Statement on Condition of Securities Vault

New York, NY, November 14, 2012 – The Depository Trust & Clearing Corporation (DTCC) ... recovering the contents of its securities vault. ... Condition of the vault, once ... open... was ... flooding and water ... throughout ...

DTCC has retained ... disaster recovery and expert restoration firms ... address the ... damage caused by ... Sandy.

DTCC expects ... assessment of ... the physical securities within a week’s time. ... The restoration process will take some time... months [perhaps, never.].

DTCC maintains a robust certificate inventory file with ownership information... The company’s computer records are fully intact, including... the contents of the vault.... DTCC is engaged in active discussions with representatives of various transfer agents for the purpose of establishing a protocol for the issuance of replacement certificates, without requiring the presentation of the original certificates.

About DTCC: ... DTCC... automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide... DTCC is the premier post-trade market infrastructure for the global financial services industry... clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC’s subsidiaries processed securities transactions valued at approximately US $1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US $39.5 trillion. DTCC’s global OTC derivatives trade repositories record more than US $500 trillion in gross notional value of transactions made worldwide across multiple asset classes.