Wall Street prepares to work from home as storm approaches

Both Goldman Sachs and Citigroup, which have offices based in Zone A areas in downtown Manhattan, will close the buildings on Monday

As Hurricane Sandy bears down on the East Coast, much of Wall Street will open for business — but employees will be working remotely.

Representatives of several major financial firms said they were implementing continuity plans to ensure that their operations continued relatively smoothly. Much of that involves letting employees work from home, mindful that subways, buses and trains will be shut and schools will be closed while the storm passes through.

Both Goldman Sachs and Citigroup, which have offices based in Zone A areas in downtown Manhattan, will close those buildings on Monday, according to internal memorandums reviewed by DealBook.

Goldman staff members deemed "critical" have been asked to report to work, including at the firm's offices at 200 West Street and 30 Hudson Street, if they can commute safely. Some of its employees will report to work at designated sites in Greenwich, Connecticut, and Princeton, New Jersey, while most will work from home.

"Goldman Sachs has plans in place to ensure the safety of our people and the ongoing operation of our business," David Wells, a spokesman for the firm, said by email. Citi employees based in the firm's offices in 388 Greenwich Street and 111 Wall Street have been asked to work from home on Monday and Tuesday.

"Citi has contingency plans in place including locations that can be utilised to ensure continuity of operations," Shannon Bell, a spokeswoman for the firm, said in an email statement. "Citi is committed to providing uninterrupted service to our clients during the storm and seeks to minimise any possible impact." Bell also said the bank's retail branches in evacuated areas of the city would be closed, while others might be as well if warranted.

JPMorgan Chase will close its office at 4 New York Plaza, at the southern tip of Manhattan, according to people briefed on the matter. The firm's other corporate offices, most of which are in Midtown, will remain open and will use back-up generators if necessary. JPMorgan will also make use of facilities in New Jersey and will handle some technology operations in Asia and Europe.

Decisions on which Chase retail branches will be closed are being made on an individual basis. The firm also said it would waive overdraft and late fees for customers in seven states affected by the hurricane, including New York, New Jersey and Connecticut. Bank of America plans to close its offices in the World Financial Center in lower Manhattan on Monday, according to Mark Pipitone, a spokesman for the firm. Its other offices in New York City will remain open.

The firm also plans to close all of its retail branches in New York City, as well as its Merrill Lynch wealth management offices in the New York and Mid-Atlantic regions. Customers seeking waivers of overdraft or late fees can call the bank or speak to a representative at one of its branches, Pipitone added.

Many Wall Street firms plan to route much of their trading activity through London during the storm as well. Other financial firms have decided to close on Monday as well.

A spokesman for the Blackstone Group, Peter Rose, said by email on Sunday that the firm's Midtown Manhattan headquarters would be closed on Monday, with employees working remotely with laptops or iPads.

Because the firm is an asset manager that does not rely on trading, it does not expect "even a minor effect" on business, Rose added.

 

© 2012 The New York Times News Service