DTCC Says Trillions in Stock Certificates Damaged in Sandy Floodwaters

Unlike 99.9% of investors, most SD readers are aware (or should be) that unless you have physically taken possession of your equity shares, the actual owner is the Depository Trust & Clearing Corp. (DTCC).
CNN Money has reported that the DTCC vault holding trillions of dollars in equity certificates was breached in the Sandy flood-waters, and trillions in stock certificates and other paper securities may have suffered damage.

While the jokes relating to vaporization of assets from Hurricane Sandy were centered on the gold stored 60 feet below the NY Fed, it appears that in reality, Sandy may have destroyed portions of millions of Americans’ 401k’s, pensions, and stock accounts.

Got PHYZZ?

Up to $36.5 trillion in securities may be damaged according to the CNN report:

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.

The DTCC’s vault has apparently been flooded to such an extent that officials have not even regained access to the facility a week after Superstorm Sandy struck Manhattan:

“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.”

The building remains inaccessible, but the lower floors are believed to be flooded. The full extent of the damage cannot be assessed until power is restored and the building is deemed safe to enter.”

Comments



  1. Ok, I’ll bite.  With so many Silver Doctor readers losing their phyzz in canoe accidents, this seems plausible.  Gives a new definition to liquid assets.  Didn’t someone predict this would happen?
    Rockets Perfect Video!!!!

    • My question to them is why the heck would they bring all their physical gold and silver with them during that moment first of all. That’s why I don’t carry all my physical precious metals with me so that I’m sure they won’t get lost.

  2. and the plot continues to thicken…,

  3. When will people wake up and realize the emperor has no clothes? If its written on paper its worth the paper its written on
    Silver is just a way to hold on to some value eventually it will have to be turned into something tangible and useful for daily living. My personal bet was placed on July 20th at about 26 dollars for 15k of Phyz and 8k of Gold. Nothing I have seen has made me change my buy and hold strategy. 5 years from now I plan to sell…not before..unless my price target of 56 hits at which point I will sell half and let the market ride with the rest…

    • @sunray09 I suppose they will only wake up when they’re naked themselves.

    • Problem is, what will 56 buy when that happens?  As long as you have a parachute, a Fan, and a pair of wings, you can put the electric bill on your credit card.

    • I don’t understand about why people put their savings in fiat currencies. Fiat currencies are only pieces of paper that are made out of nothing so they are easier to lose values and easier to counterfeit. This is a common sense that most of the people don’t have.

  4. OATMEAL

  5. It appears that part of the scum agenda in creating “Sandy” thru Haarp technology is to steal PM and 401k’s. It also appears that part of the agenda of 911 was to steal massive amounts of gold. 

    • PSLV shares eaten by sea maggots in 3… 2… 1…

      Dec. 21:  A nuke in the London financial district “vaporizes” the sovereign and ETF gold which they already legally stole from the Bank of England’s vaults.

  6. They say, for now, that all is ok, because they have electronic backup for all that was lost. But if there is a cyber 9/11, as has been programmed for a while now, then those records will be lost. This snowball seems to be getting bigger every 2 days. Nice to know the truth and to be prepared, even though our world is being trashed.
     
    @mexrph … u r right. For a while I was sure there would be an attack on London at the Olympics (intense programming for that), but once we get started on ww3, I think a london attack will happen which will hit the BOE and all the gold will be vaporised (all 8 oz of it).

  7. Electronic records would give small comfort to those who want to prove their ownership.  Ask the folks at MG Global, Peregrine, JPM and Knight.  Even hard data in paper form did little to mitigate those disasters.  Electronic records?  A great idea for those who want to spend 10 years in court trying to prove the ownership of their stocks, IRAs and 401K.  Call me a broken record but I have lost all respect for this rigged, HFT, algo driven paper casino.  It used to work but the dangers are to great for me to place my trust in this system.  I’d rather drive my truck into the river before I go there again. 
    Best to you all on Monday morning. Sunday sure was fun for all us motor heads.

    • Wonder which brokerage is going under this time? Only to have JPM absorb their assets and not return them to the owners?

    • I hate stuffs that are electronics. I prefer the physical ones because I can feel them by touching them and it’s easier to track them so that you can avoid frauds. For example with digital currency, the buyer can trick me by charging two time the same item.

  8.  
    Electronic Records can be easily manipulated not like signed paperwork. Even if the owner of the stock has a copy of the paperwork it could be easily classified as forged. Lol
    Gees I hope that this issue was not caused to cover up those Contracts. So many lives lost and devastation

  9. Considering the amount of energy such a storm packs, both as wind energy and as evaporated water, it is WELL beyond any human technology to create on demand or at any other time for that matter.

    I do wonder, though, about water penetrating a bank vault type depository.  Most of us have seen vaults and it is pretty clear that not even air can penetrate these heavily armored rooms.  Given that how the hell can water penetrate them?  They forgot to shut the foot thick steel door when they went home for the night?  Something seems REALLY fishy here.

    As to the loss of the paper certificates, allow me to suggest that this is a tempest in a teapot.  A huge percentage of these are owned by mutual fund custodians and their clients.  They have records out the wahzoo for this sort of thing, most of which are not located in the NY / NJ area, and will not only demand that damaged certificates be replaced but they will get them.  Yeah, some plot or other can easily stiff you or me but try doing that to multi-billion dollar giants like Fidelity, Vanguard, Invesco, Schwab, etc. and they will be lawyered into submission almost immediately.
     

  10. If one among us is an attorney I would love to hear about the legality here concerning digital records. In the Real world certificates with real signatures etc. are the only thing that would stand up in a court of law.

    • It is possible to prove that a scan or photo is legitimate and not all hacked up with cut-n-paste errors.  Combine that with account statements and it should be possible to prove what is owed to whom.  I just do not think that any of the BIG mutual funds or hedge funds will accept being stiffed.  Those boyos have billions of dollars and MANY lawyers to handle any such attempted thefts and would have no hesitation in doing so.  None of us has that kind of horse-power but they sure do.

      Also, we only have an allegation at this point and perhaps a false one at that.  This story is probably not going away any time soon, so stay tuned, folks!
       

  11. I’m no attorney but Bank of America received Slap on the Hands fines for their Robbie Scandle in the Real Estate Industry and a lot of those foreclosed houses are sitting empty because of no Clear Title but the lucky home owners involved in the Robbo Signings that stayed in their homes when they where foreclosed on are still there and not paying a cent. Lol
    Bottom line is: this was electronic which backfired.

  12. “the DTCC’s computer records are intact and that the corporation has “detailed inventory files of the contents of the vault.”

    If they have an electronic back up still intact I don’t see why this is an issue.

  13. Oh, yeah!   CNN reported.  Now, THAT is comforting.  What a crock!  I close my eyes and see Jon Corzine lurking around the corner of that “safe” facility….

  14. This wouldn’t have ever happened if the stock certificates were made out of physical gold and silver lol! Also, there were a flood on the “Water” Street which is a coincident lol! :D That’s why you should own physical gold and silver!

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