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Fed Assures American Banking Is Safe
Wall Street May Be Shut For Days
The Federal Reserve is offering assurances that the terrorist attacks won't threaten the nation's banking system.
The Fed says it's prepared to provide more money as needed.
The central bank has issued a brief written statement that reads, "The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs."
The assurance of adequate money supply is similar to a pledge the Fed made on the morning after the October 1987 stock market crash.
The American Bankers Association says no one needs to worry about their money in the wake of terrorist attacks.
In a statement, the banking group says "the banking system continues to operate smoothly, deposits are protected, and customers worldwide have access to their funds."
The ABA says every bank in the country has, and is required to have, disaster recovery plans and multiple backup systems.
They're working with the Federal Reserve and other bank regulators to ensure both public confidence and liquidity in the nation's financial system.
The ABA is the largest bank trade association in the country. Its members include community, regional and money center banks and bank holding companies, as well as savings associations, trust companies and savings banks.
Wall Street May Be Shut For Days
U.S. financial markets have been shut down, and there are preliminary estimates that it may be several days before trading resumes. That's because of the extensive damage done to the World Trade Center. The Wall Street financial district is located just a few blocks from where the Twin Towers stood. Also, the New York Mercantile Exchange, where energy futures are traded, is even closer, in the World Financial Center. It was not directly hit in the plane assault. And many of the nation's investment firms have at least some of their operations in the immediate area of the Trade Center. Merrill Lynch had its headquarters in one of the towers.Copyright 2001 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.







