NYguy
January 3rd, 2003, 07:40 AM
Daily News...
Wall St. plan is doomed
By MAGGIE HABERMAN and GREG GITTRICH
Federal regulators are scrapping a doomsday plan for Wall Street that would have urged large financial firms to build backup facilities as far as 300 miles out of the city, Sen. Chuck Schumer said yesterday.
Top city business advocates and executives had attacked the contingency plan, saying it threatened to push thousands of jobs and billions of tax dollars out of the city.
Schumer (D-N.Y.) said he has now received assurances from the three federal agencies that drafted the plan that its recommendations would not be enforced.
"This is a big victory for keeping New York the financial capital of the world and for keeping jobs in New York," said Schumer, who battled the plan after the Daily News reported its existence in October.
The preliminary plan urged 15 to 20 major banks and five to 10 major securities firms - many of which base their operations in the city - to consider creating far-flung backup sites.
Drafted by the Federal Reserve Board, the Securities and Exchange Commission and the Office of the Controller of the Currency, the plan was billed as a way to protect the financial markets in case of another terror attack.
But it could have led to the loss of up to 25% of the city's 155,000 financial services jobs, business leaders said.
Mayor Bloomberg and Gov. Pataki also have criticized the recommendations.
"It's clear to me that what the regulators were saying ... months ago is not what they are saying now," Schumer said. "They have backed off. "This gives us a green light to say to all the financial institutions: Stay in New York."
Federal regulators declined to comment or did not respond to calls.
However, in a Dec. 23 letter to Schumer, the agencies argued that their plan, or white paper, has been portrayed inaccurately.
"The draft white paper recognizes that there is no one-size-fits-all solution," the letter said, adding that the agencies will maintain a "flexible approach" to protecting the financial markets.
Wall St. plan is doomed
By MAGGIE HABERMAN and GREG GITTRICH
Federal regulators are scrapping a doomsday plan for Wall Street that would have urged large financial firms to build backup facilities as far as 300 miles out of the city, Sen. Chuck Schumer said yesterday.
Top city business advocates and executives had attacked the contingency plan, saying it threatened to push thousands of jobs and billions of tax dollars out of the city.
Schumer (D-N.Y.) said he has now received assurances from the three federal agencies that drafted the plan that its recommendations would not be enforced.
"This is a big victory for keeping New York the financial capital of the world and for keeping jobs in New York," said Schumer, who battled the plan after the Daily News reported its existence in October.
The preliminary plan urged 15 to 20 major banks and five to 10 major securities firms - many of which base their operations in the city - to consider creating far-flung backup sites.
Drafted by the Federal Reserve Board, the Securities and Exchange Commission and the Office of the Controller of the Currency, the plan was billed as a way to protect the financial markets in case of another terror attack.
But it could have led to the loss of up to 25% of the city's 155,000 financial services jobs, business leaders said.
Mayor Bloomberg and Gov. Pataki also have criticized the recommendations.
"It's clear to me that what the regulators were saying ... months ago is not what they are saying now," Schumer said. "They have backed off. "This gives us a green light to say to all the financial institutions: Stay in New York."
Federal regulators declined to comment or did not respond to calls.
However, in a Dec. 23 letter to Schumer, the agencies argued that their plan, or white paper, has been portrayed inaccurately.
"The draft white paper recognizes that there is no one-size-fits-all solution," the letter said, adding that the agencies will maintain a "flexible approach" to protecting the financial markets.