Wall Street Prepares to Work From Home as Sandy Approaches

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

Representatives for several major financial firms said that they are implementing continuity plans to ensure that their operations continue 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 staffers deemed “critical” have been asked to report to work, including at the firm's offices at 200 West St. and 30 Hudson St., if they can commute safely. Some of its employees will report to work at designated sites in Greenwich, Conn. and Princeton, N.J., which most will work from home.

“Go ldman 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 e-mail.

Citi employees based in the firm's offices in 388 Greenwich St. and 111 Wall St. have been asked to work from home on Monday and Tuesday.

“Citi has contingency plans in place including locations that can be utilized to ensure continuity of operations,” Shannon Bell, a spokeswoman for the firm, said in an e-mailed statement. “Citi is committed to providing uninterrupted service to our clients during the storm and seeks to minimize any possible impact.”

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 a location-by-location basis. The firm also said that it would waive overdraft and late fees for customers in seven states affected by the hurricane, including New York, New Jersey and Connecticut.

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 up shop for the day as well. A spokesman for the Blackstone Group, Peter Rose, said by e-mail on Sunday that the firm's Midtown Manhattan headquarters will be closed on Monday, with staffers 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, Mr. Rose added.

Here's Goldman's memo, from the firm's chief administrative officer, Jeffrey W. Schroeder:

Oct ober 28, 2012
Hurricane Sandy â€" Business Operations on Monday, October 29

We expect that the financial markets will be operating tomorrow and the firm will be open for business. However, given the potential severity of Hurricane Sandy, we have activated our Business Continuity Plans.

These include leveraging our teams in London and other locations around the world for additional support, having designated people work from our Greenwich and Princeton sites and, for most of you, working from home. Earlier today, evacuation zones were declared in some areas, including Battery Park City. Subway, commuter rail and bus services will be suspended in New York City beginning Sunday at 7:00 p.m., with the resumption of transit services unclear at this point.

Individuals deemed critical to the operation of the firm will be notified by their divisions to come to work tomorrow, including at 200 West and 30 Hudson, but only if they can get to work and back home safely. Safety is our number one priority.

Please be mindful of communications from municipal and state authorities, your divisional leadership and your managers.

We will provide further updates as necessary and ask that you pay special attention to messages from the Office of Global Security (OGS). Please also visit the OGS site for more information on Hurricane Preparedness.

Thank you for your cooperation.

And here's Citi's memo to employees, from its office of emergency management:

To: Citi Colleagues in the New York Metropolitan Area
From: Citi Office of Emergency Management
Date: October 28, 2012
Re: Impact of NYC Evacuation of Coastal Areas

Hurricane Sandy is continuing on its path toward the New York City metropolitan area, bringing dangerous conditions and the potential for widespread flooding and property damage. Mayor Bloomberg has declared a mandatory evacuation of “Zone A” and the Metropolitan Transportation Authority (MTA) will suspend all subway, bus and commuter railroad service beginning at 7pm tonight. PATH train service will also be suspended. There is currently no estimated time for service restoration of mass transit.

There will be no access to buildings in Zone A, which includes 388/390 Greenwich St. and 111 Wall St. All Citibank branches in Zone A will also be closed. Additional branch closures may also be necessary as other NYC areas receive mandatory evacuation orders. Therefore, all staff based in Citi facilities within mandatory evacuation zones must invoke their work-from-home strategies for Monday and Tuesday unless they are in business-critical roles that have established alternative work locations. Other Citi facilities outside of mandatory evacuation zones should be accessible for critical personnel only; non-critical personnel should invoke their work-from-home strategies.

If you have any questions about your ro le as relates to your business unit's work plan, contact your manager or Business Recovery Coordinator. If you do not know your Business Recovery Coordinator, click here.

As always, the most current information will be available on federal, state or local emergency websites. You should consult the various transportation web sites around the New York Metropolitan area for any service updates. A map of NYC flood zones is available here.