Tags: Financial | Markets | May | Reopen | Thursday

Financial Markets May Reopen Thursday

Wednesday, 12 September 2001 12:00 AM

Harvey Pitt, chairman of the Securities and Exchange Commission, one of the nation's key financial regulatory agencies, said on the CBS Early Show that "I believe" that markets could be reopened by Thursday.

A SEC spokeswoman confirmed Pitt's comments. She said, "Today is a day for taking assessment - I believe we can reopen the markets Thursday."

Before the opening bell on Tuesday all trading was suspended on the stock, bond, and options markets, including the New York, Nasdaq and American stock exchanges, along with other large exchanges and markets closed, such as the Chicago Mercantile Exchange, after the World Trade Center towers were hit by two hijacked planes.

The famous twin towers of the World Trade Center house many of the world's key financial companies including brokerages, banks, and many prominent corporations. With one significant blow, unknown terrorist profoundly disrupted the U.S. economic system by shutting down the world's largest stock markets.

The two over-100 story buildings collapsed after several hours in a stunning portrait of flame and debris. While there is no final tally on fatalities, estimates are grim, suggesting that thousands may have perished in the attack.

Also as a result of the attack virtually all civil aviation in the United States was grounded, and flights to the U.S. were canceled. Flight remained closed Wednesday.

Pitt said Tuesday that the markets had opted to close "as a safety precaution while the tragic events of today are sorted out."

"We strongly support that decision; it is a responsible course of action in light of the current situation. We are continuing to monitor the situation, along with the securities markets, and investors should be assured that the disruption to normal trading patterns is a temporary phenomenon; trading will resume as soon as it is practicable to do so," he added.

The SEC has been in ongoing consultation with the markets on the issue of when to restart trading, according to Pitt.

Tuesday night, the President's Working Group on Financial Markets - the U.S. Treasury, the Federal Reserve, SEC and the Commodity Futures Trading Commission - said in a statement "we have every confidence that trading will resume as soon as it is both appropriate and practical.''

Hardwick Simmons, chief executive office of the Nasdaq Stock Market, the world largest electronic exchange, vowed that the Nasdaq would not be "intimidated."

"We at Nasdaq want to offer our deepest condolences and prayers to the families of the many every-day heroes who are the victims of this tragedy," Simmons said. "We want to assure you that the Nasdaq market will be open in the coming days. We are testing our systems and those of our members as I write. This is important and significant. A sign that our great nation will not be intimidated. We will conduct our affairs in the same way that we always do."

The last time the markets were closed for two consecutive days was at the conclusion of the WWII on VJ Day. At the beginning of World War 1, from July 31 1914, the markets closed for five months, at a time of course when the U.S. was not involved in the war.

Copyright 2001 by United Press International. All rights reserved.

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Harvey Pitt, chairman of the Securities and Exchange Commission, one of the nation's key financial regulatory agencies, said on the CBS Early Show that I believe that markets could be reopened by Thursday. A SEC spokeswoman confirmed Pitt's comments. She said, Today is...
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2001-00-12
Wednesday, 12 September 2001 12:00 AM
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