News

Some ATM networks hit hard by blackout

August 14, 2003

NEW YORK -- Aug. 14's massive power outage took many ATMs in the Northeast out of operation, and some were still not working on Aug. 15.

According to a Reuters report, Bank of New York Co. said on Aug. 15 that one-third of its ATMs in the New York City metropolitan area were operating as of 6:31 a.m. ET. Bank of New York said backup power has "enabled us to continue our data operations, transaction processing and other core business functions."

Like other banks, it said it has contingency plans in place to address an expected Aug. 15 staffing shortage in New York City.

Citibank and Chase Manhattan Bank, which together have about 2,000 ATMs in New York City alone, were hit hard by the blackout. ATMs "are temporarily down and we are working on it," said Chase spokeswoman Kristin Lemkau on Aug. 14. She said the affected ATMs are in New York, New Jersey and Connecticut.

Branches and ATMs owned by those banks and by Washington Mutual were entirely or substantially shut down on Aug. 14 due to the blackout. Most of Washington Mutual's roughly 289 ATMs in New York and 44 in New Jersey were down on Aug. 14, said spokesman Alan Gulick.

Massive power outages in New York and others cities across the northeastern United States and Canada on Aug. 14, trapped thousands in crowded subways and forced millions of office workers into the streets.

However, the Treasury Department did not receive any reports of major disruptions to the nation's banking system, a spokesman said Aug. 14.

According to an Associated Press report, Treasury spokesman Rob Nichols didn't have details on the number of ATMs that were affected. In terms of the larger banking system, "we have not received reports of major disruptions," Nichols said.

American Bankers Association spokesman John Hall told the AP that preparation for the feared Y2K computer bug several years ago "left banks in pretty good shape. They have built a lot of redundant systems."

Moreover, after the Sept. 11, 2001, terror attacks in New York City and Washington, additional steps were taken by the government and businesses to upgrade the security of the nation's financial markets, including bolstering emergency backup systems and procedures.