By Andrew R. Johnson, Matthias Rieker, Liz Moyer and Christian Berthelsen

Financial companies gradually resumed operations and reopened facilities on the East Coast Tuesday as Superstorm Sandy made its way west.

While the worst of the storm's impact had subsided in New York City by midday, businesses with significant operations in and around Lower Manhattan's financial district continued to grapple with wind damage and extensive flooding that threatened to keep transportation systems down for days and tunnels to New Jersey and Brooklyn closed.

American Express Co. (AXP) hadn't yet decided whether it would reopen Wednesday its headquarters in the World Financial Center near the Hudson River, a spokesman said Tuesday morning.

The credit-card company had closed its headquarters and other offices in the Tri-State area on Monday and Tuesday as the storm made its way up the East Coast.

Goldman Sachs Group Inc. (GS), whose headquarters are also near the Hudson, were reviewing accessibility to its tower at 200 West St. Neither that building nor Goldman offices across the Hudson in Jersey City, N.J., experienced notable damage, the company said.

J.P. Morgan Chase & Co. (JPM) shut three New York City-area office locations Tuesday and urged employees in the storm-ravaged region to work remotely.

Chase branches in New York, New Jersey and Connecticut, areas hit by widespread flooding, downed trees and power outages, would be closed Tuesday and branch employees would hear from their managers about when the branches would reopen.

J.P. Morgan's headquarters at 270 Park Avenue and seven other office locations in and around New York were open Tuesday, according to an internal memorandum to employees reviewed by Dow Jones Newswires.

Seven office locations in the Tri-State area may be experiencing power issues because of utility power outages, the memo said. The office locations that closed Tuesday include 4 New York Plaza, One Chase Manhattan Plaza in New York City and 575 Washington Blvd. in Jersey City, N.J.

Citigroup Inc. (C) also said its downtown Manhattan capital markets and investment banking operations were without power but the bank hoped the building, with its massive trading floors, would be accessible in the next two days.

The investment banking headquarters on Greenwich Street sustained minor flooding, and the attached building with the trading floors is running on a generator, the bank said in a memorandum to employees working in the regions affected by Hurricane Sandy. Citi's administrative building on Wall Street was also without power and affected by flooding, the bank said. "We anticipate this building will remain unavailable for several days."

The bank said remote access directly to employees' desktops is currently unavailable. "Staff should use the Citi Application Portal to log in remotely," the memo said.

"We are prepared for the re-opening of the markets, and will utilize our back-up locations to ensure continuity of operations until our staff can return to our Lower Manhattan offices," a spokeswoman said.

The outages came as Citi and other banks gradually began reopening branches on the East Coast.

Citi was aiming to open retail bank branches in Washington, Virginia, Maryland and Massachusetts Tuesday afternoon, though its branches in New York, Connecticut, New Jersey, Pennsylvania and Delaware remained closed, as did those of other large banks.

Bank of America Corp. (BAC) said Tuesday branches in Maine, New Hampshire and upstate New York were scheduled to open while those in the New York City metro area, Westchester County, Long Island, State Island, northern Virginia, Pennsylvania, Connecticut, New Jersey and other states were closed.

The bank also said it would refund fees for customers using other banks' ATMs to withdraw cash "in the hardest hit states."

The second-largest bank by assets said its offices at Two and Four World Financial centers were closed Tuesday, though its main New York office at 1 Bryant Park was open.

Many banks have waived various fees, such as late payment penalties on credit cards and small business loans and mortgages for customers affected by the storm.

PNC Financial Services Group Inc. (PNC), of Pittsburgh, said its branches in central and northern New Jersey and the New Jersey coastline, and in New York City's Manhattan remained closed, but southern New Jersey and Delaware branches that were closed because of the storm opened Tuesday morning.

Capital One Financial Corp. (COF) said the majority of branches in Northern Virginia, Maryland and Washington, opened at noon Tuesday. Six branches in Maryland and nine in Virginia remained closed, as did branches in New York, New Jersey and Connecticut.

Wells Fargo & Co. (WFC) said more than 770 of its branches in New York, New Jersey, Connecticut, Pennsylvania, Delaware, Maryland, and Washington remained closed Tuesday.

No big bank reported network outages for automated teller machines, though banks said ATMs won't function in areas with power outages or where branches are damaged. M&T Bank Corp. (MTB), of Buffalo, N.Y., said as of late morning 60 branches were without power, mainly in the metropolitan New York area.

M&T said its branches in the Hudson Valley of New York, in Philadelphia and the rest of Pennsylvania, Delaware, Maryland and Washington were scheduled to open later Tuesday. Its upstate New York and northern Virginia branches opened on schedule.

Legg Mason Inc. (LM) Tuesday reopened its Baltimore headquarters and offices in midtown Manhattan, although many of its 3,000 employees continued to work remotely. Legg's offices in harder-hit Lower Manhattan--where back-office tasks like fund administration are handled--remains closed and without power, however, according to an email sent to employees.

-Mia Lamar contributed to this story.

Write to Andrew R. Johnson, Matthias Rieker, Liz Moyer and Christian Berthelsen at andrew.r.johnson@dowjones.com, matthias.rieker@dowjones.com, liz.moyer@dowjones.com and christian.berthelsen@dowjones.com

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