Mon Aug 2, 2004

WASHINGTON, Aug 2 (Reuters) - Treasury Secretary John Snow on Monday sought to calm jittery nerves in the wake of newly disclosed terror threats against the U.S. financial sector in Washington and New York.

"Our nation's financial markets, financial institutions and financial sector continue to operate normally. I applaud the financial services industry for remaining open for business in the face of yesterday's reporting," Snow said in a written statement issued by the Treasury.

On Sunday, the U.S. government said intelligence it had gathered suggested threats against targets in New York City, Washington and Newark, N.J. It was the first U.S. terror alert to focus on a specific sector of the American economy.

In the statement, Snow also said the Treasury is in close contact with the Homeland Security Department and other financial regulators and the International Monetary Fund and the World Bank -- two possible targets -- had taken "extraordinary measures to protect against the threat of a terrorist attack."

"The U.S. Treasury has worked closely with these institutions to help ensure that they will continue to make their vital contributions to the global economy," Snow said.

Snow said bank regulators and law enforcement officials will keep working closely with financial markets to respond to "any potential market disruptions."

"People around the world rightly have confidence in the U.S. financial markets. While we must always remain vigilant against terror, we will not be intimidated and prevented from enjoying our lives and exercising our freedoms," Snow said.

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