Bearer bonds in the basement soaked by Sandy?

It’s the biggest mystery on Wall Street.

Hurricane Sandy floodwaters inundated a 10,000-square-foot underground vault downtown, soaking 1.3 million bond and stock certificates — including bearer bonds that function like cash — and putting them in danger of turning to mush.

A contractor working for the vault owner, the Depository Trust and Clearing Corp., is feverishly working to restore the paper.

But the value of the threatened notes under 55 Water St. remains unknown to all but the innermost circle of Wall Street bankers.

One source said $70 billion in bearer bonds were in jeopardy.

DTCC — a depository controlled by the biggest financial firms on Wall Street — won’t say exactly what was in its vaults, how much the notes are worth, and who owns what.

Most of its member firms, including Deutsche Bank, JP Morgan Chase, Bank of America, UBS and Citi did not return calls.
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