DealBook: On Wall Street, Time to Mend Fences With Obama

Del Frisco’s, an expensive steakhouse with floor-to-ceiling windows overlooking the Boston harbor, was a festive scene on Tuesday evening. The hedge fund billionaires Steven A. Cohen, Paul Singer and Daniel Loeb were among the titans of finance there dining among the gray velvet banquettes before heading several blocks away to what they hoped would be a victory party for their presidential candidate, Mitt Romney.

The next morning was a cold, sobering one for these executives.

Few industries have made such a one-sided bet as Wall Street did in opposing President Obama and supporting his Republican rival. The top five sources of contributions to Mr. Romney, a former top private equity executive, were big banks like Goldman Sachs and JPMorgan Chase, according to the Center for Responsive Politics. Wealthy financiers — led by hedge fund investors — were the biggest group of givers to the main “super PAC” backing Mr. Romney, providing almost $33 million, and gave generously to outside groups in races around the country.

On Wednesday, Mr. Loeb, who had supported Mr. Obama in 2008, was sanguine. “You win some, you lose some,” he said in an interview. “We can all disagree. I have friends and we have spirited discussions. Sure, I am not getting invited to the White House anytime soon, but as citizens of the country we are all friendly.”

Wall Street, however, now has to come to terms with an administration it has vilified. What Washington does next will be critically important for the industry, as regulatory agencies work to put their final stamp on financial regulations and as tax increases and spending cuts are set to take effect in the new year unless a deal to avert them is reached. To not have a friend in the White House at this time is one thing, but to have an enemy is quite another.

“Wall Street is now going to have to figure out how to make this relationship work,” said Glenn Schorr, an analyst who follows the big banks for the investment bank Nomura. “It’s not impossible, but it’s not the starting point they had hoped for.”

Traditionally, the financial industry has tended to support Republican candidates, but, being pragmatic about power, has also donated to Democrats. That script got a rewrite in 2008, when many on Wall Street supported Mr. Obama as an intelligent leader for a country reeling from the financial crisis. Goldman employees were the leading source of campaign donations for Mr. Obama, who reaped far more contributions — roughly $16 million — from Wall Street than did his opponent, John McCain.

The love affair between Wall Street and Mr. Obama soured soon after he took office and championed an overhaul in financial regulations that became the Dodd-Frank Act.

Some financial executives complained that in meetings with the president, they found him uninterested and disengaged, while others on Wall Street never forgave Mr. Obama for calling them “fat cats.”

The disillusionment with the president spawned reams of critical commentary from Wall Street executives.

“So long as our leaders tell us that we must trust them to regulate and redistribute our way back to prosperity, we will not break out of this economic quagmire,” Mr. Loeb wrote in one letter to his investors.

The rhetoric at times became extreme, like the time Steven A. Schwarzman, co-founder of the private equity firm Blackstone Group, compared a tax proposal to “when Hitler invaded Poland in 1939.” (Mr. Schwarzman later apologized for the remark.)

Mr. Loeb was not alone in switching allegiances in the recent presidential race. Hedge fund executives like Leon Cooperman who had supported Mr. Obama in 2008 were big backers of Mr. Romney in 2012. And Wall Street chieftains like Jamie Dimon of JPMorgan Chase and Lloyd C. Blankfein of Goldman Sachs, who have publicly been Democrats in the past, kept a low profile during this election. But their firms’ employees gave money to Mr. Romney in waves.

Starting over with the Obama White House will not be easy. One senior Wall Street lawyer who spoke on condition of anonymity said Wall Street “made a bad mistake” in pushing so hard for Mr. Romney. “They are going to pay a price,” he said. “It will soften over time, but there will be a price.”

Mr. Obama is not without supporters on Wall Street. Prominent executives like Hamilton James of Blackstone, and Robert Wolf, a former top banker at UBS, were in Chicago on Tuesday night, celebrating with the president.

“What we learned is the people on Wall Street have one vote just like everyone else,” Mr. Wolf said. Still, while the support Wall Street gave Mr. Romney is undeniable, Mr. Wolf said, “Mr. Obama wants a healthy private sector, and that includes Wall Street.

“If you look at fiscal reform, infrastructure, immigration and education, they are all bipartisan issues and are more aligned than some people make it seem.”

Reshma Saujani, a former hedge fund lawyer who was among Mr. Obama’s top bundlers this year and is planning to run for city office next year, agreed.

“Most people in the financial services sector are social liberals who support gay marriage and believe in a woman’s right to choose, so I think many of them will swing back to Democrats in the future,” she said.

---

This post has been revised to reflect the following correction:

Correction: November 8, 2012

An earlier version of this article misidentified Reshma Saujani as a male.

A version of this article appeared in print on 11/08/2012, on page B1 of the NewYork edition with the headline: On Wall Street, Time to Mend Fences With Obama.

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News Analysis: Obama Wins a Clear Victory, but Balance of Power Is Unchanged in Washington

Kirsten Luce for The New York Times

Democrats not only retained the presidency, but held and slightly added to their majority in the Senate.

After $4 billion, two dozen presidential primary election days, a pair of national conventions, four general election debates, hundreds of Congressional contests and more television advertisements than anyone would ever want to watch, the two major political parties in America essentially fought to a standstill.

When all the shouting was done, the American people on Tuesday more or less ratified the status quo that existed at the start of the day: They returned President Obama to the White House for another four years, reaffirmed Republican control of the House and kept the Senate in Democratic hands. As of Wednesday morning, the margins in the House and Senate had each changed by just a seat or two.

The tie in effect went to the Democrats, who had more to lose but did not. Not only did they retain the presidency, they held off a concerted drive to take over the Senate and instead added slightly to their majority. The Republicans lost a signal opportunity to take Senate seats in states that by most measures should be their territory — Indiana, Missouri and apparently North Dakota — while losing seats they had held in Maine and Massachusetts.

For his part, Mr. Obama won a clear victory but less decisively than other re-elected presidents. He garnered just 50 percent of the popular vote, three percentage points lower than in 2008 and a sign of just how divided the country remains over his leadership. His margin in the Electoral College was stronger, but even if he wins Florida, which remained too close to call, he will be the first president since Franklin D. Roosevelt to win a second term with fewer electoral votes than his first election, suggesting the narrowing of his coalition.

But the bottom-line scorecard left Washington as divided as ever, with no resolution of most of the fundamental issues at stake. The profound debate that has raged over the size and role of government, the balance between stimulus spending and austerity and the proper level of taxation has not been settled in the least. The next two years could easily duplicate the last two as the parties battle it out.

In his victory speech around 1:30 a.m., Mr. Obama largely glossed over that result and presented himself as ready for compromise with Republicans over the so-called fiscal cliff looming at the end of the year, when a series of automatic tax increases and spending cuts are slated to take effect unless the president and Congress stop or amend them.

“Tonight, you voted for action, not politics as usual,” Mr. Obama told supporters in Chicago. “You elected us to focus on your jobs, not ours. And in the coming weeks and months, I am looking forward to reaching out and working with leaders of both parties to meet the challenges we can only solve together: reducing our deficit, reforming our tax code, fixing our immigration system, freeing ourselves from foreign oil.”

Speaker John A. Boehner, Republican of Ohio, offered words of conciliation while making it clear that he believed his party’s victory in keeping control of the House meant he had every bit as much of a mandate as Mr. Obama.

“The American people reelected the president and reelected our majority in the House,” Mr. Boehner said in a statement. “If there is a mandate, it is a mandate for both parties to find common ground and take steps together to help our economy grow and create jobs.”

Mr. Boehner scheduled a public appearance for 3:30 p.m. on Wednesday to address the deficit issues

If nothing else, one issue does seem resolved by the election. The president’s health care program, which Mitt Romney had vowed to begin dismantling on the first day of his presidency, now seems certain to survive. While House Republicans continue to oppose it and may find ways to attack it legislatively, they now know that they do not have the ability to overturn it.

It also may be possible for the two sides to come together on another big issue: immigration. In his victory speech, Mr. Obama specifically listed revamping the system as one of four specific goals. While he made little mention of it during campaign speeches, Democrats argue that Republicans may now be willing to find compromise given the election results and the growing power of the Latino vote in America. Some moderate Republicans agree, although it is not clear whether the party as a whole has come to that conclusion.

But it will be the fiscal issues that will play out in the short term and both sides quickly moved to define the election results as a validation of their viewpoint.

Neera Tanden, president of the liberal research group Center for American Progress, called the election “a decisive mandate for a fair tax system where the wealthy contribute to address our deficit challenges.”

Chris Chocola, president of the conservative antitax group Club for Growth, congratulated a series of House Republicans who had won and praised their “record of fighting to limit government and pass pro-growth policies.”

For now, uncertainty will probably continue for at least a few weeks as the newly re-elected president and re-elected Republicans circle warily and plot their next moves. Whether the talk of cooperation translates into action remains unclear, but many are already skeptical.

Dale Brown, president of the Financial Services Institute, cited the “closeness of the election results” in urging Mr. Obama to tread lightly on any new regulatory initiatives, a priority for his group. But looking at the enormous fiscal issues confronting the country, Mr. Brown noted that “the next 13 months are critical” because after then, “Congress will be back in re-election mode and will not tackle anything that could put their own re-elects in jeopardy.”

On that, at least, most everyone could agree.

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Apple's shares slide 4 percent to five-month low

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ABC's Diane Sawyer spurs jokes from Twitterverse

NEW YORK (AP) — Diane Sawyer's Election Night performance left some viewers asking if she had begun celebrating Tuesday's election a bit early.

Co-anchoring ABC News' coverage, the veteran journalist struck a different manner from her practiced, straight-news-delivering style.

Sawyer spoke more slowly than usual while seeming to prop herself on outstretched arms at the anchor desk she shared with George Stephanopoulos.

"OK," she said at one point around 10 p.m. EST, "I wanna — can we have our music, because this is another big one here? Minnesota, we're ready to project Minnesota, rrright now. ... Well, tonight we know that President Barack has won Minnesota," she rambled on, stumbling over the president's name.

Maybe Sawyer was just weary from the recent torrent of news.

In any case, the Twitterverse took quick notice and began cracking wise.

Her name was soon trending with unflattering posts, while a new Twitter handle, Drunk Diane Sawyer, collected hundreds of followers. An ABC spokesman did not comment.

"A bit tipsy," ''hammered" or "on pain killers, muscle relaxers, benzos or some combination" were among the jeering explanations. Another likened it to an episode of HBO's drama "The Newsroom," where Will McAvoy, the fictitious anchorman, had eaten a couple of pot brownies before unexpectedly being summoned to his anchor desk to report a news story.

Some tweeters joked that a more fun-loving Sawyer was a ploy by ABC to boost viewership. Several Twitter followers said they were drawn to the network by word that Sawyer was behaving, by one description, "a bit wacky."

"Bad night for Romney," one tweeter summed up. "Worse night for Diane Sawyer?"

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The Doctor’s World: Doctors Chased Clues to Identify Meningitis Outbreak

The e-mail Dr. Marion A. Kainer received on Sept. 18 suggested an investigation of a case of fungal meningitis and stroke in a man whose immune system was normal and whose only risk for the infection was a spinal injection of a steroid.

“Alarm bells went off” because of its rarity, Dr. Kainer, an epidemiologist at the Tennessee health department, said in an interview.

She immediately began what became a national investigation that has now identified 409 cases, including 30 deaths, from a fungus so unusual that it is not in medical textbooks. The fungus was transmitted through injections of a contaminated steroid drug prepared by the New England Compounding Center in Framingham, Mass.

Dr. Kainer’s investigation led Tennessee to take extraordinary measures to track down 1,009 people at risk of the fungal infection. The state is credited as the driving force in discovering one of the most shocking outbreaks in the annals of American medicine.

The discovery came in large part because of Dr. Kainer’s diligence and expertise in infectious diseases, neurology and public health. It came, too, from the clinical acumen of Dr. April C. Pettit, an infectious disease specialist at Vanderbilt University who sent the e-mail to the health department.

The still-evolving findings also illustrate the strengths of the government’s response to a public health crisis.

Dr. Kainer, like other physicians in hospitals and clinics, often detect the initial cases. But usually only health departments and other government agencies have the ability and authority to track down additional cases to document disease outbreaks and warn those at risk. It is work that private groups seldom can do, in part for lack of funds and the authority to examine patient records.

The national surveillance system for outbreaks of infectious and other communicable diseases relies on reports that physicians are required to send to local and state health departments and that are then relayed to the Centers for Disease Control and Prevention. At the federal agency in Atlanta, epidemiologists identify outbreaks by studying trends.

At the same time, the fungal meningitis cases have exposed weaknesses in government. A dispute surrounds the Food and Drug Administration’s failure to act earlier to prevent the outbreak. The federal agency has been attacked for failing to use its authority to protect the public from the dangerous practice of large-scale drug compounding that led to the outbreak. But the agency, whose top officials have remained relatively silent, says Congress has not given it the clear authority needed to have taken action.

Dr. Kainer’s investigation progressed in steps similar to peeling the layers of an onion.

Within two days of receiving Dr. Pettit’s e-mail, Dr. Kainer learned that the steroid had come from the New England Compounding Center.

“That got me very concerned,” Dr. Kainer said, because she had taken part in epidemiologic investigations involving different infections linked to compounding centers. Inquiries determined that the New England center had received no reports of infections linked to its steroid, and the C.D.C. knew of no additional recent cases of fungal meningitis and stroke.

An inspection by Dr. Kainer’s staff and from the clinic that administered the injection showed no obvious source of local fungal contamination, like recent construction or water leaks.

Then Dr. Kainer learned of three additional suspect cases of meningitis and stroke linked to the clinic. But fungi had not yet been identified in those patients’ spinal fluid. Also, her team could find no correlations in factors like time of day or week when the patients received the injections. One patient had a particular kind of stroke known as posterior circulation, which attracted Dr. Kainer’s attention because she had learned in neurology that fungal infections can cause such strokes.

“What didn’t make sense was that two patients appeared to be improving without antifungal treatment, and that didn’t fit the clinical picture,” Dr. Kainer said.

So she and her team took additional steps. One was to issue a statewide alert to identify similar cases; none were reported.

“We tell doctors and health workers we would rather have 15 false alarms than miss one case,” Dr. Kainer said.

Then she learned that the two patients who had been improving had taken a turn for the worse.

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Fiscal Impasse and Europe Woes Weigh on Markets

Henny Ray Abrams/Associated Press

A trader on the floor of the New York Stock Exchange on Wednesday. A day after the election, the outlook of continued divided government in Washington and little prospect for compromise unnerved traders.

Business leaders and investors on Wall Street reacted nervously to President Obama’s re-election Wednesday, as the focus shifted quickly from electoral politics to the looming fiscal uncertainty in Washington. A gloomy economic outlook in Europe also prompted selling in markets worldwide.

Stocks were sharply lower in afternoon trading in New York, with both the Standard & Poor’s 500-stock index and the Dow Jones industrial average down 2.2 percent, as European shares sank and Asian stocks were mixed. While many executives on Wall Street and in other industries favored Mitt Romney, many had already factored in the likelihood of Mr. Obama winning a second term.

Still, continued divided government in Washington and little prospect for compromise unnerved traders.

“The bottom line is that this looks like a status quo election,” said Dean Maki, chief United States economist at Barclays. “The problem with that is that it doesn’t resolve some of the main sources of uncertainty that are hanging over the economy.”

Companies in some sectors, like hospitals and technology, could see a short-term pop, said Tobias Levkovich, chief United States equity strategist with Citi. Other areas, like financial services as well as coal and mining, could be hurt as investors contemplate a tougher regulatory environment.

Shares of Alpha Natural Resources, a coal giant, were down 11.8 percent, while Arch Coal was off 11 percent. But HCA Holdings, a hospital operator, was up 8 percent, to $33.39 a share. As a result of Mr. Obama’s victory, Goldman Sachs said it upgraded its rating on HCA to buy from neutral, and raised its price target to $39 from $31. It also raised price targets for Tenet Healthcare and Community Health Systems, although both are still rated neutral.

Goldman downgraded shares of Humana, a leading managed care company, to sell, and its shares fell 9.9 percent. Goldman warned that Humana and other managed care providers could be hurt as health care reform moves forward, especially new rules for health insurers that become effective in 2014.

Mr. Levkovich predicted that the market would remain volatile between now and mid-January. If Congress and the president cannot come up with a plan to cut the deficit, hundreds of billions in Bush-era tax cuts are set to expire at the beginning of 2013 while automatic spending cuts will sharply cut the defense budget and other programs.

Known as the fiscal cliff, this simultaneous combination of dramatic reductions in government spending and tax increases could push the economy into recession in 2013, economists fear.

But it was not just the election results driving shares lower — there was more gloomy economic news out of Europe.

The European Union will experience only a very weak economic recovery during 2013 while unemployment will remain at “very high” levels, according to a set of forecasts issued Wednesday by the European Commission.

This year, gross domestic product will shrink by 0.3 percent for the 27 members of the union as a whole and by 0.4 percent for the 17 European Union countries that use the euro, the commission predicted. Growth in 2013 will be a meager 0.4 percent across the union and only 0.1 percent in the euro area, it said.

Not only is that level of growth far slower than even the tepid pace of the recovery in the United States, it also makes it more difficult for debt-burdened European economies to get their financial house in order. As markets neared the close in Europe, the Euro Stoxx 50 index, a barometer of euro zone blue chips, fell 2.2 percent, while the FTSE 100 index in London was 1.5 percent lower.

The S.&P./ASX 200 in Australia closed up 0.7 percent, as did the Hang Seng Index in Hong Kong. The Nikkei 225 stock average in Japan ended trading little changed.

“There’s a huge question mark hanging over what happens in the next few weeks,” said Aric Newhouse, senior vice-president of policy and government relations at the National Association of Manufacturers. “The fiscal cliff is the 800-pound gorilla out there.”

“We can’t wait,” he said. “We think the idea of going over the cliff has to be taken off the table. We’ve got to get to the middle ground.”

For all the anticipation, some observers said the election still left plenty of unanswered questions.

“While we have clarity on the players now, we don’t have any more clarity on what will happen in terms of the fiscal cliff,” Mr. Maki said. “We still have a divided government and they haven’t been able to agree on what to do.”

If the full package of tax increases and spending cuts go into effect, that would equal a $650 billion blow to the economy, Mr. Maki said, equivalent to 4 percent of the gross domestic product.

Mr. Maki envisions a partial compromise, with $200 billion in tax increases and spending cuts. Partly because of that, he estimates, the annual rate of economic growth will dip to 1.5 percent in the first quarter of 2013 from 2.5 percent in the fourth quarter. He predicted that if the full fiscal cliff were to hit, the economy would contract in the first half of 2013.

James Kanter contributed reporting.

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Presidential Campaign Over, Voters Take to the Polls

Cheryl Senter for The New York Times

Ralph Raymond, a polling station volunteer, held a curtain open for a voter at the Talbot Gym in Exeter, N.H.

Americans went to the polls on Tuesday to decide whether to give President Obama a second term or to replace him with Mitt Romney after a long, hard-fought campaign that centered on who would heal the battered economy and what role government should play in the 21st century.

From makeshift voting sites in East Coast communities devastated by Hurricane Sandy to the more typical voting booths set up in school gyms, libraries and town halls across the rest of the country, people began lining up before dawn to cast their ballots — collectively writing the ending to a bitter, expensive presidential campaign in which the candidates, parties, and well-heeled outside groups were on pace to spend some $2.6 billion.

In hotly contested areas like Milwaukee, Fairfax, Va., and Central Florida, there were reports of long lines at polling sites. There were also long lines to vote in states that were not on anyone’s list of battlegrounds, including New York.

Mr. Romney, the Republican former governor of Massachusetts, cast his vote Tuesday morning near his home in Belmont, Mass. When a reporter asked him for whom he had voted, Mr. Romney replied, “I think you know.” Mr. Obama voted Oct. 25 in Chicago — becoming one of more than 31 million people who voted early this year.

The president visited a campaign office in Chicago on Tuesday morning, where he called and thanked several startled volunteers in Wisconsin and then spoke briefly to the reporters who were traveling with him, congratulating Mr. Romney for having run a “spirited campaign.”

“I also want to say to Governor Romney, congratulations on a spirited campaign,'’ Mr. Obama said. “I know that his supporters are just as engaged and just as enthusiastic and working just as hard today. We feel confident we’ve got the votes to win, that it’s going to depend ultimately on whether those votes turn out. And so I would encourage everybody on all sides just to make sure that you exercise this precious right that you have that people fought so hard for, for us to have.”

Both campaigns continued trying to grind out votes on Tuesday. Mr. Obama planned a round of satellite television interviews with local stations in Colorado, Florida, Iowa, Nevada, Ohio, Washington and Wisconsin. Mr. Romney planned campaign stops in Cleveland and Pittsburgh.

Given the way both men have sometimes seemed to be campaigning for the presidency of Ohio — given the repeated stops they made there in their efforts to claim the state’s 18 electoral votes — it was perhaps unsurprising that the two campaigns should cross paths there on Election Day. Mr. Romney was waiting in his campaign plane in Cleveland on Tuesday morning for the arrival of his running mate, Representative Paul D. Ryan of Wisconsin, when another plane touched down and could be seen taxiing nearby. It was carrying Vice President Joseph R. Biden Jr.

If both campaigns could seem small at times, the issues confronting the nation remained big: how to continue to rebuild after the worst economic downturn since the Great Depression; whether to implement Mr. Obama’s health care law to cover the uninsured, or undo it; whether to reshape Medicare for future beneficiaries to try to curb its costs; whether to raise taxes to reduce the federal deficit or to rely on spending cuts alone; how to wind down the war in Afghanistan without opening the region to new dangers; and how to navigate the post-Arab Spring world.

On their frenzied final full day of campaigning, the candidates reprised their central arguments before crowds in the same handful of swing states where the campaign has been waged for much of the last year, as both men have battled for the 270 electoral votes needed to win the presidency. The campaigns were hoping that huge turnout efforts would tilt contested states their way.

For all the twists and turns that the race has taken since the candidates downed their first greasy pork chops on sticks at the Iowa State Fair, those core, competing messages have remained remarkably consistent.

Mr. Obama reminded a crowd in Columbus, Ohio, on Monday how bad things were when he took office, listed his achievements and argued that he has more work to do.

“In 2008, we were in the middle of two wars and the worst economic crisis since the Great Depression,” Mr. Obama said. “Today our businesses have created nearly five and a half million new jobs. The American auto industry has come roaring back. Home values are on the rise. We’re less dependent on foreign oil than any time in the last 20 years. Because of the service and sacrifice of our brave men and women in uniform, the war in Iraq is over. The war in Afghanistan is ending. Al Qaeda’s on the path to defeat. Osama Bin Laden is dead. We’ve made progress these last four years.”

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Exclusive: EU regulators to accept Apple, publishers e-book offer

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ABC raises nearly $17 million for hurricane relief

NEW YORK (AP) — ABC says its national "Day of Giving" raised nearly $17 million for Superstorm Sandy relief.

Throughout its programming Monday, the network urged viewers to contribute to the American Red Cross to help victims of the storm, which affected several Northeastern states, but hit New Jersey and the New York metropolitan area particularly hard.

Appeals were aired all day on ABC programming, on Disney's syndicated shows and across other Disney-owned networks.

Major contributors include ABC personalities Barbara Walters, George Stephanopoulos and Mark Cuban, the Dallas Mavericks owner and star of ABC's "Shark Tank." The Samsung Corp. also made a major gift.

In addition, the Walt Disney Co. made a $1 million contribution to local charities.

NBC held a telethon Friday for storm victims that raised nearly $23 million.

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A Collective Effort to Save Decades of Research at N.Y.U.

The calls started coming in late on Tuesday and early Wednesday: offers of dry ice, freezer space, coolers. By the end of Thursday there were dozens more: A researcher at Weill Cornell Medical College would clear 1,000 tanks to save threatened zebra fish; another, at Cold Spring Harbor Laboratory, promised to replace some genetically altered mice that were lost; and a doctor at the Children’s Hospital of Philadelphia even offered take over entire experiments, to keep them going.

As hurricane-driven waters surged into New York University research buildings in Kips Bay, on the East Side of Manhattan, investigators in New York and around the world jumped on the phone to offer assistance — executing a reverse Noah’s ark operation, to rescue lab animals and other assets from a flooding vessel.

“I’ve had 43 people who have offered to help so far, and some of them are direct competitors,” said Gordon Fishell, associate director of the N.Y.U. Neuroscience Institute, who lost more than 5,000 genetically altered mice when storm waters surged the night of Oct. 30, cutting off power. “It’s just been unbelievable,” he said. “It really buoys my spirits and my lab’s.”

Staff members at N.Y.U. worked around the clock to preserve research materials, running in and out of darkened buildings without elevator service, hauling dry ice and other supplies up anywhere from 2 to more than 15 floors.

The university’s medical center also got instant help, from almost every major research institution in the area.

The response reflects large shifts in the way that science is conducted over the past generation or so. Individual labs always compete to be first, but researchers increasingly share materials that are enormously expensive and time-consuming to reproduce. The loss of a single cell line or genetically altered animal can slow progress for years in some areas of biomedical research.

“We are totally dependent on each other in the life sciences now, for a very large number of cell lines and extracts, research animals and unique chemical tools and antibodies that might not have backup copies anywhere in the world, or in very few places,” said Dr. Steven Hyman, director of the Stanley Center for Psychiatric Research at the Broad Institute of M.I.T. and Harvard. “Losing any of these tools tears a significant hole in the entire field.”

Danny Reinberg, a professor of biochemistry at N.Y.U.’s medical school, has studied genetics for 30 years, accumulating valuable mice strains and stocks of extracts from cell nuclei that would be extremely difficult to replace. The extracts must be stored at minus 112 degrees Fahrenheit.

Dr. Reinberg said he lost all of his mice: nine strains, including more than 1,000 animals that died in the storm surge. But he managed to save all of the cell extracts by moving some containers into freezers at N.Y.U. labs that weren’t affected and others to the Rockefeller, Columbia and Cornell medical centers, each of which cleared space, he said.

“We were able to save many things; it was just phenomenal to get that kind of help,” said Dr. Reinberg, whose house in New Jersey has had no power.

“Later in the week, at a Starbucks, I could finally download all my e-mail, and there were messages from people at the University of Pennsylvania and the Howard Hughes Medical Institute, asking how they could help us re-establish the mouse lines we lost,” he said.

Some scientists have become interdependent because their students, who develop a specialty in specific tissues or animals, often move among labs. Research projects sometimes draw on experiments or analyses the students worked on at more than one place.

One researcher working in Dr. Fishell’s lab was formerly a student of Dr. Stewart Anderson of the Children’s Hospital of Philadelphia, who sent Dr. Fishell a text message on Wednesday to offer help. “I told him that even if it costs money, we’re happy to keep experiments rolling, if we’re able to,” Dr. Anderson said.

By late Thursday, freezer space in minus-112-degree units was extremely tight in the city. So was dry ice.

Susan Zolla-Pazner, director of AIDS research at the Manhattan Veterans Affairs Medical Center, had lost power in her 18th-floor lab in the department’s building at 23rd Street and First Avenue. She finally hired a company to haul her 20 freezers-full of specimens, for safekeeping.

“We spent all of Tuesday and Wednesday hauling 1,300 pounds of dry ice up to the 18th floor, using the stairs, to stabilize the freezers first,” said Dr. Zolla-Pazner, who is also a professor of pathology at N.Y.U. School of Medicine. “And the dry ice people would only take cash. I have about 25 to 30 people working for me, and everyone was out there on 23rd Street, reaching into their pockets to get what we needed. It was a herculean and heroic effort on the part of everyone here, and that is the story that needs to be told.”

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