Goldman Sachs and JPMorgan Chase are closing down their businesses in Russia as Wall Street banks follow western companies in withdrawing because of Moscow’s invasion of Ukraine, according to Financial Times.
On Thursday, Goldman Sachs said it would be „winding down” its business in Russia rather than leaving immediately. The bank said it was doing so „in compliance with regulatory and licensing requirements”.
Later Thursday, fellow Wall Street giant JP Morgan Chase also said it was „actively unwinding Russian business”, with activities focused on taking care of staff and helping global clients manage risk and close out obligations.
Goldman has had a presence in Russia since 1998. Despite its decades there, the country makes up a small fraction of Goldman’s $2.8tn in assets and liabilities, with the bank disclosing last month that its exposure to credit losses in Russia was $650mn and its total market exposure was $414mn as of December.
Any exit from the country will not be an overnight event, given that the banks are regulated entities in Russia. Winding down banking operations in a country can take upwards of a year, according to experts.
Operating in Moscow has been increasingly difficult for Western financial institutions and other firms amid international sanctions against Russia.
More than 330 firms have withdrawn or significantly curtailed operations in the country in recent days, according to Yale researchers, who have been tracking the corporate response, BBC reports.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
