May 21, 2022

The Indie Toaster

Complete News World

Goldman Sachs is the first major US bank to withdraw from Russia

Goldman Sachs is the first major US bank to withdraw from Russia

Goldman Sachs left Russia, becoming the first major US bank to exit the country after Western governments imposed a set of Penalties Designed to cripple the Russian economy.

“Goldman Sachs is terminating its business in Russia in compliance with regulatory and licensing requirements,” Andrea Williams, a spokeswoman for the bank, said in an email. “We are focused on supporting our customers around the world in managing or ending pre-existing commitments in the market and ensuring the well-being of our employees.”

Ms Williams said the investment banking giant has about 80 employees in Russia and is arranging the departure of those who have asked to leave, confirming an earlier report by Bloomberg News. Some employees will remain in Goldman’s law and compliance departments in the country.

At the end of 2021, the Bank of New York had more than $700 million of exposure to Russia, tied to loans and financial products such as stocks and bonds, according to deposit. Although Goldman is located in Russia, its business there represents a small segment of the bank’s global operations.

“None of us can fail to see this for what it is: an invasion of a sovereign nation,” Goldman CEO David Solomon said in a note to the task force Thursday. “Hundreds of thousands have been forced to flee their homes, Ukrainian cities have suffered massive destruction, and there has already been a tragic loss of life. I know this remains a very difficult and difficult time for many of our people.”

US and Western banks have retreated from direct dealings in Russia since 2014, when the United States imposed sanctions after President Vladimir Putin’s annexation of Crimea.

See also  Dow rebounded as stock market sell-off worsened; Microsoft jumps on profits

City Group, which has about 3,000 employees in Russia, said on Wednesday that it would “set up our operations in the country”. Citi’s consumer division in Russia manages limited operations; The bank put the company up for sale as part of a broader exit from overseas markets announced last year. The bank had $9.8 billion of exposure to Russia at the end of 2021, including corporate and consumer loans and local government debt, according to deposit. Chief Financial Officer Mark Mason told investors last week that she is working to reduce that exposure.

The recent economic sanctions on Russia may have Indirect long-term consequences Because of the size of its economy and international links. The country is a major exporter of raw materials such as oil, natural gas, and wheat.

Citigroup CEO Jane Fraser said last week that Citigroup, the only US bank operating in Ukraine, had more than 200 workers in the country and was helping those who wanted to leave to cross the border into Poland.