According to Goldman Sachs CEO David Solomon, his bank leaves the country following a number of international companies that have confiscated their businesses in Russia, despite what is happening in Ukraine. It was not the responsibility of the company to engage in a politically motivated exit, as it was decided.
The task of determining the boycott lies with the U.S. government, but the job of the financial institution is to ensure that it “performs against the legal letter of the law of those sanctions” and that it is the spirit of sanctions, Solomon. Is that Said In an interview with Time magazine.
“I don’t think companies are supposed to determine how world trade works in the world. Governments set policies and companies follow those policies. I happen to follow that policy. I agree very strongly with you, “Solomon said.
“What’s happening in Ukraine is absolutely horrifying. I think the actions taken are rational and powerful actions. But you ask,” We expel Russia and do a good job. Are you doing? “It’s not our job. And by us, I broadly mean the financial industry. “
Former Goldman Sachs banker posted open after Russian invasion letter We asked LinkedIn’s Solomon to end its business in Russia and move staff from Moscow in order to stay “on the right side of history.” Goldman Sachs then announced that it would leave the country on March 10 and become the first major bank to make such a move.
Goldman Sachs is shrinking its business in Russia to maintain compliance with “regulatory and licensing requirements,” the company said. statement.. Some of the employees of the Moscow office have been transferred to Dubai, United Arab Emirates.
By the end of 2021, Goldman Sachs had $ 940 million in total Russian exposure, including $ 650 million in credits, and accounted for less than 10 basis points of the bank’s total assets, according to Bank of America analysts. Is said to be.
In early March, Goldman Sachs revealed that it had reduced Russia’s exposure to GQG Partners’ international equity fund from more than $ 1.7 billion in September 2021 to about $ 222 million. ..
“In 2022, many Russian companies saw attractive growth opportunities and reputations,” the bank said in an update on March 3 ().pdf). “This year’s Russian government’s actions have begun to outpace the positive fundamentals seen by many companies. Since early January, they have reduced their exposure to Russian holdings and are now focused on the energy sector. increase.”
Hours after Goldman Sachs announced its withdrawal from Russia, JPMorgan Chase also announced its withdrawal. In recent filings, Russia was not listed in the top 20 countries where the company had the largest economic exposure. JPMorgan Chase employs approximately 160 people in Moscow.
Deutsche Bank said its credit risk exposure to Russia and Ukraine was $ 3.18 billion, reducing its exposure in Russia in recent weeks.
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Naveen Athrappully is a news reporter on business and global events in The Epoch Times.