Goldman disclosed plans to pull out of the country. JP Morgan followed hours later. Both said they were acting in compliance with government instructions.
Goldman has had a presence in Russia since 1998. Despite its decades there, the country makes up a small fraction of Goldman’s USD 2.8 trillion in assets and liabilities, with the bank disclosing that its exposure to credit losses in Russia was USD 650 million and its total market exposure was USD 414 million as of December 2021.
According to Financial Time, exits from the country will not be overnight events, given that the banks are regulated entities in Russia. Winding down banking operations in a country can take upwards of a year.
Even with the wind-down, Goldman will continue to offer market-making services for buyers and sellers to facilitate trading of debt tied to Russian entities.
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