The Strategist

US Congress demands data on Russian government debt transactions from JPMorgan and Goldman

05/11/2022 - 10:30

US congressmen have demanded that JPMorgan and Goldman Sachs provide lists of clients trading Russian bonds.

US congressmen have demanded that US banks JPMorgan Chase and Goldman Sachs provide information on clients trading Russian bonds in order to find out whether Wall Street is profiting from Russia's invasion in Ukraine, Bloomberg reported.

Corresponding letters to JPMorgan chief executive Jamie Dimon and Goldman Sachs chief executive David Solomon were sent by Senator Elizabeth Warren and House of Representatives member Katie Porter. They are asking for lists of clients transacting Russian government and corporate debt after February 24, as well as information on the volume of transactions and profits made. Democratic lawmakers have also asked for information on the activities of the banks themselves. They explained that this would help to understand whether the actions of JPMorgan Chase and Goldman Sachs could benefit the Russian government and whether the banks are able to profit from the "special operation".

Bloomberg notes that Russian bond prices collapsed shortly after the operation began and there is no consensus among market participants on whether or not the drop in prices could be used to make money. The congressmen's enquiry concerns not only the banks themselves, but also numerous hedge funds and other investors who have returned to this market since the collapse.