Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co (NYSE:JPM) announced they were unwinding their Russian businesses, becoming the first major U.S. banks to exit following Russia's invasion of Ukraine, reported by Bloomberg.
"Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements," the bank said in an emailed statement.
JPM said in a statement: "In compliance with directives by governments around the world, we have been actively unwinding Russian business and have not been pursuing any new business in Russia," Reuters reported.
Current activities are limited, and it is helping global clients address and close out pre-existing obligations, manage Russian-related risk, act as a custodian to clients and take care of employees, JPM said.
Goldman will wind down the operations rather than exit them immediately, and any losses would be "immaterial," Reuters reported citing a source familiar with the situation.
The biggest exposed U.S. bank is Citigroup Inc (NYSE:C), with 3,000 workers. It said it's operating "on a more limited basis given current circumstances and obligations and is continuing efforts to exit the business.
Citigroup is attempting to restructure its Russian business and has been trying to sell its local consumer banking unit. According to Citigroup, it could lose about $4.9 billion under a severe stress scenario.
Morgan Stanley (NYSE:MS) is mulling moving some of its 20 Russia-based staff to the Gulf state and other financial centers. Credit Suisse Group AG (NYSE:CS), with a 125-person team in Moscow, is yet to decide.
Price Action: JPM shares are trading 1.97% higher at $134.46 during the premarket session on the last check Friday.
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