Russia accuses JPMorgan of "illegally" blocking money transfer


Calling the action "unacceptable, illegal, and absurd," Russia's foreign ministry says JPMorgan (JPM +0.1%) illegally blocked a payment from one of its embassies to an insurance agency "under the pretext of anti-Russian sanctions."

The payment came from Russia's embassy in Kazakhstan to Russian insurance agency Sogaz. Sogaz is a subsidiary of Bank Rossiya, which is facing U.S. sanctions.

"There is a lot of confusion ... as to what might be the full scope of the sanctions and what we are hearing is while the sanctions are specific, a lot of U.S. companies are adopting a much more risk-averse or cautious approach," says Macro Advisory's Chris Weafer. "There is almost self-sanctioning going on."

JPMorgan doesn't want to anger Russia too much - it generated $55.6M in investment banking fees there last year.

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Comments (10)
  • SimonSaysShort
    , contributor
    Comments (116) | Send Message
     
    "JPMorgan doesn't want to anger Russia too much - it generated $55.6M in investment banking fees there last year."
    Haha what? Are we talking about the same JPM that has a market cap over 200B?
    1 Apr 2014, 03:56 PM Reply Like
  • Ted Bear
    , contributor
    Comments (709) | Send Message
     
    When in doubt, err on the side of caution.

     

    Sorry, Vladimir. Actions have consequences. Even if it is just the embarrassment of a bounced check.
    1 Apr 2014, 04:07 PM Reply Like
  • Poppy Potts
    , contributor
    Comments (3) | Send Message
     
    Yes they do have consequences, I cannot believe the bank I use would stoop to backing up this ridiculous ego thing of the presidents. its ridiculous. The sanctions are BS
    2 Apr 2014, 02:26 AM Reply Like
  • Poppy Potts
    , contributor
    Comments (3) | Send Message
     
    Everyone does not think the sanctions are appropriate, in fact they are not considering the facts
    2 Apr 2014, 02:26 AM Reply Like
  • leopardtrader
    , contributor
    Comments (3805) | Send Message
     
    Russia could seize (block) their (JPM) Russian assets too. careful here. JPM $200B assets what about liability? $55M real profit is a big deal in reality for any of these banks
    1 Apr 2014, 04:18 PM Reply Like
  • fafatooey
    , contributor
    Comments (435) | Send Message
     
    "unacceptable, illegal and absurd".

     

    Yes, Mr. Putin, you are.
    1 Apr 2014, 05:04 PM Reply Like
  • Poppy Potts
    , contributor
    Comments (3) | Send Message
     
    Chase is out of line
    2 Apr 2014, 02:25 AM Reply Like
  • Sakelaris
    , contributor
    Comments (2689) | Send Message
     
    If US companies take these sanctions very far, Americans might get a sad lesson in just how interrelated the war has become. Russia might ultimately hurt the US even more than the US hurts Russia--and all over the poorly-drawn borders of Ukraine.
    1 Apr 2014, 07:32 PM Reply Like
  • chopchop0
    , contributor
    Comments (5271) | Send Message
     
    I doubt it. If Russia gets to the point where we can feel any real suffering, they will probably have turned into 3rd world cesspool by that point
    1 Apr 2014, 10:22 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2689) | Send Message
     
    There are lots of interconnections in the world economy. The ones we do not see could be the ones that hurt us.
    1 Apr 2014, 10:34 PM Reply Like
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