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How Giant Investment Bank Goldman Sachs Is Profiting On Ukraine War - YouTube
Channel: MSNBC
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president biden will be addressing the
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nation tomorrow morning he will he is
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likely going to say that he'll be
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discussing ways to hold russia
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accountable for what they are calling an
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unprovoked and unjustified war on
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ukraine but as many businesses are
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pulling out of russia we've got
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exclusive new reporting tonight on how
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one of america's biggest investment
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banks is profiting on the war in ukraine
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goldman sachs they say they are winding
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down operations in russia which is
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partially true because at the very same
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time they're actively trading russian
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debt to u.s clients mostly hedge funds
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and they're using a legal loophole to do
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it a goldman sachs spokesperson tells us
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this we have a robust system and control
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throughout our organization to ensure we
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are not trading with sanctioned
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counterparties which is true nbc's
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senior national politics reporter
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jonathan allen is my partner on the
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story mr allen when i texted you at 808
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this morning and said hey john you up
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did you think that's where we'd end up
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right here
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it's been a long day stephanie a lot of
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reporting and uh
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uh my hat's off to you for your
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indefatigable nature as a reporter
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all day long and then doing an hour-long
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show i can't spell that word so start us
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with what is this loophole how is this
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happening
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so what happened is when the bible
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administration put in sanctions on
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russian debt basically on the major
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financial institutions of uh russia they
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left open a window and
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goldman sachs has driven a truck through
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and basically what that window is is
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that
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u.s institutions are banned from trading
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russian debt with those russian banks
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that have been sanctioned but not banned
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from what's called secondary trade so if
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that debt was already issued to somebody
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else and they want to sell it to a u.s
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buyer a u.s
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debt holder of russia to a u.s buyer
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goldman sachs is acting as a brokerage
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and the government the biden
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administration has left that loophole
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open with the basic idea uh that
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companies here in this country
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institutions in this country that hold
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russian debt ought to be able to get rid
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of it but at the same time there are a
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lot of buyers for what is now seen as
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cheap debt and goldman sachs has been
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advertising that to its clients and
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basically saying hey come on board while
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this debt is cheap it's going to
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eventually go up later and you'll make a
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killing okay and that's what we need to
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explain the idea hey let people still
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trade this so they can close out their
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positions so there's not chaos in the
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market that's that's really getting
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abused because what they are doing is
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trading hundreds of millions of bonds
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goldman sachs is going out and pitching
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trade ideas market dislocations to
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distressed hedge funds who are looking
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to buy something cheap in a crisis and
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that's what they do but this isn't a
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regular crisis it's not a company going
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bankrupt it is a war and let's remind
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you when you buy russian government
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bonds you are now lending to the russian
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government and when you buy russian
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corporate bonds you are helping that
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company succeed so right now goldman
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sachs is making markets and making money
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which is certainly not in line with the
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spirit of the headline we are winding
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down and leaving russia and john the
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reason i wanted to do this my takeaway
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it doesn't matter how much wall street
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tries to rebrand itself with new slogans
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it doesn't change so if you are a
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vulture be a vulture but do not come
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flapping your wings to my window and
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call yourself a dove of peace because
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all that goldman is doing flies in the
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face of what all of the united states
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and our western allies are trying to do
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what does the administration say
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you know when i talk to senior
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administration officials uh current and
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former officials what they're saying is
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that they're very worried and we hear
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president biden say this all the time
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they're very worried that if they punish
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russia they're going to end up harming
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americans and they're trying to be very
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careful not to do that of course there
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are sanctions that they could do
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that would be more targeted more direct
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that might be able to cut off this kind
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of business and i talked to congressman
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brad sherman from california today who
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is bringing forward legislation dealing
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with banks next week he said it might be
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a good idea to close off this business
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that goldman sachs is involved in
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in the future if it can be shown uh that
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what they'd be able to do is drive down
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the price of future russian debt by
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stopping goldman sachs from trading in
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current and existing russian debt but
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john it's not just goldman right think
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about this ban on russian oil all of
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this is to try to squeeze these
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companies and hurt the russian economy
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and in turn it's causing our gas prices
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to go up but i actually read it was from
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march 4th a trade recommendation report
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from goldman sachs and they wrote we see
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luke oil the russian oil company
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as the best recovery play of distressed
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russian corporates so you've got jp
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morgan saying here's a good play
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for this russian oil company at the same
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time we're banning russian oil and the
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american consumer is suffering for it
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how is this kosher
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uh well it's kosher because it's totally
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legal and sometimes what's scandalous
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and what doesn't meet with uh some
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people's moral views of the world
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is legal and that's the case here you
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use the vulture analogy
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i'd use the scorpion and the turtle the
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scorpion is going to sting and they're
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both going to go down
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