(Bloomberg) — JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said disconnecting Russian banks from the SWIFT messaging system may bring “unintended consequences” that include third parties finding ways around the penalty.
“What countries do you hurt? What people are going to do workarounds?” Dimon said Monday in an interview with Bloomberg Television.
The CEO was referring to bad players and others finding workarounds, not his own firm, according to a company spokesperson. Dimon said sanctions, by contrast, are “very targeted, very specific, very clean.”
www.bnnbloomberg.ca/dimon-says-swift-sanctions-may-bring-unintended-consequences-1.1730254
As we previously noted, the last time we saw this kind of volatility in the Ruble and Russian assets, LTCM was collapsing, and as Nomura’s Charlie McElligott warned this morning, something, somewhere within the global banking ecosystem will most likely inevitably “break” off the back of the Russian SWIFT exclusion and frozen Bank of Russia assets – potentially in the form of transactions related to the sprawling Russian commodities trade, perhaps with a European subsidiary of a Russian bank being unable to pay liabilities as these “knock-on” throughout the system.
tradeforprofit.net/2022/02/european-em-funds-gated-as-russian-default-risk-soars-to-record-high/
Wielding SWIFT Against Russia Is a Big Risk. Although it will deal Russia a brutal blow, it will also wreak havoc elsewhere in a way that traditional sanctions do not.
h/t mark000