US Senator Elizabeth Warren says Wall Street 'undermining' Russia sanctions

[NEW YORK] Senator Elizabeth Warren, a vocal critic of Wall Street, said banks are "undermining" sanctions on Russia by loading up on the nation's corporate debt and suggesting clients buy assets on the cheap.

In a statement released late Friday (Mar 4), she called out market makers JPMorgan Chase & Co and Goldman Sachs Group following a Bloomberg report that the 2 banks had been purchasing beaten-down bonds.

JPMorgan analysts also published a note recommending that investors boost holdings of Russian-linked debt to take advantage of a "recovery play" stemming from the sell off that has accompanied the country's invasion of Ukraine.

"Giant Wall Street banks like JPMorgan and Goldman Sachs never miss out on an opportunity to get richer even if it means capitalising on Russia's invasion of Ukraine and undermining sanctions placed on Russian businesses," said Warren, a Massachusetts Democrat.

Banks routinely scoop up debt because clients asked them to, or because they expect to find ready buyers.

Representatives for Goldman Sachs and JPMorgan declined to comment on the Bloomberg report that they had been buying up Russian bonds. BLOOMBERG