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BlackRock just lost $17 billion due to its Russian exposure. That’s just the tip of the iceberg, as Western banks are owed $121 billion from Russian entities
Fortune ^ | 3/11/2022 | Will Daniel

Posted on 03/11/2022 1:53:35 PM PST by marcusmaximus

BlackRock has taken a $17 billion loss as a result of its Russian exposure since Putin’s invasion of Ukraine began in late February—and it’s not the only Western bank set to take a sizable hit.

International banks are owed roughly $121 billion by Russia-linked entities, according to data from the Bank for International Settlements—and because of the recent decoupling of the West and Russia, they are unlikely to get most of that money back.

BlackRock’s clients held around $18.2 billion in exposure to Russia-linked assets as of the end of January, the firm revealed. The world’s largest asset manager declined to break down its Russian assets for the Financial Times, but its largest Russian exchange-traded fund, the iShares MSCI Russia ETF, saw its value plummet from roughly $600 million at the end of 2021 to below $1 million this week.

-snip-

Just the tip of the iceberg

BlackRock is far from alone when it comes to Western banks with exposure to Russian assets and businesses. U.S. banks are owed a whopping $14.7 billion by Russian entities, per BIS data.

(Excerpt) Read more at fortune.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events; Russia
KEYWORDS: bidendidthat; blackrock; default; ididthat; investment; itistolaugh; puppetpricehikes; russia; worldssmallestviolin
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To: DarrellZero

“Don’t loan money to gangsters.”

Zalenzky?


41 posted on 03/11/2022 2:39:33 PM PST by dljordan
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To: E. Pluribus Unum

>>>They didn’t “lose” anything unless they sold.>>>

They lost capital. I think Blackrock has been buying up homes contributing to the real estate inflation. A $17 Billion hit to capital may put a quick stop on that. Real Estate values?...Timber!!!


42 posted on 03/11/2022 2:40:35 PM PST by vespa300
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To: cgbg

Too bad he doesn’t know he’s smart /s


43 posted on 03/11/2022 2:44:05 PM PST by steve86 (Prophecies of Maelmhaedhoc O'Morgair (Latin form: Malachy))
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To: marcusmaximus

The Even-Greater Depression. It’s like the Great Depression, but even greater.


44 posted on 03/11/2022 3:09:00 PM PST by Scarlett156 (If you want my place at the table, you will have to eat what is on my plate. )
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To: vespa300

I’m waiting to hear “timber” in Seattle....prices here are insane!


45 posted on 03/11/2022 3:23:39 PM PST by Aria
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To: cgbg
Karl is an economics and business guy—that is where I learn from him.

Exactly.

I learned much about economics at the knee of Karl after 2009 - enough to spot econoklowns like Kruggie when they start spouting BS.

I was registered there and commented quite a bit until he changed the site.

Glad I didn't re-register, because he bashed Trump all through his term, and I would have gotten The Ban-Hammer for explaining realpolitik to him.

I still check in several times a week, but I miss The Bar.

46 posted on 03/11/2022 3:25:30 PM PST by kiryandil (China Joe and Paycheck Hunter - the Chink in America's defenses)
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To: cgbg

Right. The beauty of the derivatives market is that a speculator can buy a credit default swap on a Russian bond without actually owning a bond. It is just a bet that the bond will default. So there can be derivatives in the market that are worth multiples of the face value of the defaulting debt.


47 posted on 03/11/2022 3:28:20 PM PST by FarCenter
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To: colorado tanker

“Blackrock is woke, soon to be broke.”

That would be a great day!


48 posted on 03/11/2022 4:43:39 PM PST by foundedonpurpose (Praise Hashem, for his restoration of all things!)
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To: foundedonpurpose
“Blackrock is woke, soon to be broke.” That would be a great day!

And when every single board member gets sent to prison.

49 posted on 03/11/2022 4:47:51 PM PST by dfwgator (Endut! Hoch Hech!)
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To: vespa300

Zillow was doing the same thing. It didn’t go very well for them.


50 posted on 03/11/2022 4:52:26 PM PST by Prince of Space ( Let’s go, Brandon! )
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To: Aria

Me too. If they do, I’ll go and buy back the vacation condo I just sold for all cash and well over asking ......in 6 days. Crazy!


51 posted on 03/11/2022 6:24:03 PM PST by vespa300
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To: marcusmaximus

Hahahahaha!

I guess big banks shouldn’t have supported Biden. :)


52 posted on 03/11/2022 6:40:27 PM PST by Tzimisce ( )
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To: Vigilanteman

Vigilanteman wrote:


Now maybe Black Rock can quit bidding up home prices in certain markets and making them unaffordable for young people starting families.

Weren’t they —buying— houses, then selling em at inflated prices?

What happens to the houses still in their inventory and not sold yet?

What effect will this have on the housing market ?


53 posted on 03/11/2022 7:08:59 PM PST by WildHighlander57 ((the more you tighten your grip, the more star systems will slip through your fingers.) )
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To: vespa300; Vigilanteman

vespa300 wrote:


>>>They didn’t “lose” anything unless they sold.>>>

They lost capital. I think Blackrock has been buying up homes contributing to the real estate inflation. A $17 Billion hit to capital may put a quick stop on that. Real Estate values?...Timber!!!

I think you just answered my question to vigilanteman.


54 posted on 03/11/2022 7:12:34 PM PST by WildHighlander57 ((the more you tighten your grip, the more star systems will slip through your fingers.) )
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To: WildHighlander57
Yep. And even though it probably means I will get less for selling my home here (where Blackrock is less active), it will mean my daughter and family might actually be able, with our help, to buy a home large enough for two families (where Blackrock is more active) where they live.

And we will be able to retire near some grandchildren and leave the next generation some housing when we pass.

55 posted on 03/12/2022 7:20:31 AM PST by Vigilanteman (The politicized state destroys aspects of civil society, human kindness and private charity.)
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To: Vigilanteman

Exactly


56 posted on 03/12/2022 7:47:56 AM PST by gattaca ("Government's first duty is to protect the people, not run their lives." Ronald Reagan)
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To: marcusmaximus

More consequences of a stolen election.

It’s only the beginning of things to come Biden/Xi/Putin three of the most dangerous men in the world united.


57 posted on 03/12/2022 9:53:57 AM PST by Vaduz ( )
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To: AndyJackson
Maybe the western financial world should have thought about all of that before getting ourselves into this position.

You assume both that they would have realized the possibility of far reaching, unintended consequences, and that they would have let concerns about those consequences keep them jumping on the latest bandwagon.

I am somewhat skeptical about the first, and very skeptical about the latter. The only consequences most "leaders" seem able to discern are the career and social consequences of not jumping on the bandwagon. They are oblivious to the possibility that there may be something more at stake.


58 posted on 03/15/2022 10:30:15 PM PDT by Pilsner
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To: marcusmaximus

This will slow Blackrock buying slave labor housing!


59 posted on 03/16/2022 6:55:57 AM PDT by Dr. Ursus
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To: Pilsner
The only consequences most "leaders" seem able to discern are the career and social consequences of not jumping on the bandwagon. They are oblivious to the possibility that there may be something more at stake.

Exactlty. The problem is the system where we keep 10% for the big guy. Biden is not the only big guy on the take. He is not even the prinicpal big guy. He gets his 10% because he is a useful idiot for all the other big guys on the take.

Everywhere I look every decision is transactional. Not what is good for the country or the world, but where do I get my 10%. And so our empire of the 10%'ers looking for the next transaction while supportive of every kind of excess and perversion, has run smack into other worlds with different world views. Some transactional Ukrainians hitched their wagon to our transactionalists. Ukraine is getting wrecked as a consequence. It's very sad.

Anyone with a map, a sense of morality and a sense of history could see it coming.

60 posted on 03/16/2022 9:52:22 AM PDT by AndyJackson
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