pwshub.com

Russian court freezes funds of US banks JP Morgan and Mellon

(Reuters) - The Moscow Region Arbitration Court on Wednesday froze funds of the U.S. Bank of New York Mellon held by the Russian branch of Citibank as well as funds of JP Morgan Chase held by its Russian affiliate of Morgan Chase Bank amounting in total to about $372 million.

The court decision said the action was initiated by Russia's deputy prosecutor "in defence of the interests of the Russian Federation" in connection with the Ukrainian central bank's withdrawal of the licence of MR bank with plans to wind up the bank by 2025.

The prosecutor's office launched the action late last month against Ukrainian regulators and the two U.S. banks - Bank of New York Mellon and JP Morgan Chase Bank recognising the action as "expropriation" of the property of MR bank - Ukrainian subsidiary of Russia's largest bank, Sberbank. It said the action infringed the state's lawful interests.

The prosecutor's office sought recognition of $121 million placed by MR bank in an account of JP Morgan Chase as the rightful property of Sberbank and $251 million placed in an account of the Bank of New York Mellon - amounting to a total sum of damages of $372 million.

According to court documents, the action resulted in Sberbank being denied judicial control over its subsidiary and the right to dispose of its income, meaning that the state "lost the opportunity to securе its own income from the activity abroad of MR bank."

Both Sberbank and JP Morgan declined to comment on the court action.

(Reporting by Reuters; Editing by Matthew Lewis)

Source: finance.yahoo.com

Related stories
1 month ago - JPMorgan Chase on Friday asked a U.S. judge in Manhattan to dismiss its lawsuit against Russia's VTB Bank over a $439.5 million account frozen after Russia invaded Ukraine, saying VTB "coerced" it into requesting the dismissal. The...
3 weeks ago - (Bloomberg) -- European futures were steady with the dollar holding onto its gains, as traders awaited US inflation data due this week for clues on the size of the Federal Reserve’s coming interest-rate cut.Most Read from BloombergHow...
3 weeks ago - (Bloomberg) -- Nervous Nvidia Corp. investors are eager for an update on its Blackwell chip rollout — hoping for a catalyst to halt the stock’s recent decline.Most Read from BloombergHow Americans Voted Their Way Into a Housing...
3 weeks ago - (Bloomberg) -- Since declaring himself the winner of July’s presidential vote, Venezuela’s Nicolás Maduro has been condemned by governments across the world, targeted by massive street protests and spurned by some of his closest...
3 weeks ago - (Bloomberg) -- Argentines are taking their dollar savings out from under the mattress and depositing them into banks in a vote of confidence for President Javier Milei as well as his tax amnesty program.Most Read from BloombergHow...
Other stories
18 minutes ago - Investing.com -- NVIDIA Corporation (NASDAQ:NVDA) shares added 1% after hours Wednesday after CEO Jensen Huang said demand for its Blackwell product is "insane."
57 minutes ago - Confirming recent rumors, OpenAI today announced that it has raised $6.6 billion from investors to support its artificial intelligence research. The raise, the largest funding round on record, values the ChatGPT developer at $157 billion....
1 hour ago - On Tuesday, dockworkers on the East and Gulf Coasts walked off the job demanding better pay. How much do they make? Here's what to know.
1 hour ago - Michael Dell, the CEO of Dell Technologies Inc. (NYSE:DELL), has offloaded a significant portion of his shares in the company. What Happened: According to a filing with the U.S. Securities and Exchange Commission on Thursday, Dell sold 10...
1 hour ago - Ever wonder if you're doing better financially than your friends? It's a common thought, but you can't ask them for their bank balance. So, how do you figure it out without making things awkward? Here's a simple, no-guesswork method using...