By Tyler Durden | 28 February 2022
ZERO HEDGE — Just hours after western leaders slapped Russia with unprecedented sanctions the likes of which the world has never seen, including a targeted SWIFT expulsion of key Russia banks as well as an asset and transaction freeze of the Russia central bank, JPMorgan CEO Jamie Dimon explained not only why this harsh escalation may be futile but why it could backfire spectacularly in the years to come.
In an interview with Bloomberg TV, the CEO of the world’s largest bank said that “there are a lot of workarounds for SWIFT, so there are different tools we use for different reasons” adding that “the banks are talking with the government so everyone understands the issues, not because they’re for or against any particular thing.”
While SWIFT sanctions mean companies can’t use the messaging system to do business with the Russian entities affected, they can still do business with them, Dimon said. In fact it’s as simple as sending an email with payment instructions, because what SWIFT really is, is a messaging remnant from a bygone era, before emails, even before the fax machine. […]