Wall Street More at Risk to Commodity Trading Exposures Due to Russia Conflict

An ingot of 99.99 percent pure gold is cast at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia, on March 10, 2022. Alexander Manzyuk/Reuters

Commodities trading exposures have been going up on Wall Street, following Russia’s invasion of Ukraine, which may leave banking firms vulnerable to large swings in asset values, according to an April 18 story from Reuters.

Goldman Sachs Group (GSG) and JPMorgan Chase have both reported a rise in commodities trading risk measures, according to their first-quarter earnings disclosures, with GSG reporting its highest uptick in a decade.