Russia's Hard Assets Benefit From US Banking Crisis, Raises Gold Price - Ex-Lehman Exec

Russia benefits from the current US banking crisis because it increases the value of its gold assets, former Lehman Brothers executive Lawrence McDonald told Sputnik

WASHINGTON (UrduPoint News / Sputnik - 22nd March, 2023) Russia benefits from the current US banking crisis because it increases the value of its gold assets, former Lehman Brothers executive Lawrence McDonald told Sputnik.

Earlier in March, the US saw the second and third largest bank failures in the country's history, forcing the federal government to take emergency measures and guarantee deposits to stem the crisis.

"Yeah, they (Russia and China) benefit because they're hard asset countries... they benefit from higher gold prices," McDonald said when asked if Russia and China will be affected by the crisis.

However, McDonald, who served as the vice president of distressed debt and convertible securities trading at Lehman Brothers, pointed out that Russia will be hurt by its oil industry as its current account is starting to roll over.

After Russia began its special military operation in Ukraine, the countries of the so-called collective West actively searched for ways to limit Moscow's energy-related income, notably from oil and gas. The effort culminated in a $60 price cap imposed by the G7 member states and Australia on December 5.