Breakingviews - Wall Street shows Trump the way on Saudi Arabia | Reuters

Breakingviews - Wall Street shows Trump the way on Saudi Arabia | Reuters:

The Wall Street tail is wagging the Washington dog. In the past, Saudi Arabia’s alleged involvement in the disappearance of journalist Jamal Khashoggi would have met with robust condemnation from the United States government. American banks and companies would then reluctantly pass up the chance to compete for lucrative business. But in the last few days a stream of luminaries headed by JPMorgan CEO Jamie Dimon have turned that dynamic on its head.

The decision by BlackRock chief Larry Fink and his Blackstonecounterpart Steve Schwarzman to join their peers in skipping next week’s “Davos in the Desert” will not have been taken lightly. Western financiers and business leaders have lauded Crown Prince Mohammed bin Salman’s “Vision 2030” modernisation programme. JPMorgan has made $81 million in fees from Saudi Arabia over the last six years, Refinitiv data shows. Besides, the royal family has a long memory. Citi had to wait almost a decade after leaving the kingdom in 2004 to be granted a new banking licence.