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SEC probes JPMorgan over hiring practises in China

  • The SEC is reportedly investigating JPMorgan (JPM) into whether the bank recruited the children of influential Chinese officials in order to win business.
  • In one instance, JPMorgan hired Tang Xiaoning, the son of the chairman of state-controlled China Everbright Group. Following the recruitment, the U.S. bank won multiple deals from the Chinese financial conglomerate.
  • In another example, JPMorgan recruited Zhang Xixi, the daughter of a Chinese railway official who was later arrested over bribery claims. At the time of Zang's hiring, China Railway Group was in the process of choosing JPMorgan to help it with an IPO.
  • JPMorgan referred to the probe in its latest quarterly filing this month, saying the SEC had requested information about the "employment of certain former employees in Hong Kong and its business relationships with certain clients."
  • The investigation adds to several other probes into JPMorgan, including into the London Whale trading blunder and mortgage bonds. The bank is the subject of inquiries by at least eight federal agencies and a state regulator in the U.S., as well as by two foreign countries.
Comments (29)
  • karjam
    , contributor
    Comments (18) | Send Message
     
    I'm sure Goldman Sachs is involved in the same type of Bankster Gangster stuff.
    18 Aug 2013, 06:19 AM Reply Like
  • spinrbait
    , contributor
    Comments (341) | Send Message
     
    sounds like the administration should take some lessons from jpm on how to deal with the chinese, concerning trade relations.
    hopefully the gov't shakedowns are coming to an end, if hiring chinese officials' children is the new big thing. where is chelsea clinton working now? cbs?
    18 Aug 2013, 08:37 AM Reply Like
  • tampabay
    , contributor
    Comments (269) | Send Message
     
    Is JPM "investigated" everyday....do you understand you are talking about "business as usual" in these "foreign" countries?.....Find some "real financial news! and tell Federal agents to do some "valuable" investigations....Please
    18 Aug 2013, 08:50 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5139) | Send Message
     
    Just another day for JPM.

     

    As long as AG Holder believes there are banks too big to prosecute, JPM will continue to break laws and simply pay fines to clean up the mess.

     

    Here is what Mr. Holder believes:
    "I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy," Holder said, according to The Hill. "And I think that is a function of the fact that some of these institutions have become too large."
    18 Aug 2013, 09:01 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Kind of like the people who graduate from Ivy League schools that hire people referred by other Ivy League graduates and their extended families. This practice is pervasive.
    19 Aug 2013, 02:10 AM Reply Like
  • Guest1234
    , contributor
    Comments (81) | Send Message
     
    If these allegations are true, why does it even matter? I don't see a problem here, just saavy business.
    18 Aug 2013, 09:18 AM Reply Like
  • Tschurin
    , contributor
    Comments (313) | Send Message
     
    It's a pretty good bet that here in the U.S. a number of the top-bracket investment banking firms disproportionately hire sons and daughters of well-connected people. Maybe in a few weeks or months one of more news outlets will look into that side of the story.
    18 Aug 2013, 03:13 PM Reply Like
  • bgold1955
    , contributor
    Comments (1938) | Send Message
     
    Because its against the law! You may not mind driving drunk but others do and that is why it is against the law. Do the crime do the fine (as no one will go to jail over this).
    19 Aug 2013, 04:32 PM Reply Like
  • DianeLee
    , contributor
    Comments (346) | Send Message
     
    It would be a shame NOT to hire well educated and yes, even well connected Chinese....especially in China. In the meantime, intimidation of JPM marches on.
    18 Aug 2013, 11:17 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    Would it be a shame to not use bribes as well?
    18 Aug 2013, 01:07 PM Reply Like
  • DianeLee
    , contributor
    Comments (346) | Send Message
     
    Apples and oranges, Macro. Like idealism and real life.
    18 Aug 2013, 10:14 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    I know Diane. In real life bribery is just something you have to do. Only idealists do not resort to bribes. Sure, it is illegal, but to investigate a company on bribery charges is merely harassing the company for no good reason. Intimidation, if you will.

     

    Good governments let bribery be just part of doing business. Like in Pakistan.
    18 Aug 2013, 10:46 PM Reply Like
  • DianeLee
    , contributor
    Comments (346) | Send Message
     
    Ah, a dart to the circle in the middle of the board. :) But bribery aside, because we don't know whether or not it might be expected SOP, my original comments really dealt more with JPM hiring well educated and well "connected" insiders, which only seems to be good business, particularly in China. But a thought further, how is it different than "investments" by the Government itself? (examples: Egypt, Afghanistan, gun-running, military supplies, F16s, etc.)
    19 Aug 2013, 01:45 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    Unfortunately, Diane, the Govt being unreasonable as it is, the thrust of its argument will be that bribe can take many forms, and JPM (allegedly) bribed high ranking Chinese politicians with jobs for their kids in return for business deals. Such behavior is illegal under US law, idealistic as it is. You see, Americans don't like bribes. We are funny that way.

     

    Don't get your point about the Govt. selling F-16s to Afghanistan, or something like that.
    19 Aug 2013, 01:53 AM Reply Like
  • spinrbait
    , contributor
    Comments (341) | Send Message
     
    or in the united states when nbc hired chelsea clinton. right?
    19 Aug 2013, 08:11 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    What did NBC get back in return?

     

    Look, there is nothing wrong with hiring children of the powerful and the connected. Otherwise, these kids would never get a job, even if they are qualified (and Chelsea certainly is qualified) and that's just plain dumb.

     

    However, it is illegal to provide them a job in order to get something back in return from their parents. Something that is valued in, say, big contracts etc.
    19 Aug 2013, 10:52 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    What NBC gets back is access and insight so they have more information than competitive channels. That is what they are buying when they hire Clinton and Bush kids. None of these kids have an IQ any higher than millions of other kids.

     

    It all comes down to money in the end. Directly or indirectly.
    19 Aug 2013, 12:20 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    Access and insight? How so?
    19 Aug 2013, 12:38 PM Reply Like
  • spinrbait
    , contributor
    Comments (341) | Send Message
     
    macro, how was she qualified for the job she got? people work 30 years and never get to the top like she got. there has never been a more flagrant case of nepotism.
    20 Aug 2013, 09:53 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    Look at her resume.
    20 Aug 2013, 10:53 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Moving from 6 degrees of separation to 1 degree of separation is called access and lines one up for the interview or the backdoor Q&A.. Hearing stories from them about their years in the WH and their famous fathers and their network of people is insight.

     

    Hopefully you are just acting stupid.
    20 Aug 2013, 11:51 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    I used to work with her. Look at her resume. It's stellar.
    21 Aug 2013, 05:31 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Lot's of stellar resumes out there and the more access one has the better the resume.

     

    Access to jobs, business deals, influence (AKA consulting), stock tips, etc is all corruption. That is a laundry list of what our politicians do all the time.

     

    Our news media is just as corrupt. Actually there is no sector that is not corrupt as government and media have no standing to wag their finger at anyone else.
    21 Aug 2013, 10:57 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8375) | Send Message
     
    Yeah, ok.
    21 Aug 2013, 01:03 PM Reply Like
  • SoCalNative
    , contributor
    Comments (423) | Send Message
     
    Remember John Corzine? Where the F is that ass clown?
    18 Aug 2013, 12:49 PM Reply Like
  • Seekingbetaguy
    , contributor
    Comments (127) | Send Message
     
    Prince Albert of Monaco (sp?) was in the JP Morgan training program after mine, circa early 80's. I suppose he could have just sent his resume in and caught lightening in a bottle. Then again ...
    18 Aug 2013, 11:03 PM Reply Like
  • KJP712
    , contributor
    Comments (437) | Send Message
     
    All the children " Qualified " for these positions.Move on,nothing to see here.
    19 Aug 2013, 12:32 AM Reply Like
  • User 353732
    , contributor
    Comments (4785) | Send Message
     
    Isn't that what Wall St does and has done in the US for decades?
    How else would the kleptocratic elites perpetuate their reign in the US?
    19 Aug 2013, 06:11 AM Reply Like
  • tampabay
    , contributor
    Comments (269) | Send Message
     
    I'm the smartest person in the World ( I look like Steve Jobs and wear jeans and a Tee shirt, and know nobody)...How many Job offers do you think I will get in the U.S. OR China?...... Your correct
    20 Aug 2013, 05:53 PM Reply Like
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