- While the SEC is only now investigating JPMorgan (JPM) for possibly hiring the children of influential officials in China to win business, the recruitment by major banks of well-connected relatives has been going on for over a decade.
- Goldman Sachs (GS) once employed the grandson of former Chinese President Jiang Zemin and Credit Suisse (CS) the daughter of ex-Prime Minister Wen Jiabao. In 2006, the son-in-law of of a politburo member helped Merrill Lynch (BAC) win a deal to work on the $22B IPO of state-owned bank ICBC.
- While some of the recruits work hard, others barely make it to the office. Still, regulators might find it difficult to prove a direct connection between an appointment and the obtaining of a contract.
Banks' hiring of well-connected relatives in China widespread
Aug 21 2013, 03:44 ET