Posted on 12/30/2013 2:46:50 AM PST by Cincinatus' Wife
In a series of late-night emails, JPMorgan Chase executives in Hong Kong lamented the loss of a lucrative assignment.
“We lost a deal to DB today because they got chairman’s daughter work for them this summer,” one JPMorgan investment banking executive remarked to colleagues, using the initials for Deutsche Bank.
The loss of that business in 2009, coming after rival banks landed a string of other deals, stung the JPMorgan executives. For Wall Street banks enduring slowdowns in the wake of the financial crisis, China was the last great gold rush. As its economy boomed, China’s state-owned enterprises were using banks to raise billions of dollars in stock and debt offerings — yet JPMorgan was falling further behind in capturing that business.
The solution, the executives decided over email, was to embrace the strategy that seemed to work so well for rivals: hire the children of China’s ruling elite.
“I am supportive to have our own” hiring strategy, a JPMorgan executive wrote in the 2009 email exchange.
In the months and years that followed, emails and other confidential documents show, JPMorgan escalated what it called its “Sons and Daughters” hiring program, adding scores of well-connected employees and tracking how those hires translated into business deals with the Chinese government. The previously unreported emails and documents — copies of which were reviewed by The New York Times — offer a view into JPMorgan’s motivations for ramping up the hiring program, suggesting that competitive pressures drove many of the bank’s decisions that are now under federal investigation.
(Excerpt) Read more at dealbook.nytimes.com ...
Can you spell “Foreign Corrupt Practices Act”?
For a minute, I thought they might mention the hiring of Chelsea Clinton..,
No problem here. Once this investigation is over the US will lose influence in China.
The SEC will make sure no American bank can hire anyone with influence in China. Then those with influence will find work at British, French German and Japanese banks and any business will go to them, not a US bank.
How is that beneficial to the US?
How come when the MSM hires friends and relatives of Democrat politicians, it’s no problem at all? :)
I believe that ultimately adherence to the Rule Of Law is to the greatest benefit of the US.
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