Blat for brother: JPMorgan got into a corruption story, hiring relatives of the Chinese elite
From 2004 to 2013, investment bank JPMorgan Chase worked actively with Chinese companies, helping them to enter the IPO. However, this story took a completely different turn after the start of the anti-corruption investigation. US authorities requested a report from JPMorgan on a certain Sons and Daughters program.
Under this program, JPMorgan hired 222 people. Half of them were recommended by representatives of the Chinese government, financial regulators, top managers of state-owned companies and regional officials.
JPMorgan held 12 IPOs in Hong Kong. Among them - the placement of the Agricultural Bank of China ($ 22 billion in 2010), China Railway ($ 5.9 billion in 2007), nuclear power station operator CGN Power ($ 3.6 billion in 2014). All these companies are controlled by the Chinese state. Nine companies out of 12 recommended that investment banks take on staff of certain employees. In 2010–2011–2012, the peak of hiring, JPMorgan occupied the 3rd, 14th and 4th places in the placement of Chinese shares, Vedomosti reports, citing the Wall Street Journal. After closing the program, he moved to 20th place in 2014 and 25th in 2015.
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US authorities suspect JPMorgan of having violated the Foreign Corrupt Practices Act (FCPA) on corruption abroad. The FCPA prohibits bribing foreign officials and employees of state-owned companies. In electronic correspondence, JPMorgan employees often discuss what benefits the business will receive from candidates “on recommendation”. However, the authorities did not find evidence that the bank “attached” Chinese relatives in exchange for participation in the affairs of the largest companies in China. Charges JPMorgan not yet filed.
Guo Ligen, Vice Chairman of the China Banking Regulatory Commission, Guo Shenkun, Minister of Public Security, Pan Gunsheng, Deputy Governor of the People's Bank of China, Ning Gaoning, Cofco Food Company, and Cosco Shipping Company Manager Sun Jiakan were among the officials who recommended JPMorgan candidates.
Sun Jiakan claims that he never recommended relatives and friends at JPMorgan. Ning Gaonin denies the link between his daughter's work as an intern at JPMorgan's Hong Kong office in 2011–2012 and Cofco’s business with the bank. Gao Xiqing, the former president of the Chinese sovereign fund, recommended an intern at JPMorgan in 2007, the bank said. Now Gao claims that he does not remember.
With regard to Cosco’s former top manager, Xu Minjie, and China National Gold and Aluminum Corp.’s former top manager . of China Sun Zhaoxue, who recommended JPMorgan candidates, is undergoing an anti-corruption investigation in China. Xu was convicted of corruption for 10 years, Sun was charged with corruption, and the case went to court. But it is not yet known whether their arrests are related to an investigation into JPMorgan.
Citic, the state financial and industrial conglomerate, recommended JPMorgan candidates three times. More often it was done by people associated with Taikang Life Insurance , whose chairman is married to the great-granddaughter of Mao Zedong.
Under this program, JPMorgan hired 222 people. Half of them were recommended by representatives of the Chinese government, financial regulators, top managers of state-owned companies and regional officials.
JPMorgan held 12 IPOs in Hong Kong. Among them - the placement of the Agricultural Bank of China ($ 22 billion in 2010), China Railway ($ 5.9 billion in 2007), nuclear power station operator CGN Power ($ 3.6 billion in 2014). All these companies are controlled by the Chinese state. Nine companies out of 12 recommended that investment banks take on staff of certain employees. In 2010–2011–2012, the peak of hiring, JPMorgan occupied the 3rd, 14th and 4th places in the placement of Chinese shares, Vedomosti reports, citing the Wall Street Journal. After closing the program, he moved to 20th place in 2014 and 25th in 2015.
')
US authorities suspect JPMorgan of having violated the Foreign Corrupt Practices Act (FCPA) on corruption abroad. The FCPA prohibits bribing foreign officials and employees of state-owned companies. In electronic correspondence, JPMorgan employees often discuss what benefits the business will receive from candidates “on recommendation”. However, the authorities did not find evidence that the bank “attached” Chinese relatives in exchange for participation in the affairs of the largest companies in China. Charges JPMorgan not yet filed.
Guo Ligen, Vice Chairman of the China Banking Regulatory Commission, Guo Shenkun, Minister of Public Security, Pan Gunsheng, Deputy Governor of the People's Bank of China, Ning Gaoning, Cofco Food Company, and Cosco Shipping Company Manager Sun Jiakan were among the officials who recommended JPMorgan candidates.
Sun Jiakan claims that he never recommended relatives and friends at JPMorgan. Ning Gaonin denies the link between his daughter's work as an intern at JPMorgan's Hong Kong office in 2011–2012 and Cofco’s business with the bank. Gao Xiqing, the former president of the Chinese sovereign fund, recommended an intern at JPMorgan in 2007, the bank said. Now Gao claims that he does not remember.
With regard to Cosco’s former top manager, Xu Minjie, and China National Gold and Aluminum Corp.’s former top manager . of China Sun Zhaoxue, who recommended JPMorgan candidates, is undergoing an anti-corruption investigation in China. Xu was convicted of corruption for 10 years, Sun was charged with corruption, and the case went to court. But it is not yet known whether their arrests are related to an investigation into JPMorgan.
Citic, the state financial and industrial conglomerate, recommended JPMorgan candidates three times. More often it was done by people associated with Taikang Life Insurance , whose chairman is married to the great-granddaughter of Mao Zedong.
Source: https://habr.com/ru/post/296970/
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