Nation & World News

U.S. Investigators Launch Probe Of JPMorgan Chase In China

By Scott Neuman on August 19th, 2013

The Securities and Exchange Commission has launched an investigation of JPMorgan Chase’s operations in China, reportedly looking into whether the investment bank hired the children of high-ranking Chinese government officials in an effort to secure business.

The Wall Street Journal quotes from an SEC filing that says U.S. regulators are investigating “business relationships with certain clients.”

The New York Times writes that in one instance, JPMorgan reportedly hired a former Chinese banking regulator’s son who later became chairman of the China Everbright Group: “After the chairman’s son came on board, JPMorgan secured multiple coveted assignments from the Chinese conglomerate, including advising a subsidiary of the company on a stock offering, records show.”

In another example, JPMorgan’s Hong Kong office hired the daughter of a Chinese railway official, The Times says. The official “was later detained on accusations of doling out government contracts in exchange for cash bribes, the government document and public records show,” according to the newspaper. The Times adds:

“The former official’s daughter came to JPMorgan at an opportune time for the New York-based bank: The China Railway Group, a state-controlled construction company that builds railways for the Chinese government, was in the process of selecting JPMorgan to advise on its plans to become a public company, a common move in China for businesses affiliated with the government. With JPMorgan’s help, China Railway raised more than $5 billion when it went public in 2007.”

JPMorgan says it is fully cooperating with investigators.

As background, The Journal comments:

“Many investment banks and other multinationals have hired children of senior Communist Party figures who are commonly known as ‘princelings.’ They may help multinational companies develop relationships in China. International investment banks including Credit Suisse, Goldman Sachs, Citigroup, Bank of America and Macquarie Group have all brought the children of current or former political officials on board, according to previous reporting by The Wall Street Journal.”

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

This entry was posted in News from NPR. Bookmark the permalink.

Comments are closed.

 

More Stories in News from NPR

A photo apparently showing a Ferguson police officer wearing an "I am Darren Wilson" bracelet.

Ferguson Police Will Be Banned From Wearing ‘I Am Darren Wilson’ Bracelets

In a letter, the Justice Department said the accessory was “exacerbating an already tense atmosphere.” After a talk with the department, the police chief said he would institute a new policy.


Bill Gross

The ‘Bond King’ Leaves His $2 Trillion Kingdom

Bill Gross built Pacific Investment Management Co., or PIMCO, into a $2 trillion powerhouse. But this week, he abruptly left, roiling the bond-investing world.


Thailand's Prime Minister Gen. Prayuth Chan-ocha, center, at the government house in Bangkok earlier this month. Prayuth, who seized power in May, has threatened to personally take over the writing of soap operas on Thai television.

Thai Leader Threatens New Takeover: The TV Soaps

Prime Minister Gen. Prayuth Chan-ocha says he’s ordered a complete rewrite of Thailand’s daily fare of infidelity and violence, and if it’s not done right, he’s threatened to do the job himself.


A Parrot Bebop drone flies during a demonstration in May in San Francisco.

Lights, Camera, Drones: Hollywood’s Lens Gets A Little Larger

The FAA is granting six movie and TV production companies permission to use drones for filming. The move could pave the way for the unmanned aircraft systems to be used in other commercial ventures.


A screen shot provided by FlightAware shows airline traffic at 10:20 a.m. EDT Friday over the United States. A fire at a Chicago-area air traffic control facility has grounded hundreds of flights.

Fire Grounds Hundreds Of Flights At Chicago Airports

The fire in the basement of the Chicago Air Route Traffic Control Center in Aurora, Ill., caused numerous flight cancellations at O’Hare and Midway.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Day Sponsorship Payments
Underwriting Payments