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

Review Of Leaked Test Results Shows Doping Is Widespread In Track And Field

The reports are based on the results of more than 12,000 blood tests from 5,000 athletes. Experts said analysis shows the sport’s governing body has failed to take sufficient action against dopers.


HitchBOT, a hitchhiking robot, sits with German tourists Sarah Strempel and Eric Vogel in the back seat of a vehicle as they and their companions prepare to leave Marblehead, Mass., after picking-up hitchBot for its first ride on July 17, 2015.

A Hitchhiking Robot’s Journey West Ends Early … In Philadelphia

The hitchBOT, as its creators named it, had already successfully traversed Canada and Germany. This summer, relying on the kindness of strangers, it wanted to travel from Massachusetts to California.


A close carbon-fired power plant outside Helper, Utah.

President Obama To Unveil Tough Proposal Targeting Greenhouse Gases

In the final proposal, Obama will unveil measures that are tougher than those in the 2014 draft proposal. The rules seek to curb carbon emissions from power plants by 32 percent by 2030.


Jericho the lion, right, seen here fighting with Cecil last year, was the subject of competing stories Saturday, as groups in Zimbabwe disagreed over whether he had been killed.

Jericho Isn’t Cecil’s Brother And Is Probably Still Alive, Lion Researcher Says

Citing “huge disgust and sadness,” a conservation group said the lion nicknamed Jericho had been killed Saturday. But a researcher in Zimbabwe says he doesn’t believe it.


Wildfires In California Spur Emergency Declaration; 1 Firefighter Dead

Nine of the largest fires cover areas of at least 1,000 acres each; a firefighter from Rapid City, S.D., was killed while battling one large blaze in Northern California.


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
Underwriting Payments