Eyes On Your Money: JPMorgan Chase Gets The U.S. Government Shakeup
Bank hired rich kids for bucks
The Short of It:
It looks like JPMorgan Chase and Chinese officials have been playing a game of "if you do me one, I'll do you one better."
The Longer Version of It:
On Thursday, the US gov revealed that the U.S. bank has been hiring the kids and friends of Chinese officials (even the unqualified ones) in order to win big business deals. JPMorgan calls it the "Sons and Daughters" program, while authorities describe it "corruption, plain and simple." U.S. officials estimate that the scheme has been going on for nearly seven years and earned the bank at least $35 million in profits. Now, the bank's agreed to settle with the US gov for a cool $264 million.
The action is one of the first major times the U.S. has cracked the whip on corruption of this story, it's likely though it won't last. The US government is also looking into the hiring practices of banks doing business in Asia like Goldman Sachs, Deutsche Bank, and UBS. Gordon Gekkos. All eyes on your money.