The New York Times reports that JP Morgan hired the sons and daughters of high level Chinese officials in order to buy access and to generally curry favor in the land of the Red Dragon.
I just can’t believe it. There’s shadiness, outright corruption in the Chinese banking system?
Apparently the Justice Department is looking into JP’s hiring practices in China as its general investigation of the bank continues. The Obama administration is making sure the bank isn’t engaging in cronyism in violation of the Foreign Corrupt Policies Act.
Now in the United States cronyism is totally cool, but if a bank which didn’t give Obama the donations he expected during the last election is engaged in it in China, well then time to take a closer look.
That I am spending any digital ink at all defending Jaime Dimon’s firm almost physically hurts me. But on this one narrow point I will, sort of.
This is how business is done in China, and the administration knows it. It is also how business is done here to a large extent, and the administration definitely knows that. I’ll bet there’s a good chance the Obama kids end up at investment houses after college. Chelsea did her tour.
It’s pretty funny that the Obama Administration would take issue with any firm which is engaged in cronyist practices, given that this White House has taken cronyism to the level of high art. But as we’ve reported before there is no honor among cronies.