JPMorgan has been fined a staggering $264 million by China after it was found guilty of engaging in corruption. China has taken a different path that aims at subjecting bankers to the same laws as the rest of the society. This strategy is totally different from how the US and Europe handles such controversial cases, in the US and Europe, banks are only fined nominal amounts while chief executives and directors escape punishment.
In a report issued by AnonHQ, the outlet emphasized that it’s a well-known fact that the 2008 financial crisis was caused by the recklessness of the big banks, mostly those in the US. The government in Iceland acted fast by identifying the problem and jailing the bankers. Unfortunately, some of the bankers are still serving their sentences. Taking a closer look at the Iceland economy, it evident that their economy is thriving and it one of the best in Europe. Unfortunately, the bankers in the U.S. got away since the government was supporting them.
The JPMorgan case is just a tip of the Iceberg of the many incidences that are very rampant. JPMorgan has been fined up to $264 million for bribery and corruption charges in China. In a report issued by United States Security and Exchange Commission (SEC), JPMorgan and its subsidiary in Hong Kong used vast foreign bribery schemes that may have infected several Wall Street Banks.
In a statement issued by SEC investigators, the controversial issue centered around the hiring practices that were employed in China. The bank hired the children of the powerful and influential Chines leaders to win business in China. The strategy is known as quid pro quo referring to a favor or advantage granted in return for something, this strategy ensured that unqualified persons were hired in the bank.
Its without a doubt that JPMorgan violated United States law that governs bribery. The bank executives who were behind the strategy should be jailed. However, its not surprise to find out that they are still free men and women who are receiving huge salaries.
A report issued by investigators shows that JPMorgan hired employees based on referrals from powerful Chinese leaders. In most cases senior bankers tied the jobs or internships with intentions of securing deals with the Chinese government-run companies. For a candidate to be hired, they had to have a “directly attributable linkage to business opportunity,” this scheme enabled the company to secure or retain business that amounted to $100 million in revenue for the bank and its affiliates.