JP Morgan Chase To Pay $264m To Settle Bribery Scandal

By Ikenga Chronicles November 18, 2016

JP Morgan Chase To Pay $264m To Settle Bribery Scandal

JP Morgan Chase has been left with no choice but to pay  $264 million to settle a foreign bribery case dubbed the “princelings case” . The bank had given  prized jobs to friends and relatives of Chinese officials, US officials announced Thursday which is against the law.
The multinational bank, now the world’s largest by market capitalization, admitted to taking in more than $100 million after hiring candidates referred by clients, including by senior Chinese officials in positions to steer business to the bank. Despite the announcement, shares in the JP Morgan were trading higher Thursday afternoon, up 0.6 percent shortly after 20:00 GMT in New York.
“Awarding prestigious employment opportunities to unqualified individuals in order to influence government officials is corruption, plain and simple,” Leslie Caldwell, chief of the US Justice Department’s criminal division, said in a statement.
The case drew attention for its focus on the use of hiring as a form of bribery. Over a seven-year period, between 2006 and 2013, JP Morgan Chase hired nearly 100 employees and interns referred by government officials at 20 different state-owned businesses in China, officials said.
 Despite the large settlement, Bart Naylor of policy watchdog group Public Citizen, complained that the bank “has escaped true accountability”
“JPMorgan executives belong in jail, but instead shareholders will foot the bill for what one government official described as ‘systemic bribery,'” he said in a statement.
Officials at a regional subsidiary in Hong Kong created a client job referral program sometimes known internally as the “Sons and Daughters Program” to hire candidates of strategic value to the bank, according to the Justice Department.
By 2009, senior executives had refined the program to seek candidates with “directly attributable linkage to business opportunity,” federal prosecutors said, citing internal JP Morgan Chase records.
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