JP Morgan, the largest bank in the United States, has started to enter Chinese market since 1921. JP Morgan was in the ethics crisis between 2006 and 2008, when JP Morgan cooperated with Fullmark Consultant, an unknown consulting company in Hong Kong, China. It is strange for JPM to choose such an obscure firm for their expansion in China. But when we dig for the real answer, we find out that Fullmark’s executive is the daughter of China’s prime minister, Wen Jiabao. Within their collaboration, JP Morgan actually became the underwriter for China Railway Group’s public offering. The whole thing seems like that JP Morgan do nothing wrong, but JP Morgan is suspected of utilizing the nepotism, like Wen’s family. It is normal for an international company to “connect” influential celebrities, especially in China, because government is in charge of banking market to some extent. Taking shortcuts to take control of market and make profits doesn’t follow the business ethics well. These business relationships encourage evil trends in Chinese market and give rise to corruption. It may be not easy for companies to give up building the conclusive relationship. Governments and companies should improve the systems and lay down some regulations.
Citation:
“JPMorgan’s Fruitful Ties to a Member of China’s Elite.” DealBook JPMorgans Fruitful Ties to a Member of Chinas Elite Comments. N.p., n.d. Web. 05 Oct. 2014.
<http://dealbook.nytimes.com/2013/11/13/a-banks-fruitful-ties-to-a-member-of-chinas-elite/?_php=true&_type=blogs&_r=0>.