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GOV 09, Gt st ecale re B ien ae—Be ‘heat os ton, oR fom Len cam Bistssiaimestacaetaate aes » cutest xtra) Tsou Batty Tae ei Tat ‘Sashes GUM, nes) Gon Mote Maa Fates toma, ‘gansta eal acorns Desi > re. 24 te 9 GM Cn Yar tect et i Yok Tina. eto tr nee cea ‘iign-palunanisnstenorsirslaairesa al > aray 8 G01, ine GM To Excite pare ara Ret en ‘Soo ten vo: Reo to ‘Wein freien a feulun avananasnsnenaectomaaaramet an Cro Be, May 16 GWE Pa 35 lon Fn Orr Mash Sty Fest Nscra Pile aso Reve om ia eae = Vase 8.2016 eG sty Cus Ya Net Oe Ft Oa, inane ES Gaon 204 At 0, a Sok Up Fe Say Pog Freese Rand rt > es oN ot 1.70% ot Re Dn, » Manon, Cs Spa M2015, May 2G Set Fn Creare (eign eter el St oar Patios om wi aad ‘dies bce te neers Meta M2015, Feary 12, Gru ar Nees Clg Gon Nw (Gow Cased he aba Neve Fane em ‘Slag nen Sr arse Ss way Pes ncoameg JP MORGAN: PRINCE UN-CHARMING Case overview JP Morgan Cina was rt gong ta del a wus hae hed bleed ht ‘ert were ae o spear det becae ay were nga plot thre hr As sch, JP Morgan tgedy flowed ety eg ovale bre dug of fics n Chere at-ned compas, coreony eed toss prclage The connector tom he precleared 0 Mp FP Morgan gan dos st hes compat Hower. th good es at it JP Moran wae iestgnte by he Und Sate Sates ar Ecarge ‘Corin (SE) und he Frei Compt Paces Act FOPA, Asa res, "opped ot fo blanca tal Fue Otrrg OPO ea. Tocco of ie cave io expr ines ich as ees ate te tp lo he ‘oad i enstng the appropiate cute ha company, efectonas feos of conduct, and whctonrg polos ard th te Ie betaeen ber and “gus n Chea. Cr ON tan enaCourting royalty You at know have aay boon 2 by belever eth Sons and Daughters programme Malmost hax nea relationship wit winning ote toadvize Chine cmparie.” "Fang Fang, former Chit of investment banking, JP Morgan Chi tv test ay dato Deutch Bark (08 2000 at sae When ‘Wat Set sued ang he gba rac ee, JP Morgan China Was ped to pgs up earn, "We lst al 12 OB today boca tay oot ra’ Chitra rth aun? tslow nau toring had ered Va era. The ops alowed "am spare to hare cr Om ing ata: "We do way, way, way toe of hs pe of Nng and have ‘nen pounding on # wh Chinn tam fora yo" “Conor ee 208 of 2a SraTa toy ean” Even hugh nae of eoxcuhos thors have een ingested accused of ary wrong yet te cay ted “psoas spcting appoint hen sn dau omer ‘Peoples ho ostng ects fad boon fond Inesigtore wore ong feat was gong to be tou. bh November 2013, JP Morgan whew 36 an ureter for a shar sl by (Care Erb Bank. The PO evry uch Decora amourod 16 [USES ionInsruary 201, Hao whee tom a USS? bia 0 or Tena (Choma fr Mirch amit ivesigaens, Fang Fog, the Crt Excite ‘or meson taneng n JP Morpan Oia, ee. Two ane tr, Re Was About JP Morgan Morgan Case ar Go, auaived n NewYork Cy bcs soos back to 170. n 2000, J Morgan merge with The Case Maratan Coperaton| das mene JP Morgan Chase and Cot. The Ke areas tues te "vse bring markets and resto seoes, Wea eee esa merger. pa tarkg, wes mango! bok. Wea “ie company serves lrtsin100eaone, ner Aer, Ata Pac, Epa, tl as and Aa. N20, ha fem cla he 9 rts ‘of presence in Cnet, wha Khar ocos Bagg, Stage, Terk ‘Gungiheu, Cheng Het, Suchou,Shentan ard ronan wen seme ‘coparaire. rnc rtre an governed one Kingdom rules 4 Morris Code of Conc sen oa new orployes and fas asain tiessrgsi-ber ard ant-covuton. Employees rot slowed 1 "oh, ‘ero promo (recy er treugh chur] ang fv fo aye. reise (overmor ofl, cons. supplers oer buses pares isle ‘appar ered oon some pope busoss ang. Emioyes ae as equed oer any known oF suspected viatons ot he (Coser is was petiod a te reeponsby ol employes Each encoyee ‘woul be eslgnd a Code Space tom he Coglaneno Lapa Dope. "oars queaion on the Cos. The chosen ones “ho Sons and Daughters Progra was lave 200 to wand ct reption sc vod bry cargos i be Unie State The two toed process was ‘orga rant open th cones. rg fhe son adage ot ‘Seria eal inthe Clnase Crit Pay ar exces enone ‘steres. scaled ‘prncaings, This was ove by soaring tem he recrutrent process, However be rgranmo eed uo foster De ver reus Twas tandod io grevet wh hae cca ep acng wer anv se sub sro"You scratch my back, I'll scratch yours ‘Suchting actions were biggneby haloes ofa de 08, when JP Morgan appar eased” hat oer Aes Banks n Cha seared dal ough enang of pags” ‘Theconceptotoxcharghg tou i deol eh Cia cates. fg barks ten tie sons and autos of air nase amsrnmen fla he he of oualng pparunss ad sesutg dels Pilaorshis &ralworing, aso oun an “guane, a caren cance! 1 rs ane west oprte ‘techy the Chinese economy. With he rift “guna busnesses at bale e overcome coals and gun ew eprorsies. Ota, ¢ we pow of retonng Pat wa determine acomgan/slong rn carpetveness a, (ne ofthe barks which demons the concept of quai in th ig o terloyer was Maryan Stare. Tho ark rd Zhang Nan, the vn of ag Dongs, an of of Chas powertd ecarami planing agency Nana Devoprert and Rem Canmisson Alto ater percags ato hed by Morpan tao wae aka cated ns Cina soc mda. Sone of rast Inca et ar gon io Tan, deputy aad of Cha’ sports bureau, {and econ Yi Duran, Chia ome rare mitra carers cairn of ‘heard Counc fr Social Sect Frc Era of the princelings ‘Theos oft del to 8 dat JP Morgan he ow node to seven istony ‘romrepeing tet JP Morgan slags flowed sl nd stepped ups iro" fe sors anddauptes offre lis. Ths rocaly ached whats tal Sons td augers Progamme had infact hoped to prev. JP Morgan executes bh Hong Keng tude the nrg moverert of esalshed banks mn China ard ec e Tag Kang. son oth carn China vers Group. ‘Ths soprenty enabled JPMorgan foeucessuy soci ds wich had not doy bon poste tegen: Pees ncharing “he company carted the soak by engaging Flak Const, wich was ‘ned bye wel corecied Ly Crarg te aught cf Wen Jabs, wo was {Chas Pome” at at be, The engogomerhapad JP Magan lnc cel ‘wth state-cmea Chnece coreanee aring Wen Jabao’ prenerhom JP organ lo ed Zarg 2d, De dour oan oil ef Chr ay Gy ‘who was lr arestedonchorgesoftreey. She was ed acute me wen (ra Radway op PO was facta by JP Mero “ing Xooring and Zhang Xa have sae ft P Mor Clamping down on the giants ‘is unesman ortho Anarcan ators oscntise Hing practes tanks ‘nd uch pactens have bean lta unchecked url rece nA 2013, SE bagan fe estgatons on JP Morgan's Meng pacios In Cha “IP Morgan was suxpected tobe raved nthe broey ol foren ote In ‘exchange fring he cider JP Morgan lege aed rave buses which wor infused byte offs. Th FOPA robs U.S. companes tem ‘pr “aig of ale" to afro fell to win “an improper avaane” Ir retaning or tracng Busnes” and sch Ning pacts woul bea er ‘rach ote et. Despite ne etl om monday vate ofthe ears path. te gnclngs va Jobs bane ast eros ar aan rey to te resumes Walking a fine line Wat made the SEC sutpius was tho tct atthe fing of prnclngs was tsuly accompanad by lage des tom precelrge riod compare wich tho ban naver Pad mich alng wi. For race, ta evargaree of Crea Erb as one of JP Moran's ped Asn cents coed wth Pi ee that Tang Xeoring was ed by JP Morgan. Say or rang Xa, JP Mogan ‘lcd te PO for China Ratvay Group acne pet ho was ied‘SEC quastned JP Morgan about the hing af pertonel elated fo hase tao companies. In May 2013, SEC's t-bbey unt aba JP Morgan for docurants ‘rested o Tang Xaanig, They alo requested or"documens scant tert {at pesors itv Inthe decision to Ne Zhang x Ae tom thse Oo porone of ites, SEC ais nqured about “al” Morgan empoyeds who erored work for on behalf he Mins of Ralways" ever the previous ‘2c yar, wh Heted tat he mrestgatons were targeted a he trad hing #alyges oP Meyar's Chra oc" In ston to the ivestgaton, JP Morgan's Sons and Daughters Prograere ‘wash by whsttiones as twas not popu amorg ome ofthe epoees. ‘m December 2011, er banker tom JP Morgan in Hong Kong restnec with ‘an mal commenting, "1 do ot hk my ams na posfon to ap you tthe texters ethers id bing tek amy buses to the fem. Furthermore, at basttwo whstiowesraprtad tothe Hong Kong stock exchango ard th US. uote with ogre to J Morgans hen paces”. Crossing the line ‘The vesigatons uncovered a series of ema and cone documents which seemed to nk JP Morpan's business opportune ect to the Reng of hace wel-conncted employes, The dacurents showed how JP Morgan rele to {he tng pretoes of oer banks mn China, Speadehecte keting JP Moran history of conering hires ito business dels were submted to ta authors. “The speadehoets ko revealed Now the Sone and Daughtare Programme whch was rgnaly mean! 1 bea preverthe measire agaist unethical hing. tvertualy became a means of doing businesses with state-owned companies (Cina trough te hieng of prncetngs™. uP Morgan executes in New York were aleted by bank ofl Asia wh ‘egads to anonymous accusatons abeut the bank ring for the Upose of winning investment banking assignments. Emal dcussions showed that the executes damieed those accusatons and continued to propose revisions to the rayon’ hing pacts which wer in our of he hing of pincalngs™ BP targn Pic Domino effect Fotowing P Morgan, SEC ranged pth sale of retiatons and sued Into of ant egbang Hing Chino sever oer rar Sas. nung Cig, Cet Sues, Date Bank, Goran Sache and Morgan Sia ‘The scope ote inesigatin expardedtonor-U.S -headauatered fs anne tiring practoss nh ret of. Fifty shades of grey However, SEC has eto accuse ary barks, ning JP Morgan, extutves any wrongong, Leal arats commanted tat such vetical pacts ‘hve fourshed nthe barking fst party de to the duty in papoing ‘wrongdoings Barking sa rebstonship business and bring wei-conectad tig advantage oan ical wig fora poton nthe top barks. Father, mary of the prncelngs who are employed by the major barks ae ight ‘ducal and old depress and MBAS fom top usveraties oud the wor”, [lc therefore seen oe reason for he banks toh are nds who, fn top of ha academe capabitiee, can bud on ther eng raion 0 bringin big coneacts Tainted and bruised LP Mogan wou tae substantia legal costs I'SEC decies to ak estocement ‘actone gona them, Togthe with oer charges andimestigaters such ase Madof Por! ra and ta “London Wha casa, the pncags nesgaton ‘may tathertanish JP Morgan's reputation”. LP Morgan's stock pce fl by 2.7% when the ivestigtn on JP Morgan was pubic anceunced on 17 August 2013. When the company wihdrew om Chin Everight Barks PO a November 2019, stack pe fl by 0.08%. There was nota flo 53% whon he PO wth Tina Chemicals was cropped. The stock ie fel bya turer 1.9% when Fang Far retrad in March 2014.Hono. he tmng of tis ivsgaton expos wh he prosecin of ado Porta arden Wil eaes, a ipact onthe sek ce at war ceacy rated he pains ea waa un, Too big to regulate? ‘Sone economies havo comma tht banks tke JP Megan arto bg ‘boreguate". The Requenay of scan gs cases mokg JP Megan rae ‘uss about JP Morgans eal cuit: Athouh th ater have ha ‘ome success nang appre une bogs ats anatahingenrceent Schone agat bork, ancl anaes hae aston toctvomes fhe loos eloremertson ra bare, Thee becauc whee efectos of es Irepnstonae restictone on busisees might ua farce maret To ste exter End of the monarchy (20 tay 2015 JP Morgan was subpoenaed by SEC rl ot he compas Crmaniaionsmitod 35 Chae government ocales Togre wth De ‘epstre of tho Vico Chakra Teed Man ond Cathetne Long. JP Morgan rneuncndawderene canara Even P Margan was unnoctn ofntg prncengs to soc cota, he damago doves rouston vous rama. Such he paces rena prea! ota Aercan and Europes Ivette! barks such a8 Bank of Arn, Cegjoun, eat Suse, Godman Socks and Moctuaie. A of tote banks ve ed ots of Mafra ‘Ciena ficial ce th yar oso seals nC A torah eat gaton ‘woud imasy nfo! more compan bob win and ous the Seni ‘tee "Neves. the aot Cina seem ohare stoped ots stand agaist ‘upton ane bby th cent yar". To fie may ae hed dong ‘unrest wot moves owas a mee Yaneparet ana ace Discussion questions 1. Touhat een shou he Boardo Director beatsortia forthe corporate camo cfacorean/? 2. What do yeuthrkis he “Yon ah top" fr JP Morgan? How de is atect the chen thee presi? 3. What lo you tik JP Morgan ew Yrk haadouator) could have done proven te abe ofthe “Sane and Daughtes” prams? 4. JP Morgue main defence eta evry oor bank is ding ad at ine prneings sre wel qed as wel Oo You thnk th ste he neg practces apt? Explants usng both algal areca perspec '5. Some.coramiel oof th vow Bathe Wat Stoo barks a geting 20 18g to rut. Olecuse wrath not you support hs vin, aking ‘czout there and powers fhe SEC and ote oto. 6. JP Marans Code of Cont spectealy prchiis br and comin, How ofecive sti prevenung such act? Whstetioingaangemerts ae ‘ncreasigy santo be an important componen' oli coortegowmarce ‘tanewak oan ors. To what exat does havng a weaning atey Pp to mega such ete?