JPM hiring dumbos from China for NYC office
If you thought the Asian princelings scandal at J.P. Morgan was all about Asia, you were wrong. Highly placed Chinese government officials and clients don’t want their children to work in Shanghai. They want them to work in New York, of course! They’re not going to give J.P. Morgan their business unless the bank can furnish their offspring with a desk in its global head office.
Over a seven year period, between 2006 and 2013, J.P. Morgan hired around 200 children of APAC clients, prospective clients and foreign government officials according to an inquiry by the U.S. Securities and Exchange Commission. Although these so-called ‘referral hires’ were manifestly less smart than J.P. Morgan’s standard graduate recruits and had circumvented the normal recruitment procedures, several of them were transferred to J.P Morgan’s U.S. office.
The SEC details how problematic this was for J.P. Morgan’s U.S. bankers. At one point, they were sent an IBD analyst from APAC with a “napping habit.” On another, they were sent a Chinese junior for a quantitative position who lacked the requisite quantitative skills according to a J.P.M N.Y. recruiter, but who was hired anyhow following the intervention of APAC business head. The worst case was their infliction with what the bankers themselves descirbed as an, “immature, irresponsible, and unreliable” son of a client, who couldn’t be trusted around (other) clients and who sent a sexist email to a colleague accidentally copying in HR, but who stayed at the bank for another 10 months regardless. One senior banker in N.Y. refused to have anything to do with him.
J.P. Morgan had good reason to open its doors to foolish 20-somethings. As one senior APAC banker pointed out, the relationship between the sons and daughers programme [nepotism] and the banks’ revenues was, “almost linear relationship.” Over the six year’s J.P’s course was running, it generated over $100m in fees (which it tracked on spreadsheets). Now, though, J.P. Morgan has been obliged to pay a $212m fine for its nefarious goings-on. Suddenly, hiring well connected dimwits looks less worthwhile.
Makes you wonder how many kids came close to getting analyst offers and lost out to these hires
Answer: many. Imagine how the actually well-qualified Chinese candidates feel when they have to work alongside (or under) the princelets.
I sincerely doubt that this is anything but new, it'll keep continuing regardless.
MS does the same.
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