How JP Morgan Bribed The Chinese Prime Minister's Daughter Using A Fake Name

Tyler Durden's picture

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Allegations of JP Morgan’s use of clever tactics to bribe Chinese officials recently received mainstream attention when Salon journalist Alex Pareene mentioned it in a comical and classic interview on CNBC (you need to watch the video before reading this) with presstitute Maria Bartiromo. When Mr.Pareene mentioned these claims against the TBTF bank, CNBC mocked him for the fact that his information had come from the New York Times. Well it appears the paper has now given CNBC a taste of its own medicine; with some actual real reporting, something the clownish financial-tv channel drowning in a zero ratings death spiral doesn’t seem all that interested in doing.

This article from the New York Times details how JP Morgan paid $75,000 a month to an obscure consulting firm called Fullmark Consultants, which had only two employees. The firm was run by a woman named Lily Chang, which in reality was the alias used by Wen Jiabao’s only daughter Wen Ruchun. Wen Jiabao was the Prime Minister of China at the time.

Unsurprisingly, many lucrative deals followed for the JP Morgan in China. How about we #AskJPM about that.

More from the NY Times:

To promote its standing in China, JPMorgan Chase turned to a seemingly obscure consulting firm run by a 32-year-old executive named Lily Chang.

 

Ms. Chang’s firm, which received a $75,000-a-month contract from JPMorgan, appeared to have only two employees. And on the surface, Ms. Chang lacked the influence and public name recognition needed to unlock business for the bank.

 

But what was known to JPMorgan executives in Hong Kong, and some executives at other major companies, was that “Lily Chang” was not her real name. It was an alias for Wen Ruchun, the only daughter of Wen Jiabao, who at the time was China’s prime minister, with oversight of the economy and its financial institutions.

 

JPMorgan’s link to Ms. Wen — which came during a time when the bank also invested in companies tied to the Wen family — has not been previously reported. Yet a review by The New York Times of confidential documents, Chinese public records and interviews with people briefed on the contract shows that the relationship pointed to a broader strategy for accumulating influence in China: Put the relatives of the nation’s ruling elite on the payroll.

 

Now, United States authorities are scrutinizing JPMorgan’s ties to Ms. Wen, whose alias was government approved, as part of a wider bribery investigation into whether the bank swapped contracts and jobs for business deals with state-owned Chinese companies, according to the documents and interviews. The bank, which is cooperating with the inquiries and conducting its own internal review, has not been accused of any wrongdoing.

Of course not, don’t be ridiculous!

For Ms. Wen’s consulting firm, Fullmark Consultants, the JPMorgan deal was lucrative. While many Hong Kong investment bankers were earning as much as $250,000 a year, JPMorgan paid Ms. Wen’s firm $900,000 annually from 2006 to 2008, records show, for a total of $1.8 million.

 

A spokesman for JPMorgan declined to comment. In a previous regulatory filing, the bank disclosed that authorities were examining “its business relationships with certain related clients in the Asia Pacific region and its engagement of consultants.”

 

The children of China’s ruling elite, according to experts, have occasionally used government-approved aliases to protect their privacy while studying or traveling abroad. Ms. Wen used her alias for both schooling and business. According to government records, Ms. Wen holds two national identity cards with matching birth dates, one issued in Beijing under the name Wen Ruchun and a second issued in the northeastern city of Dalian, as Chang Lily.

 

JPMorgan’s contract with Fullmark called for the consultant to “to promote the activities and standing” of the bank in China. According to Fullmark’s letter to JPMorgan, the consulting firm had three main tasks. One, it helped JPMorgan secure the underwriting job on the China Railway deal. It also advised JPMorgan about forming a joint venture with a Chinese securities firm and provided counsel on the “macroeconomics policy in mainland China.”

 

The letter, sent around the time of the financial crisis, struck an optimistic tone. “We hope JPMorgan Chase will grasp the opportunities and become to be the winner in the financial crisis,” it read.

Well we all know how that turned out…

Full article here.

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Grande Tetons's picture

Ms. Wen can apparently suck the chrome off a bumper. 

 

markmotive's picture

Of course. Leave it to JPM. Doesn't matter though...aren't all these bankers one Skype-call from god?

The people are slow to rebel. Step 1: share your disdain via Twitter

http://www.planbeconomics.com/2013/11/some-of-best-tweets-from-askjpm-pr...

JohnnyBriefcase's picture

I'd be more interested in testing her ability to suck the chrome out of my barrel.

DoChenRollingBearing's picture

I'd be interested in learning more about Jim Willie's recent comments on "ancient wealthy Chinese families".

I thought Mao had wiped them all out.

If I find anything interesting, I'll pass it along.

CrazyCooter's picture

Ok, call me a dumb redneck (go ahead, if you hate my posts you want to) ... but ... isn't the decimal point off a few spots? Seriously? ONE FUCKING MILLION A YEAR?

When I see shit like this, my inner cynics cynic kicks in and wants to know where the other 999 MILLION went ... and that is baseline for the thefts we are talking about.

Not knocking, just saying ... follow the bouncing ball (decicmal) ... it keeps moving ... the wrong fucking way ...

Regards,

Cooter

EDIT: DCRB, Jim Willie is crazy as hell, but is is also not a lick of stupid ... so, links if you don't mind. My pint Mason of Maker's and water has a little go go left before bed time ...

DoChenRollingBearing's picture

Well, I tried the drop-dead-stupid Google search of "ancient, wealthy, Chinese, families", but did not get what I was looking for, at least near the top results.  There was an article from China.org.cn (in 2011) about wealthy Chinese families (then), as well as a lot of how the rich ancient Chinese live, but nothing I saw via a quick scan re what Jim Willie was hinting at.

His latest piece (an audio) is (probably) accessable at his Public Area at his website goldenjackass.com.  It is an interview I heard with Greg somebody who has interviewed JW before.

Jim Willie often gives out obscure info that is hard to verify.

CrazyCooter's picture

I looked around and found this (I don't subscribe - but because of TFMR have been introduced over time to his logic and opinions):

http://usawatchdog.com/dr-jim-willie-treasury-bond-will-be-phased-out-an...

Is this what you meant, or something else?

JW is off the reservation on some topics (seriously). So, if you are new to JW, don't expect a refined Jim Rickards type experience. But the man is sharp, informed, and worth listening to ...  I am completely happy to listen and sort the wheat from the chaff.

Definitely a perspective that challenges thinking, which is important at this juncture.

Regards,

Cooter

DoChenRollingBearing's picture

That's the piece, I do not subscribe either (but if he'll take BTC, well, maybe then...).  JW does get some facts wrong, Bron Suchecki (sp?, Perth Mint) said that they NEVER got hundreds of dollars over spot (per oz) for kilo gold bars selling to China.

But, I agree, he is my favorite uber-bear.

CrazyCooter's picture

Since this is tennis ...

JW is a genius, but he is shit house rat crazy at the same time. I think I am too, so I don't mean to be derogatory, just honest. Most folks don't appreciate me at full, personal, up close volume. Good thing I am an introvert, LOL.

Having worked in engineering disciplines for many years, I slowly started to realize that some individuals can figure and solve very complicated problems, yet scorch Mac-and-Cheese in the kitchen. You have to respect strengths and acknowledge weaknesses.

That said, JW is a genius in some ways, but in others he is off the reservation. But I love to hear him rant and to this day I think he really means it and he has logic backing a good 50% or more of what he says. I LOVE to hear his opinions. I won't give a pinch of coon shit to hear what his sources say, that goes back to Jessie Livermore's biography, but his line of thinking is stimulating.

It is like a flashy thunderstorm where the lightening bugs still dance in the rain. Is it he porch? The rocking chair? The lightening? The lightening bugs?

Take it for what it is worth.

Regards,

Cooter

Richard Chesler's picture

Watching CNBC: Useless.

Watching Fartaroma make a complete ass of herself: Priceless!

unbeing's picture

Jim's reference is to a so-called 'White Dragon Society' that consists of some very old wealthy Chinese families.  I am thinking a lot of them scarpered off to Taiwan with the KMT, complete with the national gold, so maybe that's where they are coming from.  Benjamin Fulford might be his source.

Yes, Jim is a very bright man, also a bit crazy in that he gets his logic back-to-front, and sometimes gets it *very* wrong.  Recently alleged that GLD ETF had changed its name to NewGold Debentures.  Checked it out, and not true, just a glitch on Yahoo with GLD code in different exchanges.  I suspect someone told him of it and he failed to check his facts properly.  Hope he learned his lesson.

putaipan's picture

interesting side battle to the WDS stuff ... that is where k.hudes fell out with fulford. she seems to know that they are just the eastern front of the usual suspects.

Burticus's picture

Standard deal, Cooter.  Pay a million in bribes, er, fees, to the rulers to make a billion off the muppets.  Standard operating procedure in a fascist/communist economic system under a political oligarchy.

And don't dare use Jim Willie's name without preceding it with "all knowing."  He's not crazy, but brilliant, and pissed about the destruction of his homeland, once a beacon of liberty and prosperity.  He occasionally bumbles a few details, but has the big picture figgered out - multi-trillion FeRN bond fraud, BRICS gold-based trade settlement, FeRN losing its global reserve currency status, central bank looting, etc.

"White Dragon Society" sounds like Benjamin Fulford, though Dr. Willie does not mention his name.

putaipan's picture

a dragon is a dragon is a dragon. doesn't matter what color it is. follow up to my post above (an he hasn't even got to the financial stuff yet ...kevin arnett)-

http://www.youtube.com/watch?v=D7e8ix3W8t0#t=2

all this to say- meester willie isn't necessarily wrong, just looking for the beeger picture. this don't end with the chinese.

FEDbuster's picture

I am shocked that JP Morgan would do something like this. 

Perhaps another multi billion dollar fine is in order?  Fuck you Jamie, BooooYaaaa!

williambanzai7's picture

Better get a photo first. Check Sex 141

thisandthat's picture

#AskJPM is still going strong at this moment. Twitter should probably make it a permanent fixture and monetize it, with t-shirts, mugs, caps, beach towels - who knows, it could be their chance to finally turn a profit...

nmewn's picture

It brings Bank Da Ho to a new level ;-)

Aeternus's picture

Ho Lee Kau! Mutant giant killer hornets arrive in China!

http://www.youtube.com/watch?v=7VISQFv5kac

WOAR's picture

Unit commander Hoo Flung Dung and a local, Sum Yung Gai.

Damn, somebody took my Japanese name already: Sum Gai.

azzhatter's picture

This is common practice in China. I lived there for 6 years. Golden Sac and Morgan Stanley were doing the same thing, hiring children of .gov officials to gain favor among the SOE's. These fuckers all need to be hung from lamp posts.

The Gooch's picture

Hear that, Chelsea?

logicalman's picture

The criminals are running the place...........

For now.

How long will they get away with it? Who knows.

There will be hell to pay one day.

Soon, I hope.

Cognitive Dissonance's picture

It's only illegal if you get caught, convicted and jailed. Otherwise it's just the cost of doing bidness.

DaveyJones's picture

it's only illegal if you're middle class

Dr. Engali's picture

And it's not a lie if you believe it.

George Costanza.

DaveyJones's picture

or if you pay someone to believe it

DaveyJones's picture

or if you make a committee to say it was the truth

(this works well with airplanes)

hidingfromhelis's picture

or if it's the least un-truthful answer.

HardAssets's picture

DaveyJones:  " or if you make a committee to say it was the truth

(this works well with airplanes)"

 

And with the 50th anniversary approaching we can't forget it works with 'magic' projectiles of all types

 

http://www.youtube.com/watch?v=Jc1ql4TfCZw

 

 

insanelysane's picture

No conspiracy.  Watching a thing this morning and the original autopsy report goes missing on day 2 and note written by Oswald while in custody is "accidentally" ripped up and flushed down toilet.

 

Nothing to see here.  Move along.

DaveyJones's picture

you know I haven't studied that one like 911 - probably my age

I need to

I love new physics

I did catch the wink from LBJ as he takes the oath on Airforce One. 

what an appropriate emotion

FreedomGuy's picture

Contrary to all the horror in the remarks here this is actually how business is done in most of the world. It is absolutely how business is done in authoritarian governments. In China government has been supreme since 1949 and all things were done by government favor. That is the point of power.

When things were done by force and on the up and up on paper the concrete was thinned, the rebar was cut in half and materials were diverted for sale on the black market. Talk to anyone in China and things are often still done this way.

buzzsaw99's picture

The chinese prime minister can be bought for $75K per month? Now THAT'S funny.

nmewn's picture

And a common Tic Tac...don't forget the Tic Tac!

It freshens the royal breath!

HardAssets's picture

I imagine they're like our politicians and have lots of 'income streams' coming in.

Constitutional Republic's picture

Shocked!!!

Shocked that a country with a central bank would find ways to siphon money into the accounts of the political pets of the Internationale, the would-be one world masters of all they survey.

The obvious clue is in the presence of a central bank.

Aknownymouse's picture

More questions for #askjpm..... O wait.

DaveyJones's picture

"and lilies are still lilies, pulled by smutty hands, though spotted from their white - Elizabeth Barrett Browning

booboo's picture

The Goldman Sachs Crime Family ratted them out. The Mensch's of the Morgue and Chosen Rosensteins are in an epic battle for the last remnants of civilization, two jews go in and only one comes out.

Catullus's picture

Is Anomymous warning for a false flag in LA tomorrow?

http://pastebin.com/QA6hziFk

I saw it on reddit. I keep my tin foil hat next to my bed these days.

DoChenRollingBearing's picture

PFC Bearing (Lunatic Fringe Batallion) thinks keeping that tinfoil hat nearby is an excellent idea.

Dr. Engali's picture

And the hits keep coming for the morgue. Hopefully the morgue will die a slow death by a thousand cuts. Thank you Al Gore for creating the internet.

El Hosel's picture

Since when is Bribery a probelm for JPM? 

Kiwi Pete's picture

I thought it was illegal for a US corporation to bribe a foreign Government official? 

akak's picture

"illegal" + "corporation" = LOL