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Office Of Outgoing JPMorgan Asia CEO Raided By Hong Kong's Commission Against Corruption

Tyler Durden's picture




 

It just hasn't been JPMorgan's year. Or several years for that matter. The bank which has been on a steady downward slope when it comes to paying billions in quarterly "non-recurring, one-time" legal settlements and charges, and for which engaging in criminal behavior which is neither admitted nor denied, yet which has cost JPM nearly $30 billion in the past several years, has just had its latest "wristslapping" incident, one which involves none other than the recently departed CEO of JPM Asia, Fang Fang, whose office was raided on March 26 by Hong Kong's anti-corruption agency amid a U.S. investigation into the bank’s hiring practices as reported by Bloomberg.

From Bloomberg:

The Independent Commission Against Corruption seized computer records and documents after searching the office of Fang Fang, the company’s outgoing chief executive officer for China investment banking, said the people, who asked not to be identified because the investigation is confidential.

 

“We will not comment on individual cases,” Alan Tse, an ICAC spokesman, said by phone yesterday. Marie Cheung, a Hong Kong spokeswoman for JPMorgan, declined to comment on the ICAC search.

 

The New York-based bank announced Fang’s resignation March 24. His departure comes amid an investigation into JPMorgan (JPM)’s Asian hiring practices. U.S. authorities are examining whether the bank employed people in Asia so that their relatives in government would steer business to the bank, people with knowledge of the probes have said.

 

The banker joined JPMorgan in August 2001 and became head of the firm’s China investment-banking unit in 2007 and was made vice chairman for Asia investment banking in 2009. Prior to joining the bank, Fang worked as a vice president of Beijing Enterprises Holdings Ltd., an investment company controlled by the Beijing government.

...

JPMorgan, the world’s biggest investment bank by fees last year, said in August that the U.S.’s Securities and Exchange Commission had sought information on its employment practices and client relationships in Hong Kong. U.S. prosecutors were given e-mails written by Fang in which the banker supported the hiring of China Everbright Group Chairman Tang Shuangning’s son, the Wall Street Journal reported March 24. Those e-mails also highlighted the potential for doing business with China’s state-backed conglomerate while Fang hasn’t been accused of any wrongdoing, the paper said.

 

The probes have posed hurdles to JPMorgan’s involvement in at least two recent investment-banking transactions. The bank decided to quit China Everbright Bank Co.’s Hong Kong share sale in November because the investigation delayed an internal approval process, according to two people with knowledge of the matter. The $3 billion deal was the largest first-time offering by any company in Hong Kong last year.

If indeed as Bloomberg suggest the investigation was driven by US authorities, it would imply that the US is getting even more aggressive in its pursuit of high-level JPM employees only not so much in the US, but increasingly in that gold mine for banking, China, and specifically Hong Kong, where we remind readers, a month ago a JPM FX trader jumped to his death.

Which means only one thing: even more billions in "one-time, non-recurring" fines are coming.

As for Fang: "Fang quit the bank as he wants to spend more time with his family, a person with knowledge of the matter said earlier." Depending on how strong of a message Obama's political circle wants to send Jamie Dimon, Fang may soon be out of luck with the whole "spending time with the family" plan.

 

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Sun, 03/30/2014 - 07:51 | 4607394 SilverIsKing
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Maybe it's just me but I would not mess with someone named Fang Fang.

Sun, 03/30/2014 - 08:05 | 4607407 GetZeeGold
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Yeah.....sounds like a good way to lose a finger.

Sun, 03/30/2014 - 08:32 | 4607438 Bangin7GramRocks
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Right now there are several congressman and senators preparing legislation to make it all legal. You know, to make the U.S. financial markets competitive. Best gubmint money can buy. USA! USA! USA !

Sun, 03/30/2014 - 09:43 | 4607516 kliguy38
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Inventory 50 cases of high grade porn and coke. no silver or gold bullion

Sun, 03/30/2014 - 11:07 | 4607636 WillyGroper
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Phyllis Diller's X?

Sun, 03/30/2014 - 11:56 | 4607738 Handful of Dust
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Banking corruption is illegal in HK?

 

Who could a guessed......?

Sun, 03/30/2014 - 20:07 | 4608909 Luckhasit
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It is if you get caught. 

Sun, 03/30/2014 - 08:55 | 4607466 Wile-E-Coyote
Wile-E-Coyote's picture

Fang Fang what an appropiate name for a banker.

What's his under study called Bugger Bugger.

Sun, 03/30/2014 - 07:53 | 4607395 Budd aka Sidewinder
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Ask CNBC.....JPM is just like the mafia....what's not important is HOW they make their money it's the fact that they are making money......DUH!!!

Sun, 03/30/2014 - 09:03 | 4607480 MillionDollarBoner_
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Years ago I figured JPM were being set up as the fall guy. Goldman, on the other hand, appeared to be on the winning "team". My suggestion was to watch for the exit of their placemen in order  to time the planned crash.

I  repeatedly posted same on ZH but don't remember receiving too much support so I figured I was just jumping at shadows. JPM's run of "good luck" (up until recently) seemed to pretty much settle the matter.

However I'm now beginning to wonder. After all, every scam needs a bagman and JPM/Jamie appear to be slipping back into the frame.

All I can say is - fuck 'em!

Sun, 03/30/2014 - 09:52 | 4607530 Bastiat
Bastiat's picture

JPM is also the grand derivatives bagholder.

Sun, 03/30/2014 - 09:53 | 4607532 Life of Illusion
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http://dealbook.nytimes.com/2014/03/28/cavanagh-to-receive-39-million-in-pay-for-joining-carlyle/?_php=true&_type=blogs&_r=0

Michael J. Cavanagh, the longtime JPMorgan Chase executive who is preparing to join the Carlyle Group, will make $7 million in salary and bonus in each of his first three years at the private equity giant, a regulatory filing on Friday showed.

Mr. Cavanagh, who this week was named the new co-president and co-chief operating officer of Carlyle, is also set to receive $32 million in restricted stock when he joins the firm, to replace unvested compensation that he gave up by leaving JPMorgan. His 933,416 restricted shares will vest over a three-year period.

Sun, 03/30/2014 - 10:13 | 4607542 spanish inquisition
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So far most financial fall "guys" have been women or dark skinned men. If you are a white guy you are pretty much immune to prosecution. A possible exception is being French, named Fab, and showing no remorse, which will give you a stern look from the judge as he slaps your wrist.

FYI - ZH. Getting pretty tired of the bottom banner popping up all the time on my phone and taking up most of the screen. I know you guys need to make money, but this one is getting me pissed off enough to unbook mark you on my phone.

Sun, 03/30/2014 - 16:07 | 4608317 Deathrips
Deathrips's picture

Boner,

They are terrorists..waterboard the money out of em!!

 

Im gonna enjoy this.... Fuck em'

 

RIPS

 

Sun, 03/30/2014 - 07:59 | 4607401 B2u
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Uncle Dracula is not pleased.  Neither is the Wolfman.

Sun, 03/30/2014 - 08:09 | 4607412 Manipuflation
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When I read the headline I was hoping that it was a raiding Banzai7.  Alas.

Sun, 03/30/2014 - 09:32 | 4607506 Manipuflation
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And I swing and missed.  Again.

Sun, 03/30/2014 - 08:12 | 4607416 Dre4dwolf
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china is probably the only govt that wouldnt have any gripes about arresting someone working for jpmorgan.

banks like jpm have destroyed and bankrupted entire populations, they cause more damage to economies over time than events like 9/11

Sun, 03/30/2014 - 08:12 | 4607417 Sinnedi
Sinnedi's picture

Get rid of The esoteric mystery schools and you will not have corruption

Sun, 03/30/2014 - 08:16 | 4607421 Lumberjack
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Exclusive - China seizes $14.5 billion assets from family, associates of ex-security chief - sources

 

http://in.reuters.com/article/2014/03/30/china-corruption-zhou-idINDEEA2...

Sun, 03/30/2014 - 08:20 | 4607424 Lumberjack
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If Modi wins election, neighbours can expect a more muscular India

 

http://in.reuters.com/article/2014/03/30/india-election-policy-modi-idIN...

 

(Reuters) - India will get tougher on territorial disputes with China and in its old rivalry with Pakistan if opposition leader Narendra Modi becomes the prime minister in May after a general election, two of his aides said.

Modi, a Hindu nationalist who is the front-runner to win the five-week election starting on April 7, has taken an aggressive tone against the two neighbouring nations. On the campaign trail, he has warned Beijing to shed its "mindset of expansionism" and in the past he has railed against Pakistan, an Islamic state, for attacks by Muslim militants in India.

"I swear in the name of the soil that I will protect this country," Modi said at a rally in Arunachal Pradesh last month, a region claimed by China.

India, China and Pakistan are all nuclear powers. They are also jockeying to take positions in Afghanistan as Western troops start to withdraw from the war-torn nation after a 12-year insurgency.

  

India has fought three wars with Pakistan and had a 1962 border skirmish with China. It came close to a fourth war with Pakistan in 2001 but since then, its foreign policy has been mostly benign.

Sun, 03/30/2014 - 13:17 | 4607915 thamnosma
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How long will it take the Taliban to retake Afghanistan -- before or after the last plane leaves Bagram?

Sun, 03/30/2014 - 08:47 | 4607456 fonzannoon
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"It just hasn't been JPMorgan's year. Or several years for that matter."

 

http://finance.yahoo.com/q/bc?s=JPM&t=2y&l=on&z=l&q=l&c=

Sun, 03/30/2014 - 09:08 | 4607427 teslaberry
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yea i work on this. it sucks.

 

 

 

Sun, 03/30/2014 - 08:35 | 4607440 i_call_you_my_base
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"Spend time with the family" = enjoy pilfered gains away from the marks.

Sun, 03/30/2014 - 08:41 | 4607446 Boomberg
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Wake me up when Jamie Dimon is arrested and his office raided. 

Sun, 03/30/2014 - 08:43 | 4607451 Cacete de Ouro
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Surely they should have raided his office before he departed, not after?

Sun, 03/30/2014 - 08:56 | 4607471 itstippy
itstippy's picture

Who is currently holding large positions in JP Morgan-brokered Chinese securities?  This clever fool looks like a bagman for something bigger that's about to implode.

Sun, 03/30/2014 - 11:32 | 4607455 Cacete de Ouro
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"Fang Fang quit the bank as he wants to spend more time with his dentist," said a person with knowledge of his dental plan.

Sun, 03/30/2014 - 08:48 | 4607459 alfred b.
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     ...not gonna be seeing any such law enforcement here in the West for some time yet.     Damned TBTJ !!!

 

Sun, 03/30/2014 - 08:58 | 4607474 williambanzai7
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Sun, 03/30/2014 - 09:24 | 4607492 shovelhead
shovelhead's picture

Really?

What's the point of a Govt. job if you can't make a family dynasty from the spoils and connections?

The Chinese do not understand upward mobility?

Sun, 03/30/2014 - 09:39 | 4607513 XitSam
XitSam's picture

Time for Fang to commit suicide.

Who would believe his name is really Fang Fang? It's like saying your name is Wilson Wilson.

Sun, 03/30/2014 - 09:56 | 4607534 Ban KKiller
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He has keys to tallest building in Beijing. Wife bought him nail gun for household remodeling. All set! Plenty of time now that he is retired.

Sun, 03/30/2014 - 09:44 | 4607518 Reaper
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Has Fang investigated the cost of a pay to play from Eric Holder that were provided to others?

Sun, 03/30/2014 - 09:52 | 4607531 Ban KKiller
Ban KKiller's picture

I sense a bonus for Dimon, no?

Fascism rules the world. People not so much. What is good for business?

Death to Banksters! Nail guns, made in USA, are on sale.

Sun, 03/30/2014 - 10:25 | 4607558 williambanzai7
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Does anyone find it a bit odd that it is OK to put the screws on this guy for hiring the spawn of highly placed Chinese people to get deals, but it is not OK to go after Lloyd Blankfein for calling on Squid Paulsen to bail out Goldman Sachs? And make no mistake, call on him he did. Given the incestuous relationship between Wall Street and Washington, this is really another farce is it not?

Seriously, did this guy bring the world financial system to its knees?

I am not belittling the foreign corrupt practices act, but this investigation is essentially just another misdirection to make the sheeple think something of substance is being done. But it really has nothing to do with the core problem does it. Insider trading by hedge funds and penny stock scams are other examples of this.

They point to this nonsense when someone says you don't convict banksters.

And the members of the rainbow fascist movement are just too stupid to comprehend the difference. 

Just sayin...

Sun, 03/30/2014 - 10:50 | 4607600 Manipuflation
Manipuflation's picture

As soon as I saw this posted I knew that it would drive you up the wall William.  It is a farce and I am not going to DFL convention today even though I said I would go.  Oops, so I lied to politicians?  I have seen enough already.  Why waste my time?  It's all one big game of charades anyway.  Fuck them and the horses they rode in on.  The bankers and politicians can all go to hell and rot together as far as I am concerned.  

You are right on the mark as usual my friend.

Sun, 03/30/2014 - 10:22 | 4607559 q99x2
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Throw Jamie Dimon into prison on charges of treason against the world. Re-distribute his stolen wealth.

Sun, 03/30/2014 - 10:30 | 4607573 TideFighter
TideFighter's picture

"Fang, Fang?" Is this all a joke from Phyllis Diller?

Sun, 03/30/2014 - 21:36 | 4609161 bunnyswanson
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Fang Fang must be a popular name as I had a roommate from China who was also Fang Fang...and a female.  She went by "Rachel."

Sun, 03/30/2014 - 13:21 | 4607922 Apostate2
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Been in the news for a while:

11 Feb 2014 SCMP


"JPMorgan Chase is embroiled in another scandal involving top mainland officials and jobs for well-connected individuals.

China Insurance Regulatory Commission chairman Xiang Junbo had asked JPMorgan chief executive Jamie Dimon to do him a "favour" by hiring a young job applicant, a family friend of Xiang, who now worked at the bank,The New York Times reported yesterday, citing a confidential JPMorgan e-mail.

US authorities were investigating whether the hiring at JPMorgan was done explicitly to win business from mainland companies, the newspaper reported. At least six other Wall Street firms had also received requests for information related to their hiring, it said.

JPMorgan said Dimon had nothing to do with the decision to hire the young woman, described within the bank as well qualified, the report said.

President Xi Jinping began a campaign to combat corruption and other irregularities after he became Communist Party general secretary in autumn 2012, leading to a string of probes and arrests of senior mainland officials.

"Xi's campaign against corruption seems to have popular support," said Basil Hwang, a Hong Kong-based partner at Zhong Lun, a mainland law firm. "Personal relationships have always been important in business, but under the current regulatory environment, undoubtedly, officials are going to be especially careful not to do favours in return for personal advantage."

Dimon met the applicant in June 2012 during a meeting with Xiang at a time when JPMorgan was seeking work from mainland insurance companies, The New York Times reported. It added that Xiang introduced his young interpreter to Dimon as the meeting was wrapping up and portrayed her as the daughter of a close friend and a potential JPMorgan employee.

With the approval of the bank's compliance department, and after vetting the applicant with multiple interviews, JPMorgan created a special internship to accommodate the applicant, who later landed a full-time job at the bank, the newspaper reported, citing people briefed on the situation.

JP Morgan recently stopped work on the Hong Kong listing of Tianhe Chemicals after Joyce Wei, a daughter of the mainland firm's chairman, left the bank. Tianhe was the second IPO JPMorgan abruptly dropped, having withdrawn in November from China Everbright Bank's offering in Hong Kong.

The firm at one point hired the son of Tang Shuangning , the chairman of the bank's parent company, China Everbright Group."

 

From the NYT Dec 2013

http://www.cnbc.com/id/101300773


"The decision by Fang comes at a bad time for JP Morgan, which is being probed by US authorities with regard to its hiring practices in China.

Fang joined the US bank in August 2001 from Beijing Enterprises, where he was a former vice-president of the investment firm controlled by the government of the capital city. Fang was promoted to vice-chairman for Asia investment banking in 2009."

"Nearly all the top global investment banks, including JP Morgan, Goldman Sachs, Citi, Morgan Stanley, UBS, Credit Suisse, Deutsche Bank and Bank of America Merrill Lynch, are under investigation by US regulators in regard to whether they inappropriately hired the children and relatives of well-connected politicians and businessmen in exchange for winning business." 24 March 2014 SCMP

So it seems multiple investigations by the US are in progress.

 


Sun, 03/30/2014 - 13:54 | 4607985 Bunga Bunga
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Suicide watch alert!

Do NOT follow this link or you will be banned from the site!