Eight years ago, there was much handwringing over the plan. Such as, won’t this violate the Foreign Corrupt Practices Act and lead to an extremely embarrassing criminal investigation one day? And, how we will make sure that the brain-dead progeny of the people we need don’t lose us too much money?
When legal and compliance executives from the bank gathered inside Hong Kong’s Aberdeen Marina Club in July 2006, the bank arranged for a discussion of how the recruitment of children of powerful officials in China could happen without running afoul of anti-bribery laws….
The group also planned to discuss conflicts of interest, such as “possession of confidential information” after hiring the so-called princelings, and “quality problems – the result of relaxing standards,” according to the presentation.
J.P. Morgan Discussed Pitfalls to ‘Princeling’ China Hiring in 2006 [WSJ MoneyBeat blog]