Dec. 3 - Richard Beales and Reynolds Holding discuss the legal pitfalls that banks and others face in putting scions of the Chinese elite on the payroll.
They -- over -- prince -- on the payroll the SEC's taking an interest in. Whether banks including JPMorgan Morgan Stanley have hired. Children officials particularly in China ran in order to get business that I. Now obviously these these these can be highly qualified blankets but not only want what might these firms have done wrong. People -- does sign downs of the elite and friends of friends on every time floating in the U everywhere in the world. Now you run a couple places like China where the people run companies companies are often state owned or state related to the people run the ball often have a connection with the government. Now the US has we all most of us know has this foreign corrupt practices -- which is very broad. Very expensive to defend against essentially says if you have corrupt intent and you give us on say a government official. A job and here she is not qualified you could be in trouble. So if it's a bank does some of these the kid at some guy salmon -- it -- -- going public and only purpose. Is set to try to get a neighbor with a government official now some companies have gotten in real trouble this Tyson Foods Siemens some other companies. You know Tyson Foods a couple years ago hired. The wives of Mexican veterinarians to trying get right business with the Mexican government it you know. That in this is all again allegations because it was settlement note mission of right of wrong doing and yet you know pretty stupid if you if your highest summit and it's no real job. But what -- what excellent everywhere in the world again is you know banking particular investment banking as it is -- so sales to open you need to network. Integrated education needs connections all of that and quite often children of the elite. You know I have -- qualified that they had a good education they have connections so I mean it's really a matter of common sense does that mean right first of all. Make sure that this really good job there I -- the rest Tyson Foods example that currently -- jobs there to be done and they were just I'd agree that. Make sure the people more qualified make sure they have the experience the education. The smarts whatever it -- And of course make sure that you document all this is very important particularly in the SE PH right investigation because -- can show the SEC could show the Justice Department. You know what are this that the market -- resident. Here as we interview -- that he was even take any short cuts that he's qualified and we -- -- but not on the right yes. But I mean that's us they're access effort by not only the FCC but the Justice Department to go after warning corruption. In other countries rivalry this is sort of up a relatively new thing where they're looking in Asia where they're looking at the banks JPMorgan. And in particular. Big article in New York Times and not not too long ago allegations they hired the children of two. Government related officials that they weren't qualified is that you have the implication they just didn't add up to a real jungle room for quite a tough. Pedal for the government sponsored tougher because you have to show that there was what they call that you will essentially intent. That look we're gonna hire this but you know what we expect some paid back in the end and that's very difficult approved so you have the sort of back up evidence that the person is qualified and everything else -- might -- -- -- but there was -- -- -- we just like the -- and we thought it -- well connected. But it got it thanks and we'll follow the prince -- story and it will breaking news to you tomorrow.