When the news first broke that the government was investigating JPMorgan Chase for allegedly hiring Chinese princelings in an effort to win investment banking business, a lot of people kind of shrugged their shoulders.
Investment banking is largely a "relationship" business, and China is a "relationship" country—of course this sort of thing was going on.
Andrew Ross Sorkin wrote a column about how nonscandalous and common the hiring of the well-connected is in finance—especially in the U.S. Arthur Levitt just penned a piece for The Wall Street Journal defending the practice.
A good friend recently explained that since you can't trust some people in other countries to tell the truth about their qualifications, pretty much the only thing you can trust is their connections. You can't fake a billionaire uncle on your résumé (at least not for very long).
But the latest installment of The New York Times coverage of the JPMorgan China hiring scandal is damning. Seriously damning. It's just not really damning about JPMorgan.