Boston, MA, 11/20/2013 (wallstreetpr) – The ongoing investigations and settlement claims against JPMorgan Chase & Co. (NYSE:JPM) are known to most everyone, or at least, those with interest in banking sector. The largest U.S. bank is facing billions of dollars in lawsuits, the latest being $13 billion in settlements over toxic mortgages sold to investors. In its most recent reporting, the bank reported a huge hole in its earnings, recording a loss that it has not seen in years.
As legal issues drag in the U.S. over bad mortgage loans, the bank is also facing probe in China over its hiring practice in the Asian nation. The U.S. authorities are seeking to establish if JPM offered employment to well-connected officials in China to win business opportunities. The much talked about case of improper hiring is that in which JPM hired Tang Xiaoning who is a son of the chairman of China Everbright Group. It is reported that JPM won several business opportunities in the bank following the hiring of Tang. The bank could face more fines if the probe reveals that hiring in China were improper.
Even as probe to JPM’s hiring practice in China gets underway, the bank reported its withdrawal, possibly as a book runner, in the planned $2 billion listing of China Everbright Bank Co in Hong Kong.
JPM is the largest bank in the U.S. and is among the companies hard-hit by the financial crisis. The $211 billion bank has been able to turnaround and its performance year today has been quite impressive. It would have turned massive profits in its Q3.13 data but failed due to the string of legal costs which it incurred, however, the quarter witnessed significant increase in revenue. The bank has recently beefed up its cash reserve to take care of the growing lawsuits it’s facing. While financially JPM is able to absorb the shock, a dent in its image is something that the bank has been trying to avoid.