I often come across Mr Sanjit during my morning walks. He is
a fresh MBA, having completed his course during the 2011-2013 academic
years from SRM Univ campus within the city. He had attended campus interviews,
and he claims that he got a job offer from a insurance company, but did not
join. He informs that out of the total students in his class, almost 50% got
offer letters through campus interviews/selection. Within three to four months
of joining ,except for three or four, all others were again in the job
market trying their luck. The placements through campus selection were in sales
, and the employers were marketing companies associated with banks and
insurance companies. The target fixed for the first month was Rs.3 lakhs.
This almost all achieved , courtesy relatives and friends. The
second month the target was lowered to Rs. 2 lakhs. None could achieve this
target, and the employers refused salary for the new recruits. After
being in the job for one more month without pay, all left the job . Sanjit has
teamed up with his uncle, and is trying to sell building materials, to bulk
users like flat promoters. His uncle is already in the building hardware
business and owns one such shop within the city.
Suppose if we do a ABC analysis of clinched Business Deals.
The business deals of high value in the A category is dealt at the highest
level involving ministers (politicians), capitalists, bureaucrats and rich
bankers. The winner is usually the one paying the highest bribes and
other entertainments and adept at keeping the ‘transactions’ highly
confidential. Then comes the B category. This will be shared by the close
relatives of ministers and top bureaucrats, crony capitalists,
businessmen with the help of party officials in the lower rungs of the
hierarchy etc. This business is mostly through contacts and networks. Here also
bribes, kick-backs and other favors will be the main consideration,
but the scale will be a bit lower. The business in the C category is left
for the underdogs to pounce upon. These days this class is drawn from the lot
of fresh MBA’s and other graduates comprising the lowest level, and middle-level
managers ,miserable beings who have to break their heads and slog it out, to
squeeze out that last drop from the market. In such situations they may dearly
long for their fore-fathers occupation, ie farming or other such traditional
calling. The C category business act, is mostly a façade put up by many
businesses. It helps in turning black into white money.(Money laundering)
NYT: JPMorgan gave ‘lucrative contract’ to Wen’s daughter
ANANTH KRISHNAN
United States banking giant JPMorgan Chase secretly hired
the daughter of former Chinese Premier Wen Jiabao, paying her consulting firm
$1.8 million (Rs. 11.38 crore) over two years as the bank looked to expand its
interests in China, according to a Thursday report by The New York
Times .
The newspaper said the bank had agreed a lucrative $
75,000-a-month contract with a little-known Beijing consulting firm, Fullmark
Consultants, which comprised only two employees — Wen Ruchun, the then
Premier’s daughter, and a friend.
The NYT report said authorities in the U.S.
were looking into JPMorgan’s relations with Ms. Wen “as part of a wider bribery investigation into
whether the bank swapped contracts and jobs for business deals with state-owned
Chinese companies”.
The
report suggested that the U.S. bank courted Ms. Wen for her connections at a time
when her father — who served as Premier between 2003 and 2013 — served as the
top official in charge of economic and regulatory affairs.
Its efforts, the NYT suggested, paid off:
in one instance, Ms. Wen’s firm, Fullmark, claimed in a confidential letter
that it had secured a lucrative deal for the U.S. company with the
government-run China Railway Group.
Courting ‘princelings’
A
number of foreign investment banks and private equity firms have, over the past
decade, courted the children of influential Communist Party leaders — known in
China as “princelings” — to further their connections — and business interests
— in the country.
The amassing of wealth by Party princelings has emerged as a
source of increasing resentment in China, prompting, in recent months, a
campaign by dozens of activists calling on officials to disclose the assets of
their families, as well as renewed calls from economists to reform influential
and opaque State-owned enterprises.
The NYT , in a separate investigation in
2012, reported that the family of the former Premier had amassed a fortune in
excess of $ 2 billion, hidden through a web of investment vehicles.
Ms. Wen, the newspaper said, had adopted an alias — she went
by the name Lily Chang in her business dealings — to avoid attention.While the
newspaper said it did not discover anything illegal in Ms. Wen’s dealings with
JPMorgan, its findings are certain to raise difficult questions both for the
bank and for the Chinese leadership.
The NYT reported that the bank had also
held stakes in a private equity firm co-founded by Mr. Wen Jiabao’s son, Wen
Yunsong, and owned nearly $ 1 billion worth of shares in the Ping An insurance
company — one of China’s biggest firms — where the Wen family held a stake,
through a murky web of investment vehicles, that was valued at more than $ 2
billion in 2007, according to the newspaper’s 2012 investigation.
Link http://www.thehindu.com/todays-paper/tp-international/nyt-jpmorgan-gave-lucrative-contract-to-wens-daughter/article5353230.ece
Link http://www.thehindu.com/todays-paper/tp-international/nyt-jpmorgan-gave-lucrative-contract-to-wens-daughter/article5353230.ece
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