Way to go J.P. Morgan Chase and Company

Here you will find the all the exciting details of how to do business in America. This isn’t boring theory or textbook learning. All of the examples are from current, real-world events. Learn from the greatest American business institutions and people how to operate in the U.S.

American bankers will often share your company’s confidential information with your competitors. Here’s how they do it. You and your company take out a loan with an American bank. Your company is then required to provide confidential information to that American bank as specified in the loan agreement. The American bank will then sell that information to your competitors.

Here is a real world example. Empresas Cablevision, a Mexican telcom company, learned this the hard way. Cablevision has been a customer of J.P. Morgan Chase for twenty years and had a loan from the bank in the amount of $225 million. J.P. Morgan Chase made Banco Imbursa a 90% participant in the loan. Banco Imbursa is controlled by Mr. Carlos Slim. Mr. Slim owns Telmex which is the main competitor to Cablevision. Way to go J.P. Morgan Chase. Way to screw over a customer. A judge stopped this travesty for now. I am sure J.P. Morgan Chase will continue to try to screw Cablevision. This is how business is now done in America.

What does this mean to you? When negotiating a loan agreement with an American bank, make sure strict confidentiality language is included. You can also require language preventing your competitors from participating in your loan. You may not want to do business with an American bank given that they often sell your information to your competitors. There are many fine banks in Asia and the European Union. Why do business with American bankers that have proven they are thoroughly corrupt? How many American loan officers think it is acceptable and profitable to sell your confidential information to your competitors? Do you think American authorities could catch them let alone convict them? Way to go J.P. Morgan Chase.

Here is some advice for Cablevision. Find another bank to loan you money. Find another bank to handle your cash management services. Again you may want to partner with one of the fine banks in Asia or the EU. Notify all your employees how J.P. Morgan Chase screwed your company. You don’t have to tell your employees that they should not do business with J.P. Morgan Chase. The notification will make that implication painfully clear. On a personal note, you should verbally tell the officers of J.P. Morgan Chase that Cablevision and its affiliates will not be doing business with them for a very long time.

Source: WSJ February 20, 2010