President Wiliam Ruto in a meeting with the vice-chairman and global head of J.P. Morgan Public Sector Group Daniel Zelikow and other officials at the State House on February 21, 2023
JP Morgan Chase, the largest bank in the United States, is set to open a new office in Nairobi, Kenya, as part of its efforts to expand its footprint in Africa and tap into the continent’s growing economy.
As of February 22, JP Morgan had a market capitalization of around $409 billion (Sh51.6 trillion) at the New York Stock Exchange, which is a measure of the company’s total value based on its stock price and number of outstanding shares.
The new office in Nairobi is expected to offer a wide range of financial services.
The bank is, however, yet to disclose details regarding the exact location, recruitment and timelines.
While state officials have praised the move as a vote of confidence in Kenya’s economy, it’s worth noting that JP Morgan has been embroiled in a number of controversies in the past.
JP Morgan was among the group of big American investment banks blamed for triggering the 2008 financial crisis and was eventually ordered to pay a then-record $13 billion fine in 2013 for misleading investors in the years leading up to the meltdown.
In addition, the bank has been linked to paedophile financier Jeffrey Epstein, who remained a client for five years after concerns were raised about his activities.
JP Morgan also did business with Bernie Madoff, the fraudster behind the biggest Ponzi scheme in history.
JP Morgan eventually paid a $2.5 billion fine for failing for two decades to report Madoff’s suspicious dealings.
The bank has paid more than $31 billion in regulatory fines since the 2008 crisis for offences ranging from manipulating energy markets to accusations of racial discrimination.
In 2017, JP Morgan settled for $55 million over allegations that it charged black and Hispanic mortgage borrowers higher rates than its white customers.
On top of these controversies, JP Morgan has apologized and paid reparations for historic links to the slave trade.
The bank admitted in 2005 that two Louisiana banks that were later absorbed into the company once held 13,000 slaves as collateral and owned 1,250 slaves.
It is clear that JP Morgan’s decision to open a new office in Nairobi is not without controversy, given the bank’s track record.
The issues go beyond what we have outlined above, as the company still has a fair amount of ongoing litigation.
For instance, JP Morgan was accused of making fraudulent payments to a Nigerian politician accused of money laundering.
The bank is well known for side deals with politicians all over the world and has been accused of being the platform for money laundering and illicit financial transactions.
The reality is that JP Morgan, along with other large financial institutions, are the rulers of the world.
They move currencies, and governments and markets bend to their will.
It is quite frightening if you have studied them enough.
As Kenya welcomes JP Morgan, it remains to be seen what impact the bank’s presence will have on the country’s economy and politics.
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