JPMorgan’s Brunei Boycott Deserves a Small Cheer

JPMorgan Chase & Co. is the latest global bank to take a stand against Brunei after the oil-rich sultanate introduced legislation that punishes gay sex with death by stoning. The idea that financial leaders will choose their business partners on the basis of ethical principles marks a notable shift. But praise for this push onto the moral high ground should be limited.

The financial crisis left lenders with tens of billions of dollars in fines for scandals ranging from rigging to mis-selling, and substantial reputational damage. The industry’s long haul to recover its position has, for the past decade, put it squarely on the receiving end of new rules and regulations, including a fresh push to abide by environmental, societal and governance standards. Concerns about the recent changes to Brunei’s penal code align with this — the laws have drawn condemnation from the United Nations, criticism from the United States and outrage from the entertainment world.