The controversial Chinese fashion retailer Shein is planning an initial public offering. The three most prestigious U.S. investment banks, Goldman Sachs, J.P. Morgan, and Morgan Stanley, are the lead underwriters .

The three banks will share the majority of the fees from the transaction, somewhere between 4% to 7% of the value of the deal, estimated at around $9 billion. The underwriting opportunity presented by Shein illustrates why the premier financial firms of the U.S. prostrate themselves before Chinese Communist Party Chairman Xi Jinping . The banks follow the money, and have few reservations about how they get it.

This IPO and similar deals are clear examples of why so many investors and the wider public hold Wall Street in such low esteem.

In the first days of trading, many IPOs do well. However, when the lead banks have offloaded their underwriting commitments and pocketed their profits, the hype fades and the data say that after just three years, up to 60% of the companies that go public underperform the broad market by 10% or more . Over time, most companies that go public are poor investments. Sophisticated investors know this, but the typical man or woman does not and is often left holding losses. Shein is a controversial company, and is a poor investment for many reasons.

First, though incorporated in Singapore, it is a Chinese company. Investors never know when the Chinese Communist Party will knock at the company’s door and send the stock price falling. We have witnessed this with Alibaba. The government of China prefers state-owned enterprises, not private success. There is a lack of transparency about the financial operations of Chinese companies. U.S. investors never really know what is going on. Do the underwriting banks know for sure?

Shein is noted for selling low-cost fast fashion. One reason its cost structure is so low is that the company sources from third-party sweatshops. There are credible rumors that Shein sources from Xinjiang using slave labor. With the news of the IPO, Congress is increasing its focus on Shein. Using slave labor is illegal under U.S. law. In fact, a new House committee is already investigating Shein and says Shein probably uses forced labor and evades tariffs.

Another major risk is that Congress is considering closing the trade loophole that allows packages with a value of under $800 to enter the U.S. tariff-free and with limited inspection. Members of Congress are worried about the environmental dangers of the loophole, and Congress should be worried about whether the small package loophole is a conduit for smuggling fentanyl from China into the U.S. Shein is rightfully also criticized for being environmentally unfriendly. Its clothes are cheap, of poor quality, and consumers wear and discard them. Shein is the antithesis of the sustainable model that is sweeping the democratic world.

In consumer reviews, Shein ranks poorly. Consumers say the products are shoddy. The fashion business is intensely competitive since tastes change, and an investor in Shein is taking a risky bet on the psychology of the fashionista. Shein is also a questionable investment because of the macro environment.

The balance sheets of lower-income households are stretched. Credit card delinquencies are rising. Interest rates are elevated. Will the Shein customer have the funds to continue to spend on cheap, shoddy clothing? The investment banks will promise the moon and pocket the money, and in my view, the public will be left holding fashion trash.

James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes  a daily note  on finance and the economy, politics, sociology, and criminal justice.