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Sunday, Aug 18
SEC probes JPMorgan over hiring practises in China
- The SEC is reportedly investigating JPMorgan (JPM) into whether the bank recruited the children of influential Chinese officials in order to win business.
- In one instance, JPMorgan hired Tang Xiaoning, the son of the chairman of state-controlled China Everbright Group. Following the recruitment, the U.S. bank won multiple deals from the Chinese financial conglomerate.
- In another example, JPMorgan recruited Zhang Xixi, the daughter of a Chinese railway official who was later arrested over bribery claims. At the time of Zang's hiring, China Railway Group was in the process of choosing JPMorgan to help it with an IPO.
- JPMorgan referred to the probe in its latest quarterly filing this month, saying the SEC had requested information about the "employment of certain former employees in Hong Kong and its business relationships with certain clients."
- The investigation adds to several other probes into JPMorgan, including into the London Whale trading blunder and mortgage bonds. The bank is the subject of inquiries by at least eight federal agencies and a state regulator in the U.S., as well as by two foreign countries.