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Friday, Aug 30
Authorities extend probe into hiring practices at banks
- The Department of Justice and the SEC have widened their inquiry into the international hiring practices at JPMorgan (JPM) by questioning numerous other banks and hedge funds, the WSJ reports.
- Authorities are trying to ascertain whether the firms, whose identities aren't clear, broke the U.S. Foreign Corrupt Practices Act by recruiting the relatives of senior government officials or managers of potential customers in order to win deals.
- Meanwhile, the NYT reports that JPMorgan started a program called "Sons and Daughters" in 2006 to address the requests of the friends and family of China's ruling elite to work at the bank. The idea was to use the program to avoid nepotism and bribery accusations, but it appears that things went rather awry.