JPMorgan 'bribery' hiring probe spreads

For Hire

A probe of JPMorgan's hiring practices in China has uncovered red flags across Asia, including an internal spreadsheet that linked appointments to specific deals pursued by the bank, people with knowledge of the matter said.

Bloomberg reports that the U.S. Justice Department has joined the Securities and Exchange Commission in examining whether JPMorgan hired people so that their family members in government and elsewhere would steer business to the firm, possibly violating bribery laws, said one of the people, all of whom asked to not be named because the inquiry isn’t public.

The bank has opened an internal investigation that has flagged more than 200 hires for review, said two people with knowledge of the examination, results of which JPMorgan is sharing with regulators.

The scrutiny began in Hong Kong and has now expanded to countries across Asia, looking at interns as well as full-time workers, two people said. The employees include influential politicians’ family members who worked in JPMorgan’s investment bank, as well as relatives of asset-management clients, the people said. Wall Street firms have long enlisted people whose pedigree and connections can win business, a practice that doesn’t necessarily violate the law.

The SEC will hunt for evidence showing 'these weren’t real jobs, that they were only there because their father or mother were important public officials,” said Dan Hurson, a former U.S. prosecutor and SEC lawyer who runs his own Washington practice. “If the public official requested the job for the child, that would be a strong indication to the company that the official was seeking and receiving something of value'.

To access the complete Bloomberg article hit the link below

JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet is Found

Israeli Banks Boost Second-Quarter Profit as Provisions Fall

Bank Crackdown in Sweden Frustrates Payout Hopes: Nordic Credit

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts