Several executives at J.P. Morgan Chase & Co. in New York were warned of potential problems related to the bank’s hiring practices in China more than a year before the program came under scrutiny by the U.S. government, according to people familiar with the matter and documents reviewed by The Wall Street Journal.
The Wall Street Journal reports that a bank official in Asia alerted legal and compliance executives in New York in 2011 of anonymous accusations that the bank’s recruitment of a prominent son or daughter of a senior Chinese official helped it win an investment-banking assignment, according to company emails reviewed by the Journal. J.P. Morgan JPM, officials later discussed those accusations, and changes were proposed to the region’s hiring practices, according to the emails.
Ultimately, those fixes were included as part of a broader set of anticorruption measures approved by board directors on the bank’s audit committee in late 2011, according to people familiar with the matter. J.P. Morgan Chairman and Chief Executive James Dimon was aware of the broader anticorruption measures as the new program rolled out, these people said.
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