US investigates questionable JPMorgan hiring practices in Asia

JPM allegedly hiring children of powerful officials to win business deals. Media reports said US authorities are investigating the hiring practices of JP Morgan Chase in China, India, South Korea and Singapore following a probe into its activities in China where it employed children of influential officials to win lucrative business deals.

The anti-bribery unit of the US Securities and Exchange Commission had begun an investigation into the bank’s hiring of the sons and daughters of China’s elite. The New York Times said the federal investigation into the hiring practices of JPMorgan Chase seems to be expanding beyond China into other Asian markets. JPMorgan said the SEC and the Justice Department were looking into its business relationships with certain related clients in the Asia Pacific region and its engagement of consultants in the Asia Pacific region.”

JPMorgan said it is “cooperating with these investigations.” The investigations into the Asian markets are still in fledgling stages, but Hong Kong and British authorities are also investigating the bank’s hiring practices. The bank even created a formal “Sons and Daughters” program in 2006 after friends and family of China’s elite sought positions at JPMorgan.