U.S. authorities have opened an investigation into whether JPMorgan Chase hired the children of powerful Chinese officials to help it win business in China.
Jamie Dimon is the current chairman, president and chief executive officer of JPMorgan Chase, one of the Big Four banks of the United States.
JPMorgan is being investigated...again: this time over U.S. bribery charges alleging that the company hired the children of influential Chinese leaders to help it win business in China. In one example, the company landed a massive deal to make a railway in China public after hiring one of the railway official’s daughters. The scandal comes less than a week after two Ex-JPMorgan employees were indicted for their involvement in the company’s 2012 “London Whale” incident, which resulted in trading losses of over $6 billion.
"The Times said JPMorgan hired Tang Xiaoning, the son of Tang Shuangning, a former Chinese banking regulator. Tang Xiaoning is now the chairman of the China Everbright Group, a state-controlled financial conglomerate.
After the son joined JPMorgan, the bank secured several important assignments from the Chinese conglomerate, including advising a subsidiary of the company on a stock offering, the Times reported.
The Hong Kong office of JPMorgan also hired Zhang Xixi, the daughter of a now-disgraced Chinese railway official, and went on to help advise his company, which builds railways for the Chinese government, on its plans to become a public company, the Times said.
A spokesmen for the SEC could not be reached immediately by Reuters for comment. Zhang and Tang both have left JPMorgan, the newspaper said.
JPMorgan made reference in its 10-Q quarterly filing this month to the inquiry by the U.S. Securities and Exchange Commission."
The report emphasized that the government document did not definitively link JPMorgan's hiring practices to its ability to win business, and that there was no suggestion that the employees hired by the bank were unqualified for their positions, nor had they been accused of any wrongdoing.