Report: JPMorgan investigated for China hiring - FOX 35 News Orlando

Report: JPMorgan investigated for China hiring

Posted: Updated:

NEW YORK (AP) — U.S. regulators are looking into whether JPMorgan Chase hired the children of Chinese officials to help it boost its business in China, The New York Times reported.

The Times said Sunday details of the civil investigation were in a confidential U.S. government document that it saw. According to the document, the anti-bribery unit of the Securities and Exchange Commission asked JPMorgan for records about some of the bank's hires in China.

According to the Times, the document shows that the bank hired the son of a former Chinese banking regulator who is now chairman of the China Everbright Group, a state-controlled financial conglomerate. The paper reported that after the chairman's son joined the bank, JPMorgan won several assignments from Everbright.

JPMorgan's Hong Kong office also hired the daughter of a Chinese railway official. The official was later detained on accusations of taking cash bribes in exchange for handing out government contracts, the Times reported, citing the U.S. document and public records.

The woman came to JPMorgan at the time that The China Railway Group was in the process of picking JPMorgan to advise it on its plans to go public. JPMorgan helped China Railway raise more than $5 billion when it went public in 2007.

Information sought by the SEC included "documents sufficient to identify all persons involved in the decision to hire" her, the Times reported.

JPMorgan referred to the investigation in a securities filing earlier this month. It said the SEC's enforcement division is seeking information about the bank's employment of some people in Hong Kong and its business relationships with some clients, but didn't give any other details.

On Sunday, JPMorgan issued a statement saying "We publicly disclosed this matter in our 10-Q filing on Aug. 7, and are fully cooperating with regulators." A spokeswoman for the New York bank declined to comment further.

The Times report said it's common for global companies to hire the children of Chinese politicians, but that it's unusual for a company to hire the children of officials of state-controlled companies.

The government document did not definitively link JPMorgan hiring to its ability to win business, or suggest that the employees were unqualified, the Times reported. It also noted that there's nothing illegal about hiring well-connected people, as long as they're qualified for the job.

Copyright 2013 The Associated Press.

  • Your MoneyMore>>

  • Maryland casino to interview workers from closing Atlantic City casinos

    Md. casino eyes workers from closing Atlantic City casinos

    Friday, July 25 2014 4:32 PM EDT2014-07-25 20:32:23 GMT
    AP photoAP photo
    A Maryland casino is looking to hire some of the soon-to-be-jobless Atlantic City casino workers. Maryland Live! is holding job fairs next week at the Sheraton hotel across from the Atlantic City Convention Center. The Hanover, Maryland casino held a similar recruitment effort in January when The Atlantic Club shut down.
    A Maryland casino is looking to hire some of the soon-to-be-jobless Atlantic City casino workers. Maryland Live! is holding job fairs next week at the Sheraton hotel across from the Atlantic City Convention Center. The Hanover, Maryland casino held a similar recruitment effort in January when The Atlantic Club shut down.
  • Dunkin' Donuts cashiers will try to 'upsell' you in the afternoon

    Dunkin' Donuts cashiers will try to 'upsell' you in the afternoon

    Friday, July 25 2014 5:54 AM EDT2014-07-25 09:54:31 GMT
    If an iced coffee from Dunkin' Donuts is part of your afternoon routine, expect a nudge to buy a cookie or doughnut you didn't plan on. Dunkin' Brands CEO Nigel Travis said in a phone interview Thursday that the company is pushing to get its cashiers to "upsell" to afternoon customers. It's part of an effort to increase sales after stores have emptied out after the morning rush.
    If an iced coffee from Dunkin' Donuts is part of your afternoon routine, expect a nudge to buy a cookie or doughnut you didn't plan on. Dunkin' Brands CEO Nigel Travis said in a phone interview Thursday that the company is pushing to get its cashiers to "upsell" to afternoon customers. It's part of an effort to increase sales after stores have emptied out after the morning rush.
  • iPad sales decline

    Are tablets already on their way out?

    Are tablets already on their way out?

    Friday, July 25 2014 5:50 AM EDT2014-07-25 09:50:16 GMT

    Four years ago, tablet owners starting raving about the market's newest piece of mobile technology. Last quarter, Apple iPad sales fell by 9 percent. Still, forecasting the death of the tablet seems premature and incorrect. More likely, all our devices are cross-breeding and evolving until all our calling, emailing, texting, messaging, Internetting, TV watching, all our communication happens on one mobile gadget.


    Four years ago, tablet owners starting raving about the market's newest piece of mobile technology. Last quarter, Apple iPad sales fell by 9 percent. Still, forecasting the death of the tablet seems premature and incorrect. More likely, all our devices are cross-breeding and evolving until all our calling, emailing, texting, messaging, Internetting, TV watching, all our communication happens on one mobile gadget.
Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices