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>>

  • Future of money

    Future of money

    Thursday, April 17 2014 1:27 PM EDT2014-04-17 17:27:18 GMT
    These days, when you check out of a grocery store, your toughest choice might be cash or credit.  But in a few years, there may be no need to carry dollar bills, credit cards, or stacks of cash.  It might sound like the stuff of science fiction but futurist and social scientist Heather Schlegel says it's not.
    These days, when you check out of a grocery store, your toughest choice might be cash or credit.  But in a few years, there may be no need to carry dollar bills, credit cards, or stacks of cash.  It might sound like the stuff of science fiction but futurist and social scientist Heather Schlegel says it's not.
  • IRS considers taxing work freebies like food

    IRS considers taxing work freebies like food

    Wednesday, April 16 2014 9:11 PM EDT2014-04-17 01:11:44 GMT
    In competitive job markets like Silicon Valley, companies are doing everything they can to entice the best and brightest -- offering freebies that have become the stuff of legend.Employee perks like free food at lavish cafeterias, laundry and even yoga are not unheard of.  But the taxman could soon crack down.  The IRS reportedly is looking at these perks and seeing if these companies need to start paying up for the free stuff they offer employees.
    In competitive job markets like Silicon Valley, companies are doing everything they can to entice the best and brightest -- offering freebies that have become the stuff of legend.Employee perks like free food at lavish cafeterias, laundry and even yoga are not unheard of.  But the taxman could soon crack down.  The IRS reportedly is looking at these perks and seeing if these companies need to start paying up for the free stuff they offer employees.
  • Social streaming video from your iPhone with YEVVO

    Social streaming video from your iPhone with YEVVO

    Wednesday, April 16 2014 8:46 AM EDT2014-04-16 12:46:01 GMT
    We met YEVVO's 26-year-old co-founder and CEO, Ben Rubin, on a rainy day in Madison Square Park. Among the four of us (Ben, me, my photographer, and the representative from Ben's PR firm), we had four smartphones and the free app Rubin created."What if you were going live during this interview and then somebody [online] started asking questions and then [that somebody] actually helped to create the content?" Rubin asked.
    We met YEVVO's 26-year-old co-founder and CEO, Ben Rubin, on a rainy day in Madison Square Park. Among the four of us (Ben, me, my photographer, and the representative from Ben's PR firm), we had four smartphones and the free app Rubin created."What if you were going live during this interview and then somebody [online] started asking questions and then [that somebody] actually helped to create the content?" Rubin asked.
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