The anti-bribery unit of the US Securities and Exchange Commission is conducting an investigation as to the allegations that JPMorgan Chase & Co had hired the children of Chinese officials to boost its business. The said action was reported by the New York Times, which quoted a confidential government document.
One of the individuals said to be hired was the son of a former Chinese banking regulator, who currently serves as the chairman of the China Everbright Group Ltd. China Everbright is a state controlled investment firm. It was also reported that JPMorgan's Hong Kong office had employed the daughter of a Chinese railway official. Soon after the hirings, the bank was able to secure assignments from companies where the parents of the firm's new employees were managing.
The report clarified though there were no accusations of wrongdoing made against the investment bank as well as there were no indications that the new employees had helped JP Morgan secure business or if the said new hires were unqualified.
In furtherance of the said investigation, the regulator had requested the records of Tang Xiaoning, the son of Tang Shuangning, the chairman of China Everbright Group. It also sought the records of Zhang Xixi, the daughter of Zhang Shuguang, the former deputy chief engineer of the Railway Ministry. Both have since left JPMorgan.
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