JPMorgan Under Bribery Scrutiny

The SEC is examining the bank's practice of hiring family members of public officials in China and across Asia.

A probe of JPMorgan Chase & Co.’s hiring practices in China has uncovered red flags across Asia, including an internal spreadsheet that linked appointments to specific deals pursued by the bank, people with knowledge of the matter said.

The Justice Department has joined the Securities and Exchange Commission (SEC) in examining whether JPMorgan hired people so that their family members in government and elsewhere would steer business to the firm, possibly violating bribery laws, said one of the people, all of whom asked to not be named because the inquiry isn’t public. The bank has opened an internal investigation that has flagged more than 200 hires for review, said two people with knowledge of the examination, results of which JPMorgan is sharing with regulators.

The Serious Fraud Office, which enforces U.K. laws targeting fraud, bribery, and corruption, isn’t currently investigating JPMorgan’s hiring practices for signs of bribery, according to two people with knowledge of the situation.

 

Page 1 of 2

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.