The New York Times reports that federal authorities have obtained new documents revealing information connected to the hiring practices of JPMorgan Chase and its ties with China’s officials, and that the hiring practices of at least five other Wall Street banks conducting business in China will be now be undergoing investigation.
According to the report, the documents include spreadsheets and emails detailing JPMorgan’s “Sons and Daughters” hiring program, shedding light on how the bank created it to avoid questionable hiring practices “but ultimately viewed it as a gateway to doing business with state-owned companies in China”.
Various emails reveal that the program was an “open secret” at the bank’s headquarters in Hong Kong, and a senior JPMorgan executive’s references to “existing and potential business opportunities” with Chinese government-run companies indicate connections between new hires and business deals that were previously only speculated.
The documents also included spreadsheets showing around 30 employees with connections to state-owned firms or Communist Party officials, according to the report.
The scrutiny of JPMorgan, which has not been accused of any wrongdoing, could provide a template for federal authorities as they expand their investigation to include the hiring practices of at least five other Wall Street banks conducting business in China, according to interviews with people briefed in the inquiry who were not authorized to speak publicly. Those investigations from the Securities and Exchange Commission, which are at an early stage, involve Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley. All five banks declined to comment.