A Bloomberg report said an internal spreadsheet that linked appointments to specific deals pursued by JP Morgan Chase is now part of an investigation into the bank‘s hiring practices.
‘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,’ Bloomberg said.
Early reports said the SEC was looking at two hires by the bank in Hong Kong. The employees were the children of China government officials.
The Bloomberg story Wednesday said the DOJ has now joined the investigation, which has expanded to countries across Asia.
Hiring a family member of a government official isn’t always a violation of the FCPA. But if the family member is hired to reward or induce an official to award work, that could be an offense.
A JP Morgan spreadsheet ‘links some hiring decisions to specific transactions pursued by the bank,’ Bloomberg said.
Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.
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