JP Morgan’s controversial “Sons and Daughters” hiring program is still under the microscope, most recently in a New York Times article that said the practice was an open secret among employees.
One employee email reviewed by the Times said the Sons and Daughters program provided “a gateway to doing business with state-owned companies in China.”
Another email, referencing a candidate whose father chaired financial services firm China Everbright Group, extolled the “existing and potential business opportunities” that would result from hiring the potential recruit.
According to press reports, JP Morgan allegedly hired Fullmark Consultants, a firm run by former prime minister Wen Jiabao’s daughter, Wen Ruchun, also known as Lily Chang. She’s pictured above.
Her $75,000 per month role was allegedly to pull in deals from state-owned Chinese companies during a time that coincided with her father’s premiership.
The company’s hiring practice was highly unpopular with some employees. Two whistleblowers reported it to the Hong Kong Stock Exchange and to U.S. authorities.
According to the Times, one junior banker’s resignation read, “I do not think my family is in a position to help you to the extent as others did: bring their family business to the firm.”
No charges in relation to the company’s hiring practices have been filed.
A detailed overview of investigations into JP Morgan by the New York Times is here.