US launches China bribery probe into JPMorgan

JPMorgan (JPM.NYSE) is facing a US government probe into its hiring practices, namely that of employing the offspring of key Chinese officials with the hopes of expanding its footprint in China, Reuters reported, citing a New York Times story. Investment banks have a long history of employing the children of China’s politically connected. While close ties to top government officials is a boon to any banking franchise across the world, it’s especially beneficial in China, where relationships and personal connections play a critical role in business decisions. According to the report, the inquiry is a civil investigation by the Securities and Exchange Commission’s anti-bribery unit.