China | JPMorgan to pay about $200 million to settle Asia hiring probes

JPMorgan to pay about $200 million to settle Asia hiring probes

July 21, 2016 5:37 PM (UTC+8)

 

By Nikhil Subba

(Reuters) – JPMorgan Chase and Co is expected to pay about $200 million to settle criminal and civil probes over its Asian hiring practices, according to a person familiar with the matter.

A settlement, which could come later this year, would end probes that began three years ago into whether JPMorgan investment banking executives in Hong Kong hired sons and daughters of officials of Chinese companies as a way to win business.

The prospect of a settlement was reported on Thursday by the Wall Street Journal. JPMorgan would likely admit that its hiring practices violated a U.S. law prohibiting giving something of value in exchange for business, the Journal said.

The settlement could pave the way for similar outcomes of ongoing inquiries into other banks.

While it is not unusual for investment banks to employ children of powerful people, JPMorgan’s potential liability increased when investigators found documents indicating executives were tracking the business results of hiring decisions, another person familiar with the matter said earlier.

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