'Sons and Daughters' hiring program tied to at least one business deal

Dec. 8, 2013 at 10:33 AM   |   0 comments

BEIJING, Dec. 8 (UPI) -- JPMorgan's "Sons and Daughters" hiring program is tied to the creation of at least one business deal with a Chinese company, documents indicate.

Federal authorities have been investigating the program for months.

JPMorgan began the program in 2006 to hire well-connected candidates on a separate track from ordinary applicants to ensure fair hiring practices.

Spreadsheets, emails and other documents recently submitted to authorities indicate that the program may have served another purpose, the New York Times said.

In one email, a senior executive in Hong Kong noted that the father of one job candidate was Tang Shuangning, the chairman of the China Everbright Group -- a state-controlled financial conglomerate.

When Tang approached the bank for a job for his son, Tang Xiaoning, his company did little or no business with the bank.

But after he made a job inquiry, an Everbright subsidiary hired JPMorgan to advise on a $300 million offering of shares.

After his son was hired, a Everbright subsidiary hired the bank as an adviser twice more.

JPMorgan, which declined to comment, is cooperating with the bribery investigation.

There is no indication that JPMorgan's headquarters in New York were aware of the hiring practices, the New York Times reported.

The investigation is focused on the Foreign Corrupt Practices Act, which makes it illegal for U.S. companies to exchange anything valuable with foreign officials to gain an advantage.

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