An internal investigation into JPMorgan's hiring practices in Asia is examining the employment of about 200 people for instances of possibly illegal nepotism, a source said, indicating that the bank's hiring issues may extend beyond the two cases about which regulators had initially asked.
The Securities and Exchange Commission had requested information on two deals the bank may have won by hiring relatives of key officials, including the daughter of a Chinese state railway official, the person said. U.S. anti-bribery laws prohibit hiring any individual in exchange for a specific favor or benefit from an outside business partner or client.
JPMorgan disclosed the inquiry in its quarterly regulatory filing earlier this month. Bloomberg reported late Wednesday that the Department of Justice is also involved in the probe. The department has not requested anything from JPMorgan related to the SEC's investigation, the source said.