By Noeleen Walder
JPMorgan Chase & Co (JPM.N) will pay more than $200 million to settle allegations that it had hired children of Chinese decision makers to win business, a source familiar with the matter told Reuters.The U.S. Securities and Exchange Commission (SEC) had opened an investigation into JPMorgan in 2013 over the hiring.There will not be any individual prosecution at this time, the source said.
The bank will pay about $130 million to the SEC and about $70 million to the Justice Department, Bloomberg said, citing sources. (bloom.bg/2ghScue)
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.The SEC, JPMorgan and the Justice Department declined to comment.
(Reporting by Divya Grover in Bengaluru and Noeleen Walder in New York; Editing by Anil D'Silva)
This story has not been edited by Firstpost staff and is generated by auto-feed.