Date
18 October 2017

US widens China hiring probe to Morgan Stanley, Reuters says

The US Justice Department is probing Morgan Stanley for its hiring practices in China, Reuters reported Tuesday, citing a person familiar with the matter. The move comes as authorities expand their investigation into whether banks’ hiring of politically connected Chinese employees may have breached US bribery laws, it said. US authorities’ interest in the hiring practices of banks operating in China first came to light in August when media reports disclosed that the US Securities and Exchange Commission was looking at whether JPMorgan Chase & Co’s Hong Kong office hired the children of powerful heads of state-owned companies in China with the express purpose of winning underwriting business and other contracts. The Justice Department is working closely with the SEC, which has widened the investigation beyond JPMorgan and is now looking at other financial firms, the report said.

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