J.P. Morgan Chase & Co. is expected to pay US$200 million to settle federal investigations into its hiring practices in Asia.
The Wall Street Journal is reporting that negotiations are at an advanced stage but these could fall apart or change in the coming weeks.
The US investment bank is facing federal claims it tried to win business by hiring the offspring of powerful people in Asia.
Any settlement would end criminal and civil matters under a foreign bribery probe that has dogged the bank for years.
J.P. Morgan likely would admit that its hiring practices violated US law but would not be charged criminally, according to WSJ, citing people familiar with the matter.
A resolution would be the first among wide-ranging investigations into Wall Street banks’ hiring of “princelings”, the kin of high-ranking Chinese government officials and managers of state-owned companies, allegedly to curry favor in getting deals.
The settlement could pave the way for similar outcomes in ongoing inquiries into other banks.
The Wall Street Journal has previously reported that J.P. Morgan hired the children of several powerful Chinese government officials who appeared to be unqualified for their positions and kept some on despite poor job performance.
In one email, a bank executive discussed how to “handle the son in NY and leverage the father in China.”
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