JPMorgan under scrutiny after hiring son of China’s commerce minister

by MPA09 Feb 2015
By Meghan de St. Aubin

JPMorgan Chase & Co. is reportedly under federal scrutiny for hiring the son of China’s current commerce minister who has been described as “immature, irresponsible and unreliable.”
 
U.S. authorities are investigating the hiring of Gao Jue, along with the Asian hiring practices of JPMorgan and other banks, according to The Wall Street Journal (WSJ).
 
Gao allegedly did poorly during his job interviews for JPMorgan, messed up his work visa and accidently sent a sexually explicit email to a human resource employee.
 
Private email exchanges between JPMorgan executives showed that Gao Hucheng, then a vice minister of commerce, said he would be “willing to go extra miles” for JPMorgan if his son kept his job during the bank’s 2008 layoffs.
 
William Daley, a senior executive at the time, allegedly supported JPMorgan’s decision to hire Gao, according to emails reviewed by The WSJ. Daley is a former U.S. commerce secretary and White House chief of staff.
 
The investigation is focused on the Foreign Corrupt Practices Act, a U.S. law that “bars giving anything of value to foreign government officials for a business advantage”. The hiring of Gao is being looked at as a potential violation due to the involvement of his father. Claims bankers saw Mr. Gao as not at all qualified.
 
Gao, currently employed with Goldman Sachs Group Inc., declined to comment as did his father, Gao Hucheng, and Daley.
 

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