J.P. Morgan Chase & Co. has agreed to pay a total of $264 million to settle charges related to its hiring practices in Asia, the Securities and Exchange Commission said Thursday. The bank will pay more than $130 million to the SEC, $72 million to the Justice Department and $61.9 million to the Federal Reserve to settle the charges, said the SEC. J.P. Morgan was alleged to have hired people in China and other countries in the region who were relatives and friends of government officials or clients as a way to get an unfair advantage in winning business. The practice is a violation of the Foreign Corrupt Practices Act, said the SEC. In a seven-year period, the bank hired about 100 interns and full-time employees at the request of foreign officials, garnering more than $100 million in revenue for the firm. “JPMorgan engaged in a systematic bribery scheme by hiring children of government officials and other favored referrals who were typically unqualified for the positions on their own merit,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “JPMorgan employees knew the firm was potentially violating the FCPA yet persisted with the improper hiring program because the business rewards and new deals were deemed too lucrative.” The bank’s stock was up about 0.8% on Thursday, and has gained 18% in the year so far, outperforming the S&P 500’s roughly 7% gain.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News