The Securities and Exchange Commission is investigating the recruitment of the daughter of a senior Chinese railway official and the son of a former regulator in the Chinese banking system. Both JP Morgan Chase and Paul Weiss have declined to comment, says the Financial Times, which attributes the information on the appointment of Paul Weiss to 'people familiar with the matter'. The SEC is looking to see whether the appointments breach the Foreign Corrupt Practices Act by taking on these new recruits in order to win new business. However, the FT says that 'virtually all the big Wall Street and European financial institutions with operations in the country have habitually hired “princelings”, as the children of senior Chinese officials are known'.
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