The move comes after U.S. federal officials launched a separate
probe into employment practices at JPMorgan Chase & Co, reviewing
the circumstances behind the U.S. bank's hiring of well connected
Chinese bankers. That investigation has prompted investment banks
across Greater China to look into the roles of certain Chinese
Joseph Chee, head of capital market solutions at UBS, and colleague
Sharlyn Wu, were put on leave last week, IFR reported, citing
unnamed sources. IFR, a Thomson Reuters publication, did not
identify Wu's current title.
The effective suspension of the two bankers comes after an internal
probe into the hiring of Joyce Wei, the daughter of the chairman of
Chinese industrial company, Tianhe Chemicals.
UBS declined to comment. Chee did not respond to a call to his
mobile phone. Wu did not respond to a call to her office.
Tianhe is pursuing a Hong Kong IPO later this year in a deal that
could raise as much as $1 billion. The IPO plans came into focus
last month after IFR reported that JPMorgan dropped its pursuit of a
role in the offering because of its previous employment of Wei.
Hong Kong securities license filings show that a Jiao Wei worked at
JPMorgan from January 2012 to August 2013, and joined UBS in
October. Jiao is Joyce Wei's Chinese name, a person familiar with
the matter told IFR last month, affirming also that she is the
daughter of Tianhe's chairman.
IFR reported then that UBS was among the banks seeking a mandate for
the Tianhe IPO.
[to top of second column]
The U.S. Securities and Exchange Commission (SEC) and the Department
of Justice are investigating whether JPMorgan violated bribery laws
by improperly hiring the relatives of well connected Chinese
officials. That investigation is ongoing and the bank has not been
accused of any wrongdoing related to the issue.
Separately, citing a confidential email, The New York Times reported
earlier on Monday that JPMorgan Chief Executive Jamie Dimon was
asked by China's top insurance regulator to hire a family friend as
(Reporting by Fiona Lau of IFR, with additional reporting by Elzio
Barreto and Denny Thomas; editing by Michael Flaherty and Ian Geoghegan)
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