Many Wall St. Banks Woo Children of Chinese Leaders

The Securities and Exchange Commission is investigating a Wall Street bank practice of hiring children of senior Chinese government officials. One motivation is “open[ing] doors and secur[ing] deals in the world’s fastest-growing major economy,” reports David Barboza in DealBook, a New York Times blog, and banks were said to compete on “who could hire the most politically connected recent college graduates.” Bankers are cooperating in the investigation, and some in Hong Kong are initiating their own review of hiring practices. “In recent years, United States authorities have stepped up enforcement of the Foreign Corrupt Practices Act, which essentially prohibits American companies from giving “anything of value” to a foreign official to win “an improper advantage” in business,” Barboza reports. Performance evaluations for the Chinese workers – many of whom attended the world’s top universities – varied from diligent to “showing up.” Favoritism for China's elite has attracted attention in both the United States and China. – YaleGlobal