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JP Morgan was aware of overseas hiring concerns before US probe

Employee alerted US executives to issue in 2011, emails show

Several executives at JP Morgan Chase in New York were warned of potential problems related to the bank’s hiring practices in China more than a year before the program came under scrutiny by the US government, according to people familiar with the matter and documents reviewed by The Wall Street Journal.

A bank official in Asia alerted legal and compliance executives in New York in 2011 of anonymous accusations that the bank's recruitment of a prominent son or daughter of a senior Chinese official helped it win an investment-banking assignment, according to company emails reviewed by the Journal. JP Morgan officials later discussed those accusations, and changes were proposed to the region's hiring practices, according to the emails.

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