In August the Securities and Exchange Commission announced a resolution with Bank of New York Mellon for violations of the Foreign Corrupt Practices Act. This was the first enforcement action around the now infamous “Princess-lings and Princelings” investigation, where U.S. companies hired the sons and daughters of foreign government officials to curry favor and obtain or retain business.
While JPMorgan Chase has garnered the most attention around this issue (probably because of its notorious spreadsheet tracking of sons and daughters hires to developed business in China), multiple U.S. companies are under scrutiny for similar conduct. Credit Suisse, Goldman Sachs, Morgan Stanley, Citigroup, and UBS are all under investigation by the SEC for their hiring practices around the sons and daughters of foreign government officials.
