UBS suspends two bankers in hiring probe…
SWISS bank UBS has put two bankers on leave as part of an internal investigation into the hiring of a close relative connected to a potential Chinese corporate client.
The move comes after US federal officials launched a separate probe into employment practices at
JP Morgan Chase, reviewing the circumstances behind the US bank’s hiring of well connected Chinese bankers.
That investigation has prompted investment banks across China to look into the roles of certain Chinese bankers.
Joseph Chee, the well-connected and well known head of capital market solutions at UBS, and colleague Sharlyn Wu, were put on leave last week, according to the specialist financial news service IFR.
The 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. Wei, who joined the bank in November last year after formerly being employed at JP Morgan, is believed to be still working at the bank.
UBS declined to comment. Tianhe is pursuing a Hong Kong initial public offering (IPO) later this year in a deal that could raise as much as $1bn.
The IPO plans came into focus last month after IFR reported that JP Morgan dropped its pursuit of a role in the offering because of its previous employment of Wei.
Jiao is Joyce Wei’s Chinese name, a person familiar with the matter told IFR last month.
Until now it has been believed that the regulatory probes into the hiring policy of banks in China has been focusing on JP Morgan’s hiring practices.
The decision by UBS to suspend two of its bankers suggests other banks are also looking carefully at such issues.