(Photo :JPMorgan Chase)

It has become a trend for almost over 10 years now that in order to open opportunities and close deals in the world's fastest-growing economy, Wall Street's most prominent banks hire children of officials of state-controlled companies.

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These doings are not a secret but not well publicized.

A new investigation of the Securities and Exchange Commission has raised queries if hiring the sons and daughters of senior Chinese officials are unacceptable. JPMorgan Chase is also under examination if it tried winning business in China by recruiting children of two senior Chinese officials and if proven the company may be in possible violation of American anticorruption statutes.

According to The New York Times on Sunday, the main objective of the investigation has provoked a scramble between the Hong Kong rivals of the New York bank to assess the probable risks of their own recruitments. Though not accused of any unlawful behavior, JPMorgan is willing to cooperate with the investigations.

A number of major banks denied giving comments but in series of interviews of Dealbook, bankers and their lawyers said that hiring children of influential officials was so prevalent that banks vied to see who could recruit the most politically linked fresh graduates.

A Foreign Corrupt Practices Act that forbid American companies from "bribing" or giving "valuable things" to a foreign official just to get "an improper advantage" in business was created by U.S. authorities. Therefore, bank personnel are usually constrained from paying for the entertainment, meals, or travel expenses of Chinese officials.

But since the practice is less risky and was hardly ever prosecuted, many still continue to vie in recruiting children of senior Chinese officials.

Another thing is it seemed to be a good defense, that's why it flourished and also, a lot of the children hired with major companies are well-educated and carry degrees and M.B.A.'s achieved from the world's top universities.

However, if authorities find that something is illegitimate in these kinds of doings, the China's world of finance could be rattled and the Wall Street's most prominent banks will also suffer.