(Corrects name of second banker put on leave in 6th paragraph)
HONG KONG, March 25 A senior UBS AG
banker in Hong Kong returned to work on Monday, according to a
spokesman for the bank, after being placed on leave as part of
an investigation into the hiring of a Chinese colleague.
Joseph Chee, head of capital markets solutions, was put on
leave last month amid an internal investigation over the hiring
of Joyce Wei, the daughter of the chairman of Tianhe Chemicals.
The UBS probe came as U.S. authorities launched an
investigation into whether rival J.P. Morgan violated
federal laws in hiring the relatives of current or potential
clients in China with the sole purpose of winning business from
U.S. authorities are looking into the hiring practices of
other banks, but so far, J.P. Morgan has come under the heaviest
and most public scrutiny.
The UBS internal probe was prompted by the bank's
relationship with Tianhe, which was looking to list in Hong Kong
later this year in a deal that could raise as much as $1
billion. UBS was among the banks in the running for a senior
role on that transaction.
Sharlyn Wu, a member of Chee's team, was also put on leave
while UBS reviewed the matter involving Tianhe and the hiring of
the chairman's daughter.
UBS spokesman Mark Panday told Reuters on Tuesday that Chee
returned to work on Monday. Panday said he could not provide any
information about Wu.
The J.P. Morgan probe returned to the spotlight on Monday
when the Wall Street firm announced that its top China banker
(Reporting By Lawrence White; Editing by Michael Flaherty and