Seriously? JP Morgan Is Being Investigated For Hiring Well-Connected People?

News crossed this weekend that U.S. bank JP Morgan is being investigated by U.S. regulators for hiring well-connected people in China.

Specifically, the bank is said to be under investigation for hiring two bankers whose fathers ran big Chinese companies that later hired JP Morgan for several assignments.

So that's against the rules now?

Hiring well-connected people?

And that's what U.S. regulators are spending their time doing--investigating whether J.P. Morgan is hiring well-connected people in China?

(Not to sound ungrateful for the efforts of our regulators, but don't companies hire well-connected people all over the world? Isn't this generally considered a smart business practice? Didn't Fed Chair candidate Larry Summers just scoop up $5 million in consulting fees between Harvard and the Obama administration? Will US banks be investigated when they hire Tim Geithner, Ben Bernanke, et al? Is this really the best use of precious regulatory resources?)