Monday, June 23, 2008

JPM "Honoring Commitments" To Incoming Analysts?

18 June 2008 - When JP Morgan bought Bear Stearns it kept on some of the incoming analysts from Bear Stearns.  Many recent graduates who had accepted analyst positions in JP Morgan's investment banking division were worried when they heard this because they thought it would lead to overstaffing and possible pulling of accepted offers.  To assuage these fear JPM came out publicly and said that it would be honoring all offers that were made to and accepted by incoming analysts at JPM.  Alas this statement did not prove to be true.  A few weeks ago JPM started calling up a third of its incoming IBD class and telling them that they could either do a year in the commercial bank with a promise of a spot in the incoming 2009 IBD analyst class or take a walk.  Granted this is better than being fired but it is incredibly underhanded since JPM knows full well that most of those incoming analysts offered this choice will probably take it since they have few other options.  The Prince had this happen to a good friend of his and his friend choose to accept the year in the commercial bank.  The read more about this story checkout the boards a Wall Street Oasis.  Specifically this thread and this one.  Also checkout DealBreaker's post on the situation.  JPM also claims it was random but based on what The Prince has seen there is no way that is the case.  Banks always try to avoid pulling offers because it hurts future recruiting efforts especially at Ivys.  We will see how this may hurt JPM's future recruiting efforts on campus.  This is all just so ironic since JPM maintained ‘we have kept all offers to our own class' throughout the Bear Stearns pulling of some offers.  Talk about honoring your commitments. 

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