Lateral Recruiting Reneging

Based on previous WSO threads, here are some key points to consider regarding reneging on an accepted offer:

1. Consequences of Reneging:

   • Reneging on an offer can have serious consequences. It's not uncommon for the firm you renege on to reach out to the other firm, potentially jeopardizing your new offer.
   • There are instances where individuals have lost both offers due to reneging. For example, one user mentioned knowing someone who had their offer rescinded by MS after reneging on another offer.

2. Reputation and Career Impact:

   • Reneging can damage your reputation in the industry. Banks communicate with each other, and word can spread, potentially affecting future opportunities.
   • Some firms may view reneging as a sign of unreliability, which could impact your career progression.

3. Firm Policies:

   • Different firms have different policies regarding reneging. While some might be more understanding, others have strict policies and may rescind offers if they find out you reneged on another firm.
   • For example, one user mentioned that GS/MS/JP might still interview you even if they know you have to renege, but this is not guaranteed.

4. Advice from Current Bankers:

   • Many current bankers advise against reneging due to the potential risks involved. They suggest that if you do decide to renege, you should be prepared for the possible fallout and handle the situation discreetly.

In summary, while the upside of moving to an EB might be significant, the risks associated with reneging on your MM offer are substantial. You should carefully weigh these risks and consider the potential long-term impact on your career. If you decide to proceed, do so with caution and be prepared for any consequences.

Sources: Should I renege this late?, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Accepted an offer in IB but debating on going to another bank's Superday for Commercial Banking, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Renege BB PB Offer For MM IB?