Likelihood that BBs will rescind full-time return offers?

Hey guys, 


So, I completed a 2022 SA at a top BB (GS/JP/MS) and received and signed the full-time return offer a week ago. However, given the dire economic and recessionary forecasts coupled with the fact that banks have been starting to layoff full-time employees (including analysts), I'm concerned that, before my start date, my BB could have a change in headcount needs and rescind full-time return offers that they previously gave out.


How likely do you guys think that BBs will rescind 2023 full-time return offers this year given the macroeconomic situation and the increasing layoffs taking place within the industry currently? Is this something that I should even be remotely concerned about or no?


Would greatly appreciate any perspectives on this!

 

Well, if there is an elevated likelihood of the BB rescinding Full-time return offers, I was thinking about continuing to recruit to hedge against that possible risk. Obviously, this is not something I want to have to do unless it is completely necessary as I'm against any reneging/perceptions of reneging.

 
Most Helpful

Highly unlikely. Analyst salaries are a rounding error for these banks, financials are very well-capitalized thanks to regulatory reform over the last decade, and rescinding offers, especially to new grads, is an awful PR move. Unless this environment gets SIGNIFICANTLY worse I don't see this happening

CS is the only exception given they are publicly discussing downsizing their IB franchise

 

2008 was a totally different event than current market softness/volatility, and banks are highly regulated now

not saying it can't happen by any means... but there has been so much infrastructure put in place around SIFIs that banks can weather a lot more turmoil than really any other industry. I wouldn't be telling incoming FTs to look for backup offers lol

 

Also, wasn't Merrill in 2008 a bit of a special case in that it was about to go under (similar to Lehman and Bear Stearns) and was bought out by BofA? Don't think most of the current BBs are experiencing the same financial circumstances as Merrill experienced in 2008. 

 

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