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!
It’s not something you control so why worry about it?
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.
The banks still do grunt work in a recession kiddo you’re the last on the chopping block. They’ll cut bloated underperforming seniors first and maybe it’ll trickle down to poor performing 1st years. Enjoy your senior year.
What a horse-ass take
It's like you always just think of the worst possible thing to say and think "sounds good"
jesus. if you recruit somewhere else then that place might have the same issues. you can't control how any of it plays out, what if you leave your current bank and end up worse off? there's nothing you can do about it
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It’s never likely. It’s always possible. I think it would be a big mistake letting it affect how you spend your free time.
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 I have friends at merrill where 95% of their analyst class was let go... i wouldn't say anything is "highly unlikely"
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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