Full time offers to SA thoughts

After all the full time offers granted for incoming summer interns in banks and consulting firms, will this push all the other firms ( banks and consulting) in the same tier to follow and grant full time offers ?
CS / jp Morgan / baml /GS / MS / etc ... ? trying to have an inside info on what these firms will do.

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Comments (8)

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Apr 25, 2020 - 11:39am

Anyone with insider info obviously wouldn't say it here. Also it seems like banks will probably go in the direction of increasing FT offers in order to stay competitive in future years. It's inevitable that some desks wont need a lot of people but its also possible that if this virus quells that there will be more activity and firms will need more manpower. At the end of the day though these top banks could cut all offers and people would still apply next year. PR isn't an issue for them if they ever so happen to not give auto FT offers like Citi and Moelis. Their main focus is probably revenue

The thing is we'll never know what the return offers are for banks unless they explicitly say so in an email as you probably arent going to be able to talk to all of the other interns in these conditions. They could still be high (ie 90%) or be low (50%)

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  • Intern in IB-M&A
Apr 25, 2020 - 11:58am

The interesting thing now is that there's one of from BB, EB, and MM that has given offers (Citi/Meolis/Blair), and we're at this weird point where we could definitely see a cascade affect that leads to most banks being pressured to give offers, or we might not see any others. Let's just say theoretically next week (this is purely a hypothetical, I don't have any evidence) that PWP gives FT offers. This would put pressure on places like Evercore, Centerview, etc because now two of their competitors do it. It could definitely set off a chain reaction in EBs that lead to most giving FT offers. The same could definitely happen in MM places if Baird, HW, etc decide to follow Blair. I don't think BBs are the same- GS/MS/JPM are pretty unlikely to do this given their historical offer rates, and they are the clear leaders in the BB space. The rest of the BBs are more likely to follow the big 3 than Citi, and there's been no indication that any of those three plan on giving offers.

My personal prediction is that we see a few more scattered EBs and MMs follow suit, but I'd be suprirsed if more BBs do it also. Again, just my prediction and I don't have evidence to support it.

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Apr 25, 2020 - 12:42pm

I agree on the likelihood of a few more scattered guarantees, most of which will be random and hard to predict.

While I agree, I would challenge your premise that it is in any way related to "pressure" created by the action of other firms. I strongly believe that it will be a result of business related decision making and time (i.e. how successful are large state openings?). This will allow for a reasonably based prediction on the timeline/impact of C19 to business segments.

It is easy to create the false idea that banks are pressured by others in this category. What pressure? I fail to see it. Why would my bank be pressured by another bank to commit to incurring long-term costs that do not bring in revenue? Doesn't make very much sense. We are not talking about the very real pressure these banks face to race towards lucrative businesses/products We are talking about a body of costs that provide, on average, 12-24 months of "value." That value loosely contributes to revenue generation (your .ppt skills are not fooling anyone).

Additionally, the bank that made that commitment can't steal my interns. They have a full intern class and full class of FT hires. This yields no pressure on me to act. The limited opportunities available and glut of capable candidates kills this argument.

If I was the top dog, I would soak the positive PR created by the other banks who jumped in the headlines (avg. Joe thinks all banks are doing this) while sitting back without the cost commitment. I just keep pressing the pause button and have the ability to press the eject button if needed.

  • Intern in IB-M&A
Apr 25, 2020 - 12:59pm

I agree with a lot of what you said, but I do think banks are aware that they are competing with each other for talent, both in junior recruiting and recruiting for upper level positions. I do think that a place like Moelis is thinking that, by making this decision, they would be increasing their relative standing when it came to SA recruiting for years to come. I do think that next year, assuming everything is back to normal, someone deciding between Moelis and PWP/CVP/another similar bank is slightly more likely to choose Moelis because this just shows a general concern for junior employees and their well being.

Apr 25, 2020 - 1:41pm
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