Rumor: Bear Employees Below VP Level To Be Cut
There is a rumor out there that says that Bear Stearns current employees who are below VP level may be terminated soon. SA & FT '08 are obviously cut.
Is this true?
There is a rumor out there that says that Bear Stearns current employees who are below VP level may be terminated soon. SA & FT '08 are obviously cut.
Is this true?
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Career Resources
Too early to tell
The thing is... Bear's always had a second-rate IB. It's strengths were clearly elsewhere. Firms such as MS and ML have top-IBs, so, despite heavy write-downs, I would expect certain divisions to stay strong. I don't see the same scenario with Bear. JPM might be able to use Bear's prime brokerage, but JPM IB is heads and shoulders above Bear... I would expect the caliber of candidates to differ also, and JPM doesn't really need to take on many junior bankers in these divisions.
I believe that the only reason that JPM took on Bear was to save the entire finance industry (including itself). If Bear went under, the counter-party to all the positions it held would be screwed, and every firm would essentially be decimated. The interconnectedness nature of the industry forced JPM to take on Bear, even though JPM really has little use for the small firm.
...That, and that Dimon has a huge ego and has been looking everywhere for an acquisition in the past few months. Probably to prove to the world that JPM emerged unscathed by the subprime, as no one (especially media) seems to give the firm very much credit, whilst everyone venerates GS's risk-management.
Jamie Dimon can now live down in history as the second John Pierpont Morgan...the godfather of wall street who can be counted on to save the street when it is in trouble....."JP Morgan stands behind Bear Stearns". How grand.
For $250M, they would be fools not to pick up Bear Stearns. Certainly after you get rid of all the trash there is profitability to be had. JPM will come out of this richer and with goodwill for having saved the industry.
Oh...If you look at Bear Stearns & JPM merger agreement, VP and up are saved, but there is nothing on the agreement which guarantees employment for those who are below VP level.
Best, SoulSearching
It actually doesn't save anyone. It says it reserves them the right to hire/promote people at the VP level or above, then it says it can terminate employment of people at the VP level and above.
I don't know why they specifically mention the VP level, nor do I care to speculate, but you're reading the merger agreement out of context.
i happen to be an adjunct career advisor at one of the top b-schools. i know that the head of career services has been in close contact with both Bear and JPM. as of yesterday, nothing with regards to FT or PT associate offers has been decided yet. i'm sure this is the same for analysts. until something becomes official, rumors are just rumors. you guys have to keep in mind that the fate of a few hundred incoming junior bankers is probably not exactly first thing on the list right now for Jamie Dimon. they might make an announcement soon but it might also take some time.
What if you are a senior managing director in equities at Bear Stearns in Chicago will they fire you? The reason I ask is I don't think JPMorgan has a trading desk in Chicago.
on jpms conference call, they mentioned multiple times that they liked bears equities business. if you were bringing in a lot of money for bear, youd probably be fine and offered a job in new york. either way, i dont really have any sympathy for senior mds. now youre not making 4 mil a year...big fucking deal. if you dont have enough savings to live comfortably from the past years (even accounting for the loss in value from bear stock), youre a total dumbass.
this is crap.... people under VP are not all being fired
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