a day ago
JPMorgan Can Retain Junior Bankers With Cash, Not Threats
Investment banks and private equity firms are fighting over the kids again. Both sides want the smartest graduates hungry to get rich (many have monster student debts, to be fair), but someone must put them through Wall Street Boot Camp, the basic training of financial modelling, pitching clients and selling deals. Banks typically bear those costs — and they're fed up of private equity free riding on their investments.
Hoping for an informal code of honor between competing firms, or threatening dire consequences for junior analysts who don't play by some imagined set of rules won't fix the problem. A better solution would be to use the tool that governs everything else in finance: money.
