Hot News:: For All Those Looking To Go Into Investment Banking

College Majors Business Major
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<p>There have been numerous rumors that Wall Street Banks have been whispering about slowing down the amount of recruiting. Despite the record numbers in compensation, profit, and record-breaking earnings in this year's first quarter, the market leader in Investment Banking, Goldman Sachs, has decided to basically pull the plug on recruiting. </p>

<p>I assume that they'll continue to take the "superstar" kids, but that means very few analysts per year. More info coming soon.</p>

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<p>ummm, could you link the article/rumors? Because "pull[ing] the plug on recruiting" makes absolutely no sense for a position that has high turnover. Who the hell would do all the grunt work in a couple years. The higher-ups need their burgers.</p>

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<p>Rumor is from a strong link in Wall Street. If I find a source, I will post it.</p>

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<p>
[quote]
If I find a source, I will post it.

[/quote]
</p>

<p>Looks like you jumped the gun on that one...</p>

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<p>Okay here we go...
<a href="http://online.wsj.com/article/SB118004777516913996.html?mod=Breakingviews+-+U.S%5B/url%5D"&gt;http://online.wsj.com/article/SB118004777516913996.html?mod=Breakingviews+-+U.S&lt;/a&gt;&lt;/p>

<p>For those of you who don't have WSJ Online....</p>

<p>Goldman Takes a Breather
Hiring Freeze May Help
In Expected Leaner Times;
Dell's Wal-Mart Bargain
May 25, 2007; Page C12</p>

<p>"Is Wall Street edging toward a hiring freeze? That may sound like a nutty question given the buoyancy of the markets, boom in buyouts and record investment-banking earnings in the first quarter. But all of this exuberance hasn't stopped rumors from swirling that banks are pulling back on recruiting. Guess what? They're not entirely unfounded.</p>

<p>Goldman Sachs Group is now taking a "pause" on hiring that goes beyond the usual seasonal summer slowdown, according to people familiar with its plans. While the firm will make exceptions for top talent, this is significant. When the market leader makes such a move, you can bet others will follow. If Goldman is a leading indicator, this might become the first industrywide freeze since the tech-stock meltdown.
[Combo]</p>

<p>Nonetheless, taking a breather right now looks sensible. The money industry is enjoying fat times that even its top executives admit will be difficult to sustain. Indeed, take a look at what analysts expect Goldman to mint over the next few years. For its fiscal year ending in November, the firm should earn $21.50 a share, up 10% from last year's record, according to FactSet Research Systems. But in 2008, that's expected to drop to $21.10 a share, and to $19.30 the following year.</p>

<p>So it's understandable that Goldman, and some of its rivals, might ease up on adding new seats. Sure, this means some of the existing staff will have to work a little harder. But given the cost of hiring and buying out bonuses at the top of the cycle, this seems prudent. And, hey, if concerns about a slowdown prove overblown, it's not all bad. The bonus pool won't need to be split with any newbies."</p>

<p>Mind you, redsox, I have heard speculation that this really won't affect those at the analyst level, but that's just speculation. My reasoning is the same as yours- why do it if its got such a high turnover rate? I guess we'll just have to wait and see how things turn out.</p>

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<p>Citi is also looking at reducing staffing. Smart firms know that when everything seems like it's at the peak a downturn is around the corner.</p>

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<p>This just in: I'm screwed.</p>

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<p>haha awww.. that sucks.
i don't even wanna go into i-banking, but i wanted to do consulting.
i guess more undergrads are gonna look towards that now..</p>

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<p>wonder if this is gonna hit S&T as hard as IBD</p>

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<p>good news: </p>

<p><a href="http://money.cnn.com/2007/05/25/news/companies/bc.wallstreet.hiring.reut/index.htm?section=money_latest%5B/url%5D"&gt;http://money.cnn.com/2007/05/25/news/companies/bc.wallstreet.hiring.reut/index.htm?section=money_latest&lt;/a&gt;&lt;/p>

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<p>there is a difference however between laying off staff to slim down, haulting recruiting and laying off positions that have doubled due to mergers. </p>

<p>Citi is slimming down (it is much harder to keep control and manage a multifaceted bank like citi and bofa)
Goldman is haulting (according to above, but from bw articles, most banks have announced an increase in recruiting????)
Barclays/ABN are merging</p>

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<p>Citigroup isn't only "looking" into downsizing, it expects it. They plan to lay of about 17, 000 or so employees. This, of course, hit WSJ about early April or so. Otherwise, I'm really not quite so sure about the two contrasting articles. My best bet is that IBD and S&T will continue to recruit as usual, but won't have the same %age increase as in # hired in previous years. </p>

<p>In other words, it looks like these companies are just slowing down just a bit and taking a bit more cautino, but aren't really halting recruiting. Summer '08 will doubtfully be hit, I think.</p>

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<p>I guess it is like the IT bubble?</p>

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<p>
[quote]
I guess it is like the IT bubble?

[/quote]
</p>

<p>florazhao, why would you say that? I see no comparison.</p>

<p>
[quote]
<a href="http://money.cnn.com/2007/05/25/news...n=money_latest%5B/url%5D"&gt;http://money.cnn.com/2007/05/25/news...n=money_latest&lt;/a>

[/quote]
</p>

<p>OK, this makes more sense. I can see them slowing down the growth of employment, but do to the nature of the job there will continue to be many openings available for recruitment.</p>

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<p>please dont let this happen now. i'm gonna be a third year this fall.</p>