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| Bank of America's NYC headquarters VIEW press/Corbis via Getty Images |
Bank of America is the latest Wall Street firm to issue new rules for junior bankers considering private equity jobs marking a shift in how firms handle the increasingly common transition from banking to buy-side roles.
According to a source familiar with the matter, the bank led by CEO Brian Moynihan will now ask its analysts to disclose whether they’ve accepted future-dated job offers. Bloomberg first reported the policy.
The move mirrors similar announcements from JPMorgan, Goldman Sachs, Citi, and Morgan Stanley but with one key distinction: instead of firing analysts who’ve secured outside jobs, Bank of America will reassign them to different roles within the bank.
A spokesperson for Bank of America declined to comment on the change.
A Softer Touch Compared to Rivals
Other major banks have adopted stricter stances. JPMorgan has stated outright that analysts who accept future offers from other employers “will have their employment with the firm ended.” While Goldman, Citi, and Morgan Stanley have also introduced new disclosure requirements, they’ve been less specific about the consequences for junior bankers who admit to having outside offers.
Citi said it would review such cases individually, while Morgan Stanley warned of potential disciplinary measures.
Bank of America’s more flexible approach appears aimed at finding a middle ground acknowledging the career goals of junior bankers while still addressing concerns about potential conflicts of interest.
Tension Between Banks and Buy-Side Recruiting
Banks have long been frustrated with the private equity industry’s early recruiting practices, which often result in investment banking analysts interviewing for future roles within weeks or even days of starting their current jobs. These interviews typically result in offers for positions that begin two years later.
This practice has become a major source of tension. Many of the private equity firms involved are clients of the investment banks, which raises red flags about possible conflicts of interest when analysts are involved in sensitive deal work while already committed to future employers.
The issue became particularly heated in recent months. JPMorgan CEO Jamie Dimon publicly criticized the practice in June, saying, “I think that’s unethical. I don’t like it, and I may eliminate it regardless of what the private-equity guys say.”
Speaking to college students at Georgetown University last year, Dimon added, “You are already working for somewhere else, and you are dealing with highly confidential information for JPMorgan.”
Industry-Wide Shift in Recruiting Timelines
Following Dimon’s criticism, several prominent private equity firms including Apollo Global Management, General Atlantic, and TPG announced they would delay recruiting for their 2027 analyst classes until next year. This decision marked a notable departure from the usual fast-track hiring cycle that has become the norm in recent years.
Bank of America’s reassignment policy may offer a more measured solution as the industry grapples with how to manage these overlapping interests. It allows the bank to preserve confidentiality in dealmaking while avoiding abrupt dismissals that could further alienate junior talent.
As Wall Street navigates the evolving dynamics between banking and private equity, Bank of America’s approach could set a new tone for handling early career transitions without shutting the door on young professionals’ long-term goals.
