(Not Quite) Layoffs (But Considered By Some To Be Just As Bad If Not Worse) '08: JPMorgan CHASE

Posted by Bess Levin, Jun 05, 2008, 8:54am

We're told that Bearpont Morgan Chase is moving over a third (50/133) of its incoming IBD class over to the commercial bank. Apparently HR has been telling the demoted that their sentence will last one year, at which time they'll (hopefully) be brought back over to IBD. A handful of summer interns are also being shifted into various divisions such as PWM, Asset Management, etc, with HR citing "low dealflow" and "insufficient work" to keep the Mini Morgans occupied, vending machine contests apparently not being an appropriate use of time.

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Tags: Jamie Dimon, JP Morgan Chase

Comments

1

Posted by Investorcluzo , Jun 05, 2008 9:15AM

OMG! commercial banking, that's worse that the fate of equities in dallas, the horror, the horror. so much for models and bottles kiddies, the legend of aj will live as a symbol of the top of the market.

2

Posted by guest , Jun 05, 2008 9:16AM

can anyone confirm this? are these affecting public finance as well, or just corporate finance?

3

Posted by guest , Jun 05, 2008 9:21AM

@ 9:15 - stfu and have some compassion. just because you got stuck working in ops and think all positions that are front office are equal doesn't mean people don't have a right to be shitting a brick about being transferred to commercial

4

Posted by guest , Jun 05, 2008 9:26AM

I'm not your buddy, guy!

5

Posted by Johnny , Jun 05, 2008 9:29AM

They SHOULD be shitting a brick (going to be extra painful if it's gotta go around the silver spoon) about being transferred to commercial..!! That's a career death sentence to these aspiring IB'ers. They might as well learn right away how tumultuous the industry can be.

6

Posted by Investorcluzo , Jun 05, 2008 9:35AM

@9:15 - where have you been? clearly you haven't been following along. oh, why bother, I'll be nice because I want to make sure I don't get short changed when I go in for a roll of quarters. where is the guy/girl with his quote: "I don't lose money, I print it!"

7

Posted by guest , Jun 05, 2008 9:46AM

hahaha.....tell me again how big your bonus pool is again....and how your bonus and salary arent being cut...

hey clueless..where ya been?

8

Posted by Investorcluzo , Jun 05, 2008 9:51AM

@9:46 - busy processing trades, ha, ha! btw, I heard commercial bankers, er, "corporate bankers" don't have to work as many hours as their ib counterparts. perhaps the newbies will enjoy a little "work-life" balance.

@9:21 - post at 9:35 was meant for you. was a little distracted - option trades were coming in fast and furious as einhorn was yapping away on cnbc.

9

Posted by guest , Jun 05, 2008 10:05AM

Did anyone else notice this morning that Erin Burnett was giggling inappropriately, that her voice was strangely ranging from a high pitch to a low pitch, that when Mark Haines made an inocuous remark, she said in response she was "just enjoying the pictures"?

10

Posted by guest , Jun 05, 2008 10:11AM

Scylla (of layoffs) and Charybdis (of transfers to commercial bank) for analysts at JP Morgan IBD. Incoming analysts at JP Morgan learn a hard lesson: they're management's last concern.

JP Morgan Chase acted quickly to rescind offers to "excess" incoming Bear Stearns' analysts; someone forgot to survey JP Morgan Chase's incoming class and rescind offers before the people came in the doors.

11

Posted by guest , Jun 05, 2008 10:53AM

Imagine spneding $100,000 for B-school, only to land in commercial banking. You think HBS will issue a refund?

12

Posted by guest , Jun 05, 2008 10:54AM

Imagine spending $100,000 for B-school, only to land in commercial banking. You think HBS will issue a refund?

13

Posted by guest , Jun 05, 2008 11:38AM

I can confirm - got the call this morning.

14

Posted by guest , Jun 05, 2008 1:12PM

Given that JPMorgan generally hired the biggest helmet-sport douchebags from my college (their recruitment seminar, when they brought back a few dozen alumnus, was like a white-male-fratboy reunion), I find this hilarious beyond belief. Those football players with D averages belong in commercial banking.

15

Posted by guest , Jun 05, 2008 4:17PM

Anyone knows what criteria HR usually employs to decide what part of the class is cut? or is it just another lottery

16

Posted by guest , Jun 05, 2008 5:33PM

@4:17pm. At this point, I have no idea. Throughout the merger, it seemed as though JPM was doing a very thorough merit-based review on each employee, whether from Bear Stearns or JP Morgan, although the lack of business in several areas no doubt influenced the outcome.

A much smaller percent of JP Morgan people got cut than of the Bear Stearns people, so there was some premium put on service and loyalty. People who work at JP Morgan who got cut probably had some issues with JP Morgan, although there seems to be some debate on that concerning the 11 who got cut today.

With incoming analysts, JP Morgan wouldn't have too much to go on other than school reputation and undergraduate records. Judging from the past, I imagine they made some effort to make the decisions in such a way as to maximize the bank's functioning.

However, it's been a long, sad process, and there are a lot of loose strings. The IB was one of the last places JP Morgan attempted to integrate, very few Bear people were taken, and they just brought over the second-year analysts from Bear on Monday. I imagine no one at JP Morgan was very happy when they realized they had a surplus of incoming IBD analysts. Who knows how decisions were made at the end?

17

Posted by guest , Jun 05, 2008 8:36PM

How many cut/transferred?

Will heads continue rolling through the week?

18

Posted by guest , Jun 05, 2008 8:36PM

How many cut/transferred?

Will heads continue rolling through the week?

19

Posted by guest , Jun 05, 2008 8:37PM

How many cut/transferred?

Will heads continue rolling through the week?

20

Posted by guest , Jun 06, 2008 2:15AM

For some comic relief goto:
www.bearstearnslives.com

21

Posted by guest , Jun 07, 2008 3:23PM

Y'all! a shout from across the pond,

Does this only affect US? Or will this by hook or by crook spread to EMEA/Asia aswell?

22

Posted by guest , Jun 07, 2008 3:51PM

To reply the second post:

15% of the public finance people will be cut.

23

Posted by guest , Jun 08, 2008 10:43PM

Is it true that Merrill is about on chop heads on Tuesday?

24

Posted by guest , Sep 06, 2008 8:39PM

These poor kids return to the investment bank next summer as 1st year analysts. They worked hard only to have a year of their lives wasted.

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