Pop-quiz: you’re a first year analyst at Goldman Sachs, with a little more than twelve months left until your two year commitment is over and you are free to take a job elsewhere. Do you A) take part in the private equity and hedge fund recruiting that is taking place now, and, if someone was particularly impressed with your junior mistmaking skills, accept an offer for a gig beginning in June 2013 or B) tell the buyside you are sorry but are prohibited from engaging in such activities at this time, as they would pose a conflict of interest for Goldman Sachs? At this time, GS JM’s think the correct answer is A, while higher-ups, who believe there is a firm policy in place that says no analyst shall take part in recruiting until six months from the time they’ve finished the two year program, are going with B. So now this is happening:

Goldman has been firing IBD first year analysts with buyside offers for next year. Senior people are calling up funds to ask if any analysts have received offers from them. A bunch have been cut so far.

A bunch, we’re told, is in the ballpark of four, which seems like enough to put the fear of god into people.

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Comments (68)

  1. Posted by GS 1st Year | May 22, 2012 at 4:08 PM

    Does this dude from recruiting who keeps calling and asking if I want to be his partner for table tennis doubles count as a "buyside firm?"

    -Concerned Stanford Grad

  2. Posted by Guest | May 22, 2012 at 5:09 PM

    This is not a big deal.

    - R. Dalio

  3. Posted by guest | May 22, 2012 at 5:15 PM

    :(

  4. Posted by VonSloneker | May 22, 2012 at 5:15 PM

    "Senior people are calling up funds to ask if any analysts have received offers from them"

    So, four HR guys sold out the analysts to whom their respective firms made offers in order to get in good graces with "senior people" at GS. Just for the chance that you might ply your useless trade at Goldman? That's cold man, cold…

    -J. Iscariot

  5. Posted by HAM05 | May 22, 2012 at 5:18 PM

    first they came for the analysts, but i didn't speak out because i wasn't an analyst

  6. Posted by Texashedge | May 22, 2012 at 5:22 PM

    Good idea. You definitely only want to retain the analysts that couldn't get buyside jobs.

  7. Posted by CarriedInterest | May 22, 2012 at 5:24 PM

    Don't worry McDonalds! We're onto you and your poaching ways!

    -UBS MD

  8. Posted by G. Smith | May 22, 2012 at 5:24 PM

    Then they came for the executive vice presidents, and there was no one left to speak out for me because no one really liked me.

  9. Posted by guest | May 22, 2012 at 5:24 PM

    +1

  10. Posted by Bandersnatch | May 22, 2012 at 5:25 PM

    > 6 mos = conflict of interest, fired
    <= 6 mos = no conflict of interest, OK
    GS is jealous and arbitrary like the Old Testament God whose work they do

  11. Posted by HungryIntern | May 22, 2012 at 5:26 PM

    HR, destroying peoples lives one self-serving day at a time.

  12. Posted by Anonymous | May 22, 2012 at 5:32 PM

    Hey, just be happy we don't start off Monday morning meetings with a coolaid chug and a silent count to 60 to see who's least loved. Just because you receive a paycheck doesn't mean the cult model has been thrown out.

    -Grand Imperial Blankfein

  13. Posted by guest | May 22, 2012 at 5:33 PM

    I wonder if @gselevator was fired..

  14. Posted by Swanky Frank's HR | May 22, 2012 at 5:34 PM

    Just FYI, some of your fellow MDs applied for jobs, but don't worry, they weren't exactly up to our standards.

  15. Posted by guest | May 22, 2012 at 5:34 PM

    For being utterly unfunny?

  16. Posted by MIT | May 22, 2012 at 5:47 PM

    Is this good time to fill out Goldman application???

  17. Posted by guest | May 22, 2012 at 5:52 PM

    You also want to a) be known as a firm whose analysts will be at a disadvantage to every other firm's in the PE/HF recruiting cycle, and b) seed some of the biggest IB fee payers with people you fired or alienated by firing their new hires.

  18. Posted by BAC Linguistic Quant | May 22, 2012 at 5:53 PM

    Maybe wait until you're done with those ESL courses.

  19. Posted by ... | May 22, 2012 at 5:54 PM

    Any of you try working with a second year analyst that already has a job lined up?

  20. Posted by Not a Stalker | May 22, 2012 at 5:58 PM

    High flying 3rd year > 2nd year with job lined up.

  21. Posted by Lloyd's finest | May 22, 2012 at 6:06 PM

    Pretty sure you want to retain the analysts that could, but make sure they don't apply until after. After all, we're doing god's work here.

    Either way, supposedly 4 drones, meh.

  22. Posted by serious question | May 22, 2012 at 6:23 PM

    The funds are telling GS who they've hired? Aren't these employment contracts confidential?

  23. Posted by Marko | May 22, 2012 at 6:39 PM

    Funds that are majority owned by Goldman. Puff piece,

  24. Posted by guestapo | May 22, 2012 at 6:43 PM

    Fair point.

  25. Posted by UFOinsider | May 22, 2012 at 6:46 PM

    For the record, HR CAN SUCK MA BALLS and then go back to fingerpainting or whatever it is they actually while away their time doing

    - guy who ignores HR completely

  26. Posted by Xenomorph | May 22, 2012 at 6:50 PM

    Yeah! WTF!

    - terminated analyst who's cleaning a gun while writing out a list of buyside HR employees

  27. Posted by B. Madison, CFA | May 22, 2012 at 6:54 PM

    Glad HR didn't call that guy.

    -B. Madison, GS 1st Year with PE Offer

  28. Posted by Guest | May 22, 2012 at 7:16 PM

    Goldman had to find some way to higher more first years….

    -Goldman MD (doing god's work) who fired four drones this week

  29. Posted by Randomguy123 | May 22, 2012 at 8:02 PM

    The fact that these kids had jobs leaked internally through the grapevine and then management had to act. They called the firms to confirm. I don't think they reached out to the firms first.

    This is a major departure from Wall St practice which generally encourages (or is ambivalent to) kids recruiting – after all they only want ~30% of analysts for direct promote to associate.

    One of my friends knows one of the guys that got fired and said he was still working around the clock and getting crushed and it didn't matter. It's pretty cold to fire a 21-22 year old when he's in his first job out of college.

  30. Posted by grammatist | May 22, 2012 at 9:47 PM

    wile (and MY…)

  31. Posted by Ed Lambert | May 22, 2012 at 10:37 PM

    Hey !

  32. Posted by CarlyleBallahOffice | May 22, 2012 at 10:41 PM

    What about 1st year operations analysts? Seriously, should I be worried????

  33. Posted by Class of 2007 | May 23, 2012 at 12:02 AM

    Morgan Stanley pulled that crap in 2008. I hope they get downgraded this week. F*ck those guys.

  34. Posted by grammatist^2 | May 23, 2012 at 4:25 AM

    Actually, while.
    http://languagelog.ldc.upenn.edu/nll/?p=466

    - Guy who is now wondering if "wrong grammar Nazi" is an oxymoron, since otherwise it implies the existence of a right Nazi

  35. Posted by HFguy | May 23, 2012 at 4:44 AM

    Elite comment. Bravo.

  36. Posted by zeitguest | May 23, 2012 at 6:51 AM

    … unless those offers get rescinded, these guys just got a year of vacation with a much better job at the end.

  37. Posted by Jack | May 23, 2012 at 7:12 AM

    "junior mistmaking skills"

    +1

  38. Posted by Also_A_Guest | May 23, 2012 at 7:20 AM

    Firing people that already have jobs lined up?

    Yeah, that'll learn'em……..

    What's next Dr. Evil, waterboarding fish?

  39. Posted by R Gupta | May 23, 2012 at 7:31 AM

    How can you tell if someone from HR is lying?

    Their lips are moving

  40. Posted by Guest | May 23, 2012 at 8:11 AM

    Awe you think its too cold to fire a know nothing do nothing kid out of college.. Boo Hoo.. Perhaps you should call HR and complain.

  41. Posted by guest | May 23, 2012 at 9:12 AM

    The jobs are for June 2013, as in a year from now. Try and keep up.

  42. Posted by Digital Underground | May 23, 2012 at 9:13 AM

    Well, D is what I do, so, yo listen up.

    - UBS Industry Freak MD

  43. Posted by guest | May 23, 2012 at 9:22 AM

    Indeed. MD gave guy I hired what he thought was a reaming. Thanks, we'll have him start right away.

  44. Posted by HateR | May 23, 2012 at 9:56 AM

    HR is not a real job.

  45. Posted by Swagged Out Analyst | May 23, 2012 at 9:59 AM

    Fire me? It's all good. They hand me that pink slip and I'm whipping it out on the MD's desk. Swagged out.

  46. Posted by guest | May 23, 2012 at 10:10 AM

    Why can't they ask for a sooner start date?

  47. Posted by Bandersnatch | May 23, 2012 at 10:20 AM

    Because no one wants to work in Oklahoma?

  48. Posted by guest | May 23, 2012 at 10:33 AM

    Do you think that major PE firms and hedge funds are just going to say oh sure yes come a year early when they clearly planned for them to come at a certain time?

  49. Posted by El-Mo's Dealer | May 23, 2012 at 10:44 AM

    The guys who have skin in the game will continue to get the best and brightest. It's exciting to see the talent wars heat up. Alphas are always on the move, and they will eat your lunch soon. We get what we deserve, not what we want.

  50. Posted by Jeff Brown | May 23, 2012 at 10:54 AM

    I can lend credence to this article, I was one of the analysts. I was in TMT M&A and had an AMAZING VC opportunity. Admittedly, I was aware of some of my colleagues getting cut loose; however, I am black and though affirmative action would shelter me from termination. I am 100% serious.

  51. Posted by Pedantic Guy | May 23, 2012 at 10:56 AM

    Unless you work in HR, you are clearly not at Goldman as everyone else would know the difference between "hire" and "higher"

    –Guy who recognizes the irony of claiming that it is the people in HR who are most likely to not know the proper use of "hire," but is leaving his statement just as it is both to show his contempt for HR, and also because the statement is probably true.

  52. Posted by guest | May 23, 2012 at 11:04 AM

    If their HR department screwed up and got the kid terminated, I suspect the answer is yes.

  53. Posted by Dead_cat | May 23, 2012 at 11:36 AM

    Guaranteed buyside job > 6 months mandatory unemployment > MBA

  54. Posted by George W. | May 23, 2012 at 11:44 AM

    I hear unemployment under Obama pays just about as much as first year's at GS made this year.

  55. Posted by Larry the Cable Guy | May 23, 2012 at 12:46 PM

    MA, said with a southern drawl

  56. Posted by Randomguy123 | May 23, 2012 at 1:08 PM

    This is just a lie. I know the kid who got fired from TMT. And there is no TMT M&A group.

  57. Posted by Guest | May 23, 2012 at 1:12 PM

    Perhaps you should go fuck yourself.

  58. Posted by guest | May 23, 2012 at 1:13 PM

    Jeff BROWN… affirmative action…

    -Guy who is scared to connect the dots any further due to the extensive discussion of HR here

  59. Posted by Mitten Rumknee | May 23, 2012 at 1:33 PM

    Wait until I get in office !!!

  60. Posted by guest | May 23, 2012 at 2:00 PM

    So GS analysts basically had their 'no-trade' clause waived by the firm?

    And HR thinks this is punishment?

  61. Posted by Aubrey K. McClendon | May 23, 2012 at 3:57 PM

    Hey!

  62. Posted by Guest | May 23, 2012 at 5:51 PM

    This has nothing to do with conflicts of interest. GS spends a lot of time recruiting and training these kids to then have them become useless six months into the job. They are instead spending their time interviewing six months into the job when they should be working, and after they get offers, they have little incentive to stay engaged in their work.

  63. Posted by Peter Vijeh | May 31, 2012 at 10:07 PM

    this sounds like a win-win for the analysts, they get their first year bonus, a year off and then come back to a buyside job. Way to think that one through goldman.

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  65. Posted by basenji dog | September 24, 2012 at 10:30 PM

    Yes, I do believe the same and my thought go with you on this.

  66. Posted by reference | December 26, 2012 at 10:44 AM

    Alphas are always on the move, and they will eat your lunch soon. We get what we deserve, not what we want.

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  68. Posted by Harga LG Nexus 5 | January 28, 2014 at 6:47 AM

    I don't think they reached out to the firms first.