Banks Crack Down on Early Job Hopping: What Junior Bankers Need to Know

Citigroup Inc. is taking a bold step to ensure transparency among its new investment-banking analysts by requiring them to disclose if they've accepted job offers from other firms. This move is part of a broader effort by banks to combat aggressive recruitment tactics by private equity firms.

The New Attestation Requirement

First-year analysts at Citigroup must now complete an "attestation" form, aimed at fostering a fair and transparent environment. This form, which may become an annual requirement, will assess each analyst's situation on a "case-by-case basis."

A Growing Trend Among Banks

Citigroup's policy mirrors actions by other major banks like JPMorgan Chase & Co. and Goldman Sachs Group Inc., which have implemented similar measures to retain talent. JPMorgan has even threatened to fire analysts who accept outside offers within 18 months of joining.

The Private Equity Factor

Private equity firms have been recruiting young bankers well in advance, often before they've completed their training at investment banks. This has led to a tug-of-war for talent, with banks now pushing back to protect their investments in training these professionals.

Goldman's Countermove

In a strategic twist, Goldman Sachs is using its private markets arm as an incentive, offering select interns guaranteed moves to its asset- and wealth-management division after two years in investment banking.

Morgan Stanley's Stance

Morgan Stanley has also joined the fray, requiring junior bankers to promptly disclose any future job offers from outside the bank, with non-compliance potentially leading to termination.

Citigroup's Broader Strategy

Under new leadership, Citigroup is tightening oversight as it seeks to expand its investment bank. This includes hiring senior bankers from competitors like JPMorgan and Goldman to strengthen its position against private-market investors who are also scouting for talent.