JPMorgan has warned incoming graduates that accepting another job within 18 months of joining the bank will result in dismissal, as it seeks to curb the loss of junior talent to private equity, according to a report by the Financial Times on Thursday.
The policy was outlined in a letter obtained by the newspaper to new recruits who are set to begin JPMorgan’s US analyst training programme this summer.
Although private equity firms were not explicitly named, the FT noted that the letter refers to “on-cycle” recruitment, a process in which private equity firms offer roles to graduates up to two years before their start date, allowing them to complete an analyst stint at an investment bank first.
“If you accept a position with another company before joining us or within your first 18 months, you will be provided notice and your employment with the firm will end,” global banking co-heads Filippo Gori and Doug Petno wrote.
JPMorgan chief executive Jamie Dimon has openly criticised the fast-tracked recruitment process, calling it unethical and warning that it creates conflicts of interest for graduates who may find themselves working on deals involving their future employers as counterparties.
ECB’s Lagarde ‘determined’ to complete her term
European Central Bank president Christine Lagarde has ruled out leaving her role early to lead the World Economic Forum, saying she is “determined” to complete her full term at the ECB.
“I can very firmly [say] that I have always been fully determined to deliver on my mission and I’m determined to complete my term, so I regret to tell you that you’re not about to see the back of me,” Lagarde told reporters on Thursday in Frankfurt.
Her comments follow speculation triggered by Klaus Schwab, the German financier and former WEF chair, who told the Financial Times he had discussed a leadership transition with Lagarde.
Schwab claimed she had considered taking the role before her ECB mandate ends in 2027 and said an apartment had been reserved for her at the WEF’s Villa Mundi residence on Lake Geneva.
Mark Tucker exits HSBC to become chair of insurer AIA
HSBC chair Mark Tucker will step down at the end of September to become chair of Hong Kong-based insurer AIA Group. Tucker previously served as AIA’s chief executive and president from 2010 to 2017.
His departure will conclude an eight-year tenure at HSBC, during which he played a key role in backing chief executive Georges Elhedery’s sweeping restructuring efforts, which included merging HSBC’s corporate and investment banking units and exiting markets where the bank lacked scale to compete, such as in Canada and its investment banking operations in the US.
HSBC said Brendan Nelson, a board member and former KPMG partner who chairs its group audit committee, will become interim chair from October 1 while the bank continues its search for a permanent successor.
Tucker is expected to take up his new position at AIA on the same day, both companies confirmed on Friday.
Wise to switch primary listing to New York in blow to London
UK money transfer company Wise dealt a fresh blow to the London Stock Exchange on Thursday after it announced plans to shift its primary listing to New York in an effort to attract more investors and improve liquidity in its shares.
The UK has sought to make London a more attractive venue for company listings and capital raising by introducing major reforms to its listing rules last year. Despite these efforts, the LSE continues to struggle to attract new initial public offerings.
Wise, which made a high-profile debut on the London market in 2021 with a valuation close to £9bn, said the move would enhance its appeal to US investors and support its growth ambitions in the world’s largest economy.
“We believe the addition of a primary US listing would help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our owners,” Wise said in a statement.