UPDATE: Citi has just announced a new policy targeting junior bankers to combat aggressive recruitment from private equity firms. The major move comes from CEO Jane Fraser and was revealed in a memo sent to managers today, confirming the bank’s commitment to maintaining a “fair and transparent environment.”
The banking giant will now ask junior bankers if they have secured job offers elsewhere as part of a one-time attestation process, which may be repeated annually. This initiative reflects heightened competition for talent, especially as private equity firms lure young bankers with promises of higher salaries and diverse deal opportunities.
Citi’s updated policy follows similar actions by Wall Street leaders like Goldman Sachs and JPMorgan, which have also implemented measures to retain top talent amid mounting pressure from private equity firms. These firms raised over $1 trillion globally in 2024 alone, significantly enhancing their recruitment power and financial clout, according to investment data from Preqin.
The urgency of this situation is compounded by a recent warning from JPMorgan CEO Jamie Dimon, who cautioned junior bankers against accepting new positions within their first 18 months at the bank. Speaking to students at Georgetown University, Dimon described premature job-hopping as “unethical,” stating it places banks in “a conflicted position.”
Citi is ramping up its investment banking division under new leadership from Vis Raghavan, who previously led banking at JPMorgan. Raghavan has been actively recruiting senior bankers, reflecting a growing trend among banks to strengthen their teams in the face of fierce competition.
The clampdown on job-hopping comes as private equity firms like Apollo Global Management signal a retreat from early-stage recruitment following backlash from traditional banks. With nearly 30% of global M&A volume last year being backed by private equity, according to Dealogic, the pressure on banks to retain talent is escalating.
As the landscape for junior bankers shifts, the competition for top talent is more intense than ever. The financial industry is navigating a post-pandemic environment where deal-making is surging and remote work options are a new norm. This evolving dynamic is critical for both banks and private equity firms as they strategize for the future.
What happens next will be key to watch as Citi and other banks continue to adapt their policies in response to the fierce competition. The stakes are high, and the evolving strategies of these financial powerhouses will significantly impact the careers of young professionals in the industry.
Stay tuned for further updates on this developing story.