Since the Covid era, when disgruntled Goldman Sachs junior bankers created a notorious PowerPoint presentation that pressured banks to at least pretend to care about their lower-rung employees’ mental health, there has been significant progress.
However, it seems that we may be regressing back to where we started, not even half a decade later.
The stress on Wall Street’s junior bankers is becoming increasingly evident, particularly among the staffers who assign tasks to trainees. These staffers, distinct from general employees, are responsible for delegating work to subordinates when needed by investment bankers or clients.
With banks recovering from a downturn and operating with reduced staff, the task is becoming more difficult, putting strain on both trainees and staffers, according to a report by Bloomberg.
This situation has led to junior bankers at JPMorgan Chase & Co. and UBS Group AG inflating their reported weekly hours to preserve some free time. Conversely, at Bank of America Corp., some trainees are downplaying hours to avoid exceeding 100-hour limits and potential HR issues, which were likely implemented in response to the junior banker unrest of 2021.
When junior bankers are scarce, staffers must inform supervisors, which can be anxiety-inducing, as exemplified by a recent incident at Citigroup Inc.
One staffer who emailed a managing director about being overwhelmed became physically ill and tearful. The response, “I am so disappointed in you,” ultimately led to her resignation, as highlighted in the report.
Recent interviews with current and former junior bankers have revealed a resurgence of 100-hour work weeks as banks chase a modest deal flow. Employees, speaking anonymously, acknowledge that workloads are challenging the promises made to safeguard trainee health.
The tragic death of Bank of America associate Leo Lukenas from a heart attack sparked online outrage about excessive demands. Despite the bank’s public commitment to junior bankers’ well-being, heavy workloads persist, as reported by Bloomberg.
As a result of the intense environment, junior bankers are now inflating or understating hours under pressure to manage expectations. While dealmaking desks are seeing progress, trainees have limited leverage to improve their conditions.
Despite protective measures, long hours continue to prevail. One junior banker even ignored chest pain to meet deadlines out of fear of repercussions. An Overheard on Wall Street survey revealed that junior bankers average 80-hour work weeks and fare poorly on health metrics.
Perks like Peloton bikes remain unused, and the banking culture has yet to evolve to meet the needs of junior bankers, according to Columbia Business School professor Stephan Meier.
The stressful environment has driven some individuals to seek better work-life balance in private equity or money management. Hamilton Lin of Wall Street Training & Advisory compares banking to “selling your soul,” but believes it is a worthwhile trade-off.
As was observed in 2021 and is reiterated now, the demanding work for junior bankers is a longstanding trade-off that dates back almost as far as Wall Street itself.
“Junior bankers trade a grueling workload for pay that’s higher than the average American salary and a shot at eventually earning multi-million dollar compensation packages as a managing director,” as noted by CNBC.
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