(13 September 2024 – United States) JPMorgan and BofA are implementing new policies to alleviate extreme burnout for junior investment bankers.
Bankers and regulators are pleased at any official change to working hours as a hopeful start to addressing long-standing issues but raise concerns over the measures failing to ultimately make an impact on deeply ingrained “over-work” industry norms. The headline change is by JPMorgan after the Wall Street Journal reported the world’s largest bank by asset size will be capping work hours at 80 per week “in most cases”. BofA will use a new tool to closely track working hours for junior bankers and notify HR when their week exceeds 80 hours.
The policies follow a renewed outcry over working conditions for young bankers following the death of Leo Lukenas III, an investment banking associate at BofA who died in May. Lukenas had worked on closing a US$2 billion acquisition as a member of BofA’s financial institutions group. An incoming investment banking analyst, who also spoke on the condition of anonymity, described the changes as “saving face”.
“I think it’s fantastic that they’re taking the concerns of junior bankers seriously and taking the situation that happened this summer seriously. You can track hours and promise days off, but at the end of the day, if there’s work to get done and the expectation is that it’s coming from your senior banker because a client needs it, that’s going to get done. That’s how they make money” a junior banker who left BofA recently anonymously commented to Business Insider.