2008 Woodie Awards
JP Morgan cuts 250 job offers, leaves students searching
Christina Piazza
Issue date: 4/24/08 Section: News
Did you recently receive a job offer from Bear Stearns? After signing the contract upon acceptance, do you believe your job is secure?
If your answer is yes, guess again. It may be time to start looking for another job.
According to the New York Times, Bear Stearns, now JP Morgan, rescinded 250 of their job offers to college graduates.
The New York Times also reported, "JP Morgan is offering the student recruits consolation prizes, provided they play by its rules. They can keep hefty signing bonuses that Bear promised them -$10,000 for college seniors and about $50,000 for M.B.A. students-if they sign contracts in which they agree not to sue the bank over their rescinded jobs."
"If they do not sign, they cannot keep the money, which many of the students received last fall," said JP Morgan.
However, according to Elizabeth Lowery, assistant director of career placement, JP Morgan has not called to recruit any Sacred Heart students, nor has she had any students whom had an offer rescinded from JP Morgan.
The trouble in the financial job market became more prevalent with the recent trouble Bear Stearns endured.
"The Bear Stearns crisis was caused by the firm's investing heavily in the subprime mortgage market in 2007. When that market started to have a lot of defaults, Bear Stearns had to mark down the value of their investments which in turn resulted in their reporting losses," said professor John Gerlach, senior business executive in residence and associate professor.
As Bear Stearns continued to report more losses, their clientele turned to other investment firms, further causing the downfall of Bear Stearns.
Moreover, the continual reporting of losses caused the price of their stock to fall from last year's $167 to the recent price of $30 reported in March.
JP Morgan was the only buyer willing to buyout this firm; therefore they were able to negotiate for $2 a share. However, with the Federal Reserve's guarantee of $30 billion for further losses, JP Morgan agreed to pay $10 a share.
If your answer is yes, guess again. It may be time to start looking for another job.
According to the New York Times, Bear Stearns, now JP Morgan, rescinded 250 of their job offers to college graduates.
The New York Times also reported, "JP Morgan is offering the student recruits consolation prizes, provided they play by its rules. They can keep hefty signing bonuses that Bear promised them -$10,000 for college seniors and about $50,000 for M.B.A. students-if they sign contracts in which they agree not to sue the bank over their rescinded jobs."
"If they do not sign, they cannot keep the money, which many of the students received last fall," said JP Morgan.
However, according to Elizabeth Lowery, assistant director of career placement, JP Morgan has not called to recruit any Sacred Heart students, nor has she had any students whom had an offer rescinded from JP Morgan.
The trouble in the financial job market became more prevalent with the recent trouble Bear Stearns endured.
"The Bear Stearns crisis was caused by the firm's investing heavily in the subprime mortgage market in 2007. When that market started to have a lot of defaults, Bear Stearns had to mark down the value of their investments which in turn resulted in their reporting losses," said professor John Gerlach, senior business executive in residence and associate professor.
As Bear Stearns continued to report more losses, their clientele turned to other investment firms, further causing the downfall of Bear Stearns.
Moreover, the continual reporting of losses caused the price of their stock to fall from last year's $167 to the recent price of $30 reported in March.
JP Morgan was the only buyer willing to buyout this firm; therefore they were able to negotiate for $2 a share. However, with the Federal Reserve's guarantee of $30 billion for further losses, JP Morgan agreed to pay $10 a share.
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