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Insider
Guide
Careers in
Investment
Banking 2008 EDITION
Careers in Investment Banking
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Careers in investment banking
2008 Edition
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CHAPTER 1 23
1 Investment
Banking at a
5 The Industry 25 The Firms
Glance 6 Overview 26 The Big Picture
8 The Bottom Line 26 Major Players
8 The Basics of
Investment Banking
10 Emerging Industry
Trends
Careers in 13 Industry
Performance
Investment
14 Industry Rankings
Banking
conte
2008 EDITION
4567
67 On The Job 81 The Workplace 93 Getting Hired 103 For Your
Reference
68 Overview 82 Lifestyle 94 Recruiting Overview
104 Investment
68 Corporate Finance 82 Culture 94 The Recruiting Banking Lingo
Process
70 Mergers and 83 Hours 108 Recommended
Acquisitions 96 Interviewing Tips Reading
83 Workplace Diversity
71 Public Finance 98 Getting Grilled 109 Online Resources
84 Travel
72 Sales and Trading 99 Grilling Your
84 Vacation and Perks Interviewer
75 Research
85 Compensation
77 Support Functions
88 Training
88 Career Path
89 The Inside Scoop
nts
Investment
Banking
1
at a Glance
At a glance
at a glance Your life is the marketriding a bull is exciting

and lucrative.
The Industry
Opportunity Overview Major Minuses

Undergrads and MBAs from top schools are recruited How many different ways can you say, Work
for a number of openings thats small even in the your tail off?
best of times. Competition is fierce, so if youre not
from a top-tier school, you might need to be more No job securityonly the unemployment line has
resourceful and persistent than those who are. Doing more people who have been fired
an internship in investment banking (I-banking) is
The FIRMS
essential to breaking into the field in todays business Tedious work, especially at the lower levels.
environment. Networking is key; make use of your
alumni network. The industry has more than its share of big egos,
Undergrads vie for two-year positions as analysts. abrasive personalities, and workaholics.
If you do well, depending on the firm, you might
get to stay for a third year, perhaps even abroad. Your life is the market, but a bear could put you
out of work.
On the Job
MBAs compete for fast-track associate slots, and

international assignments might be available for Recruiting Overview
those who want them. Very formal and extremely competitive process
at the entry level; its exceedingly difficult to get
Mid-career candidates are recruited by in the door these days if you havent done an
headhunters or hired on an ad hoc basis for internship in the industry.
The Workplace
positions at various levels. Although relatively few

people come into the industry from other fields, Primary channel is on-campus recruiting, but
it can be done, especially by those who have a there are opportunities for mid-career hires, non-
technical background in a specific industry and MBA advanced-degree holders, and candidates
an aptitude for and interest in finance. Otherwise, from second-tier schools.
expect to start at the bottom.
Heavy emphasis on quantitative and analytical
Major Pluses abilities
Getting Hired
The I-banking industry still pays more than most

others, despite the fact compensation has declined Hard work is rewarded regardless of race or
in recent years from its apex during the tech and gender; however, white males dominate the
dot-com boom. industry.
Excellent opportunity to learn the financial

aspects of business inside and out.
Reference
For Your
Chance to build a network of well-connected

professionals.
W E T F E E T I N SIDER GUIDE
For Your
At a glance The Industry ThE FIRMS On the Job The Workplace Getting Hired Reference

WETFEET INSIDER GUIDE
The Industry
2
Overview....................................... 6
The Bottom Line........................... 8
The Basics of .
Investment Banking...................... 8
Emerging Industry Trends.......... 10
Industry Performance................. 13
Industry Rankings....................... 14
At a glance
Overview
The Industry
Youve seen the headlines deriding Wall Street

I-banking has a very steep
firms, the news photos of disgraced research analysts learning curve; chances are
who recommended certain stocks to the public even youll start with a job whose
while they trashed them in email to colleagues. Youve
heard about the nine-figure fines investment banks duties are more Working Girl
have had to pay for transgressions such as conflicts of than Wall Street.
interest. Youve seen the fictional movies and maybe
The FIRMS
even read some of the nonfiction books. Yet youre

still not discouraged. In fact, youre intrigued. Theres
something attractive about the industrythe legend- Wall Street is filled with high-energy, hardworking,
ary long hours and mega-bonusesand you like to young hotshots. Some are investment bankers who
imagine yourself a pinstripe-wearing, jet-setting invest- spend hours hunched behind computers, poring over
ment banker. But suddenly it dawns on you: What financial statements and churning out spreadsheets by
the heck is investment banking (I-banking)? What do the pound. Others are traders who keep one eye on
On the Job
investment bankers do? Whats the difference between a Bloomberg screen, a phone at each ear, and a buyer
sales and trading and corporate finance? More to the or seller on hold every minute the markets in session.
point, why do you want to be a banker? Traders work hand-in-hand with the institutional sales
The intensely competitive, action-oriented, profit- group, whose members hop from airport to airport
hungry world of I-banking can seem like a bigger- trying to sell big institutions a piece of the new stock
than-life place where deals are done and fortunes are offering they have coming down the pipeline. Then
The Workplace
made. In fact, its a great place to learn the ins and outs there are the analytically minded research analysts,
of corporate finance and pick up analytical skills that who read, write, live, and breathe whichever industry
will remain useful throughout your business career. they follow.
But I-banking has a very steep learning curve, and So where do you begin and how do you focus your
chances are youll start with a job whose duties are job search? Lets start with an important reminder:
more Working Girl than Wall Street. I-banking isnt one specific service or function. It is an
umbrella term for a range of activities:
Underwriting, selling, and trading securities
Getting Hired
(stocks and bonds)
Providing financial advisory services, such as

merger and acquisition (M&A) advice
Managing assets
Investment banks offer these services to companies,

Reference
For Your
governments, nonprofit institutions, and individuals.
At a glance
I-banking, much less to do well, youll need to like the
work. Quite honestly, even if you love the work, an I-
The Industry
Thanks to the repeal of laws banking career can still be a tough road. If the market
or your industry group is in a slump (or if your firm
requiring the separation of suddenly decides to get out of a certain segment of
investment and commercial the business), you might find a pink slip on your desk
Monday morning.
banking, many firms do both, Things are looking good on Wall Street these
thus blurring the lines and days, though, marking a change from the early 2000s
when the tech bubble burst and the stock market
cultures.
ThE FIRMS
tumbled. Remember all those dot-com IPOs? For
investment banks, that business dried up in a hurry
when hundreds of dot-coms went out of business. At
the same time, the rest of corporate America drastically
Traditionally, commercial banks and investment tightened its purse strings, resulting in few purchases
banks performed completely distinct functions. When of new stocks or M&As. The extended market decline
Joe on Main Street needed a loan to buy a car, he hurt the profits of I-banks brokerage operations
On the Job
visited a commercial bank. When Sprint needed to because investors (and the commissions they pay each
raise cash to fund an acquisition or build its fiber- time they trade) dropped out of the market.
optic network, it called on its investment bank. Fortunately, the stock market has had a strong
Paychecks and lifestyles reflected this division, too, couple of years, meaning more trading commissions
with investment bankers reveling in their large bonuses and equity-underwriting activity. According to
and glamorous ways while commercial bankers worked Thomson Financial, in 2002 there were 83 IPOs
The Workplace
9 p.m. to 5 p.m. and then went home to their families. by U.S. issuers worth $22.6 billion. In contrast, the
Today, thanks to the repeal of laws requiring the fourth quarter of 2006 ended with 187 IPOs worth
separation of investment and commercial banking, 34.1 billionthe busiest period for IPOs since 1999
many firms do both, thus blurring the lines and (when 480 IPOs raised $91.7 billion) and for 2006 as
cultures. a whole. In addition, the fourth quarter of 2006 saw
The action is still centered in New York City and record M&As for a year-end total of $3.8 trillion, up
a few other money centers around the world, but 38 percent over 2005. Analysts expect that trend to
the list of players is getting smaller as the industry continue in 2007. Many banks have enjoyed record
Getting Hired
consolidates. Today, leading banks include Citigroup revenue and earnings results in recent quarters, and
(whose I-banking arm was until recently known as most have been hiring aggressively as a result.
Salomon Smith Barney), Credit Suisse, Goldman I-banking firms are always looking for new (read:
Sachs, JPMorgan Chase, Lehman Brothers, Merrill cheaper) bodies. So if you like fast-paced, deal-
Lynch, and Morgan Stanley. These and other firms are oriented work, are at ease with numbers and analysis,
regular visitors to campus career centers. have a tolerance for risk, and dont mind putting your
But before you get excited about the promise of personal life on hold for the sake of your job, then
riches (and bid all your on-campus interview points), I-banking could be a great career choice.
Reference
For Your
you should research the industry and think about

whether I-banking is a good career for you. One thing
is certain: You shouldnt go into banking just for the
moneythe lifestyle is too demanding. To survive in

At a glance
The The Basics of

The Industry
Bottom Line Investment

I-banking is one of the best ways a young person
Banking
can learn about finance and make good money right
out of school. Even if you ultimately decide to reclaim Youre beginning your job search, and from
your personal life by pursuing other options, the skills what youve heard so far you want to give I-banking a
The FIRMS
you learn on Wall Street will be valuable in most shot. But theres one small problem: Youre not exactly
business careers. But before you can cash in on those sure what an investment bank does, so convincing the
potential returns, youll have to put up with some very recruiter youre perfect for the job is going to be a chal-
substantial hardships, including high pressure, long lenge. Well help solve that problem by giving you a
days and nights of hard work, a few difficult personali- basic introduction to I-banking and a view of the most
ties, and the expectationno, the requirementthat common job opportunities in the field.
all personal plans are subject to the demands of work. The terms brokerage firm, broker-dealer, and
On the Job
In addition, youll find that life on the Street is investment bank are used interchangeably in popular
very much at the mercy of the market. A bull market conversation, but they actually represent different
brings more work to do than is humanly possible, types of companies:
but youll be rewarded with a paycheck that can A brokerage firm executes trades, acting as
sometimes double year-to-year. A bear market can an intermediary between investors and stock
leave you sitting at your desk with a pile of deals on exchanges. For this, it takes a commission.
The Workplace
hold, hoping that the rumored layoffs and smaller-

than-usual bonuses dont come to pass. Despite this A broker-dealer works similarly, except that it
inherent uncertainty, the field remains an extremely also trades for its own account. That means if you
popular destination for undergraduates and MBAs. purchase a stock, it could be bought through an
Indeed, Bank of America, Barclays Capital, Bear exchange or from the dealers own account. You
Stearns, Citigroup, Credit Suisse (USA), Deutsche pay the current market price, regardless of what
Bank, Goldman Sachs, JPMorgan Investment Bank, the dealer paid for it.
Lehman Brothers, Merrill Lynch, Morgan Stanley, and
Getting Hired
UBS Investment Bank are all on Fortunes 2006 list An investment bank is a broker-dealer that
of the 100 most desirable employers among MBAs. provides financing services to corporations,
As a result, getting your foot in the door by doing an including stock and bond offerings, M&A advice,
internship with a bank should be your top priority if and some strategic planning.
you want to start a career in I-banking.
All of these activities support each other, so lets
take a look at them individually.
Reference
For Your
At a glance
Sales and Distribution
To be an effective underwriter, an investment
The Industry
bank must have a wide distribution network and
a knowledgeable sales force that can consistently
find buyers for all of the stocks, bonds, and other
financial instruments it underwrites. The bulk of
the underwritten securities are sold to institutional
investors such as pension funds, money management
firms, mutual funds, and other large-quantity buyers.
The institutional sales force advises and cultivates these
ThE FIRMS
important buyers (a job that requires a lot of traveling,
schmoozing, and hand-holding) and executes the
sales. In addition to these institutional salespeople,
many banks have or are adding a retail sales force of
stockbrokers plus online discount brokerage services
that funnel offerings into the hands of the average
Capital Raising and investor. However, retail salessales to individual
On the Job
Underwriting Services investorsis usually considered a completely separate
An investment banks primary service is to raise capital business unit unrelated to I-banking.
for corporations, governments, and other institutions
by selling those clients stocks, debts, or other Trading and Market-Making
financial papers. The bank helps the client determine Services
a reasonable price for the stock or bond issue and then To support the institutional and retail sales efforts,
The Workplace
buys the securities and resells them to investors. The most investment banks actively trade securities in the
investment bank makes its money on the spread, or the marketplace, thereby providing liquidity (cash) and
difference between the price it pays the client for the market prices for their investors. When a firm decides
securities and the price at which theyre resold. to make a market in a particular stock, it stands
ready with its own capital to buy and sell the stock
Financial Advisory Services at publicly quoted prices. A firm can make a market
Investment banks advise companies, government either on the exchange floor for listed stocks or on its
entities, and other institutions about their financial own trading desk for over-the-counter stocks. Traders
Getting Hired
strategies and the most effective use of the financial usually focus on one group of stocks at a time, often
markets. A very high-profile service is M&A advice. becoming specialists in a particular industry.
Examples of other services include assisting companies
with their option programs, providing pension- Research Services
fund managers with up-to-the-minute information Nearly all banks have staffs of research analysts who
and advice on investment strategies, and helping study economic trends and news, individual company
international companies understand how to best stocks, and industry developments to provide
minimize their exposure to foreign currency exchange proprietary investment advice to institutional clients
Reference
For Your
risks. and in-house groups, such as the sales and trading

divisions.

At a glance
Until recently, the research division has also played

an important role in the underwriting process, both Emerging
The Industry
in wooing the client with its knowledge of the clients

industry and in providing a link to the institutions Industry
that own the clients stock once its publicly traded.
Indeed, in many cases, research analysts compensation
was tied to I-banking revenue. However, in recent
Trends
times banks have faced public and regulatory outcries Hedge Funds
over conflicts of interest inherent in having bankers Possibly the biggest story in the markets of late has been
and researchers work hand-in-hand. the hedge fund boom. A decade or so ago, hedge funds
The FIRMS
As a hypothetical example, consider Bank A, were known for being relatively conservative investments;
which counts Company X among its banking clients. typically, they involved hedging investmentsfor
Company X is facing financial difficulties, Should instance, short-selling baskets of stocks representing
Bank As research team pan Company Xs stock? That the entire stock market, while buying individual stocks
would benefit investors who subscribe to Bank As thought to outperform the market as a whole. This way,
research, but might upset Company X to the point the thinking went, investors would do okay whether
that it drops Bank A and hires another firm to be its the broader market rose or fell. More recently, though,
On the Job
investment banker. Or should Bank A recommend hedge funds have become much more aggressive,
the purchase of Company X stock? That would help vastly outperforming other forms of investments, often
Company X financially and keep the banking revenue by involving more speculative investments as well as
from Company X rolling inand pump up research complex financial derivatives.
analysts bonuses, which are based in part on the
success of Bank As banking operations. INSIDER SCOOP
The Workplace
In an effort to end the legal scrutiny of their The whole explosion of private equity deals is
operations, investment banks are now attempting a bubble thats going to have to burst. Big M&A
to reinforce the separation between their banking deals are being made by private equity firms,
and research arms. Some of the separations span and banks are increasingly lenient. At some
continents: Citigroup, JPMorgan, Lehman Brothers, point the banks will decide they have too much
and Morgan Stanley all have moved some of their debt, and rates will rise and liquidity will dry up.
research operations offshore in the past year. That will have an impact on the ability of deals
Also, independent research houses (for example, to get financed.
Getting Hired
JMP Securities, Needham & Co., and Sidoti & Co.)

have benefited from a settlement between the I- Today, hedge funds account for a major portion
banking industry and regulators requiring investment of business for many investment banks. Hoping to
banks to spend $432.5 million during a five-year cash in on a good thing, the banks have created their
period to fund independent research. own hedge fund arms. At the same time, many banks
have taken to catering to outside hedge funds by
offering them prime brokerage services comprising
trading and financing services. While hedge fund
Reference
For Your
arms have generated outsized returns, some observers

believe investment banks are taking on too much
risk by relying so heavily on them to generate bigger
percentages of revenue. Todays hedge funds, they
10 W E T F E E T I N SIDER GUIDE
At a glance
> TIP Technology
Technology has changed the securities industry forever.
The Industry
To be prepared for your interviews,
understand whats happening in The biggest sign of the times: the 2005 merger of the
global as well as local markets New York Stock Exchange (NYSE) with Archipelago,
an electronic trading platform. Electronic stock
exchanges typically work more efficiently than the
NYSEs traditional specialist system; many observers
predict that systemand its hallmark, the floor of the
NYSE with its bustling swarm of floor brokerswill
say, are under-regulated, risky propositions. Just how rapidly become a thing of the past.
ThE FIRMS
risky was evident in June 2007 when Bear Stearns But thats not the only change being wrought on
announced it had to bail out two struggling hedge the Street by technology. Today a significant chunk
funds. Bear Stearns will likely not be the only firm of equity trades are transacted using computerized
impacted by the recent subprime mortgage defaults algorithmic trading systems. Typically, these systems
since many others also invested heavily in mortgage are used to allow traders to move large blocks of shares
originators in 2006. without overly affecting the price at which theyre
able to buy or sell them. (Think about it: If you were
On the Job
Globalization to suddenly announce your intent to sell hundreds of
Markets are becoming more global with each passing thousands of shares of a given stock, the price offered
year. The sustained rise in energy prices, for instance, by buyers would probably drop just as suddenly.
has been due more to demand from emerging financial Algorithmic trading breaks up blocks of stock and
powers like India and China than to demand in the times the trades of the portions in such a way that
U.S. or Europe. More and more investors are looking prevents the market from knowing how much stock
The Workplace
to put money into securities and other investments youre trying to movemeaning your stock sale or
originating in countries other than their own. I- purchase affects your average price as little as possible.)
banking business is increasingly coming from new In the past, investment banks used algorithms to make
regions of the globe; in recent years, for instance, some proprietary trades for their own accounts, but today
of the largest IPOs in the world have been of shares of they offer clients (usually institutional investors and
Chinese companies such as the Bank of China, China high-net-worth individuals) access to these computer
Construction Bank, and China Life Insurance. In programs.
response, several banks have opened offices in China Some observers claim that institutional sales and
Getting Hired
and Shanghai. Cross-border M&As are becoming trading desks are becoming glorified investment-
more commonplace, too. The NASDAQ stock software sales channels. But new software programs
market recently made a bid to buy the London Stock and Web platforms are becoming valuable tools for
Exchange. In response to the increasingly rapid pace research departments as well. Bear Stearns was recently
of globalization, banks are expanding their focusand cited for a program that identifies and quantifies more
launching operations and forming partnerships than 60 macroeconomic drivers of global equities.
around the globe. What does this trend mean for New network technologies will also continue to fuel a
I-banking job seekers? To be prepared for your business that will need to operate around the clock as
Reference
it puts employees in place in new time zones.

For Your
interviews, you should understand whats happening

in global as well as local markets. And if you have the
opportunity to get some international experience, it
certainly wont hurt your desirability among employers.
WETFEET INSIDER GUIDE 11

At a glance
New Relationships between

The End of the Research and Banking
The Industry
Financial Supermarket? I-banking research scandals in the early part of this

decade weakened the link between research analysts
Five or six years ago, Travelers life insur- compensation and firms banking revenuea
the trend among big ance business as well.
banks was the financial Merrill Lynch merged
decreased role for research analysts in seeking
supermarket strategy. its asset management banking business, and therefore increased objectivity
That was made possible arm with BlackRock, of in research reports. Most banks are enforcing new
by the 1999 repeal of which Merrill owns just degrees of separation between bankers and research
the Glass-Steagall Act, less than half. Why are
which separated invest- banks jumping off the analysts. Some have even thought about spinning off
The FIRMS
ment and commercial financial-supermarket their research arms into separate entities. The U.S.
banking activities. In bandwagon? Because Securities and Exchange Commission (SEC) is now
the wake of the repeal, they havent been able requiring research analysts to affirm in writing that the
some I-banks pur- to perform as well as
chased retail brokerage companies such as Fi- recommendations in their reports are truly what they
and lending providers, delity that focus on just believe, and that they have received no payment for
while some commercial one or two core lines of specific research opinions. Its also requiring firms to
banks tried to build up business.
provide investors with independent research.
their I-banking services Several I-banks are
On the Job
via M&As. The idea was using the sale of their The tricky thing about all of this is that separating
to build one-stop shops assets to finance research from banking makes it harder for banks to
where clients could get new practices in Asia justify the costs of conducting research. Without
a full range of financial and Latin America. A
and investment prod- number of other large
revenue that is directly or indirectly the result of their
ucts and services. That playersBear Sterns, own research departments, research becomes purely a
trend now seems to be Friedman Billings cost center. As a result, banks are more likely to look to
The Workplace
reversing. Citigroup, Ramsey, Lehman cut costs in research or move it offshore. That means
for instance, swapped Brothers, and Merrill
its asset management Lynchhave made some investment banks research departments could
business for Legg significant investments either have a fewer or greater number of companies to
Masons brokerage in mortgage originators. cover per analyst.
business, and sold its
Getting Hired
Reference
For Your
At a glance
Industry Performance
The Industry
At the turn of the century, it was relatively easy to assemble a list of the most important concerns for job seek-
ers to be aware of in I-banking. But since then, industry consolidation and deregulation have resulted in fewer
pure I-banking and securities companies, and many more diversified financial services companies that include
I-banking and securities services among their operations. The following list will give you an idea of some of the
major companies engaged in I-banking around the world; for a more accurate idea of the top companies focused
primarily on I-banking and securities, check out the league tables. In general, the bulge bracket is thought to
include Citigroup Global Markets, Credit Suisse, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan
ThE FIRMS
Stanley.
Investment Banks by 2006 Revenue

Company Revenue ($M) Number of
employees
Morgan Stanley 76,551 55,310
On the Job
Merrill Lynch 70,591 56,200
Goldman Sachs 69,353 26,467
Credit Suisse (USA)* 67,532 44,871
Lehman Brothers 46,709 25,900
The Workplace
Bank of America Global Capital Markets and Investment Banking 22,691 N/A
JPMorgan Investment Bank 18,300 27,000
Bear Stearns 16,551 13,566
Deutsche Bank Corporate and Investment Bank 15,568 68,849
* Numbers for parent company
Getting Hired
Note: UBS Investment Bank and Citigroup Corporate & Investment Bank dont release numbers for investment banking division.
Source: Company websites; SEC filings; Hoovers.com; WetFeet analysis
Reference
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At a glance
Industry Rankings
The Industry
To see whos number one in securities underwriting, I-banking insiders look to quarterly league tables, which
show overall industry underwriting activity by security type and the ranking/market share of the individual firms
as measured by underwriting volume. You can find league tables in Investment Dealers Digest, which publishes
and reports on the underwriting volumes and industry rankings each quarter. The league tables are produced by
Thomson Financial.
To see whos number one in investment research, take a look at Institutional Investors All-America* Research
The FIRMS
Team rankings, published each fall. More subjective than the league tables, these are the result of I.I. polls of buy-
side analysts and portfolio managers. I.I.s annual rankings are closely watched and often have a direct impact on
an analysts compensation and/or job security.
Following is a taste of how the firms stacked up in the league table results for the first half of 2006, along
with the most recent research rankings available when we went to press. For more details on each firm, check out
individual WetFeet Company Insider Guides.
On the Job
Global Debt, Equity & Equity-Related, 1/1/076/30/07

Bookrunner Proceeds ($M) Market share (%) Number of deals
The Workplace
Citi 398,120.4 8.8 1,047
JPMorgan 338,479.4 7.5 930
Deutsche Bank 291,203.8 6.4 878
Merrill Lynch 280,043.6 6.2 835
Morgan Stanley 272,052.6 6.0 822
Lehman Brothers 243,689.2 5.4 640

Getting Hired
Barclays Capital 236,186.9 5.2 619
Goldman Sachs 205,210.7 4.5 527
Credit Suisse 202,725.2 4.5 640
UBS 184,804.5 4.1 710
Source: Thomson Financial

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At a glance
Global Common Stock, 1/1/076/30/07
The Industry
Goldman Sachs 29,967.0 8.8 99
UBS 29,180.4 8.5 162
JPMorgan 27,173.8 7.9 130
ThE FIRMS
Merrill Lynch 24,549.7 7.2 116
Citi 23,338.7 6.8 114
Credit Suisse 21,619.4 6.3 104
Deutsche Bank 21,119.7 6.2 93
On the Job
ABN AMRO Rothschild 7,343.1 2.2 49
The Workplace
Global IPOs, 1/1/076/30/07
UBS 11,441.5 8.5 57
Getting Hired
Citigroup 9,463.0 7.0 42
JPMorgan 8,749.9 6.5 44

Reference

For Your
Renaissance Capital Group 3,499.2 2.6 8

At a glance
Global Convertibles, 1/1/076/30/07

The Industry
JPMorgan 14,220.1 14.6 50
Citi 12,299.8 12.6 42

The FIRMS
Banc of America Securities 4,921.0 5.1 21

On the Job
UBS 4,217.5 4.3 26
U.S. Common Stock, 1/1/076/30/07

The Workplace
JPMorgan 7,646.6 9.9 50

Getting Hired
Citi 5,852.1 7.6 39
UBS 5,310.8 6.9 42

Reference

For Your
At a glance
U.S. IPOs, 1/1/07- 6/30/07
The Industry
Bookrunner Proceeds ($M) Market share Number of deals
ThE FIRMS
JPMorgan 2,024.5 7.9 16
UBS 1,871.9 7.3 11
Citi 1,683.6 6.5 12
On the Job
Banc of America Securities 844.0 3.3 8
U.S. Convertibles, 1/1/0766/30/07
The Workplace
Bookrunner Proceeds Market share (%) Number of deals
Citi 7,141.0 13.3 20
JPMorgan 6,891.3 12.9 27
Getting Hired

Reference
UBS 2,196.9 4.1 14

For Your

At a glance
Global Debt, 1/1/076/30/07

The Industry
Citi 362,481.9 8.9 891
JPMorgan 297,085.5 7.3 750
Deutsche Bank 259,727.5 6.4 750
Merrill Lynch 248,772.1 6.1 692

The FIRMS
Barclays 233,970.5 5.7 609
Credit Suisse 174,674.3 4.3 519

On the Job
Royal Bank of Scotland Group 172,640.0 4.2 477
Global Mortgage-Backed Securities, 1/1/076/30/07

The Workplace
JPMorgan 60,025.1 7.3 66
Bear Stearns 53,384.2 6.5 55

Getting Hired
Citi 45,014.6 5.5 68

Reference

For Your
At a glance
Global Asset-Backed Securities, 1/1/076/30/07
The Industry
Citi 71,451.1 10.0 120
JPMorgan 53,413.3 7.5 90
ThE FIRMS
On the Job
Wachovia 31,130.2 4.3 51
All Federal Credit Agency Debt, 1/1/076/30/07
The Workplace
JPMorgan 39,561.0 9.3 152
Citi 36,199.0 8.5 110
Getting Hired
UBS 32,576.9 7.7 233

Reference

For Your

At a glance
U.S. Investment-Grade Corporate Debt, 1/1/076/30/07

The Industry
Citigroup 80,541.3 14.7 192
JPMorgan 63,158.3 11.5 174

The FIRMS
Wachovia 40,067.2 7.3 104

On the Job
U.S. Mortgage-Backed Securities, 1/1/076/30/07

The Workplace
Bear Stearns 52,893.7 9.5 54
JPMorgan 52,214.2 9.4 57

Getting Hired
Washington Mutual 34,430.5 6.2 28

Reference
Citi 30,045.2 5.4 51

For Your
At a glance
U.S. Asset-Backed Securities, 1/1/076/30/07
The Industry
Citigroup 66,177.7 11.4 109
JPMorgan 48,999.0 8.5 80
ThE FIRMS
Wachovia 30,797.2 5.3 50
On the Job
Barclay Capital 28,222.7 4.9 49
Global High-Yield Debt, 1/1/076/30/07
The Workplace
JPMorgan 15,151.1 12.5 56
Citigroup 13,007.4 10.8 46
Getting Hired

Reference
Wachovia 4,566.5 3.8 19

For Your

At a glance
All International Bonds, 1/1/076/30/07

The Industry
Citi 194,569.8 8.1 461
Deutsche Bank 182,943.0 7.6 469
Merrill Lynch 159,843.3 6.6 302

The FIRMS
JPMorgan 154,315.4 6.4 349
Royal Bank of Scotland 105,386.4 4.4 293
UBS 99,316.7 4.1 299

On the Job
M&A Advisory: Worldwide Announced, 1/1/076/290/07

The Workplace
Financial adviser Proceeds ($B) Market share (%) Number of deals
Goldman Sachs 840.5 32.2 255
Morgan Stanley 762.9 29.3 236
Citi 742.3 28.5 283
JPMorgan 699.0 26.8 213

Getting Hired
Lehman Brothers 581.7 22.3 159
Merrill Lynch 581.3 22.3 183
Credit Suisse 568.7 21.8 192
UBS 529.9 20.3 243
Deutsche Bank 424.7 16.3 138

Reference
Lazard 340.0 13.0 115

For Your
At a glance
M&A Advisory: Any U.S. Involvement Announced, 1/1/076/30/07
The Industry
Financial adviser Proceeds ($B) Market share (%) Number of deals
Citi 362.8 29.7 113
JPMorgan 349.0 28.6 110
ThE FIRMS
Credit Suisse 268.7 22.0 113
UBS 162.0 13.3 99
Deutsche Bank 154.2 12.6 43
On the Job
U.S. Long-Term Municipal New Issues (AT1), 1/1/076/29/07
The Workplace
Managing underwriter Proceeds ($B) Market share (%) Number of deals
Citi 35.3 16.1 324
UBS 17.4 8.0 332
Bear Stearns 14.5 6.6 62
Getting Hired
JPMorgan 11.9 5.4 177
RBC Capital Markets 7.3 3.4 294

Reference

For Your

The Firms
3
The Big Picture........................... 26
Major Players.............................. 26
At a glance
The Big Major Players

The Industry
Picture
Until the wave of consolidation and convergence
that started in the 1990s, the financial services playing Banc of
field had changed very little and was easy to under-
stand. Commercial banks and investment banks each America
had their own roles as defined by federal regulations,
Securities LLC
The FIRMS
and seldom did the two ever meet.

Within investment banking (I-banking), firms
could be neatly categorized by their size and/or market
focus: 9 West 57th Street
At the top was the bulge bracket, which consisted New York, NY 10019
of the six largest firms: First Boston, Goldman Phone: 212-583-8000
Sachs, Lehman Brothers, Merrill Lynch, Morgan www.bofasecurities.com
On the Job
Stanley, and Salomon Smith Barney. These firms

still dominate the securities underwriting and Overview
M&A markets, though youll notice a few name A subsidiary of banking giant Bank of America,
changes. Banc of America Securities (BofA Securities) is the
second-biggest bank in the U.S. after Citigroup.
Firms beyond the bulge bracket were labeled BofA Securities was formed after the $64 billion
The Workplace
boutiques or regionals. Boutiques are niche megamerger between BankAmerica and NationsBank
firms that focus on a particular industry, such in 1998; its cornerstone is Montgomery Securities,
as technology, or a financing vehicle, such as acquired by NationsBank in 1997. Its Global
municipal bonds. Regionals, as the name implies, Corporate and Investment Banking Group (CIBG) is
focus on financing and investment services in a known for its top-tier debt division and solid expertise
particular geographic region. in high technology. BofA Securities is on the move
in other areas as well. Expanding beyond its roots in
These labels are still used, but as the rapid mergers tech-centric San Francisco, the company is centering
Getting Hired
and acquisitions (M&A) pace continues to alter the its business in New York and increasing coverage
landscape, the traditional categories are becoming across the board, including M&As, convertible debt,
less meaningful. Large commercial banks that have syndicated finance, high-yield securities, and prime
acquired investment banks are bringing huge amounts brokerage. Meanwhile, its bolstering its European
of capital to the playing field along with a more varied equity business. In recent years, the firm has snapped
mix of financial services than ever before. up talent from the likes of Goldman Sachs and
Morgan Stanley; it recently hired Alain Karaoglan,
former managing director of Deutsche Bank Securities,
Reference
For Your
as a managing director and senior equity research

analyst.
At a glance
BofA Securities has an advantage (at least BofA Securities recruits for analysts at about 30
theoretically) over its purebred I-banking peers: the top U.S. campuses, and for associates at some 20
The Industry
backing of a top commercial bank, which means campuses. Campus recruiting typically begins with
deep pockets and a broader array of product offerings presentations in September, followed by on-campus
at clients disposal. It has offices in approximately interviews.
30 countries around the world, including sizeable BofA Securities will be an occupant of the new
operations in London, Frankfurt, and Tokyo. Like Bank of America Tower at the southern tip of
other big investment banks, it sees China as a land Manhattan when that building opens in 2008.
of opportunity; it bought a 9 percent stake in China
Construction Bank in 2005 and has the option to Recent Milestones
ThE FIRMS
increase that ownership to 19.9 percent within five
years. 2006 Becomes the fifth-largest underwriter
Like other big investment banks that need to of U.S. debt, equity, and equity-related
replace departing analysts and associates every year, securities; ranks number one in share of
BofA Securities recruits consistently at the college and both U.S. and global treasury revenue.
MBA levels for summer internship programs and some
full-time slots. Completes merger with credit-card
On the Job
company MBNA.
INSIDER SCOOP
Theres never a bear market for great talent. Adds Internet sector research coverage.
Undergraduate and MBA students can apply for Ranks as numberone prime broker for
internships and entry-level positions in corporate hedge funds in the U.S. with at least
The Workplace
and I-banking, debt capital markets, equity sales and $1 billion in assets, and numbertwo
trading, equity research, debt markets sales, trading globally, in the 2006 Global Custodian
and research, global portfolio management, and Prime Brokerage Survey.
financial engineering and trading technology. Although
not all areas are open to internships, a summer Purchases 9 percent of China
internship will give candidates a leg up when it comes Construction Bank for $3 billion.
time to apply for a full-time position at the bank.
Getting Hired
Key Numbers
Fiscal 2006 Fiscal 2005 Fiscal 2004
Worldwide revenue ($M) 22,691 9,009 9,046
Worldwide earnings ($M) 6,792 1,736 1,924

Reference
For Your
Number of employees N/A 7,765 6,545
Note: 2006 numbers reflect Global Corporate and Investment Banking, formed when BofA Securities combined its Global Capital Markets and Investment
Banking and Global Business and Financial Services; figures for 2005 reflect Global Capital Markets and Investment Banking.
Source: SEC filings; WetFeet analysis

At a glance
2005 Named best overall derivatives provider by

Treasury & Risk Management. The Bear
The Industry
Along with subsidiaries Banc of America Stearns

Capital Management and BACAP
Distributors, agrees to pay $375 million
to settle SEC charges that it allowed select
Companies Inc.
large clients to make improper mutual 383 Madison Avenue
fund trades. New York, NY 10179
Phone: 212-272-2000
The FIRMS
Agrees to pay $460.5 million to settle www.bearstearns.com

charges brought by New York State
alleging it failed to perform due diligence Overview
when issuing bonds in 2000 and 2001 Although Bear Stearns is smaller than many of its
for WorldComwhich admitted in 2002 rivals, its still a significant player. With the largest
that it had been improperly inflating clearing operation in the country, Bear Stearns handles
earnings. approximately 10 percent of all trades that go through
On the Job
the New York Stock Exchange. The firm is also known

2004 Launches electronic trading services group for being an aggressive trader. Founded in 1923,
to develop and deliver electronic trading Bear Stearns entered the I-banking arena in the early
products to institutional investors. 1990s, concentrating on specific industry groups
across all product lines. Like many of its Wall Street
Sells clearing and broker-dealer businesses neighbors, it suffered through hard times during the
The Workplace
to Automatic Data Processing. market downturn of the early 2000s; the firm endured
layoffs for the first time in its history, trimming 1,300
Acquires trading-software provider Direct employees from its ranks in 2001. However, its losses
Access. were relatively minor, and in 2002 Bear Stearns
mortgage-backed bond business helped it post a 42
percent increase in net income. Its new state-of-the-art
Manhattan headquarters boasts a seven-story crown
atop a 45-story octagonal building.
Getting Hired
The firm operates three main segments:

Capital markets: Comprises fixed income
(mortgage-backed securities, asset-backed
securities, corporate and government bonds,
munis, high-yield, foreign exchange, and
fixed-income derivatives), institutional equities
(domestic and international sales, trading, and
Reference
For Your
research), and I-banking (underwriting, M&A,

and merchant banking).
At a glance
Global clearing services: Comprises clearing, Entry-level hires come from a spectrum of colleges
margin lending, and securities borrowing for and backgrounds. Having fancy connections or
The Industry
short-seller clients. academic credentials wont necessarily help you. Whats
more, though a finance degree is an asset, the firm
Wealth management: Comprises private client strongly believes in hiring candidates from a variety
services and asset management. of disciplines. Once youre in the door, they are quite
blind to what you were doing before, a former lawyer
Bear has been growing key operations including says. They are willing to give you the time because
prime brokerage services, asset management, and high- they see you have the potential to climb the learning
yield and mortgage-backed securities underwriting. curve.
ThE FIRMS
The firm is rapidly expanding in Europe and Asia; its Undergraduates can apply for analyst positions
international business grew 32 percent in 2006 from in asset-backed securities, asset management,
2005. In addition to the requisite London office, Bear collateralized debt obligations, commercial mortgages,
Stearns has offices in Beijing, Hong Kong, Shanghai, financial controlling (risk management), fixed income,
Singapore, and Tokyo, among others. In June 2007 clearing services, global credit, international equity,
the firm signed a letter of intent with a group of Saudi I-banking, mortgage finance, operations, private
business leaders to form Bear Stearns Arabia Asset client services, and public finance. MBAs can apply
On the Job
Management. for associate positions in asset management, financial
management, I-banking, equity research, and sales
Its international-expansion focus, however, and trading. Recruiting begins in September and
could be derailed by some trouble Bear Stearns has interviews for first-year MBAs start in January; second-
recently found itself in with two of its hedge funds. year MBAs begin interviews in late September.
In June 2007 the firm committed to shoring up the Undergraduate and graduate hires in I-banking
The Workplace
foundering funds, but some industry insiders say this go through a brief rotational program before being
investment will leave Bear Stearns vulnerable to a placed in a group. All new hires go through structured
takeover. training programs involving mentoring and internal
classroom training.
INSIDER SCOOP Bear Stearns does limited recruiting for summer
Theres no white-shoe pedigree here. No one internships (starting in December for the following
cares who your dad is. summer); undergrads can do internships in fixed
income, institutional equity, and I-banking, and
Key Numbers Getting Hired

Reference

For Your
Number of employees 13,566 12,000 10,961
Source: Hoovers; WetFeet analysis

At a glance
internships for MBA candidates are available in asset Named most admired securities firm in
management, financial management, I-banking, equity Fortunes list of most admired companies.
The Industry
research, and sales and trading.

Acquires a stake in Essex & Capital, a
Recent Milestones U.K. mortgage broker specializing in the
subprime market. The company aggregates
2007 Announces bailout of two hedge funds loans from brokers and consumers and
that are heavily invested in subprime places them with lenders.
mortgages.
2004 Sued in March by insurance
The FIRMS
Purchases subprime mortgage operations commissioners alleging the firm helped

of ECC Capital. financier Martin Frankel steal $200
million.
Launches asset management firm in Saudi
Arabia. Expands coverage of large-cap companies
in Eastern Europe, the Middle East, and
2006 A dozen equity research analysts earn Africa.
On the Job
number one positions in the 2006

Institutional Investor All America Team Bear Stearns asset management group
Research Survey. acquires Measurisk, a provider of risk
transparency and risk management
Named 2006 Best Investment Bank in solutions; the private equity specialty
North America by Euromoney. finance business of BDC Financial,
The Workplace
which provides investment management

Agrees to pay $250 million to settle SEC and advisory services to private equity
and New York Stock Exchange charges investors; and the fixed-income portfolio
that it allowed some clients to late trade management group of Times Square
(trade mutual funds after markets had Capital Management, a unit of Cigna.
closed).
Sells mutual fund management business
Posts record earnings for third straight to Dreyfus.
Getting Hired

quarter in Q2.
2005 Launches Bear Stearns Residential

Mortgage Corp., which extends the firms
mortgage offerings by providing mortgage
brokers with automatic loan underwriting.
Reference
For Your
At a glance
Citigroup Enron and WorldCom (the bank ended up settling
charges in the Enron case for $2 billion in 2005 and
The Industry
Global in the WorldCom case for $2.65 billion in 2004). In
2004 the banks private banking operations in Japan
Markets were shut down by the Japanese government after

improper securities sales. The bank faced a class-action
Holdings Inc. suit by shareholders of Global Crossing who charge

that Citigroup engaged in misdeeds in its dealings
with that company. Citigroup was also implicated in
388 Greenwich Street the Parmalat business scandal in Italy. And the firms
ThE FIRMS
New York, NY 10013 London trading group got into hot water for alleged
Phone: 212-816-6000 market manipulation in 2004.
www.citigroupgcib.com The bank is currently trying to rein in the
aggressive, freewheeling culture long found at
Overview subsidiaries like its I-banking unit. It reportedly
Named by Fortune as the largest company in the doubled its compliance arm in recent years, instituted
world, Citigroup is indeed a financial services titan, firmwide compliance standards, set up regular reviews
On the Job
with a presence in more than 100 countries and more of compliance of the banks board of directors by audit
than $1.9 trillion in assets. Citigroups range of services committee members, mandated ethics training for
includes I-banking, commercial banking (mainly every employee, and pushed the banks ethics hotline
through subsidiary Citibank), financial planning, retail and employee-comment website on Citigroup workers.
brokerage, and private banking for high-net-worth CEO Chuck Prince is trying to create a consistent
individuals. Its I-banking arm, Citigroup Global culture across the banks many businesses, making the
The Workplace
Markets (descended from Salomon Brothers) is one of firm less focused on short-term financial results and
the biggest bulge-bracket I-banking operations, and more centralized and efficient. The result? Even more
is first among its peers in terms of I-banking revenue. bureaucracy than usual, some Citigroup employees say.
Its equity research group employs more than 300
research analysts and covers some 2,600 companies. INSIDER SCOOP
Its brokerage business descended from Smith Barney, Citigroup is a true meritocracy. We recognize
and makes Citigroup the numbertwo retail brokerage accomplishments here.
in the country. Its corporate and consumer lending
Getting Hired
businesses are mammoth in scale and global in reach. After trying to become an all-things-to-all-clients
Citigroup has had its fair share of hardship since financial supermarket under former CEO Sandy Weill,
the turn of the century. Its vast operations were hurt the banks management is now focused on improving
by the U.S. bear market, the collapse of technology margins by trimming costs and growing core
companies, and the Argentine economic crisis. Nearly businesses while divesting noncore businesses. The two
20 percent of its staff was laid off in the early 2000s. most significant developments along these lines have
The firms reputation and pocketbook also were both been Citigroups 2006 swap of its asset management
hurt by a series of scandals. For example, Citigroup business for Legg Masons brokerage unit, which
Reference
For Your
had to pay a huge fine because its research analysts added some 1,500 Legg Mason brokers to Citigroups
publicly recommended stocks they did not actually existing network of 12,000-plus brokers, and its sale of
consider good investments. Its I-banking group was the Travelers life insurance business.
charged with securities fraud because of its work with Citigroups global corporate and investment

At a glance
bank hires undergrads into capital markets, sales Swaps asset management business for Legg
and trading, public finance, quantitative trading Masons brokerage operations.
The Industry
and research, finance, operations, technology, global

corporate finance, I-banking, and global transaction Acquires OnTrade, an electronic stock
services. trading company.
Training begins in August and entails four to eight
weeks of classroom training designed to give associates 2005 Settles charges related to the Enron
an in-depth overview of the business; on-the job scandal for $2 billion.
training begins in October.
2004 Sells off the Travelers Life & Annuity
Recent Milestones
The FIRMS
unit, as well as all international insurance

businesses except for the Mexican unit.
2007 Acquires majority position in Japans
Nikko Cordial bank. Opens 203 international branches,
bringing the number of worldwide
Acquires ABN AMRO Mortgage Group. Citibank branches to 3,253.
On the Job
2006 Acquires 20 percent of Guangdong Settles charges related to the WorldCom

Development Bank. scandal for $2.65 billion.
Purchases 20 percent of AkBank of Announces the restructure of its global

Turkey. corporate and I-banking business segment
into two main groups, the capital markets
The Workplace
Acquires 9.27 percent of the Housing group and the banking group.
Development Finance Corporation of
India. Beefs up its trade execution capabilities by
acquiring Lava Trading in July.
Getting Hired
Key Numbers

Reference
For Your
Number of employees N/A N/A N/A
Note: Numbers are for Citigroup; the company does not release figures for Citigroup GCIB.
At a glance
Credit Suisse Still, the banks performance has lagged behind
its competitors. Dougans strategy is to focus on the
The Industry
(USA), Inc. banks traditionally strong businesses, such as high-
yield, international banking, and M&A, and leave
the all-things-to-all-clients stuff to other banks. Hes
11 Madison Avenue also trying to rein in the banks aggressive culture,
New York, NY 10010 increasing accountability among managers while
Phone: 212-325-2000 pushing traders to take smart risks in an effort to
www.credit-suisse.com/us reinstill a killer instinct on the trading floor.
Credit Suisse is an ideal place for job seekers
Overview
ThE FIRMS
who want the breadth of opportunities of a large
Credit Suisse (USA) was rechristened Credit Suisse organization and the entrepreneurial excitement of a
Investment Banking Division in 2006 and reorganized firm that continues to forge ahead. Youll have more
into three distinct operation groups: Investment responsibility, client exposure, and international travel
Banking, Private Banking, and Asset Management. and living opportunities here than your colleagues at
At the same time it has been rebranding it has also many other Street banks.
been expanding, focusing on emerging markets in
On the Job
Latin America, where it acquired a majority stake INSIDER SCOOP
in Brazilian asset manager Hedging Griffo, and in The best part about working at Credit Suisse
Asia, where it bought a 30 percent stake in Korean is that I get to be involved in the kind of issues
firm Woori Asset Management. Another significant that require a CEOs or COOs attention, and Im
international shift came in 2006 with the appointment directly interfacing with these people.
of American Brady Dougan as CEO
The Workplace
Credit Suisse is the result of the 1997 merger Undergrads are hired as analysts in fixed-income
of investment bank First Boston and European sales, trading, and research; asset finance; leveraged
commercial bank Credit Suisse. In 2000, the firm finance; liability management; real estate finance
acquired Donaldson, Lufkin & Jenrette, a leader and securitization; equities sales, trading, and
in underwriting high-yield bonds with a golden research; I-banking; information technology; finance,
reputation in research. Credit Suisse (USA) has a administration, and operations; and alternative
long, worldwide reputation for excellenceit has capital (for example, hedge funds, private equity, and
some 57 offices in 27 countriesin M&A, equity fundraising for fund managers).
Getting Hired
underwriting, sales and trading, I-banking, and In the U.S., I-banking, fixed-income and equities,
investment research. In 2004, for instance, the bank sales and trading, and research start with training
co-managed Googles IPO. And between 2003 and programs in New York. These programs include
2005, it raised more money for mainland China introductions to Credit Suisses products and services,
companies than any other foreign bank. (Credit Suisse presentations by senior management, seminars with
was the lead bank in China Construction Banks $9.2 external experts (NYU and Columbia Business School
billion IPO, the largest Chinese company IPO ever professors as well as individuals from leading training
and the largest equity offering in the world in 2005.) consultancies), and preparation for the Series 7 and
Reference
For Your
other regulatory exams.

At a glance
I-banking and sales and trading analysts sign on

for two years, with a possible third-year offer based on
The Industry
performance. After the first two years, many analysts

leave to attend MBA programs, but some analysts stay
Were looking for people
beyond the three-year program without attending B- who are smart, diligent,
school, moving up through junior- and senior-analyst team players, We want to
levels.
MBAs are hired as associates in asset finance, see evidence that you can
fixed-income research, fixed-income leveraged finance be a strong leader and are
research, fixed-income sales and trading, real estate
comfortable in a high-risk,
The FIRMS
finance and securitization, securities quantitative

analysis, equities research, equities sales and trading, high-pressure, competitive
I-banking, merchant banking, and private banking.
Some new associates take part in the banks HOLT
environment.
University program, a training and rotation program
focused on cutting-edge, strategic financial analysis
based primarily in Chicago but with possible rotations Were looking for people who are smart, diligent,
On the Job
in New York, London, Hong Kong, and Tokyo. At team players, a recruiter says. We want to see
the conclusion of the program, they could move into evidence that you can be a strong leader and are
a number of areas within the bank, such as research, comfortable in a high-risk, high-pressure, competitive
banking, or sales. environment. Candidates from all majors are
Associates then spend three to four years in a encouraged to apply if youre also good with numbers.
group before being considered for promotion to We hire a fair number of people with liberal arts
The Workplace
vice president. The levels after VP are director and backgrounds, because we believe we can train them
managing director. Credit Suisse is a place where you here, the recruiter says. For all candidates, however,
can move very quickly, says one insider. youve got to demonstrate strong quantitative skills.
The firm also offers summer internships for
undergrads and MBAs.
Getting Hired
Key Numbers
Fiscal 2006* Fiscal 2005 Fiscal 2004
Worldwide revenue ($M) 72,193.5 7,025 6,341
Worldwide earnings ($M) 9,412.4 127 2,042

Reference
For Your
Number of employees 44,871 N/A 787
* 2006 numbers are for the entire company; Credit Suisse doesnt release numbers for the
Investment Banking division. Conversion from CHF to USD based on 7/17/07 exchange rates.
Source: Hoovers; Yahoo Business; WetFeet analysis
At a glance
> TIP first in research in Brazil, and third in
U.S. fixed-income research by Institutional
The Industry
Even if you have a liberal arts
degree, Credit Suisse will consider Investor magazine.
hiring you providing you can
demonstrate strong quantitative Named best high-yield house in Europe
skills.
by Financial News.
Named best equities house in Central and

Eastern Europe by Euromoney.
Recent Milestones
ThE FIRMS
Begins staffing up at its new Research
Triangle Park, NC, office, with plans to
2007 Opens an office in Kazakhstan. hire some 400 IT and securities operations
employees through 2006.
Hafiz Naseem, a Credit Suisse banker,
is charged with divulging private 2004 Dumps CEO John Mack in favor of
information regarding the leveraged Brady W. Dougan.
On the Job
buyout of Texas power supplier TXU.
Announces plans to combine its Credit
2006 Frank Quattrone, a former superstar Suisse and Credit Suisse First Boston units
tech banker at Credit Suisse First Boston during the next two years. Private clients
charged in 2003 with improperly and corporate and I-banking clients
allocating IPO shares during the tech will be bundled into two distinct lines
The Workplace
boom, is acquitted. of business: Private Client Services and
Corporate & Investment Banking. A third
Named best investment bank in Latin business line will comprise all of Credit
America by Latin Finance magazine. Suisse Groups asset management services.
2005 Ranks third in global research, third in

European research, second in research in
Asia, fourth in Latin American research,
Getting Hired
Reference
For Your

At a glance
Deutsche is only beginning to establish a strong U.S. brand.

It has taken significant steps to cut costs, including
The Industry
Bank stock buybacks, the sale of peripheral operations,

and layoffs, particularly in the technology sector.
Securities Inc. CEO Josef Ackerman, a Swiss national, was recently

acquitted of a charge of breach of shareholder trust
for his role in Vodafones record-breaking $183 billion
60 Wall Street hostile takeover of German telecommunications
New York, NY 10019 company Mannesmann. Between June 2002 and the
Phone: 212-469-4000 end of 2005, DB Securities cut more than 6,000 jobs,
The FIRMS
www.db.com including a large number of underperforming brokers

and support personnel in its Alex. Brown unit. Hiring,
Overview however, remains steady at the firm, especially for
Deutsche Bank Securities (DB Securities) is part entry-level positions.
of the Deutsche Bank Corporate and Investment DB Securities has been making a concerted effort
Bank Group Division (CIB). Following the trend of to increase its share of U.S. I-banking and capital
European-backed banks such as Credit Suisse and markets. It has recently focused on growing areas like
On the Job
UBS, DB Securities rapidly built a global platform in technology, telecom, media, energy, health care, and
the 1990s through acquisitions. In 1999 it acquired leveraged finance.
San Francisco boutique technology investment house The firm has an entrepreneurial and unstructured
Alex. Brown to expand its I-banking unit. Today DB atmosphere, says an insider. Management encourages
Securities offers clients I-banking, sales and trading, employees to take initiative and opens its doors to
brokerage, financial advisory, and investment products. those who do. An analyst can walk into a managing
The Workplace
Parent company Deutsche Bank AG has gone directors office to talk and theres nothing strange
through some difficult times of late. For a number of about it. That openness translates into long-term
years, it struggled to increase revenue. Although one of tenures at the firm, and some of those who leave end
the worlds largest financial institutions, the company up coming back.
Getting Hired
Key Numbers

Reference
For Your
Note: Numbers are for Deutsche Banks Corporate and Investment Bank division,
which includes DB Securities. Conversion from euros to USD based on 7/17/07 exchange rates.
At a glance
DB Securities hires undergraduates into global Recent Milestones
banking, global markets, technology, operations,
The Industry
controlling and finance, risk management, HR, and 2007 Named Derivatives House of the Year
private wealth management. Undergraduates apply for by Thomson Financials International
analyst positions starting in September each year; check Financing Review.
the Deutsche Bank website for more information.
MBAs come on as associates in global banking, 2006 Purchases Mortgage IT, an originator of
global markets (sales, trading, and research), and asset residential U.S. mortgages.
management. MBA applicants should have three to five
years of work experience. Fined $11 million for U.K. trading
ThE FIRMS
Deutsche Bank offers summer internships for both improprieties.
undergraduate and graduate students in each of its
corporate and I-banking divisions. The majority of the Acquires United Financial Group, a
positions are based in New York, with some slots in Russian investment bank.
other regional offices. Opportunities also exist in the
United Kingdom and Asia Pacific. Parent Deutsche Bank announces
All candidates, including campus recruiting acquisition of Germanys Berliner Bank.
On the Job
candidates, must complete the online application on
Deutsche Banks website. Ranked number one in emerging Europe,
After its building in Lower Manhattan was severely Middle East, and Africa research by
damaged in the terrorist attack of September 11, Institutional Investor.
Deutsche Bank relocated most of its operations in New
York to 60 Wall Street. Buys out partner Ixe Grupo Financieros
The Workplace
portion of Deutsche Ixe equity joint
venture.
2005 Parent Deutsche Bank sells portions of

Deutsche Asset Management to U.K.
company Aberdeen Asset Management.
Agrees to pay $87.5 million to settle SEC
Getting Hired
2004
charges of conflicts of interest between its
banking and research functions.
Launches a correspondent mortgage

lending group in June.
Reference
For Your

At a glance
Friedman,
The Industry
Founded in 1989, FBR is the

Billings, youngest major investment
Ramsey Group, bank in the U.S. and the only
Inc. major U.S. investment bank
formed in the past several
1001 19th Street North decades.
The FIRMS
Arlington, VA 22209
Phone: 703-312-9500
www.fbr.com in 2006 alone, according to Hoovers.
In addition to underwriting, the firm engages in
Overview M&A advisory and private placements. It focuses on
Friedman Billings Ramsey (FBR) Group was founded eight industries: consumer; diversified industrials;
in 1989 with an initial investment of $1 millionthe energy and natural resources; financial institutions;
On the Job
only major U.S. investment bank formed in the past health care; insurance; real estate; and technology,
several decades. Today it makes about $1 billion in media, and telecommunications. FBR covers more
revenue annually, and is a topten U.S. investment than 40 percent of the S&P 500 companies in these
bank. Not one to rest on its laurels, in 2006 FBR industries, provides research on a universe of some
formed a holding company, FBR Capital Markets, 620 companies, and trades or makes markets in more
to own FBRs I-banking, institutional brokerage, and than 640 securities. The firm is also a player in the real
The Workplace
fee-based asset management business. In February estate investment trust (REIT), merchant banking,
2007, it acquired Legacy Partners, an I-banking firm asset management, brokerage, and venture capital
formed by former employees of Donaldson, Lufkin arenas. FBR makes markets in nearly 600 securities,
and Jenrette. Four months later, FBR Capital Markets and its research arm covers more than 550 companies.
went public, giving the new company an initial market A major part of the firms current strategy is to broaden
capitalization in excess of $1 billion. the kinds of assets it has in its REIT portfolio; in 2005
The successful IPO continues a short but energetic it acquired First NLC Financial Services, a Florida-
tradition of aggressive activity. FBR Capital Markets based mortgage lender.
Getting Hired
institutional trading volume grew at a compound In terms of asset management, FBR concerns
annual growth rate of 28 percent between 2001 and manage a family of eight mutual funds, along with
2006, according to Dealogic. In 2003, the bank hedge funds and funds of funds. The banks private
ranked fourth in U.S. IPO underwriting, behind wealth management group offers a broad range of
Goldman Sachs, Credit Suisse, and Lehman Brothers, services to high-net-worth investors, institutions, and
according to 123Jump.com. In 2005, the banks foundations, with particular expertise in addressing
revenue was flat compared with the year before, but liquidity and financial planning issues for owners of
it still completed 134 banking assignments with a privately held companies.
Reference
For Your
total transaction value of $43.4 billion, including 62

capital-raising transactions with a total transaction
value of $22.8 billion. All this activity has meant more
jobs at FBR; the number of employees rose 23 percent
At a glance
In addition to its Arlington, Va., headquarters, FBR Named numberone book-running
has offices in Boston; Dallas; Houston; Irvine, Calif.; manager of all common stock offerings
The Industry
London; New York; Phoenix; and San Francisco. for domestic mining, oil and gas, and
FBR typically offers student internships in areas utility and energy companies, with a
including asset management, research, I-banking, market capitalization of $1 billion or less,
institutional sales, accounting/finance, corporate according to Dealogic.
communications, human resources, IT, and legal/
compliance. It uses these internships as a way of Named numberone book-running
recruiting top students. Most of the openings are in manager of all common stock offerings for
the Virginia office. Students and other interested job U.S. and Bermuda finance and insurance
ThE FIRMS
seekers should check out the firms website for more companies with a market capitalization of
information. $1 billion or less, according to Dealogic.
Recent Milestones Sells FBR National Trust business.
2007 Takes FBR Capital Markets public, giving 2005 Co-chairman and co-founder Emanuel
the new company a market cap of $1 Friedman retires after running the bank
On the Job
billion. for more than 15 years.
Acquires independent I-banking firm Named number one in U.S. common

Legacy Partners. stock for issuers with a market
capitalization of $2 billion or less and
2006 Forms FBR Capital Markets. number nine in all common capital
The Workplace
raises for U.S. companies, according to
Named numberone book-running Dealogic.
manager of all common stock offerings
for U.S. companies with a market Acquires First NLC Financial Services, a
capitalization of $1 billion or less, Florida mortgage lender.
according to Dealogic.
Getting Hired
Key Numbers
Worldwide revenue ($M) 1,007 995 1,052

Reference
For Your
Worldwide earnings ($M) 67 171 350
Number of employees 3,019 2,449 698

At a glance
2004 Announces plans to hire 60 new bankers

during the year. The Goldman
The Industry
Announces intent to grow its capital Sachs Group,

markets business, with an emphasis on
the technology, health care, and consumer
sectors.
Inc.
85 Broad Street
Ranked the ninthfastest growing New York, NY 10004
company in the U.S. by Fortune. Phone: 212-902-1000
The FIRMS
www.gs.com
Completes 127 banking assignments
with a total value in excess of $27 billion, Overview
including lead-managing 61 capital- News about Goldman Sachs was hard to miss in 2006.
raising transactions with a total value of The firm had a record year: Net revenue increased 49
$12 billion. percent, profit was up 93 percent, and the monster
bonuses it paid out spawned dozens of articles in
On the Job
business publications. Based on recent quarterly

announcements, the firm looks to be on track for
another banner year.
Goldman Sachs was founded in 1869 when Marcus
Goldman, an immigrant from Europe, began a small
enterprise to provide an alternative to expensive bank
The Workplace
credit. In the 1950s Goldman Sachs played a lead

role in establishing the municipal bond market, and
in the 1970s the firm formed the first official M&A
and real estate departments on Wall Street. In 1999,
it became the last bulge-bracket bank to go public,
raising $3.7 billion in the process. Today Goldman
Sachs is the most prestigious American name in
I-banking and is known for its cult-like corporate
Getting Hired
culture. (The firm even has an online network of

alumni, so current and former employees can stay in
touch; 10,000 people have already registered.) This
atmosphere translates into results: Goldman Sachs is
consistently profitable and at or near the top of the
I-banking league tables. Particular industry strengths
are in telecommunications, financial services, energy,
technology, and health care.
Reference
For Your
At a glance
The firm is rapidly globalizing. In China, for Although it doesnt divulge its recruiting forecast,
instance, it has a joint venture, Goldman Sachs Goldman reduced its workforce by more than 14
The Industry
Gaohua, with a Chinese bank. The efforts in China percent in 2006. The firm focuses its on-campus
are paying off; Goldman has been involved in efforts on the top ten graduate and undergraduate
underwriting a series of big securities issuances among schools. The firm also recruits at Howard University
Chinese companies in recent years and is currently and Spelman College, among other sources. If you
lead-managing the Bank of Chinas IPO. Goldman has want to be with the best in the business, your resume
offices in Chicago, Frankfurt, Hong Kong, London, is golden, and you dont mind marching in step with
Milan, Paris, Sydney, Tokyo, and Zurich, among like-minded colleagues, Goldman Sachs could be just
others. right for you, says an insider. It is more straitlaced
ThE FIRMS
Despite its reputation for secrecy, the firm has been and rule-bound, but its a good fit for people who
publicly lauded for its workplace. MBAs perennially work to promote the firm rather than the individual.
rank Goldman Sachs as one of the most desired places Another insider points to the limitless opportunities
to work, and its foremost among financial services after getting Goldman on your resume: Once youre
firms. Once in the door, people still love the firm; a second-year analyst, youll receive lots of offers from
for the ninth straight year Goldman Sachs made hedge funds and other places.
Fortunes ranking of the 100 Best Companies to Work Many Goldman Sachs alumni go on to important
On the Job
Forin no small part due to its high percentage roles elsewhere in business, government and other
of minority and female staff, its generous outreach fields. For example, CEO Henry Paulson left the
efforts to ensure employee well-being, and things like firm in July 2006 to become the U.S. Secretary of the
360-degree performance reviews, which mean that Treasury, former CEO Jon Corzine is governor of New
managers are evaluated by their subordinates. (The Jersey, and former CEO John Thain is CEO of the
monster compensation packages dont hurt, either.) New York Stock Exchange. This isnt lost on Goldman
The Workplace
However, without the carrot of an ownership stake Sachs and is reflected in its recruiting practices. While
in the firm since the bank went public, Goldman academic background is critical, the firm wants
employees are much more likely to leave the firm for smart and aggressive candidates who are mature and
other offers than they once were. polished. One insider says that not having the right
Goldman Sachs used to think of itself as long-term pedigree can hurt you at the firm.
greedy, says one partner, in that it would gladly pass
on short-term profits to cement client relationships INSIDER SCOOP
that would lead to substantial future income. Indeed, People here are very bright, but unfortunately
Getting Hired
when the bank went public in 1999, it said it planned they can also be quite arrogant, although its
to stabilize earnings by focusing on fee-generating subtle and no one would admit it underlies the
businesses like I-banking and asset management. organization. Goldman is trying to do more to di-
However, the main driver for the firms growth in recent versify its workforce through senior management,
times has been trading, in particular proprietary trading. but you get a sense it hasnt trickled down yet.
Reference
For Your

At a glance
Fitting in is especially importantthe firm does Goldman plans to open its new world headquarters
an impressive job of recruiting people who subscribe in Lower Manhattans Battery Park City in 2010. The
The Industry
willingly to the Goldman way. Insiders say that building will house some 9,000 employees currently
the firm likes to hire people with poise who have operating out of about ten different downtown
cultivated interests in art, history, and philosophy, in locations.
addition to current events. People seem to be a little
bit smarter and snappier here, says an insider. Another Recent Milestones
insider urges new hires to assert themselves: You
have to fight the constant put-downs and show them 2007 Announces a memorandum of
youre not going to take it. Training is intense and understanding with National Commerce
The FIRMS
compared by some to a brainwashing period, but Bank of Saudi Arabia.

offers a fantastic opportunity to network internally at
social events before being dropped into the behemoth 2006 CEO Henry Paulson leaves to become
bureaucracy. U.S. Secretary of the Treasury.
Goldman Sachs recruits undergraduates and MBAs
for positions in trading and principal investments, Ranks 26th on Fortunes list of the 100
I-banking, and asset management in the fall with best companies to work for.
On the Job
intensive on-campus and onsite interviews; insiders

report traveling to New York three to five times for 2005 Announces a new initiative in which it
follow-up interviews. The average candidate interviews will promote eco-friendliness, and makes
with 10 to 20 people before getting a job offer, and $1 billion in investments in alternative
any person who interviews you can disqualify you energy sources.
from the process. The first interview, on campus, is a
The Workplace
firmwide interview, designed to scout your general 2004 President and COO John Thain leaves to
suitability. Offers for full-time positions generally are run the New York Stock Exchange.
sent in November and December; summer internship
offers are made in February and March. If you make it Spear, Leeds & Kellogg, the clearinghouse
past the first round, you might be invited to second- unit of Goldman Sachs, agrees to pay
round interviews with up to two different divisions $45.5 million to settle charges that it
within the firm. violated New York Stock Exchange rules.
Getting Hired
Key Numbers

Reference
For Your
At a glance
Jefferies Meanwhile, Jefferies has expanded existing business
areas including M&A, capital-raising, and corporate
The Industry
Group, Inc. restructuring, largely by picking up talent laid off by
the bulge-bracket banks. Indeed, Jefferies has more
than tripled its banking staff in the past six years.
520 Madison Avenue, 12th Floor Today it employs about 520 investment bankers and
New York, NY 10022 more than 100 research professionals that cover about
Phone: 212-284-2300 1,000 companies globally in roughly 40 industries.
www.jefco.com (Three-quarters of the companies it covers have market
capitalizations of less than $5 billion.) Its 150-strong
Overview
ThE FIRMS
equity sales force services 2,000 institutional investors.
The Jeffries Group is growing. In June 2007 the The growth has fueled impressive statistics: In
firm announced it was acquiring the Putnam Lovell 2006 Jefferies ranked number one in transactions of
I-banking business from Canadas National Bank less than $500 million and was a topten adviser for
Financial Group. This is the fifth industry-focused transactions less than $1 billion, according to the firm.
M&A group Jefferies has acquired in less than five It also ranked as the numberone M&A adviser in
years. technology, defense, and energy.
On the Job
Founded in 1962, Jefferies serves small and Jefferies has offices in Atlanta; Boston; Chicago;
middle market corporate clients. Originally focused Dallas; Denver; Houston; Jersey City, New Jersey;
on institutional trading, its developing a formidable London; Los Angeles; Nashville, Tennessee; New
M&A department. Other areas include research, Orleans; New York; Paris; Philadelphia; Richmond,
asset management (it has some $2 billion in assets Virginia; San Francisco; Short Hills, New Jersey;
under management), equity and debt underwriting, Silicon Valley; Stamford, Connecticut; Tokyo;
The Workplace
sales, and trading. Its probably best known for its Washington, D.C.; and Zurich.
high-yield debt underwriting, as well as its trading Its recruitment Web page promises a fast pace
operations. Jefferies makes markets in more than 4,000 and lots of growth, and positions the firm as the
securities globally and trades securities of some 8,500 number one investment bank for growing and midsize
companies; its trade-execution subsidiary owns 15 companies. Recruitment brochures are available on the
seats on the NYSE and handles around 10 percent of company website.
NYSE volume.
In 2002 Jefferies acquired Quarterdeck Investment Recent Milestones
Getting Hired
Partners, a boutique bank specializing in M&As for
the aerospace, defense, and federal IT industries. In 2007 Acquires Putnam Lovell, a global financial
December 2003 it acquired Broadview International, a services I-banking business.
global M&A adviser focused on the technology sector,
and the fixed-income desk of Mellon Securities. In Acquires Longacre Partners, a leading
2005 it added Helix Associates, which beefed up its European media and internet M&A
private-equity distribution capabilities, and Randall & advisory firm.
Dewey, which added energy-industry M&A expertise.
Reference
For Your
2006 Named middle-market investment bank

of the year (2005) by Investment Dealers
Digest.

At a glance
Six Jefferies analysts receive nine awards Has a record first quarter in terms of
in recognition of their performance in revenue and earnings.
The Industry
stock recommendations and accuracy of

earnings estimates in Forbes.com/StarMines Enhances equity options trading coverage
annual North Americas Top Analysts by creating Jefferies Options Execution
Survey. LLC, a joint venture with PEAK6
Investments.
Time ranks Jefferies research number one
among investment banks, and number 2004 Awarded the Media and
three overall, for annualized return on Telecommunications M&A Deal of
The FIRMS
analysts stock picks among the Russell the Year by The M&A Advisor for the
2000 for the two years ending April 1, acquisition of Kelkoo by Yahoo.
2006.
Helfant Group, Jefferies NYSE floor
Analysts place in the top five in The brokerage operation, changes name to
Wall Street Journals Best on the Street Jefferies Execution Services.
research analyst rankings in the aerospace
On the Job
and defense, medical equipment and Four Jefferies investment bankers are
supplies, electronic and electrical included in The Deals Top Investment
equipment, oil equipment, services and Bankers special report; five Jefferies
distribution, and utilities sectors. equity research analysts are ranked among
the top five stock pickers within their
Raises $125 million via a private industry; and five Jefferies equity research
The Workplace
placement of convertible stock with life analysts are included in Forbes Wall
insurer MassMutual. Streets Top Analysts special report for
the accuracy of their earnings estimates
2005 Acquires Randall & Dewey, an M&A and the performance of their stock
shop with energy industry expertise. recommendations.
Acquires Helix Associates, a private equity Honored as The Best Place to Work on
fund placement firm. Wall Street by Institutional Investor.
Getting Hired
Key Numbers

Reference
For Your
At a glance
JPMorgan The bank has experienced some growing pains
as a result of these changes, such as the challenge
The Industry
Chase & Co. of meshing cultures. When Chase and J.P. Morgan
merged, Main Street and Wall Street were suddenly
forced to ride the same elevator every morning. And
270 Park Avenue JPMorgan Chase has paid a price for its involvement
New York, NY 10017 in some of the recent big corporate scandals, including
Phone: 212-270-6000 a $135 million settlement for its role in the Enron
www.jpmorganchase.com scandal, a $2.2 billion settlement in a class-action
lawsuit relating to Enron, a $2 billion settlement of a
Overview
ThE FIRMS
lawsuit alleging the bank committed misdeeds in its
JPMorgan Chase did not exist in 2000. But a work for WorldCom, and a $425 million settlement of
series of M&As that began in 2001 resulted in the charges of IPO pricing improprieties during the tech
behemoth now known as JPMorgan Chase (though boom of the 1990s. Adding to these woes: The banks
the Investment Banking division continues under the performance hasnt been up to par in recent years.
JPMorgan name). Because of the difficulties caused by having many
In 2001, J.P. Morgan, with its roster of refined different legacy IT systems, for example, the banks
On the Job
clients and a strong investment bank franchise costs per transaction have been among the highest
(renowned especially for credit derivatives, fixed in the industry. And its principal trading efforts have
income, and loan syndication), merged with Chase simultaneously earned lower returns and exhibited
and its powerhouse consumer bank and budding more volatility than have the principal trading arms of
investment bank. In 2004, JPMorgan Chase, the other big banks.
secondlargest bank in the country, merged with Bank CEO Jamie Dimon, who ran Bank One, is moving
The Workplace
One, the sixthlargest. The new firm is a colossus aggressively to right the ship. The bank has cut costs
that nips at Citibanks and Bank of Americas heels, wherever possible; compensation is now based more
and is a leader in I-banking (currently number two directly on performance, and managers are managed
in I-banking fees after Citigroup), financial services much more closely now than before Dimon came
for consumers and businesses, financial-transactions on board in 2006. A deal it inked with Fidelity,
processing, asset and wealth management, and private which made JPMorgan Chase a primary supplier of
equity. securities to investors with Fidelity accounts, vastly
The companys subsidiaries include JPMorgan increases the banks distribution capability. To get the
Getting Hired
Private Bank and institutional investment manager commercial and I-banking sides of the business to
JPMorgan Asset Management (with $1.3 trillion in work more toward common goals, the I-banking arm
assets under management). JPMorgan Chase also owns gives the commercial banking arm 25 to 50 percent
about 45 percent of mutual fund company American of revenue from clients referred to the former by the
Century and has a stake in Chase Paymentech latter. The bank is also spending billions to upgrade
Solutions, a transaction-processing joint venture with its technology systems in-house, and is growing core
First Data. In 2005 the firm spun off private equity businesses like consumer lending, asset management,
investment arm JPMorgan Partners, which divided and debt underwriting.
Reference
The bank is one of the first to have outsourced

For Your
into two companies, CCMP Capital and Panorama

Capital. significant securities research functions overseas to
analysts in Hong Kong, India, and Singapore. The
move, a growing trend, saves money and allows

At a glance
JPMorgan Chase to present clients with freshly Newly hired MBAs dive right into their groups
crunched numbers first thing each morning in Europe training programs. Like boot camp, according to some
The Industry
and the U.S. insiders, these are designed to prepare recruits for
JPMorgan hires undergrads as analysts in I- action on the front lines by filling in any remaining
banking, asset and wealth management, sales holes from B-school. Insiders say boot camp is both
and trading, operations, and research. Summer fun and demandingspur-of-the-moment happy
opportunities also are available for undergraduates, hours and late-night cramming for tests are important
who are hired into specific groups as analysts. bonding experiences.
MBAs start as associates in I-banking, asset and JPMorgan hires a number of first-year MBAs into
wealth management, sales and trading, and research. its summer associate program. This is an excellent
The FIRMS
Associates might be promoted to vice president after way to get to know the firm and, if all goes well, get a
three or four years. Insiders say associates pretty full-time offer. There is nothing that can beat a three-
much know if theyre a good fit for JPMorgan by the month interview for finding the right fit, says one
five-year mark. Those who dont become VPs either recruiter, and that applies for both the candidate and
opt for a position at another I-bank or change career the firm. Although an internship is never a guarantee
paths altogether. The firm surveyed some of their top of future employment, many JPMorgan summer
recruits to find out what drew them to JP Morgan. investment-banking interns receive offers.
On the Job
They pointed to: The bank also hires undergrads and MBAs into a
host of retail financial services, commercial banking,
The scale, scope and prestige of the bank and corporate (for example, HR, accounting)
positions.
JP Morgans reputation as a business innovator While JPMorgan Chase is headquartered at 270
Park Avenue in Manhattan, most of its New York
The Workplace
The chance to make a personal impact I-banking operations are across the street at 277 Park
Avenue. Approximately 7,000 I-banking positions
World-class training and development will relocate as a result of the firms decision to build a
new $2 billion headquarters at the rebuilt World Trade
Exceptional quality of work and deal flow Center area in Lower Manhattan.
A spirit of cooperation and teamwork

Getting Hired
Key Numbers

Reference

For Your
Note: Numbers are for the investment banking arm of JPMorgan Chase.
At a glance
Recent Milestones 2004 Acquires Chicago-based Bank One, the
sixth-largest commercial bank in the
The Industry
2007 Named worlds largest hedge fund country.
manager by Alpha magazine.
Enters a joint venture with British
2006 Pays $425 million to settle charges of investment bank Cazenove, called
improprieties in pricing IPOs during the JPMorgan Cazenove.
tech boom.
Named to Fortunes list of the Best
Pays $1.5 million to settle SEC charges of Companies for Minorities.
ThE FIRMS
auction-rate bond market improprieties.
2003 Purchases US Banks global corporate trust
2005 Acquires majority position in Highbridge business for $720 million.
Capital Management, a hedge fund firm.
Pays $2 billion to settle charges brought

by WorldCom investors.
On the Job
Pays $2.2 billion to settle charges of fraud
in its dealings with Enron.
Acquires Vastera, a trade management and

logistics software maker, and renames it
The Workplace
JPMorgan Chase Vastera.
Acquires Neovest, a trading software

company.
Sells online brokerage business.
Getting Hired
Reference
For Your

At a glance
Lazard LLC Strength in Numbers

The Industry
U.S. Headquarters: Together Lazard to a number of big

30 Rockefeller Plaza Capital Markets and debt-restructuring
Lazard Alternative deals, including those
New York, NY 10020 Investments form a of WorldCom ($38
Phone: 212-632-6000 full-service investment billion), Parmalat ($27
www.lazard.com bank, operating in billion), and Daewoo
securities origination, ($50 billion). In the
sales, trading, research, first quarter of its
Overview and I-banking, and fiscal 2006, Lazard
The FIRMS
Lazard traces its roots back to 1848, when three other areas. Its saw revenue jump by
French brothers started Lazard Frres, a dry goods reputation in M&A and 68 percent over the
company, in New Orleans. By 1852 the brothers had corporate restructuring first quarter of 2005
advisory is the banks on strong M&A and
moved their firm to Paris, where they focused on greatest strength. It asset management
providing clients with an expanding array of financial has advised on quite performance. The deals
services. In 2005 the firm ended an era when it went a few significant it closed during that
M&A deals in recent three-month period
public, making Lazard the last of the major Wall Street
years, including the included the $8.8
On the Job
partnerships to do so. The IPO was completed at the merger of the New billion merger of MCI
urging of CEO Bruce Wasserstein, who joined Lazard York Stock Exchange and Verizon, the $3.3
in 2002. In December 2006 the firm completed a and Archipelago billion acquisition of
Exchange, Bank One Prentiss Properties
second equity public offering.
and JPMorgan Chase, by Brandywine Realty
In addition to resulting in a windfall for and Pfizer and Warner- Trust, and Whirlpools
Wasserstein and the banks 200-plus managing Lambert. $2.7 billion acquisition
The Workplace
directors, the deal allowed Lazard to buy out its French In addition, it has of Maytag.
recently been adviser
ownership and freed it to move in directions favored
by Wasserstein. What does that mean exactly? Its
hard to tell given the contrast between Wassersteins
reputation (brash and aggressive) and the firms
traditional reputation (thrifty and close-to-the-vest).
Getting Hired
Key Numbers

Reference
For Your
Worldwide earnings ($M) 93 143.5 247
At a glance
Before it went public, Lazard spun off two Recent Milestones
subsidiaries: Lazard Capital Markets and Lazard
The Industry
Alternative Investments. Capital Markets handles 2007 Announces plans to buy 50 percent of
equity research, sales and trading; fixed income and the MBA Group, a leading I-banking and
convertible sales and training; and underwriting asset management firm in Central and
services. Alternative Investments is a merchant bank South America.
whose activities include venture capital investments in
technology companies. Announces a cooperation agreement with
Lazard is known for its entrepreneurial, Raiffeissen Bank, an Austrian concern,
nonhierarchical culture. In other words, if you need to offer M&A activities in Russia and
ThE FIRMS
to be managed to be at your best or you want a clear Central and Eastern Europe.
career path, other places might be a better fit for you.
In North America, Lazard recruits MBAs for its 2006 Ends Italian joint venture with Banca
associate programs on-campus at Haas, Columbia, Intesa SpA.
Harvard, Stanford, the University of Chicago, and
Wharton. It also recruits undergrads for analyst Advises activist investor Carl Icahn in
programs at Berkeley, Claremont McKenna, a contentious proxy fight with Time
On the Job
Columbia, Georgetown, Harvard, Northwestern, Warner, recommending that the company
Howard, McGill, Princeton, Stanford, the University be split into four parts.
of Chicago, the University of Illinois, the University of
Michigan, the University of Virginia, Wellesley, Penn, 2005 Raises some $850 million in an IPO.
and Yale. JD students are also accepted. Check Lazards
website for information on opportunities and how to Restructures European I-banking group
The Workplace
apply for them. into a single business.
Lazard has offices in Atlanta; Chicago; Houston;
Los Angeles; Montreal; Minneapolis; New York; San Advises on M&A deals including
Francisco; So Paolo, Brazil; Toronto; Amsterdam; Mitsubishi Tokyo Financial Groups $37.8
Berlin; Bordeaux; Frankfurt; Hamburg; and Lyon, billion acquisition of UFJ Holdings and
Germany; London; Madrid; Milan; Paris; Rome; Duke Energys $14 billion acquisition of
Stockholm; Beijing; Hong Kong; Mumbai (formerly Cinergy.
Bombay); Seoul; Singapore; Sydney; and Tokyo.
Getting Hired
2004 Launches I-banking office in Australia.
Reference
For Your

At a glance
Lehman and securities underwriting. In 1984 the company

was acquired by American Express, but in the 1990s
The Industry
Brothers became independent once again. Thought of primarily

as a fixed-income house a generation ago, today it is a
Holdings Inc. bulge-bracket global investment bank with some 120

offices around the world and expertise in everything
from M&A advisory and securities underwriting,
745 Seventh Avenue to sales and trading and research, to private equity,
New York, NY 10019 asset management, mortgage banking, and real estate
Phone: 212-526-7000 investment. Still, nearly half of Lehmans 2005 revenue
The FIRMS
www.lehman.com came from fixed income, so the bank hasnt lost any
expertise in that area.
Overview Like other investment banks, Lehman Brothers
Lehman set records for its revenue in 2004, 2005, and was severely hurt by the market downturn of the early
2006 in part based on its expanded activities in the 2000s. Under CEO Richard Fuld, though, it has
mortgage and loan origination area. Expanding the fought back admirably. Lehmans longtime emphasis
mortgage capital business is a key strategic objective, on cost control has helped it recovermore strongly
On the Job
according to the companys website, and Lehman than many other firmsfrom the years immediately
currently has more than 6,000 employees originating following the burst of the tech bubble.
loans in the U.S., the U.K., the Netherlands, Japan, Today the firm is once again in hiring mode,
and Korea. In light of the subprime fallout, Lehmans especially in its asset management areas, and has been
heavy commitment to the mortgage business could making a series of acquisitions to strengthen its asset
come at a price. management businesses.
The Workplace
Lehman Brothers traces its roots back to 1844, Lehman Brothers World Financial Center
when German immigrant Henry Lehman opened headquarters were destroyed in the September 11
a general store in Montgomery, Alabama. In 1850 terrorist attacks, leaving more than 6,000 Lehman
two of his brothers joined forces with him, and the employees without a workplace. In 2002, the firm
business became Lehman Brothers. The business opened new headquarters in midtown Manhattan.
accepted payment in the form of cotton, becoming Coming to our new headquarters was a galvanizing
a broker of the crop. After the Civil War, the firm event, an insider says.
moved its headquarters to New York, where it began Lehman has a reputation for being a bit less refined
Getting Hired
to sell and trade securities and provide financial advice than most other banksand a bit more streetwise.
to clients; eventually it added merchant banking The company links employee compensation directly
Key Numbers

Reference
For Your
At a glance
to the firms profits, and employees own one-third as it can, says one. Lehman wants its people for the
of the firm. Insiders say office politics and internal long haul and helps them move around the firm to
The Industry
competition are kept to a minimum. There is an accommodate their interests. Lehman hires you for
attitude of respect that is pervasive across the business the organization, so its an open job market, says an
units without question, a vice president says. Its insider, who switched from banking to venture capital.
collegial and friendly, says another insider. You dont have to risk being fired like at other firms.
The firm is flatter than many of its peers, with less
INSIDER SCOOP bureaucracy, giving new hires plenty of opportunity.
Im astounded that this is an investment bank. Lehman continues to offer summer MBA programs
Theres no room for attitude. People like that for all of its divisions except credit risk management,
ThE FIRMS
dont survive here. and summer analyst programs for all areas except
credit risk management and public finance. Summer
Lehman Brothers typically does business as if it programs are a critical gateway into a job at Lehman
has something to prove on the Street. Theres an and where the firm gets most of its full-time hires.
underdog mentality, says one insider.
Lehmans banner years resulted in an increase Recent Milestones
in hiring activities; its workforce expanded by
On the Job
3,000 in 2006 alone. Lehman pulled students from 2007 Establishes a strategic relationship with
170 countries in Asia, the Americas and Europe. the Qatar Investment Authority and
Undergraduates can apply for analyst positions in receives a license to operate in Qatar.
equities and fixed-income sales, trading, and research;
I-banking and private equity (the latter of which 2006 Recognized by the Securities Industry
comprises merchant banking, venture capital, real Financial Management Association for
The Workplace
estate, third-party funds, and fixed income-related its innovative Encore initiative, which
funds); investment management; operations; finance; re-engages talented individuals, primarily
IT; credit risk management; and public finance. All of women, who have left the workforce for a
these (except for IT) are two-year programs, though period of time and want to return.
in some areas high performers might be asked to stay
with the firm after two years. Acquires Campus Door, a U.S. provider of
MBAs are hired into rotational programs in private student loans.
I-banking and private equity; equities and fixed-
Getting Hired
income sales, trading, and research; public finance; Cited as Europes rising star: most
and investment management. Most equities and improved investment bank of the decade
fixed-income hires enter as generalists, which means by Financial News.
the program gives them exposure to a broad range of
activities and businesses. Those interested in equity Named best investment bank in the
research and analytical areas of equities and fixed industrial/chemicals sector by Global
income enter a program more focused on their specific Finance magazine.
areas of interest. MBAs also come on board in private
Reference
For Your
investment management sales, credit risk management, Ranked number one in Barrons 500
and public finance. annual survey of corporate performance.
Insiders say theres no set timeline for promotions.
The firm tries to espouse being a meritocracy as much

At a glance
Named second most admired securities

company by Fortune. Merrill
The Industry
Named to BusinessWeeks list of the 50 Lynch & Co.,

best-performing companies.
Places fourth in Institutional Investors

Inc.
2006 All-Europe Research Team. 4 World Financial Center
New York, NY 10080
Wins 29 best-in-class awards in the Global Phone: 212-449-1000
The FIRMS
Custodian Prime Brokerage Surveymore www.ml.com

than any other firm.
Overview
Named Best Investment Bank in the Merrill Lynch has been growing through a number of
power and health-care sectors by Global acquisitions and investments. In 2005 it bought the
Finance magazine. Advest Group from AXA Financial; that same year it
acquired the retirement business of AMVESCAP (now
On the Job
Named Best Investment Bank by INVESCO) and the pension business of Philips. In
Euromoney. 2006 Merrill Lynch bought institutional brokerage
Wave Securities from Archipelago Holdings. In 2007 it
2004 Ranks first in Institutional Investors All- acquired National Citys First Franklin Financial Corp.
America Equity Research and All-America mortgage unit, energy industry investment bank Petrie
Fixed-Income Research surveys. Parkman & Co., and First Republic Bank.
The Workplace
Merrill Lynch was the first Wall Street firm to

establish nationwide branch offices and the first to
advertise on television; it became known as the firm
that brought Wall Street to Main Street. One of the
largest U.S. securities firms, the company is organized
into two main segments: global private client (GPC)
and global markets and investment banking (GMI).
GPC provides brokerage services, banking services,
Getting Hired
credit cards, and investment products to individuals,

small- and midsize businesses, and employee benefit
plans. GMI offers I-banking, trading, transaction
services, and investment products to institutions,
corporations, and governments. Merrill Lynch operates
out of offices in 36 countries and territories. In 2006
it merged its asset management arm, Merrill Lynch
Investment Managers, with asset manager BlackRock.
Reference
For Your
At a glance
Like other investment banks, Merrill is emerging Wharton, an insider says. Merrill Lynchs criteria for
from a difficult time. Its bottom line was deeply new hires are based more on skills than personality,
The Industry
wounded by the bear market of the early 2000s, which means less prescribed image and behavior.
and the companys image has been tarnished by its While it doesnt look like a Grateful Dead concert,
involvement in the financial scandals of the past few individuality is tolerated at Merrill, another insider
years, such as the ImClone/Martha Stewart insider says.
trading scandal. In 2002 and 2003 it paid $200 Merrill Lynch recruits at colleges nationwide
million to settle charges of improper research. The in the fall, but does the bulk of full-time hiring
firm also paid $80 million to settle charges that it through its summer program. While a high GPA,
helped Enron commit securities fraud. In addition, it top-tier schooling, and finance-related major are
ThE FIRMS
eliminated more than 20,000 jobs in the early years of assets, recruiters want candidates who excel in
the millennium to cut costs. outside pursuits. You need to show how youre best
But Merrill Lynch has begun to reverse its bad at something, says one recruiter, be it physics or
fortune. It grew revenue by nearly 50 percent in 2005, knitting. That said, Merrill Lynch doesnt want self-
and its first-quarter revenue in 2006 was a record for obsessed people who arent able to work on a team.
the firm, up 28 percent from the first quarter of 2005. We generally reject people who are egocentric, an
There is [now] a sharp focus on profitabilitylaser- insider says. Those individuals might actually be the
On the Job
sharp, says an insider. Everybody is looking at what most intelligent and qualified people, but if they have
theyre doing and thinking about how to do it better. those characteristics, they wont be successful in our
On the plus side, the firms powerful brand name culture.
and phenomenal resources mean a stronger platform
from which to sell. But its sheer size means navigating INSIDER SCOOP
through red tape. Its very bureaucratic, an employee Want to work for Merrill Lynch? Check your ego
The Workplace
says. You achieve things in spite of, rather than at the door
because of, the massive infrastructure that exists.
With senior executives originating from the lowest Merrill hires hundreds of undergrads into analyst
brokerage ranks, Merrill Lynch exhibits less white-shoe positions in I-banking, global markets, and private
attitude than other firms. Out of my group of 70, client services each year. Opportunities also exist in IT,
no ones a Harvard grad; a lot are from Chicago and operations, HR, accounting and finance, credit, and
investment management. The number of openings
varies annually depending on departmental needs.
Getting Hired
MBAs join the firm as associates in I-banking,
While it doesnt look like global markets, private client services, and research;
resumes should be submitted September through
a Grateful Dead concert, November for those graduating in the spring. For
individuality is tolerated at these jobs, Merrill looks for candidates who have
Merrill. previous financial experience and a good personality
fit. Candidates who have never worked on Wall Street
need to be versed in the industry and its trends.
Reference
For Your

At a glance
Recent Milestones 2005 Named top European equity house by

International Financing Review.
The Industry
2006 Announces merger of its asset

management arm with BlackRock, a fixed Named best global equities house by
income-focused asset manager; Merrill Euromoney.
Lynch owns just less than 50 percent of
the venture. Named investment bank of the year by
The Banker.
2007 Named Best Derivatives House of the Year
by Risk Magazine. Named top China equity house by
The FIRMS
International Financing Review Asia.

Wins the Human Rights Campaigns
2007 Corporate Equality Award for Acquires brokerage firm The Advest
its commitment to employees and Group from AXA Financial.
clients who are lesbian, gay, bisexual, or
transgender. Acquires Pax Clearing, a Chicago options,
futures, and stock clearinghouse.
On the Job
2006 Named Best Investment Bank of the Year

by Investment Dealers Digest. Acquires AMVESCAP Retirement, a
retirement plan provider.
Named one of 40 Best Companies for
Diversity by Black Enterprise Magazine. 2004 Acquires Entergy-Koch Trading, an
energy-trading company.
The Workplace
Ordered to pay $2.2 million after

an arbitration panel found the firm
guilty of discriminating against female
stockbrokers.
Getting Hired
Key Numbers

Reference
For Your
Sources: Hoovers; WetFeet analysis
At a glance
Morgan Scratches on the Canvas
The Industry
Stanley Despite a prettier
picture, Morgan Stanley
million to settle the
claims.
is still getting black During the accounting
1585 Broadway eyes in the press: In scandals that rocked
New York, NY 10036 2006 the firm agreed Wall Street in the early
Phone: 212-761-4000 to pay a $15 million years of the millennium,
www.morganstanley.com fine to settle charges Morgan Stanley was
that it didnt produce among the first to adopt
documents and was more stringent controls
Overview
ThE FIRMS
uncooperative during for its operations,
The picture is finally brightening for Morgan Stanley, SEC investigations. In including a new
one of the worlds leading investment banks. In January 2007 Morgan stock-rating system.
Stanley was hit with Of course that didnt
2005 the firm experienced a very public struggle for an age discrimination stop regulators from
control between chairman and CEO Philip Purcell lawsuit by one of its investigating the firm,
and a group of Morgan Stanley executives. Following former managing along with others on
directors. And in Wall Street, for touting
relentless criticism from the Street about Purcells 2005
April 2007, Morgan tech stocks to woo I-
On the Job
spinoff of Morgan Stanleys Discover Card business, Stanleys Global Wealth banking clients. Morgan
the departure of key executives forced out by Purcell Management Group Stanley eventually had
during the battle for control, and a spate of key staff settled a class-action to pay $50 million to
lawsuit that alleged settle charges against
defections, Purcell finally agreed to step down. He was
discrimination against ita mere pittance
replaced by John Mack, the former CEO of Credit women brokers and compared with what
Suisse. Events had come full-circleMack was forced trainees in promotion other top banks had
The Workplace
out of Morgan Stanley by Purcell in the early 2000s. and compensation. The to pay.
company set aside $46
With Mackwho insisted on being paid based on
his performance rather than receiving a guaranteed
$25 million salaryat the helm, morale is on the in 30 countries. Like other big investment banks, its
rebound. Financials from the first half of 2007 seem making inroads in emerging financial powerhouse
to reflect that: Morgan Stanleys profit grew three countries. It was one of the first foreign banks with
times faster than at Goldman Sachs, the biggest U.S. a presence in China via a joint venture with China
investment bank. Profit during the second quarter Construction Bank in 1992. In 2005, it was the top
Getting Hired
was stronger than at Goldman, Lehman Brothers investment bank in China, mainly due to its lead
Holdings, and Bear Stearns. And continued strength underwriting role in China Construction Banks listing
in corporate takeovers drove I-banking revenue to a on the Hong Kong stock exchange.
record $1.7 billion, up 65 percent year-over-year. Morgan Stanley has active recruiting programs
Morgan Stanley was formed in 1935 after the for undergrads, MBAs, and IT professionals, as well
Glass-Steagall Act forced banks to cease underwriting as a range of summer internships. Competition is
and other I-banking activities. Thats when Henry keen for all positions. Why? Because Morgan Stanley
Morgan and Harold Stanley left J.P. Morgan and is, in the words of one insider, a kick-ass name.
Reference
For Your
established a separate I-banking firm. The 1997 merger Employees and non-employees alike are impressed.
with Dean Witter Discover gave Morgan Stanley One insider confesses to taking pleasure in the fact
access to that companys extensive retail brokerage that when people ask me where I work, they say, Oh,
business. Today the bank has more than 600 offices wow! when I tell them Morgan Stanley. Goldman

At a glance
is probably the only other firm that will elicit that Getting hired at Morgan Stanley could be the
response. toughest assignment youve ever tackled, so dont wait
The Industry
But theres a flip side. People here are, well, how to apply. Its imperative to get on the interview list
shall I say this? Competitive, says a second-year at your school early, says one recent hire. If Morgan
associate. One first-year insider says that although Stanley doesnt recruit on your campus, its still
they tend to be the exception rather than the rule, possibleand even more importantto meet people
you do find some me first kind of people who wont at receptions, talk to them later, set up informational
put their projects aside to work with you. In other interviews in New York City, and call alumni from
words, if youre looking for a warm and collegial work your school. Morgan Stanley also offers an online
environment where people look out for each other, the application process. The summer associate recruiting
The FIRMS
cutthroat mentality of some Morgan Stanley divisions process is particularly speedy, another insider says. The
might not fit the bill. firm will often contact you the night of the interview
to invite you back for a second roundor to ding
you. Second-round interviews are usually at Morgan
Stanleys New York headquarters. A third round is
In 2005, it was the top invest- possible. The process for full-time associates is similar,
ment bank in China, mainly but could move a bit slower. The recruiting process for
On the Job
analysts often begins on selected campuses nationwide,

due to its lead underwriting but much is still done in New York. Interviews are
role in China Construction notoriously rigorous.
Banks listing on the Hong INSIDER SCOOP

Kong stock exchange. Morgan Stanley was grueling11 interviews in
The Workplace
one day. They really grilled me and tried to get

my wheels spinning.
Getting Hired
Key Numbers

Reference
For Your
At a glance
Recent Milestones 2005 Sells aircraft leasing business.
The Industry
2007 Completes spinoff of Discover Financial Ordered to pay $1.5 billion to Ronald
Services. Perelman for withholding knowledge of
accounting fraud at Sunbeam; in 1998
Announces intention to open office in Perelman sold his company, Coleman, to
Egypt and expand business in North Sunbeam for cash and stock; Sunbeam
Africa and Middle East. went bankrupt as a result of the
accounting fraud, and Perelman lost a big
2006 Acquires Saxon Capital, a Virginia-based chunk of change.
ThE FIRMS
residential mortgage lender.
CEO Philip Purcell announces he is
Acquires TransMontaigne, a Denver-based stepping down from his CEO and
oil and gas transportation company, and chairmanship positions; he is replaced by
Heidmar Group, a Connecticut-based former president of the bank John Mack.
marine transportation and logistics firm.
Announces plans to spin off Discover
On the Job
Pays $15 million to settle SEC charges Card business.
that it was uncooperative while under
investigation. 2004 Spins off Morgan Stanley Capital Partners.
Acquires AMLI Residential Properties Subsidiary Morgan Stanley Capital

Trust. International acquires risk management
The Workplace
software company Barra to form MSCI
Named Credit Derivatives House of the Barra.
Year by Risk magazine.
Pays $54 million to settle sexual
Named FX Provider of the Year by discrimination charges brought by some
Global Investor magazine. 300 employees.
Ranked number one in ranking of prime Agrees to pay $40 million to settle SEC
Getting Hired

brokerage operations by Global Custodian. charges over improper IPO allocation
practices.
Is co-lead manager of Google IPO. Reference

For Your

At a glance
Piper Jaffray life balance. The hours are better, the pay is similar,
and the workplace isnt cutthroat, says a Minneapolis
The Industry
Companies insider. People are just really nice, friendly, and

supportive.
One former employee remembers the firms
800 Nicollet Mall, Suite 800 commitment to keeping family a priority in its
Minneapolis, MN 55402 employees lives. What I found to be unique in the I-
Phone: 612-303-6000 banking industry at Piper Jaffray was that they strongly
www.piperjaffray.com believed that family was number one, the insider says.
Theres the understanding that if its your daughters
Overview
The FIRMS
birthday, someone will cover for you.

Located in Minneapolis, Piper Jaffray is the number
one technology underwriter. Its mission is to build the INSIDER SCOOP
leading international middle market investment bank Piper Jaffray pays particular attention
and institutional securities firm. to colleges in the Midwest when recruiting
Piper Jaffray traces its roots back to 1913, undergrads.
when Harry Piper and Palmer Jaffray founded a
On the Job
commercial paper brokerage house. The bank became Piper Jaffray recruits undergrads and MBAs at top
an independent entity a couple of years ago after schools nationwide, with an emphasis on Midwestern
operating as a subsidiary to a larger institution. In schools for many undergrad needs. In 2006 it
1998, U.S. Bancorp acquired Piper Jaffray in an effort recruited MBAs from such schools as University of
to bolster its presence in securities businesses, but in California at Berkeleys Haas School, UC Los Angeless
2004 the big commercial bank spun off the smaller Anderson School, University of Chicago, Harvard
The Workplace
firm. The bank, which almost tripled the number of Business School, University of Michigan, University of
its employees in 2006, according to Hoovers, focuses Minnesotas Carlson School, Kellogg, Wharton, and
on sectors including consumer, financial institutions, Stanford. It recruited undergrads at Berkeley, UCLA,
health care, and tech. Duke, Illinois, Iowa, Kansas, Michigan, Minnesota,
Piper Jaffrays equity business is focused on seven Notre Dame, Stanford, St. Thomas, Texas, and
sectors of the economy: alternative energy, business Wisconsin.
services, consumer, financial institutions, health care, Recruiters look for highly motivated, dedicated,
industrial growth, and technology. Its public finance and productive applicants with diverse backgrounds.
Getting Hired
business is principally focused on five sectors of the The interview process includes an on-campus meeting
tax-exempt market: state and local governments, followed by a series of meetings at company offices. A
real estate and housing, health care, education, and finance background isnt required for analyst positions,
hospitality. but strong quantitative skills are necessary. I-banking
Piper Jaffray is headquartered in Minneapolis, and associates and equity research analysts generally have
has 107 offices in 23 states, as well as London and MBAs.
Shanghai. The bulk of undergraduate and MBA hiring is in
Since most of Piper Jaffrays employees work I-banking and equity research. Other undergraduate
Reference
For Your
outside of New York, its possible that youll end up positions are available in product services and
a long way from Wall Street if you join this firm. But accounting. MBAs can also apply for positions in asset
insiders say that distance has its advantages, like a management and venture capital.
more easygoing work environment and better work/
At a glance
Recent Milestones Ranks fourth in The Wall Street Journals
Best on the Street survey, and ties
The Industry
2007 Signs a definitive agreement to acquire for eighth in the Forbes.com/StarMine
Goldbond Capital Holdings, a Hong rankings of equity research analysts.
Kong-based investment bank serving the
Greater China region. Matches employee donations up to
$100,000 for Hurricane Katrina relief.
Acquires Fiduciary Asset Management.
Becomes member of the London Stock
Five Piper Jaffray Equity research analysts Exchange.
ThE FIRMS
honored in The Wall Street Journals annual
Best on the Street survey of research Fined $280,000 and $275,000 for
analysts. improper municipal bond securities
trade reporting and mutual fund sales
2006 Ranks sixth in equity research in The Wall improprieties, respectively, by the National
Street Journals Best on the Street survey. Association of Securities Dealers.
On the Job
Completes senior-managed $309 million 2004 Piper Jaffray is spun off by U.S. Bancorp.
municipal bond underwriting for the
Baltimore Convention Center Hotel Spins off venture capital business.
Project, one of the banks largest deals ever
by par value. Opens Nashville fixed-income sales office.
The Workplace
2005 Research group begins covering the health Fined $2.4 million for improper allocation
care industry. of IPO shares.
Acquires Vie Securities.
Getting Hired
Key Numbers
Worldwide revenue ($M) 535 815 816

Reference
For Your

At a glance
UBS The investment bank operates in three main areas:

equities, I-banking, and fixed income, rates, and
The Industry
Investment currencies. It has offices in 36 countries worldwide.

The equity research group employs some 700 analysts,
Bank following nearly 3,000 companies as well as producing

economic, strategy, and derivative research. The
I-banking group employs 22,000 people and advises
Primary U.S. Office: clients on M&A, strategy reviews, and restructuring.
299 Park Avenue Its known for expertise in cross-border M&A and
New York, NY 10171 capital-raising strategies. The fixed income, rates,
The FIRMS
Phone: 212-821-4000 and currencies group employs more than 2,000

www.ibb.ubs.com professionals and operates in major markets around
the world. UBS is especially strong in foreign
Overview exchange.
If you watch TV, then youve probably seen the UBS The bank is a major player globally, particularly
ads (You and Us: UBS), which are in heavy network in Europe, but also in Asia. Its rapidly expanding
rotation. Between that and the fact that UBS handles its U.S. operations as well. Our plan was to expand
On the Job
one in nine globally traded shares, its a hard company domestically and to do so aggressively, and that plan is
to miss. still on track, an insider says. We want to win.
UBS Investment Bank is part of UBS AG, which UBS employees say their corporate culture is more
is the worlds largest private bank. UBS is based relaxed than most Wall Street firms. UBS isnt your
in Switzerland, so UBS Investment Bank has a typical firm, an insider says. Its the most European,
wealth of valuable European and other international laid-back culture youre going to get on the Street, and
The Workplace
connections. it was business casual far before the dot-com era. Its
The current incarnation of the firm was created not all type-A people, and its not as cutthroat. We
through a series of acquisitions, starting with Swiss work together, not against each other.
Bank Corp.s (SBC) purchase in the 1990s of Good employees move up quickly. With smaller
OConnor & Associates, an equity-derivatives trading deal teams than at most of the big firms, competition
firm in Chicago. SBC next bought SG Warburg, a for key positions is minimized. Theres plenty of
London- and New Yorkbased investment bank, responsibility for those who want it, and that means
and then Dillon Read, a small, distinguished U.S. a fast promotional track. Theres more head and
Getting Hired
I-banking firm, to increase its presence in the U.S. elbow room, which means there are fewer people
In 1998 SBC merged with the Union Bank of fighting over deals at your level and theres a lot more
Switzerland (UBS). In 2000, Paine Webber was responsibility for the levels above you, says one
added to the fold, enhancing the banks distribution insider.
capability as well as its business with high net-income
individuals. And in late 2004 the bank acquired INSIDER SCOOP
SoundView Capital, a trading firm, from Charles Im an impatient person, so I wanted to be at
Schwab & Co., creating the new UBS Capital Markets a place where I can ramp up faster than across
Reference
the Street.
For Your
LP business to house the acquisition. The business is a

major provider of execution services for retail brokers;
the acquisition made UBS the market leader in share UBS aggressively recruits undergraduates and
volume traded on the NYSE and NASDAQ in 2005. MBAs to staff its U.S. offices. Undergraduates can
At a glance
apply for full-time positions in asset management, Pays $54 million to settle charges by the
client advisory, consulting and management support, NYSE and the states of New Jersey and
The Industry
debt capital markets, financial control and accounting, Connecticut, which had accused the firm
IT, I-banking, legal and compliance, marketing and of allowing improper trades by some of
communications, operations and services, research, risk its financial advisers customers between
management, sales, and trading. MBA opportunities 2000 and 2002.
include positions in asset management, client advisory,
debt capital markets, I-banking, and research. Acquires the private-client services arm of
Additional opportunities exist in overseas offices. Piper Jaffray.
UBS also offers summer internships for both
ThE FIRMS
undergraduates and MBAs. Ranked second in Institutional Investors
All-Europe Fixed Income Research Team
Recent Milestones rankings.
2007 Announces purchase of Standard Ranked number one for the fifth straight
Chartereds mutual funds management year in Institutional Investors All-Asia
business, Indias ninth largest domestic Research Survey.
On the Job
mutual fund manager.
Ranked number one in equity sales and
2006 Acquires Brazilian investment bank Banco research in Latin America by Institutional
Pactual. Investor.
Acquires ABN Amros global futures and 2005 Loses a high-profile sexual harassment
The Workplace
options arm. lawsuit brought by a former institutional
equity salesperson, in which the
Ranked number one in pan-European investment bank was shown to have
sales force for the third straight year in destroyed key email evidence.
Institutional Investors Pan-European
Equity Sales Rankings. Several African-American employees file a
class-action discrimination lawsuit against
UBS in the U.S.
Key Numbers Getting Hired

Reference

For Your
Note: Numbers are for the parent company; UBS does not release numbers pertaining to its I-banking division.

At a glance
The Securities and Exchange Board of

India charges UBS with contributing
The Industry
to the companys Black Monday stock

market decline in 2004.
Enters a mutually beneficial strategic co-

operation relationship with the Bank of
China to develop I-banking products and
services in China.
The FIRMS
2004 Acquires Schwabs SoundView Capital

Markets business for $265 million.
Buys out partner Brunswicks portion of

joint venture in Russia, taking full control
of the joint ventures operations.
On the Job
The Workplace
Getting Hired
Reference
For Your
At a glance
Other Firms
The Industry
Firm Headquarters Website
Allen & Company New York AllenInvestments.com
Brown Brothers Harriman & Co. New York www.bbh.com
Canaccord Adams Toronto www.canaccordadams.com
C.E. Unterberg, Towbin New York www.unterberg.com
ThE FIRMS
CIBC World Markets Toronto www.cibcwm.com
Cowen & Company New York www.cowen.com
Daiwa Securities Group Tokyo www.daiwausa.com
Dresdner Kleinwort London www.dresdnerkleinwort.com
Evercore Partners New York www.evercore.com
On the Job
Fox-Pitt, Kelton New York www.fpk.com
FTN Midwest Securities Corp. Cleveland www.ftnmidwest.com
Greenhill & Co. New York www.greenhill-co.com
The Workplace
HSBC London www.hsbc.com
JMP Securities San Francisco www.jmpsecurities.com
Keefe, Bruyette & Woods New York www.kbw.com
KeyBanc Capital Markets Inc.

Cleveland www.key.com
(formerly McDonald Investments)
Merriman Curhan Ford & Co. San Francisco www.merrimanco.com
Getting Hired
Morgan Keegan & Co. Memphis, Tenn. www.morgankeegan.com
Needham & Co. New York www.needhamco.com
Nomura Holdings Tokyo www.nomuraholdings.com
Oppenheimer Holdings Toronto www.opco.com
Prudential Equity Group New York www.cm1.prusec.com
www.wellsfargo.com/ragen_macken-
Ragen MacKenzie Seattle
Reference
zie/about
For Your
Raymond James Financial Services St. Petersburg, Fla. www.rjf.com
RBC Dain Rauscher Minneapolis, Minn. www.rbcdain.com

At a glance
Robert W. Baird & Co. Milwaukee, Wisc. www.rwbaird.com

The Industry
Roth Capital Partners Newport Beach, Calif. www.rothcp.com
Ryan Beck & Co. Livingston, N.J. www.ryanbeck.com
Sanders Morris Harris Group Houston www.smhgroup.com
Sandler ONeill + Partners New York www.sandleroneill.com
Sanford C. Bernstein & Co. New York www.bernstein.com
Sidoti & Co. New York www.sidoti.com

The FIRMS
Stephens Inc. Little Rock, Ark. www.stephens.com
Stifel Financial Corp. St. Louis, Mo. www.stifel.com
Sun Hung Kai & Co. Hong Kong www.shkco.com
SunTrust Robinson Humphrey Capital Markets Atlanta www.suntrustrh.com
SWS Group Dallas www.swsgroupinc.com

On the Job
TD Securities Toronto www.tdsecurities.com
Thomas Weisel Partners San Francisco www.tweisel.com
Wachovia Securities Richmond, Va. www.wachoviasec.com

The Workplace
Wedbush Morgan Securities Los Angeles www.wedbush.com
William Blair & Co. Chicago www.williamblair.com
WR Hambrecht + Co. San Francisco www.wrhambrecht.com

Getting Hired
Reference
For Your
For Your
65
On The Job
4
Overview..................................... 68
Corporate Finance...................... 68
Mergers and Acquisitions............ 70
Public Finance............................. 71
Sales and Trading........................ 72
Research...................................... 75
Support Functions...................... 77
At a glance
Overview Corporate
The Industry
Everything coming into focus? Before you say

yes, understand that while the services provided by
Finance
investment banks are relatively standard, different The corporate finance group (frequently known
firms can have significantly different market niches as banking or CorpFin) serves the sellers of securities.
and client bases. Its especially easy to get confused The sellers could be Fortune 1000 companies that are
when you start paging through the corporate bro- looking to raise cash to fund growth or private compa-
chures because every firm has a slightly different way nies that are looking to go public. Think of investment
The FIRMS
of organizing and marketing its activities. So as youre bankers as financial consultants to corporations. This
reading, think in terms of the basic banking func- is where CEOs and CFOs turn when theyre trying to
tionsand suddenly capital markets will reveal itself figure out how to finance their operations, structure
to be plain old sales and trading. their balance sheets, or how best move ahead with
Keep in mind that while most investment banking plans to sell or acquire a company.
(I-banking) org charts look complex, there are The activities of the CorpFin department can
essentially three major professional divisions to a full- range from providing pure financial advice to
On the Job
service investment bank: leading a company through its first equity issue (or
IPO). As a result, industry or product knowledge is
I-banking key; many investment banks divide their corporate
finance departments into industry subgroups, such
Sales and trading as technology, financial institutions, health care,
communications, entertainment, utilities, and
The Workplace
Research insurance, or into product groups, like high-yield,

private equity, and investment-grade debt.
The specific tasks for each division, as well as
the skills and personalities of the people who work As a whole, CorpFin does any and all of the
in them, are very different. Youll be dinged if you following:
walk into the interview cubicle without some idea of Underwrites equity offerings. (Translation: The
whether you want to structure deals, trade financial investment bank buys all of the shares of stock for
products, or do research. If you pursue and are hired sale from a corporation or government entity and
Getting Hired
for a position that youre not really a good fit for, work then sells them on the market to investors.)
will make you miserable. To help you avoid either fate,
well take you on a brief tour of a few of the basic jobs Underwrites fixed-income (debt/bond) offerings.
within a typical investment bank.
Helps firms analyze their financial needs.
Reference
For Your
At a glance
Sample Project
When a private companys growth demands larger
In CorpFin, industry or
The Industry
amounts of cash, management will often turn to
product knowledge is key; an investment bank to develop a financing strategy
thats more economical than, say, the revolving stack
many investment banks of credit cards it has been using to meet payroll. By
divide their corporate selling a portion of its stock to the public in an IPO,
a private company can raise a significant amount of
finance departments into capital without increasing its debt burden. An analysts
industry subgroups, such as or associates role in the process begins once the
ThE FIRMS
technology, health care, and bank has been invited to pitch for the underwriting
business. First, you and your deal team (senior bankers
communications. from your group, plus the appropriate research analyst)
put together a pitch book that includes a preliminary
valuation of the company and a description of how
the bankers will position the company to make its
Helps firms devise and implement financial stock most attractive to investors. If your firm is
On the Job
strategies (for example, how to structure their selected as an underwriter, you and the other analysts
balance sheets, and when and how to proceed and associates staffed on the deal will do most of the
with funding initiatives). legwork to finalize the valuation, prepare and submit
the prospectus to the SEC for review, accompany
Determines valuations for offerings (for example, management on the road show, and coordinate
what the opening price for the stock should be). activities with the companys lawyers and other
The Workplace
underwriters during the process. After the market
has closed on the day the deal is scheduled to price,
Who Does Well the deal team will gather for a conference call with
I-banking jobs in corporate finance require critical, the other underwriters and company management
detail-oriented thinking. If you have a knack for to decide on the final price for the offering. The next
crunching and using numbers to understand patterns morning, the stock begins tradingand you start
that influence business, youre going to be valuable to making plans for the deal team to gather with the
a company. You should also enjoy and excel at solving company at a posh restaurant for a celebratory closing
Getting Hired
problems and be able to think critically about the dinner.
numbers youre working with.
CorpFin jobs also require excellent people and
communication skills, to work both on banking teams
> TIP
and to build solid relationships with clients.
Whether youre a grad student or
Lawyers can be as good a fit in this career as MBAs,
an undergrad, try to get an I-bank
and experienced candidates with strong experience in internshipits the best way to
a given industry make good candidates for I-banking secure an eventual offer.
Reference
For Your
positions. In fact, an advanced degree (MBA or other)

is all but required to advance in this career, and some
sales ability is necessary to sell banking business to
potential clients.

At a glance
Job Tips M&A groups will:

The CorpFin department generally hires a significant Advise firms on M&A strategies.
The Industry
number of MBAs and undergraduates to develop

financial models, create the offering memorandum Determine target company valuations.
(an important document that can run 200 pages),
and facilitate the due diligence process. If youre Help the target of a hostile acquisition arrange a
hired into one CorpFin industry group, think of your defensive strategy.
relationship with that group as dating rather than
marriage. Dont necessarily plan to spend the rest of Conduct due diligence on a target or acquiring
your two or three years or career in that group. Market company (for example, examine the financial
The FIRMS
trends are ever-changing, and so are the compositions results and other business factors that will affect
of specific industry groups. the value of an acquisition).
Negotiate price, terms, and conditions of an
Mergers and acquisition or merger.
Acquisitions Work with the other companys advisory team

On the Job
and the lawyers to structure the deal.
INSIDER SCOOP
You have to really like spending time in front of Who Does Well
your computer with Excel. Like corporate finance, M&A requires detail-oriented
thinking, a knack for using numbers to understand
The Workplace
The mergers and acquisitions (M&A) group provides business patterns, problem-solving skills, an ability to
advice to companies that are buying other companies think critically about the numbers with which youre
or are themselves being acquired. M&A work can working, and excellent communication and people
seem very glamorous and high-profile. At the same skills.
time, the work leading up to the headline-grabbing, Corporate finance, lawyers, MBAs, and experienced
multibillion-dollar acquisition can involve a Herculean candidates with specific industry knowledge make
effort to crunch all the numbers, do the necessary due good M&A candidates. Undergrad and grad students
diligence, and work out the complicated structure of should try to get an internshipits the best way to
Getting Hired
the deal. Often, the M&A team will also work with secure an eventual offer.
a CorpFin industry group to arrange the appropriate An advanced degree (MBA or other) is all but
financing for the transaction (usually a debt or equity required to advance in this career.
offering). In many cases, all this could happen on a
very tight timeline and under extreme secrecy. M&A Sample Project
is often a subgroup within corporate finance, but in IBM sees an opportunity to strengthen its hardware
some firms is a stand-alone department. M&A can be business by acquiring an innovative developer of
one of the most demanding groups to work for. communications software. It approaches an investment
Reference
For Your
bank to get advice on the potential deal. The bankers

help IBM secretly value the target companys assets
and the potential value of its products to IBM, which
could be higher than their current value because of the
At a glance
opportunities to link with IBM hardware and because
of Big Blues marketing muscle. The M&A group then Public
The Industry
develops IBMs acquisition strategy and makes contact
with the target company. Once the offer is made,
the target company will consult its own investment
Finance
bankers to evaluate IBMs proposal, determine various Public finance is similar to corporate finance
strategies for defending against or negotiating with except that instead of dealing with corporations, it
IBM, and work out a deal that will be in the best works with public entities such as city and state gov-
interest of the companys shareholders. After some ernments and agencies, bridge and airport authorities,
back and forth, the sides agree on a price (usually a housing authorities, and hospitals. Although the basic
ThE FIRMS
combination of stock and cash), sign the documents, services (financial advisory and underwriting) and the
and become one. Meanwhile, the advisers take their financial tools (bonds and swaps, but no equity) are
own hefty fees to the bank. similar to those used for private-sector clients, numer-
ous political and regulatory considerations must be
Job Tips assessed in the structuring of each deal. A particular
The M&A department usually recruits under the key issue involves how to get and maintain tax-exempt
CorpFin or I-banking umbrella, though within the status for the financial instruments the client will use.
On the Job
group you might find further specialization along
industry lines. The work here tends to be intense and The public finance group will:
very deal-focused, and the hours are unpredictable. Advise public entities on capital-raising strategies.
You might be staffed on five transactions and not
much is happening. Then one turns live and you have Advise public entities on portfolio management.
to cancel your weekend plans, says an insider. Or
The Workplace
you could be very busy, and the next day something Arrange project finance.
happens and work gets pushed back a week and
suddenly your weekend is free. The job provides an Help municipal entities restructure their debts.
excellent introduction to the high-stakes, high-power
push and pull of the corporate world. Insiders tell us Determine a valuation for a debt/bond offering.
that personal ambition is a big success factor in M&A.
You can learn the technical skills like accounting and Underwrite tax-exempt notes, bonds, derivatives,
modeling, says one first-year associate. Its not so easy and other municipal securities.
Getting Hired
to learn how to be driven and to take responsibility, to
own the deal. If youre depressed by the thought of
spending three or more weeks of your life crunching Who Does Well
numbers for a deal that never happens, seek out Public finance jobs require strong numbers skills, an
another alternative. excellent analytical ability, and solid communication
skills because youll be spending a lot of time with
clients. People with experience working in or with
government are especially attractive when it comes to
Reference
For Your
landing jobs in public finance, as are lawyers.

An internship is the best point of entry for
inexperienced candidates.

At a glance
Sample Project ment entities) and the buyers (investors). Depending

Lets say the city of San Francisco wants to give the on the firm, the buyers could be institutions (pension
The Industry
49ers football team a new stadium. The city invites a funds, mutual funds, insurance companies, hedge
number of I-banking firms to help it determine the funds, and other asset managers), high-net-worth
lowest-cost financial structure to pay for the project. individuals, or private investors. Although frequently
Each firm researches the financial, political, and lumped together, salespeople and traders perform dif-
regulatory issues involved in raising the necessary ferent functions.
cash, develops a strategy for raising the funds through
tax-exempt instruments, prices the deal, and prepares Who Does Well
a proposal. The proposal will include a profile of the Sales and trading jobs have many overlapping skill
The FIRMS
strategy and its cost, as well as reasons for choosing the set requirements, such as verbal communication
presenting firm for the deal. Once a bank is chosen to skills, sales skills, and a facility for numbers. But the
execute the financing, it will prepare all the necessary people who do well in each area are not identical.
financial and regulatory documentation and work with For example, salespeople have to be good at building
other departments in the bank to shop the offering. relationships with a variety of personality types, while
traders only have to be good at building relationships
Job Tips with other traders. Salespeople have to be good at
On the Job
Public finance specialists tend to spend more time giving presentations, while traders have to be good at
with each other than with the rest of the people in making snap decisions based on constantly changing
the bank. Because it helps to have an understanding information. Sales jobs typically require a lot more
of government, many people in public finance come travel than do trading jobs. People in both careers
from government backgrounds. Municipal positions have to be aggressive and self-starting. They also will
were hot in the 70s and 80s when firms could earn have to take exams to become licensed in their area of
The Workplace
fat underwriting fees for their work. However, as specialty. For example, most salespeople have to pass
competition heated up and clients became more the Series 7 exam.
sophisticated, bank fees have fallen, causing the public Unlike in I-banking careers, its not always
finance business to become more of a marginal activity necessary to get a graduate degree to move up the
for many banks on the Street. ladder in sales or trading.
Sales
Sales and Sales professionals typically have a list of institutional

Getting Hired
clients to whom they pitch new offerings, offer
Trading portfolio management advice, and sell securities. The

sales department could be divided by account size,
security type (debt or equity), geography, or product
Job opportunities in sales and tradingan line. The department is also typically divided into large
investment banks distribution armdiffer from those institutional, middle market, and retail (or private-
in the I-banking divisions. Think of sales and trading client services) sections. In other words, a salesperson
as you would the sales force for any corporation. This who manages a high-volume institutional account
Reference
For Your
group is responsible for selling all of the financial prod- would not likely handle a smaller, low-volume buyer
ucts (stocks, bonds, and their derivatives) sponsored as well. Groups could be further divided based on
by the I-banking department. As such, it serves as the the complexity of a banks financial products, such as
vital link between the sellers (corporations and govern- government securities, corporate securities, asset-
At a glance
backed securities, futures, options, foreign exchange, third client wants more information about the new
and derivatives. Because a salesperson works largely on CEOs likely plans, so you bring in your head research
The Industry
commission, major bucks can be made, especially with analyst, who covers the company, for a conference call
some of the high-volume accounts. with the client. The fourth client wants to maintain its
position unless theres a further drop in the stock price.
Sales pros typically perform the following:
Develop strong relationships with institutional Job Tips
investors. Along with corporate finance, the sales and trading
area typically hires the largest number of MBAs and
Meet with economic and equity research undergraduates. This is a particularly desirable job for
ThE FIRMS
departments to discuss economic and industry people who love to sell and make money. Along with
trends and their impact on the markets. the big bucks, however, comes a great deal of stress.
Because salespeople are essentially account managers,
Work with the I-banking department to market theyre the ones who have to take the heat from a client
new debt and equity issues. who is irate that a particular stock in his portfolio is
falling. Its not easy keeping all of the people happy
Assist and advise clients in developing and all of the time, especially in a down market. As you
On the Job
executing investment strategies. progress up the ranks, youll typically get more (and
more important) clients to manage.
Watch company/industry/economic/political
news and market activity, and advise clients about Trading
the likely impact on their portfolios. Traders are responsible for taking positions in the
market through purchases and sales of equities
The Workplace
Attend company presentations and research (stocks), debt (bonds), and other securities. Trading
conferences, typically with clients. functions are typically divided by the product lines
offered by the investment bank. Its not a job for the
Arrange meetings between clients, research meek, timid, or easily offended. During market hours,
analysts, and company management. all trading floors are loud, high-energy environments.
Traders must juggle several phone lines, scan computer
screens flashing headlines and quotes, and respond to
Sample Project orders from salespeopleall while executing trades
Getting Hired
Youre sitting at your desk when suddenly the live with precision timing. The firms capital is on the line,
news feed on your computer flashes an article about and every second can be worth millions.
a Fortune 1000 company thats firing its CEO and
replacing him with a highly respected industry veteran INSIDER SCOOP
and current board member. You immediately get on My advice? Go into trading! Even when the
the phone to four of your major institutional clients market goes down, theres always trading!
who own big chunks of the companys stock. You tell
them that, because the old CEO was the one driving Traders typically:
Reference
For Your
the merger discussions, this seems to indicate that the Develop a solid knowledge of market, company,
talks between the company and its rival have been and industry information. (A good trader is
called off. Two of the clients had been expecting a constantly on top of whats going on, says one
buyout and decide to sell a portion of their shares. The insider.)

At a glance
Evaluate market activity and supply/demand You know that a lower-than-expected number
indications from salespeople and clients. will send the lumber sector tumbling. You think the
The Industry
problem through, do some risk analysis, and decide

Make marketsmaintain a position in a stock the odds are good that the housing-starts number
the firm has underwritten, quote bid-and-ask will not come in as high as expected. So you take
prices, and buy and sell at those prices. medium-sized short positions for your bank in the few
companies showing the greatest signs of weakness.
Advise salespeople, clients, and research analysts Later in the day during a trading lull, youre on the
on market activity and pricing for different stock phone with a buddy at another desk about how bad
and equity issues. the Lakers look without Shaq when the new housing-
The FIRMS
starts figure flickers across the computer screen in front

Put major trades together by negotiating with of you. The number is lower than expected.
salespeople/clients and other dealers. Immediately, the phones in front of you are ringing
with sell orders for the companies you trade. You say
Perform valuation analysis of derivatives, goodbye to your buddy, smile to yourself, and pick up
convertibles, or baskets of stocks. a phone, knowing that as the market for lumber stocks
tumbles youll be able to close out your short positions
On the Job
Manage the firms investment risk. at a sizeable profit for the firmand a sizeable positive
impact on your bonus.
Sample Project Job Tips

The life of a trader is less project-driven and more While the market is in session the action on the
market-driven. For instance, lets assume youre at an trading floor of an exchange never stops. (In case you
The Workplace
equity trading desk responsible for trading the stocks havent seen a trading floor, it looks something like
of lumber companies. If youre good at your job, youre NASAs Mission Control dominated by clean-cut
constantly reading the news about the economy and twenty-somethings, most of whom have their sleeves
the real estate and stock markets. Youre also good at rolled up and are often talking on several phones at
picking up the phone and chatting with others in the once.) Most exchanges have different departments
business about whats going on behind the scenes in or desks focusing on different types of securities.
government and industry. While the market is open, traders are pretty much
From your reading, youve noticed a trend about tied to their desks, which is an inch away from the
Getting Hired
some big homebuilding companies and anecdotal next person and jam-packed with multiple computer
evidence that demand for their services in some screens. But dont worry: Not every day is a hectic
regions could be slackening. Then, during your daily nightmare. Fridays in August will find the floor
morning phone call with the research analyst covering more concerned with Nerf balls and sports scores
the same companies you trade for your bank, you find than frantic trades. Better yet, the job is essentially
out she has learned from her homebuilding industry done after the market closes and all orders have been
contacts that a couple of the major players in the reconciled. Unlike your colleagues in most other areas
sector have experienced lower demand in recent weeks. of the bank, youre almost guaranteed your personal
Reference
For Your
You also know that this afternoon new-housing starts time.

will be announced; this is a closely watched number,
and the current consensus on the Street is that todays
is going to be a high one.
At a glance
Research quarter on each company, updating interested clients
on the company, and following market trends that
The Industry
could affect the companys performance. Insiders tell
Every full-service investment bank has a us that those who hope to rank well in the Institutional
research department that provides analytical support Investor research team ratings tend to cover a small
for I-banking, sales, and trading activities. Research number of companies in great depth. One insider who
might seem less glamorous than some of the other covers the biotech sector regularly follows the eight
departments, but these analysts industry knowledge companies with the largest market caps.
(think Mary Meeker at Morgan Stanley) can often be When you hear on the news that Microsoft
the most important factor in winning a new CorpFin exceeded Wall Streets expectations, newscasters are
ThE FIRMS
client or convincing Fidelity to buy shares in an referring to the average of the earnings estimates
unknown companys IPO. Investment banks regularly published by all research analysts who follow
lose and gain business as a result of the annual rank- Microsoft. Research analysts listen to presentations
ings of research analysts that come out in Institutional from the management of companies they follow, run
Investor magazine. the new information through their financial models,
Research departments are generally divided into and relay the information and their predictions about
two main groups: fixed-income research and equity the companies future performance to investors and
On the Job
research. Both types can incorporate several different the sales force. Their predictions are tested four times
efforts, including quantitative research (corporate a year when companies release quarterly results, prior
financing strategies, specific product development, and to which the research department works long days
pricing models), economic research (economic analysis for several weeks (insiders refer to these periods as
and forecasts of U.S. and international economic reporting or earnings seasons). Companies usually report
trends, interest rates, and currency movement), earnings after the market closes for the day, so analysts
The Workplace
and individual company research. Its important to must rush to prepare investment recommendations
understand that these are sell-side analysts who in for their clients before the market opens the next
effect sell or market stocks to investors, rather than morning.
the buy-side analysts who work for the institutional
investors themselves. The research analyst position involves:
An equity research analyst will become an expert Meeting with company management and
on a particular group of companies in software, analyzing (modeling) the companys financial
semiconductors, health care, oil and gas, or some statements and operations.
Getting Hired
other industry group. Unlike the deal-oriented work
in I-banking, research is responsible for maintaining Providing written and oral updates on market
an ongoing relationship with corporate clients long trends and company performance to sales and
after the deal is done. Researchers meet regularly trading as quickly as possible.
with company management, analyze the companys
position relative to its competitors, and provide Attending or organizing industry conferences.
investors and the sales and trading departments with
recommendations about the companys stock (usually Speaking with the sales force, traders, and
Reference
rating the stock according to some system, such as

For Your
investment bankers about company or industry

strong buy, buy, or hold). Depending on the trends, and recommending positions on stocks.
number of companies in his universe, the analyst
is responsible for writing one or two reports every

At a glance
Developing proprietary pricing models for

financial products.
The Industry
Research is responsible for

Making presentations to clients on relevant
market trends and economic data, and offering
maintaining an ongoing
investment recommendations and forecasts. relationship with corporate
clients long after a deal is
Staying on top of emerging new companies in the
industry.
done.
The FIRMS
Who Does Well on the stock. The analyst writes a report, including
Research is a detail-oriented and analytical career. If information about the drug and the impact a green
you cant bear studying something from all possible light from the FDA would have on Mercks business.
angles, research isnt for you. Also, if you require a lot Before the market opens the following day, the report
of external stimulus to get you through the workday, will be distributed to institutional clients and the sales
youre better off looking into other career tracks in force. During the daily morning conference call, the
On the Job
I-banking. analyst also will share her findings and predictions

Research could be up your alley if you have with the traders and salespeople and recommend they
the skills to interact with clients, bankers, and contact and encourage their clients to purchase the stock.
traders (people skills); if you enjoy and are good at
analyzing data and figuring out puzzles; and if you Job Tips
can make persuasive arguments orally and in writing The research field tends to be a relatively specialized
The Workplace
(communication skills). group within an investment bank. Because the

If you have all of the above skills plus deep department usually hires for the long term rather than
knowledge of a particular industry, even better. for positions that turn over every two or three years,
If youre a biochemist, for example, and youre there are fewer openings than in banking. Those who
interviewing for a position analyzing companies in the are hired generally start as associates and move up to
biotechnology and pharmaceutical industries, your become senior analysts after a couple of years.
resume could go straight to the top of the pile. As Associates generally work long hours, conducting
with a number of other positions in I-banking, many research and working on financial models for an
Getting Hired
lawyers fit well into this career. analyst who could be on the road, meeting with
company management, or making marketing
Sample Project presentations to institutional clients. One insider tells
Merck announces it has requested FDA permission to us that the associates at his firm pull all-nighters on a
begin clinical testing of several anti-stroke medications. weekly basis.
The research analyst who covers the pharmaceutical Although research departments hire people from a
industry calls contacts at Merck and the FDA and wide variety of backgrounds, they especially appreciate
makes a preliminary assessment of the likelihood those with financial analysis skills or experience in a
Reference
For Your
that Merck will receive final approval for the drug. particular industry. (PhDs, take note: The research
Based on this analysis and the prospect that this could department might be your best bet for breaking
blossom into a $300-million-a-year business within into banking.) Theres an extreme requirement for
five years, the analyst issues a buy recommendation trust and discretion, says an insider. Im frequently
At a glance
privy to knowledge of upcoming events that will
have a dramatic effect on stock prices. Theres a huge
The Industry
temptation to tell your cousin. Of course, you cant do
that.
INSIDER SCOOP
You have to be a senior vice president before
you start going home at a reasonable hour.
In research, theres less movement between groups
ThE FIRMS
than in I-banking, and an associate must live and
breathe the covered industry. A lucky analyst will get
a good industry right off the bat. A mediocre analyst
with a good industry will have an easier time collecting
a nice bonus than will a good analyst covering a dog of
an industry that isnt popular with investors and shows Controlling
no promising business prospects. The controlling function oversees the financial details
On the Job
If you take a job in research, you could find that of an investment bank from the micro level (for
your job description evolves as your bank takes steps example, making sure trades are booked accurately)
to reinforce the separation of its research and banking to the macro level (such as setting budgets for all
functions. At the very least, you can count on having the departments of the bank). It keeps track of the
less of a role in selling banking business than your banks finances, overseeing the P&L and balance
more senior colleagues have had in the past. sheet for everything from individual departments and
The Workplace
trading desks to the bank as a whole. It advises senior
management on the financial state and performance
Support of all the areas of the bank, as well as on ways to lower

costs, manage risk, and increase financial performance.
Functions It also forecasts financial performance and budgetary

needs, and delivers information to external entities
such as shareholders, creditors, tax authorities,
While research, sales and trading, and I-banking regulatory authorities, and the banks auditors.
Getting Hired
comprise the core activities, a number of other areas in At lower levels, people in the controlling function
I-banking could also be of interest to you. These areas are generally assigned to a specific department or
essentially support the main activities of an I-bank. sales or trading desk. They conduct activities such
They are: as producing daily profit and loss reports, checking
Controlling the accuracy of bookings, creating reports that
assess risk or whether the products they oversee
Information technology are priced properly given market conditions, and
updating balance sheets. At higher levels, people in
Reference
For Your
Operations the controlling function oversee more areas of the

bank, develop annual business plans and budgets, and
advise management on overall business strategy, risk
management, and reporting processes.

At a glance
A controller in an investment bank requires Certification in or experience with the specific

the following skill set: technology on which the job is focused
The Industry
Often, a bachelors degree or better in economics,

accounting, or a related field Attention to detail
Strong analytical and problem-solving skills Solid communication skills
Strong attention to detail The desire and ability to continuously update

ones tech skills
Excellent communication skills
The FIRMS
Demonstrated interest in or understanding of

Facility with numbers and an understanding of I-banking
accounting
Demonstrated interest in or understanding of Operations

I-banking At the highest levels, people in operations help decide
how to structure the bank so it performs at the highest
On the Job
possible level, advising management on things like

Information Technology where the bank should be based, who its vendors
IT is playing an increasingly bigger role in should be, which technology systems can optimize the
international I-banking, and many firms are investing banks various businesses, and what its employment
people and capital to develop next-gen systems. policies, business processes, and accounting practices
This translates to new opportunities for IT experts. should be.
The Workplace
Technologies vary from internal sales and trading At the lower levels, people in operations are
and accounting systems to corporate intranets, online responsible for activities such as transaction processing,
trading systems, and big enterprise systems that handling account transfers, balancing daily entries,
manage everything from customer relationships to and other administrative functions. Lower-level
human resources. Investment banks employ software operations professionals are generally assigned to a
engineers, system administrators, Web developers, specific product, department, or sales or trading desk
database administrators, and the like to fill these for which they handle the clearing and settlement of
roles. Often the IT specialist in an investment bank trades and funds transfers, accurately record security
Getting Hired
will work closely with the specific department or positions, ensure regulatory requirements are met, and
departments that use or are developing the technology so on. Lower-level operations professionals could also
that the IT person specializes in. Many banks now play a role in improving systems and processes for their
offer internships to IT types; this is the best way to get department, product, or desk.
a foot in the door.
The specific skills required for I-banking IT
positions vary according to the specific role. Required skills include:
Most, however, require the following skill set: Bachelors degree or higher
Reference
For Your
A bachelors degree or better in a technology field

Strong analytical and problem-solving skills
Strong analytical and problem-solving skills
Strong attention to detail
At a glance
Excellent communication skills
The Industry
Facility with numbers and an understanding of
accounting
A demonstrated interest in and understanding of

I-banking
ThE FIRMS
On the Job
The Workplace
Getting Hired
Reference
For Your

The
Workplace
5
Lifestyle...................................... 82
Culture........................................ 82
Hours.......................................... 83
Workplace Diversity.................... 83
Travel.......................................... 84
Vacation and Perks...................... 84
Compensation............................. 85
Training...................................... 88
Career Path................................. 88
The Inside Scoop......................... 89
At a glance
Lifestyle The life of an investment

The Industry
If you talk to people in the industry about what banker is both more mundane
they really do, youll find that the life of an invest-
ment banker is both more mundane and demanding
and demanding than Holly-
than Hollywood filmmakers would have you believe. wood filmmakers would have
No matter what area of an investment bank you join,
youll need to make a substantial commitment to your
you believe.
work. But the particular nature of that commitment
The FIRMS
will vary according to the department youve joined.

Work in trading generally revolves around the daily
cycle of the market and is relatively predictable. The
days start early and the work can be intense while the
market is in session. The trading day, however, usually
finishes shortly after the markets close. As a result, its
Culture
possible for people in this area to make plans to get Investment banks are filled with young,
On the Job
together with friends in the evening. hardworking, intelligent people. Some find theyre
In contrast, investment banking (I-banking), also filled with arrogant, master-of-the-universe
revolves around the deal of the moment, and can know-it-alls. So be prepared for the possibility of a
be completely unpredictable. When a deal is hot, few nightmare colleagues who try your patience. And
everybody on the team will be expected to put plans be ready to be surrounded by people whose primary
on hold and grind away until the work is done. Before motivation in choosing their career was money.
The Workplace
the champagne corks start popping, theres a lot of Indeed, a 2002 study by Wharton management profes-
heavy-duty quantitative analysis and extensive back- sor Peter Cappelli and executive search firm Spencer
and-forth with attorneys. Stuart found that 73 percent of I-banking profession-
There are indications, however, that this 24/7 als surveyed said getting rich was their primary career
culture is slowly shifting. Many banks hired women objective.
into the workforce in the 80s and 90s only to have Beyond that, culture depends on the firm and
a number of them retire when they had children your particular group. Your managing director sets
precisely because of the nonstop culture. Opting out the tone. Some firms, such as Goldman Sachs and
Getting Hired
was not limited to women: Many men also found Merrill Lynch, are renowned for their team ethic; they
that parenting and all-nighters at the firms were are also sticklers for conformist behavior. Others have
incompatible. In an effort to hold onto highly trained more of a star system that encourages individuals to
talent, some firms now are offering opt-in programs. shine on their ownor be cut from the team. Such
Lehman Brothers made the biggest splash a few years an environment is often labeled entrepreneurial, but
ago when it launched the Encore Program to recruit the word has a very different meaning within a huge
financial services employees who had left to raise corporate structure than it does at a hungry startup.
families. Lehman Brothers was singled out by the A number of the big players, including Goldman
Reference
For Your
Securities Industry and Financial Markets Association Sachs and Morgan Stanley, have long been known as
for its efforts and other banks, including Goldman elitist, white-shoe firms, while Merrill Lynch is known
Sachs and American Express, have been quick to as the firm that brought Wall Street to Main Street.
follow suit.
At a glance
> TIP
They say He who dies with
The Industry
Your ability to adapt to the
company culture can determine
the most toys wins. whether you sink or swim, so think
carefully about what aspects of the
job matter most to you before you
dive in.
Hours On the sales and trading side, the market drives the
ThE FIRMS
hours. When the markets in session, youre on. That
People who work on the Street tend to exagger- means the sales and trading staffs arrive at the office
ate how much time they actually spend working. For early enough to review all the news and overnight
example, one insider claimed to work 110-hour weeks developments before the opening bell, and then work
regularlythat works out to 15-hour days seven intensely until the closing bell. According to our
days a week. But even taking some exaggeration into insiders, this makes for about a 60-hour week. A note
account, the young minions of I-banking work an for those interested in doing their sales and trading
On the Job
enormous number of hours. out of a West Coast office: Youll need to be up and
running by 5:00 a.m. at the latest (though youll
INSIDER SCOOP usually be out the door by 2:00 p.m. or 3:00 p.m.).
My attitude going in for the first three years is The hours can be even worse if youre trading from a
that I want to be working long hours and learn- European or Asian desk.
ing as much as I can. I dont consider 90-hour
The Workplace
weeks bad.
Within a bank, the hours vary from department to Workplace

department and depending on the time of year, the
amount of new business a firm is generating, and the
bull/bear market cycle. The longest hours are worked
Diversity
by I-banking/corporate finance employees. According The I-banking stereotype is the WASP male
to insiders, 80-plus hour weeks are the rule, and most who attended a prep school and an Ivy League college.
Getting Hired
people spend at least one weekend day at the office. The stereotype isand isnttrue. You dont see a lot
Nearly all employees can tell war stories about periods of black people and you dont see a lot of Latinos, but
they virtually lived out of a briefcase and didnt see there are a lot of Asians, says an insider. All of the top
the insides of their own apartments for days on end. people are white men. On the other hand, firms have
Equity research is more civilized than banking, but an interest in changing, though most are evasive about
its still a lot of hours, says a research analyst, who told specifics. Three factors are leading the change:
us the associates at his bank work all night on a weekly
basis. I pull very few all-nighters. But you have to be
Reference
For Your
a senior vice president before you start going home at a

reasonable hour.

At a glance
Firms have realized they can be more effective The good news? Youll get to stay in nice hotels,
if they look more like their clients, and more your firm might pay for business class, and you will
The Industry
and more Fortune 500 companies have diverse collect so many frequent-flier miles that you may
management teams. never pay for a plane ticket again. One research analyst
told us that in one year he put 100,000 miles on his
Many departments at investment banks are frequent-flier account for one airline and 50,000 on
meritocracies, particularly at lower levels and on another. And that was with no travel to Asia and
trading desks. almost none to Europe, the analyst says.
There is a glass ceiling, but its getting thinner.
Vacation and
The FIRMS
Wall Street is more open now regarding gender

and other diversity issues than at any time in its
history. If you bring in the clients, make winning
stock picks, generate commissions, and get deals
done, your gender or skin color shouldnt hold
Perks
you back. Vacation? Are you kidding? Actually, its rumored
that most investment banks do offer employees at
On the Job
least two or three weeks of vacation a year. However,

youll have a hard time taking it all. Moreover, no
Travel matter where in the world you go, you can expect to
have to check your voicemail multiple times a day and
be ready to take the first flight back to New York at
Travel requirements in I-banking can be signifi- a moments notice. (You might start preparing your
The Workplace
cant, especially on the banking side of the business. potential vacation partners for this as you get ready to
Unlike management consulting, however, where a interview.)
consultant could take the same flight to Kansas City Do you relish the thought of unlimited long-
every Monday and the same flight back home every distance calls, free takeout dinners at the office, and
Thursday for six months, most people in I-banking a prepaid limo back to your apartment at 3:00 a.m.?
tend to make shorter, less predictable trips. People in These are regular perks in the world of I-banking. But
corporate finance, for example, might travel to visit dont expect a luxurious office. Its amazing to me that
prospective client offices or facilities. Or they might you can go into the office of someone you know is
Getting Hired
go on road shows, during which a team of bank- making more than $1 million a year and its no bigger
ers and client executives hit as many as 20 cities in than that of an insurance agent, says an insider who
a period of eight to ten days to shop an upcoming made the switch from another industry. Employees
issue. Salespeople and traders visit clients, and research can set up any investment or other type of financial
analysts visit companies and institutions around the account with the firm without the usual fees; in fact,
globe. Get yourself a passport if you dont have one; youre usually required to do so.
more than one investment bank employee has been
ordered to be on the next flight to London (including
Reference
For Your
one trading assistant we know of who had to courier

IPO papers).
At a glance
Compensation Undergraduates
According to a WetFeet survey of new graduates
The Industry
published in October 2006, the typical new analyst
All right, like any good banker you want the hired in the bulge bracket that year received an average
bottom line. Exactly how much are these guys going salary of $48,000 with a signing bonus of about
to pay you to sign your life away? Well get to the $2,900.
numbers in a minute. But before we do, there are three
things to keep in mind: MBAs
First, salaries at investment banks, even for According to a WetFeet survey of new graduates
nonprofessional staff, almost always consist of a published in October 2006, new associates hired in
ThE FIRMS
base salary plus a fiscal year-end bonus. the bulge bracket that year had average starting salaries
of about $95,000 with an average signing bonus of
Second, bonuses are determined at the end of $17,000.
each year and are based on the performance of
Wall Street, as well as the performance of your Summer Hires
firm and department and your contribution to Dreading another summer as the office flunky
them. (If your firm has a year like Goldman Sachs fetching coffee, smiling and filing, all for a measly
On the Job
did in 2006, those bonuses can skyrocket.) wage? Luckily, it isnt like that at investment banks.
Many firms use intern programs to attract future
Third, base salaries tend to be relatively low at analysts and associates, offering challenging work and
the entry level and bonuses are discretionary. As substantial pay to college sophomores and juniors in
a result, your take-home pay from year to year hopes of being at the top of their lists come recruiting
can go through swings of more than 100 percent, time. Undergrad interns usually earn about $1,630 a
The Workplace
especially when you move up in seniority. week with a signing bonus of about $726. The price
tag for this juicy summer salary is often your social life;
One other useful point: Firms often have different some interns report working 70 hours to 80 hours a
methods of calculating employee bonuses. Some week.
allocate a portion of profits to a particular department
while others divvy up the proceeds among the
departments according to performance. Others use
a commission structure based on revenue instead of
Getting Hired
profit. Some firms are more generous than others, and
policy can change, too.
A final note: I-banking opportunities exist outside
the bulge bracket and outside New York. But if you go
to work for a boutique or regional bank, dont expect
your compensation to match that of your bulge-
bracket peers.
Reference
For Your

At a glance
Average Annual Salaries of Professionals at Investment,

Securities, Private Banking, and Broker-Dealer Firms
The Industry
Average annual salary range ($)
Position 2006 2005
Chief financial officer/chief operating officer/financial

130,000225,000 + bonus 120,000200,000 + bonus
operations principal
Vice president, fixed-income sales and trading 150,000260,000 + bonus 150,000250,000 + bonus
Senior fixed-income trader 145,000195,000 + bonus 135,000180,000 + bonus

The FIRMS
Director of trading equities 162,000245,000 + bonus 162,000245,000 + bonus
Trader 100,000220,000 100,000220,000
Vice president, institutional sales 100,000250,000 + bonus 100,000250,000 + bonus
Sales trader, equities 150,000225,000 + bonus 150,000225,000 + bonus

On the Job
Director, research 150,000225,000 150,000225,000
Sales/distribution manager 125,000160,000 + bonus 125,000150,000 + bonus
Portfolio manager 135,000220,000 + bonus 115,000200,000 + bonus
Vice president, private banking (domestic) 125,000170,000 125,000170,000

The Workplace
Vice president, private banking (international) 120,000200,000 110,000195,000
Source: 2006 Adams Annual Financial Services Industry Salary Survey of the New York Tri-State Region, 2005 Adams Annual
Financial Services Industry Salary Survey of the New York Tri-State Region, Adams Consulting Group LLC, New York
Getting Hired
Reference
For Your
At a glance
Average Expected Total Annual Compensation of Wall Street Executives
The Industry
Title 2006 Salary ($)
Global head of commodities trading 7,000,0009,000,000
Head of swaps trading, Americas 3,500,0004,000,000
Investment banking, managing director 2,200,0003,300,000
Investment banking, head of Europe 5,500,0006,000,000
ThE FIRMS
Global head of emerging markets debt trading 4,000,000
Head of information technology, Asia 1,200,0001,400,000
Director of fixed-income proprietary trading 1,000,0001,200,000
Head of agency bond trading 2,000,0003,000,000
Global head of volatility sales 2,500,000 - 3,000,000
On the Job
High-yield bond sales, vice president 350,000
Municipal derivatives trader, three years experience 170,000215,000
Hedge funds, portfolio manager 900,0001,000,000
The Workplace
Investment banking, first-year associate 250,000375,000
*Data for employees worldwide at top-tier banks.

Source: 2006 Global Financial Market Overview & Compensation Report, Options Group, New York
Getting Hired
Reference
For Your

At a glance
Training
The Industry
Given the highly technical, jargon-laden nature

The Series 7 general securities
of jobs in an investment bank, the training program is license is required for most I-
critical for most people. The specifics of training pro- banking professionals.
grams vary from department to department and firm
to firm. Many resemble a mini B-school experience,
with case studies, work projects, lessons, and post-case
discussions all designed to help new employees better
Career Path
The FIRMS
understand how the bank functions. Some banks con-

duct their programs, which could last anywhere from
a few weeks to several months, in a highly structured Undergraduates
classroom setting. Others start people off with a few All investment banks are looking to hire the best, the
classes and then let them do on-the-job learning. brightest, and the most motivated undergraduates they
Another difference between firms: a generalist vs can find because the work is extremely demanding.
specialist approach to training. That is, some firms use Undergraduates are usually hired as analysts. Note the
On the Job
the training period to give you experience on as many first four letters of that word: anal. Anal is important
desks in as many divisions as possible, so that you (and because you have to dot all of your Is and cross all
the bank) can determine where you fit best when it of your Ts carefully and twice. Banks typically hire
comes time to commit. Other firms start you off in undergraduates with some background in accounting,
one group and focus most of your training in that area; finance, or economics because those majors teach you
if youre not happy after a few months, you can ask to many of the basics youll need and show that youre
The Workplace
try something else. actually interested in the industry. However, if youre

Your training will almost surely include help in an engineer or a liberal arts major from a top school,
preparing for the National Association of Securities or if you have experience in a hot industry such as
Dealers (NASD) licensing exams. The basic Series pharmaceuticals or technology, youll find yourself in
7 general securities license is required for most good company on Wall Street, too.
people who will be involved in selling securities,
including corporate finance and research professionals,
salespeople, and traders. Take these seriously; you
Getting Hired
could be given a limited number of chances to pass.

Keep in mind: Your fingerprints will be taken and
checked by the NASD as part of the registration
process. We know of a mutual fund employee who
lost her job when her prints were run and it turned
out she had been convicted of felony shoplifting; on
her job application, she lied and said shed never been
convicted of a crime.
Reference
For Your
At a glance
The career trajectory of an investment banker
> TIP usually follows one of two paths. Those who grind
The Industry
Be ready to present a strong case away on the career track move from associate to VP to
for what you have to offer and why managing director in about four to eight years. Others
youre interested in the bank youre
courting
will tire of the work, put in enough time to collect a
bonus or two, and then leave the industry (or be fired).
I-banking experience can open many doors to future
opportunity. You certainly have a great Rolodex when
youre done, says one insider. You can go work with a
company, with venture capital, with funds on the buy
MBAs and Other Advanced-
ThE FIRMS
side, or you can go off and write a novel.
Degree Holders
Each year investment banks hire significant numbers
of MBAs from programs across the country. Although
the banks also take people with advanced degrees The Inside
in economics, law, math, computers, and other less
obviously related fields, its less common for people Scoop
On the Job
to enter I-banking midcareer. If after a few years
elsewhere, you suddenly realize I-banking is your true What Employees Really Like
calling, chances are youll have to start on the ground Experience
floor with all of the new MBA recruits. One possible The world of high finance is, like New York City itself,
exception: People with wide industry experience or fast-paced, high-energy, and go, go, go. Its no place
specific skills (or a Rolodex full of rich and powerful for loafers or the sensitive, hesitant, or meek. Insiders
The Workplace
connections in government or industry) might be able tell us that the experience you gain in I-banking comes
to fill a specialized function, such as research analyst or at twice the speed of many other professions. That
product specialist, higher up within a firm. could be because investment bankers put in twice as
Although a pedigree from a top university could many hours as those in other professions, but other
help you get a foot in the door, becoming a partner factors are involved as well. There might be times in
or managing director depends much more on your your first year that youre juggling four projects for
performance and endurance. Interestingly, only four different people at once. You work with lots of
10 percent of the CEOs running the top 500 U.S. different personalities, fight a lot of fires, and get a
Getting Hired
companies graduated from an Ivy League institution. crash course in time management, one insider says.
In fact, insiders tell us that people from lesser-known Furthermore, you might have the opportunity to
institutions often outperform people from brand-name meet and interact with the CEOs and CFOs of major
schools. You gotta really want it to give up your life public corporations. Be on your best behavior. Its
the way they want you to, says one former banker. not uncommon for an impressive young investment
The people who came out of second-tier schools and banker to be recruited into a clients finance or
worked hard enough to get a spot with a firm are often business development department.
the hungriest.
Reference
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At a glance
Education
Many insiders tell us that the education and skills you > TIP
The Industry
gain in I-banking are invaluable. There is no better Although its common for people to
move around the industry, insiders
way to learn about finance, the inner workings of recommend that new MBAs spend
Wall Street, and how the business world generally several years with their first firm to
works. When you read a headline stating that IBM establish a track record.
is acquiring a hot, new software developer, you can
be sure a team of I-banking analysts is grinding out
spreadsheet models to tell IBM how much it should
pay and what return it will get on the investment.
The FIRMS
Those analytical skills, in conjunction with the your life comes second to your job. Though this varies
introduction I-banking gives you to the world of both by firm and department, insiders tell us you can
finance, provide a great launching pad for almost any generally plan on working at least 12-hour daysand
career path you might ultimately choose. count yourself very lucky if thats all.
Money Three Ps
Okay, lets face it. Youre not considering a career in I-banking revolves around the three Pspower,
On the Job
I-banking because you want to save the world. If youre politics, and personalities. Most of the investment
an undergraduate or MBA steeped in debt, or you bankers youll work with will be hardworking, goal-
want to be at the top of your peer group in terms of oriented, and young, but when you have a lot of
salary, I-banking is a good choice. Even with big-city motivated, competitive type As jockeying for their
rents and restaurant prices, youll almost certainly shares of the year-end bonus pot, political skirmishes
build up a hefty savings account. Although starting are bound to erupt. The politics and personalities in
The Workplace
salaries and bonus packages are similar for both investment banking are not the easiest to deal with,
consultants and bankers in the first two years, when particularly as an analyst, says one undergraduate
business is good investment bankers usually continue I-banking insider. This is ultimately why I left
up a steep salary curve while consultants dont. investment banking.
Watch Out! INSIDER SCOOP

Hours First-year analysts deal with hazing, practical
Has anyone seen my social life? I seem to have jokes, and the worst assignments. Second-year
Getting Hired
misplaced it. analysts delegate their own grunt work to the

Being an analyst or associate at an investment bank first-years and horde the more challenging work.
is like being a doctor on call. That doesnt just mean And management often doesnt manage. You
youll regularly be working 60 hours to 80 hours a dont move up the ranks of an investment bank
week. It means canceling vacations, receiving phone because youre a good manager but because
calls between 4:00 a.m. and 6:00 a.m., and having the you work hard, understand finance, and bring in
new hotshot banker come over and add an urgent item deals.
to your to do list just when youre wrapping up your
Reference
For Your
mellow day around 6:00 p.m. or 7:00 p.m. By the way,

hotshot needs it before tomorrows 8:00 a.m. flight
to Chicago. You go back to your desk, order dinner,
and settle in for the night. In the banking business,
At a glance
One insider from a non-top-tier business school
tells us that some firms can get arrogant about whom
The Industry
they interview. If you run into a firm that interviews
candidates only from top-tier schools and youre not,
consider it a reason to think twice about working
there. If management is a bunch of Harvard guys,
you have to wonder how many jokes youd have to
take about not attending Harvard, the insider says.
And what are the odds the choice assignments would
go to a Harvard guy? Others, however, tell us firms
ThE FIRMS
are easing up on this a bit.
The Work
It might be sacrilegious to say this in the company of
corporate recruiters, but insiders tell us the work you
do as an investment banker isnt always interesting.
Dont be blinded by dreams of a Wall Street job
On the Job
filled by constant excitement, glamour, and wheeling
and dealing. All insiders tell tales of coma-inducing
spreadsheet work that would threaten analysts lives
if they werent jolted back to reality by the endless
blinking of their voicemail lights. In most offices, the
assistants go home at 5:00 p.m. or so, and who do
The Workplace
you think handles copying and faxing after that? Not
the senior managing directors, thats for sure. The
adrenaline junkie in you ought to be pleased.
Getting Hired
Reference
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Getting Hired
6
Recruiting Overview................... 94
The Recruiting Process................ 94
Interviewing Tips........................ 96
Getting Grilled............................ 98
Grilling Your Interviewer............ 99
At a glance
Recruiting The
The Industry
Overview Recruiting
Being hungry for an investment banking (I-bank-
ing) job is at least as important as having a top-tier
Process
school on your resume. Wall Street firms see a lot of The I-banking recruiting process begins with
flashy pedigrees, but what really makes a candidate the scheduling of a first-round interview. All of the
stand out is enthusiasm and commitment to work. bulge-bracket investment banks recruit analysts and
The FIRMS
An internship in the field is an extremely smart idea associates from top colleges and universities across the
if you want to break into I-banking. Banks take this country, usually in the fall for MBAs and in the winter
as proof youre dedicated to working in the industry for undergrads. Research the firms and find out whos
and as an opportunity to see whether you have what hiring and whos laying off. (Piper Jaffray and Lehman
it takes to make it. Make landing an internship a top made big hires in 2006 while Goldman reduced its
priority. numbers.) Some firms might be downsizing in the
In addition, be sure to research the banks you U.S., but growing in London and Shanghai.
On the Job
interview with. With increased competition for each Typically, banks make most campus hires for their
open position, you wont stand a chance if you dont I-banking departments, such as corporate finance or
know the ins and outs of the way each bank works and mergers and acquisitions (M&As); fewer hires are
has been performing, or if you havent networked your made for sales and trading, and fewer yet for research
way into talking to some of the professionals at the (though MBAs stand a chance if they have the right
banks youre interested in. skills and demonstrated interest in the field). If you
The Workplace
attend a school at which the big firms recruit, sign

Six Degrees of Separation up for an on-campus interview. Firms typically fill
their schedules through a combination of closed- and
Looking for an I-bank you can contact. Set open-schedule interviews; if youre signing up under
in Play the six up a call and ask for an open schedule, bid a lot of points. If the firm you
degrees of separation a referral to someone want isnt scheduled at your school, check the website;
game. Ask a professor who can set you up many hold open houses onsite for interested students.
for the name of an with an interview or
You might have to travel, but it can be worth it.
Getting Hired
alumnus in the field might know someone

with whom you can else who can. Keep Increasingly, investment banks post their schedules
speak. Call up old going until you make a and a lot of other useful information on their websites.
friends and relatives contact. Youll be one
Make those websites the first stop in your research.
you rarely see and ask step closer to bringing
if they know anyone home the bacon. WetFeet also has a rich array of information on I-
banking at its site: www.wetfeet.com.
Reference
For Your
At a glance
The Interview Cycle Take the Bull by the Horns
Regardless of your specific interests, your first-round Some I-banking insiders have told us if youre serious
The Industry
I-banking interview will typically be a traditional, about getting a job on Wall Street and the big firms
30-minute resume review and informal get-to-know- dont recruit at your school, your best bet is to go to
you session. Many firms send alumni of schools they them. You can drop your resume and play, or you
recruit at to conduct first-round campus interviews, can take fate into your own hands and go to Wall
so interviewers will often be familiar with your classes Street and kind of load the deck, says an insider
and school activities. Insiders tell us your interviewer who used this strategy to garner seven Wall Street
will be looking for you to communicate two points offers. It might cost you a few bucks in flights and
very clearly: hotel overnights, but if you land a job on Wall Street,
ThE FIRMS
Why do you want to go into the I-banking your salary will more than pay back the investment.
business? Schedule a job-hunting trip to New York and set up
as many appointments as you can with the firms in
Why do you want a job with this firm in which youre most interested. Making the effort to
particular? arrange interviews and visit the firms on your own
demonstrates your commitment to landing a job on
It cant be said enough: Do your homework about Wall Street; anyone can send in a cover letter and
On the Job
the firm before your interview. Know where the
company is expanding, and know what its most recent
milestones are plus what the media is saying about
them. Beyond the Ivies
If you make it through the initial round, youll be
invited to second-round interviews in New York (or in What happens if youre find you a spot in the
The Workplace
a regional office if thats where youre applying). These not currently a student interview cycle.
are half- to full-day affairs often held on a Saturday or the firm you want The name of the
to join doesnt recruit game when youre
(called Super Saturday), during which youll be at your school? Well, not recruited is to find
grilled by at least a half-dozen people with varying your job is going to be any way to make your
degrees of seniority. Sometimes youll be interviewed a little tougher, but try resume stand out
this: Use your alumni from the thousands of
one-on-one, other times two-on-one. Some firms
network to identify a others that investment
sit you in a conference room while the interviewers colleague within the banks receive every
cycle through. Others will send you out to meet
Getting Hired
firm who can serve as week. Its important
your interviewers on their turf, whether thats the your advocate. First, to get in sync with
ask lots of thoughtful, the firms recruiting
trading floor or the analyst pit. Dont bother packing informed questions schedule, so be sure
a sandwich; youll probably be taken to lunch by an about the firm and to start contacting
analyst or associate. Some firms also conduct third- demonstrate your alumni early in the fall.
round interviews before extending their offers. commitment to an Most firms fill their
I-banking career, then new-hire rosters by
ask for the colleagues early spring. Friedman,
advice in pursuing your Billings, Ramsey Group
job search. Perhaps he in Virginia, and Piper
Reference
or she can persuade the Jaffray in Minnesota are

For Your
appropriate recruiting two rapidly expanding

manager to watch firms that recruit
for your resume and outside the Ivies.

At a glance
resume, but relatively few go the extra mile. Make sure whitest of the white-shoe firms are probably least open
to schedule your visit during the recruiting cycle so to such back-door entry, while smaller and regional
The Industry
youre front and center of the process. firms (and Bear Stearns) are more open.
One insider tells us he made regular trips to
New York (it helped that he went to school nearby) Honesty Is the Best Policy
for informational interviews. He said people rarely Whatever you do, dont lie on your typo-free resume.
turned down his requests. The same five people get Get caught (finance is a small world) and youll do
calls every week he says. Instead, try for that senior irreparable damage to your potential Wall Street career.
person who most people dont know about. You want Do people do it? Yes. We once had a guy who claimed
that person to write good guy on your resume and he was a Navy SEAL, says a recruiter. We checked
The FIRMS
forward it to HR. He says the informational format it out because it seemed so interesting. It turned out
helped prepare him for his actual job-hunting trip. By he had never even been in the military. Needless to
the time you have your first real interview youre much say, we didnt hire him.You expect a 15 percent
more polished, he says, Youve been asked those exaggeration factor on resumes, but some people just
questions ten different times. You have a battle-tested go crazy.
response.
Extra initiative will also be required of all
Interviewing
On the Job
candidates who want to work at one of the smaller

boutique banks. For the most part, smaller firms dont
have the recruiting budgets to support an extensive
on-campus recruiting program, so contact them on
your own.
Tips
Also, since I-banking is a meritocracy, you might Experienced Wall Street insiders tell us the
The Workplace
be able to start in a clerical position and move up. recruiting process should begin before your first-round
Theres more potential for that happening in trading interview. The first step, before you sign up for that
and less in corporate finance. Be nice to everyone you interview, is to determine whether youre applying for
meet, do a knockout job, and make it clear that you a corporate finance, sales and trading, or research posi-
dont want to be the receptionist or mailroom clerk tion. Its true that the content of first-round interviews
forever. A lot of firms encourage ascent from below, will be similar in any case. However, insiders tell us
in part because they like the idea of well-scrubbed, that a lack of focus will earn you a ding. If youre an
nicely dressed college graduates answering the phones. undergrad, are you interested in being a sales and
Getting Hired
Ace Greenberg, who until recently was the longtime trading analyst or a corporate finance analyst? MBAs,
chairman of Bear Stearns, started in the mailroom. The are you gunning for a research associate position, or
is public finance your top choice? Pick one as early
as possible and be sure to clearly communicate your
> TIP
choice to your interviewer.
Be nice to everyone you meet, do a
knockout job, and make it clear you
A great way to learn which area of I-banking turns
dont want to be the receptionist or you on most is to participate in a Day on the Job
mailroom clerk forever. program. When the banks visit your school, ask about
Reference
For Your
it. Or approach alums from your school or friends

already in the business and ask if you can shadow
them for a day. (This is a great way to get your foot
in the door if you want to work at a firm that doesnt
At a glance
recruit at your school.) Most of the major Wall Street toward evaluating her people skills, particularly those
firms have regional offices where you can spend a day related to negotiation, relationship building, and
The Industry
observing traders, bankers, or researchers at work. persuasion.
Even if you dont live near a city where a major bank In a corporate finance interview, expect to be
is represented, visit a smaller bank. If you choose asked about relevant coursework (economics, finance,
correctly, the work and atmosphere will be similar. accounting) and professional experiences. Before your
Taking the time to do a Day on the Job will not only interview, walk through your resume and identify an
be highly informative for you, it will demonstrate to experience or two that required your supreme powers
your recruiter that youre serious about your job search. of analysiseven if it was just writing an investment
If your recruiter casually asks, So, which other plan for your summer job earnings. Even if youre an
ThE FIRMS
firms are you interviewing with? it isnt a trick undergrad without previous experience in the financial
question. However, heres a bad answer: Well, of industry, emphasize the analytical aspects of those
course an M&A job with your firm is my first choice, things you have done, says one insider.
but Im also talking to Lehman Brothers about a In a sales and trading interview, demonstrate your
trading job and Credit Suisse about a job in the ability to persuade. Expect to be asked questions
research group. Remember, focus is important. Pick regarding your sales experience, negotiations youve
one area of concentration and stick with it. been involved in, and why you should be hired.
On the Job
And dont underestimate the power of that All candidates should be prepared to discuss how to
question: Youve got to build momentum for value a company. Know which numbers to look for. If
yourself, says an insider. If you answer with names youre an MBA, elementary concepts like discounted
theyve never heard of, they wonder if youre just cash flow and the weighted average cost of capital
grabbing at whatevers out there. You need to know should be as familiar as the back of your hand. You
the hierarchy of the firms and what it means when you should also be prepared to work with a few numbers
The Workplace
answer that question. without breaking into a sweat. Undergrads wont be
If youre serious about a career on Wall Street, youll expected to perform quantitative Olympics at an
be talking to a lot of firms; your recruiter wants to hear MBA level, but they should be familiar with the basic
that. The fact that youre talking to other firms is fine, concepts of valuation. Have a look at WetFeets Beat
but dont drop names unless youre really interviewing the Street and Beat the Street II Insider Guides for a
there. When someone tells me theyre talking to succinct, how-to overview of these and other interview
Merrill, Goldman, and Lehman, I call my buddies questions, as well as a first-person perspective by a
at Merrill, Goldman, and Lehman and ask if theyve student who snagged several job offers.
Getting Hired
heard of the guy, says an insider. We all went to Insiders tell us its obvious when candidates are
school together and keep in touch. Once you get the prepared for their interviews; they typically come
really competitive candidate, you stop talking to your
buddies, but in the informational phase, we talk across
> TIP
firms a lot.
Showcase your assets: If the firm
Your recruiters will be looking for different skill has an office in Brussels and you
sets depending on the type of I-banking job youre speak French, tell the recruiter.
pursuing. One insider who worked in corporate If you have experience in a hot
Reference
finance after college and pursued a sales position after industry, like technology or health
For Your
care, let the interviewer know how

B-school says that in her corporate finance interviews, your experience can benefit the firm.
the recruiters focused on her analytical skills and
experiences, while her sales interviews were weighted

At a glance
off well-polished and committed. Those who arent Sales/trading: Pretend that Im a portfolio
prepared come across as wishy-washy. Wall Street manager for Fidelity. Explain to me why I should
The Industry
insiders also tell us that liberal arts majors have a bit buy the latest IPO the firm has underwritten.
more selling to do to land a finance job. Its not that
the banks dont hire English majors, but they hire a Research: Youve just been hired as our firms
lot more economics and finance majors. So if you new XYZ industry analyst. In two weeks, youre
followed your bliss in college and are now deciding scheduled to address a growth-stock conference
to explore career opportunities on Wall Street, be on industry trends. How would you prepare?
prepared to demonstrate your analytical skills. Play
offense. Tell your interviewer that though you have a Corporate finance: In a merger discussion, Moon
The FIRMS
liberal arts background, your analytical skills are sharp Microsystems says Plum Computing is worth $23
as a tack because of X, Y, and Z experiences. per share; Plum says $34 is more in the ballpark.
Dont forget, investment banks are all aggressively Whos right, and how would you arrive at a
building their foreign operations, so speak up about valuation?
any overseas work experience or foreign language skills.
Just dont exaggerate. If you claim to speak Japanese, Tell me about your leadership experience.
for example, dont be surprised if a native speaker
On the Job
conducts your interview in that language. Tell me about a high-stress situation youve been
in. How did you handle it? What could you do
better the next time?
Getting What did the stock market do last week?
Grilled
The Workplace
The Fed recently raised interest rates. Do you

think the move will hurt the stock market? Why
We interviewed industry insiders and asked or why not?
them what questions an I-banking job candidate can
expectand prepare forbefore an interview. Here In which areas is our firm the strongest? The
are several representative questions. Be prepared and weakest?
youll have an easier time with the unexpected material
as well. What other banks are you interviewing with?
Getting Hired
What most excites you about a corporate finance/

research/sales/trading job? What career opportunities are you exploring other
than I-banking?
What can you tell me about a couple of stocks
that you follow?
Why do you want to work for this bank versus

our competitors?
Reference
For Your
What do you think of Ben Bernanke?
Who is our competition (in the major categories)?
At a glance
Grilling Your If I were a CEO, why would I choose your firm to
take my company public?
The Industry
Interviewer Medium
You know its coming: that moment when the Beyond the league tables, what differentiates your
interviewer turns to you and says, Okay, do you have firm from others?
any questions for me? Ostensibly an opportunity for
you to learn about the company and the recruiting How is an analyst/associate assigned from the
process, its also an opportunity for the interviewer to generalist pool to a project?
ThE FIRMS
learn how much you know about the firm, how well
youve prepared for the interview, and whether youre Can one request specific teams, industries, or
really interested in working for the firm. The following product groups?
are good generic questions that will fit most I-banking
interviews. However, youll want to think of additional How well do the firms different divisions work
ones that apply specifically to the company with which together?
youre interviewing. One important reminder: If youve
On the Job
already covered any of this material in your interview, How long does it take most people here to
dont revisit it. Youll appear inattentive and unfocused. become managing directors? Whats the path? Are
Another word to the wise: Weve grouped our there specific benchmarks you have to hit?
questions according to our sense of relative risk. Those
in the Rare section are meant to be boring and What are the firms biggest challenges and
innocuous, while those in the Well Done section opportunities in the next two years?
The Workplace
will help you put the fire to your interviewers feet. But
beware: They might also turn you to toast! What aspect of your job do you find most
frustrating?
Rare
What kind of person are you looking for? (This Well Done
question will provide you with useful information How has increased consolidation in the industry
on personal characteristics you should emphasize.) affected your firm, both positively and negatively?
Getting Hired
What makes a person successful in this business? If the company has merged: What new business
has resulted from the merger? How well have the
What made you choose this firm over other firms? two cultures mixed?
What is a typical career path in the (corporate If the company has not merged: Do you think
finance/sales/trading/research) department? the company needs to acquire or merge with a
competitor in the near future?
How much of an analysts/associates time is spent
Reference
For Your
pitching new business? What percentage of the managing directors are

female or minority?
Is there a formal mentoring program for new
analysts/associates? How would your firm fare relative to the

At a glance
competition if interest rates suddenly skyrocketed?

If oil prices plummeted? (Or whatever else you
The Industry
can think of along these lines to help you gauge

how prepared the firm is for future possibilities.)
How committed is the firm to building its

XYZ business? (Investment banks are known
to eliminate entire departments when they
underperform against expectations. If you happen
to work for one of those departments, that means
The FIRMS
bye-bye.)
On the Job
The Workplace
Getting Hired
Reference
For Your

For Your

For Your
Reference
7
Investment Banking Lingo........104
Recommended Reading............ 108
Online Resources...................... 109
At a glance
Investment Buy side and sell side

Buy side refers to institutional buyers of securities,
The Industry
Banking Lingo mutual funds, and pensionsin other words, your

clients. At an investment bank, youre working on the
sell side, providing research and selling securities to
To become an investment banker, youll need to investors.
talk the talk. What follows is by no means a complete
list of the terms youll encounter on Wall Street, but Chinese wall
its a good start. These are the boundaries that separate research,
corporate finance, and sales and trading, with the
Bakeoff
The FIRMS
aim of preventing transmission of inside information.

A meeting where groups of Herms-tied and -scarved The wall could be physical (different departments on
bankers (with analyst minions trailing behind, different floors of the same building), or an intangible
furiously scribbling into their Treos) parade into a series of procedures to control documents. When a
companys boardroom to pitch their underwriting or research analyst is finally told of a deal, usually right
advisory services as the only choice for the companys before its announced to the public, the analyst is
upcoming deal. Also known as a beauty contest. brought over the wall and becomes restricted from
On the Job
commenting on the stock. (See insider trading, below.)

Bulge bracket
The top five to ten full-service investment banks on Comps
Wall Street. The name derives from the top bracket Also known as comparable company analysis and
on a tombstone ad in The Wall Street Journal (see competitive pricing analysis, comps are an endless part
tombstone, below). of an analysts work. Comps are spreadsheet models
The Workplace
(generally done in Microsoft Excel) that compare

Bloomberg the vital financial statistics of companies in the same
Also known as Pandoras Box or the black box. This industry, such as Nike, Reebok, and Converse. Comps
funky little computer, used daily by almost every help bankers value a companys financial position
investment banker, is a one-stop shop for a very wide relative to others in the same industry by comparing
range of company, economic, and market news, such data as stock prices, earnings, and financial ratios.
provided you can learn its idiosyncratic navigational An analyst can expect to run comps for just about
commands. Bloomberg (the name of the company every deal.
Getting Hired
that sells the service) was one of the first providers

of real-time stock quotes, news feeds, and economic CYA
reports. It was developed by Michael Bloomberg, now Roughly, Cover your posterior region.
mayor of New York. Increasingly, other online services
are encroaching on its turf, but some banks still prefer Deals
Bloombergs closed system and encourage using it in The process and completion of a security issuance
conjunction with other Internet resources. or merger/acquisition of a company. The number of
deals completed in a year is one of the most important
Reference
For Your
measures of success for both a bank and an individual

banker.

At a glance
Derivatives High-yield
A financial instrument with no inherent value other Bonds to which Moodys or Standard & Poors gives
The Industry
than what it derives from some other underlying low ratings. They produce high yields, unless they go
asset. For example, one type of derivative is an interest into default. Also called junk bonds. (See investment
rate cap. Lets say a company has a floating rate loan. grade, below.)
To manage its interest rate risk, the company might
purchase a 7 percent interest rate cap from the issuer Insider trading
for $200,000. The issuer of the cap assumes the risk Acting on information to which youre privy for profit.
of an increase in interest rates above 7 percent. If rates Imagine, for example, you were part of the team
exceed 7 percent, the issuer pays for the excess cost advising IBM in its acquisition of a publicly traded
ThE FIRMS
owed by the company. If rates stay below 7 percent, software developer. Knowing that IBM would be
the issuer pockets the whole $200,000. Other types of offering a 30 to 50 percent premium above the going
derivatives include swaps and reinvestment products. market price for the companys stock, you buy shares
of the company and sell them a month later after the
Due diligence deal goes through, making a tidy profit. Unfortunately,
A process in which bankers and their lawyers sit down this is illegal, and if youre caught, you could be
with management and their accountants and ask them banned from the securities industry for life, fined,
On the Job
every question they can think of that could uncover and/or thrown in jail. (See Chinese wall, above.)
possible risks in a deal. (See CYA, above.)
Investment banker
Dutch auction A term used by outsiders only. If youre in the business,
A highly objective process for selling an offering. youre a banker as opposed to commercial banker.
Interested investors place bids indicating the number
The Workplace
of shares they want and the price theyll pay. The deal Investment-grade
closes at the lowest price at which all the shares would Low-risk bonds, as determined by Standard & Poors
be sold. Bid too low and you dont get any shares; bid (AAA to BBB) or Moodys (AAA to Baa). Both
too high and you risk driving up the price more than Standard & Poors and Moodys provide independent
necessary. credit ratings, research, and financial information to
the capital markets. (See high-yield, above.)
Face time
The time after 8:00 p.m. when you choose to stay at IPO
Getting Hired
work just because others, particularly senior others, are Stands for Initial Public Offering, which occurs when
there, even though you dont have anything to do. a privately owned company sells shares of stock to
the public for the first time and the shares are then
Hedge fund publicly traded through a stock exchange.
Describes a private investment partnership. Unlike
mutual funds, which are sold to the public, hedge LBO
funds arent regulated by the SEC and cannot Stands for Leveraged Buyout, which occurs when
advertise. Consultants who specialize in hedge funds a corporation is purchased at a low price, its assets
Reference
For Your
review and disseminate the information to potential are sold off at a much greater value, and the bank in
investors. A share of profits/losses is allocated to all charge makes a handsome profit.
partners based on their percentage ownership; the
general partner is paid an additional incentive fee.

At a glance
LTM OTC
Stands for Last 12 Lonths. For example, a senior Stands for Over-the-Counter securities, which arent
The Industry
banker could say to you, Get me the companys LTM traded on an organized exchange. A broker-dealer will
revenue and earnings numbers. make a market for OTC securities.
Lucite
Brand name for a durable clear plastic; also refers PE multiple
to versions of tombstones encased in Lucite that are Stands for Price-to-Earnings multiple, an important
distributed to members of a deal team. Lucites are ratio on Wall Street that can tell you if a stock is
highly coveted knick-knacks among bankers, and overvalued or undervalued relative to its historical
The FIRMS
different firms compete to see which one can create the performance and to other firms. To get it, divide
cleverest designs. the market price of a share of common stock by the
earnings per share of common stock for the past 12
M&A months. A forward PE uses estimated earnings in the
Stands for Mergers and Acquisitions. denominator.
Make the quarter Printer

On the Job
When a publicly held company meets or beats an A company that prints financial documents for a deal.
analysts quarterly or annual earnings estimates. Young bankers and lawyers spend a lot of time here
before a deal, checking and rechecking the progress of
Municipal bond a prospectus or proxy statement.
Debt issued by local or state government body; muni
for short. Usually the interest is exempt from federal Pitch book
The Workplace
(and sometimes local and state) taxes. A slide presentation or bound stack (or deck) of
bullet-point pages and charts that calling officers (top
NASD two or three levels of bankers) takes to a meeting
Stands for National Association of Securities Dealers, with the management of a potential client. The pitch
which is the parent company of the NASDAQ stock book discusses the clients industry and why your
market. NASD is responsible for operating and bank is the best one for the client to use in any deal
regulating NASDAQ and other over-the-counter it contemplates. One of your initiation rites as an
(OTC) securities markets. (See NASDAQ, OTC.) investment banker, the upside of putting one together
Getting Hired
is youll learn a lot about a company and an industry.

NASDAQ The downside? Insiders tell us putting together pitch
A decentralized network of competitive market makers books can be pretty dull and repetitive, especially for
or firms that stand ready to buy or sell securities at low-on-the-totem-pole analysts.
publicly quoted prices.
Reference
For Your

At a glance
Red herring Tombstone
The preliminary prospectus on a deal, noted in red ink Big box advertisements in Section C of The Wall
The Industry
along the side of the front cover. Once a firm is cleared Street Journal declaring, Company X completed the
by the SEC to print the reds, a road show starts. (See issuance of X hundreds of millions of shares/dollars/
road show, below.) debt and then listing all of the investment banks
involved in the deal. The size and grouping of the bank
Road show names show the level of involvement each had on a
A sales trip around the country (and sometimes particular deal.
other countries) with the upper management of a
company during the month or so before the companys
Wallpaper
ThE FIRMS
securities issue. During the road show, the company
management, investment bankers, and research Worthless securities. The issuing company has gone
analysts on the deal team will visit institutional bankrupt or defaulted.
investors to tell the story behind the company and
convince them to buy into the offering. White-shoe
Anachronistic (but still often used) characterization of
Secondary offering firms that see themselvesor would like others to see
On the Job
When a publicly traded company offers more stock on themas upper-crust and above activities as distasteful
the market after its IPO. Also known as a follow-on. as hostile takeovers. The term comes from an old Ivy
League tradition of wearing white buck shoes (in the
Share of voice summer only) in elite fraternities and clubs.
The amount of credibility a securities analyst has with
respect to a particular stock. Usually earned by making
The Workplace
accurate calls on the stocks price movement. The
analyst with the most share of voice is often called the
ax on a stock.
Synergy
What happens with two companies, neither of which
can reach its full potential on its own, become well-
positioned, strategic partners and achieve the stuff
Getting Hired
dreams are made of.
Reference
For Your

At a glance
Recommended The House of Morgan: An American Banking

Dynasty and the Rise of Modern Finance
The Industry
Reading At 720 pages, this is a surprisingly readable history

of J. Pierpont Morgan and his empire, which still
operates as the modern firms Morgan Stanley and
Barbarians at the Gate: The Fall of RJR Nabisco JPMorgan Chase. This book is also a history of
The ultimate inside story of the largest takeover in investment banking in Europe and the U.S. We highly
history, this book also provides an insightful look recommend it for anyone interviewing with one of
at the culture and personalities of Wall Street. Ross the houses of Morgan as well as anyone interested in
Johnson, CEO of RJR Nabisco at that time, needed a financial history.
The FIRMS
new PR agent after this book came out. Ron Chernow (Grove Press, 2000)
Bryan Burrough and John Helyar (Collins, 2003)
Liars Poker: Rising Through the Wreckage on
Bombardiers Wall Street
A black comedy about life on a trading desk, this This fun, easy read provides tremendous insight into
story cuts mighty close to the bone. Bronson worked the culture of Salomon Brothers, sales and trading, and
as a fixed-income sales analyst at First Bostons San Wall Street in general during the boom of the 80s.
On the Job
Francisco office. Youll also learn a fair amount about how investment
Po Bronson (Penguin, 1996) banking works. Though much has changed since this
era, the personality types remain exactly the same.
Goldman Sachs: The Culture of Success Michael Lewis (Penguin, 1990)
Hagiography, but still interesting. If youre
interviewing at Goldman Sachs, or even one of Monkey Business: Swinging through the Wall
The Workplace
its competitors, you should read this for more Street Jungle
information about one of the Streets biggest names. This book takes readers behind the scenes at
Lisa Endlich (Touchstone, 2000) Donaldson, Lufkin & Jenrette (absorbed in 2000 by
Credit Suisse First Boston), depicting the ridiculous
Heard on the Street: Quantitative Questions lengths to which entry-level grunts on Wall Street
from Wall Street Job Interviews can go to cope with long hours, stress, and despotic
This book is indispensable if youre a PhD or other managers; fit in with their peers; and stand out in the
job candidate vying for a quantitative position (for eyes of those who can advance their careers.
Getting Hired
example, derivatives analyst) on Wall Street. John Rolfe and Peter Troob (Warner Books, 2000)
Timothy Falcon Crack (Timothy Crack, 2002)
The Predators Ball: The Inside Story of Drexel
Burnham and the Rise of the Junk Bond Raiders
Today, Michael Milken is a philanthropist, raising
money to fight prostate cancer. This is the story
of Milken before he was enjoined from working
in investment bankingwhen he was hot and
Reference
For Your
investment banking was about junk bonds and raids. A

nice slice of the 80s.
Connie Bruck (Penguin, 1989)

At a glance
Online Securities Industry and Financial Markets
Association
The Industry
Resources www.sifma.org
A new industry trade group resulting from the
merger of The Securities Industry Association and The
The Web is loaded with information on invest- Bond Market Association. Download the Securities
ment banking and the securities industry, but most of Industry Briefing Book, which offers a history of
it exists to attract the interest of individual investors. the capital markets and a summary of the markets
Trying to find information relevant to your investment performance last year.
banking job search can be a frustrating experience
Thomson Financial
ThE FIRMS
plugging the term investment bank into a typical
search engine produces more than one million hits. So www.thomson.com/financial/fi_investbank.jsp
we did some legwork and found the finance sites that The firm that compiles data for the underwriting
are worth a job seekers look. league tables. You can find the latest months tables
here along with commentary.
Finance Site List
www.cob.ohio-state.edu/fin/journal/jofsites.htm Investor Words
On the Job
Its hard to imagine there could be a more www.investorwords.com
comprehensive list of finance links than this one, Some of that industry jargon still have you
maintained by the Journal of Finance. Its neatly confused? Try looking it up on this online glossary of
categorized, too, which makes it manageable. finance.
Careers in Business Knowledge@Wharton:FinanceandInvestment
The Workplace
www.careers-in-business.com knowledge.wharton.upenn.edu/category.cfm?cid=1
This site provides descriptions of job opportunities This online journal, put out by the Wharton School
in investment banks, some salary information, and of Business, offers timely content regarding news and
industry trends. Careful with the data, thoughits issues of interest to people on the Street.
a bit outdated. The site includes a career reference
section, which directs you toward help with cover Investopedia.com Financial Dictionary
letters, resumes, interviewing, and so on. www.investopedia.com/dictionary
This site provides an extensive dictionary of terms
Getting Hired
The Options Group used by the investment community. If you want to
www.optionsgroup.com sound like an insider and use terms like guns and
The Options Group isa global executive search butter curve, big uglies, and Bo Derek, this is a
and consulting firm for the financial markets and good site to check out.
technology services industries. Options Group has
placed 2,000 mid- to senior-level professionals since
2000.
Reference
For Your

At a glance
McKinsey Quarterly: Financial Services and Institutional Investor: www.dailyii.com

Corporate Finance
The Industry
www.mckinseyquarterly.com/category_editor. Investors Business Daily: www.investors.com

aspx?L2=5
The McKinsey Quarterly, a product of one of the
pre-eminent strategy consulting firms in the world,
offers in-depth analysis of news and issues of interest
to bankers and potential bankers.
WetFeet Online Resources

The FIRMS
www.wetfeet.com
Visit our site for related career and industry
profiles, interviews with recruiters in the industry and
real people in investment banking jobs, articles, and
more.
Finance and Business Publications

On the Job
Most major business publications can be found on the

Web. Some are free (Euromoney is a great source), some
offer current issues free but charge for archive searches,
and others require paid membership to access any
part of their sites. The Wall Street Journal Interactive
Edition is one that requires a membership but is
The Workplace
definitely worth paying for. You get a personalized

version of the Journal, plus access to Barrons Online,
SmartMoney interactive, the WSJ career site, the Dow
Jones publications library, and the WSJ online business
glossary.
The Wall Street Journal Interactive Edition: www.

wsj.com
Getting Hired
BusinessWeek: www.businessweek.com
The Economist: www.economist.com
Euromoney: www.euromoney.com
Financial Times: www.ft.com

Reference
For Your
Forbes: www.forbes.com
Fortune: www.fortune.com

At a glance
WETFEET INSIDER GUIDES series
The Industry
Ace Your Case - Consulting Interviews Consulting Careers
Ace Your Case I: Consulting Interviews, 3rd ed. 25 Top Consulting Firms
Ace Your Case II: Mastering the Case Interview Careers in Management Consulting
Ace Your Case III: Market-Sizing Questions Careers in Specialized Consulting: Information Technology
Ace Your Case IV: Business Operations Questions Consulting for PhDs, Lawyers, and Doctors
Ace Your Case V: Business Strategy Questions
Consulting Companies
Interviewing Accenture
Ace Your Interview! Bain & Company
ThE FIRMS
Beat the Street I: Investment Banking Interviews Booz Allen Hamilton
Beat the Street II: I-Banking Interview Practice Guide Boston Consulting Group
The Wharton MBA Case Interview Study Guide: Volume I Deloitte Consulting
The Wharton MBA Case Interview Study Guide: Volume II McKinsey & Company
Resumes & Cover Letters Career Management

Killer Consulting Resumes Be Your Own Boss
Killer Cover Letters & Resumes Changing Course, Changing Careers
On the Job
Killer Investment Banking Resumes Finding the Right Career Path
Negotiating Your Salary and Perks
Job Hunting Networking Works!
Getting Your Ideal Internship
The International MBA Students Guide to the U.S. Job Search Industries and Careers: General
Job Hunting A to Z: Landing the Job You Want Industries and Careers for Engineers
Job Hunting in New York City Industries and Careers for MBAs
The Workplace
Job Hunting in San Francisco Industries and Careers for Undergraduates
Million-Dollar Careers
Financial Services Careers
25 Top Financial Services Firms Industries and Careers: Specific
Careers in Accounting Careers in Advertising and Public Relations
Careers in Asset Management and Retail Brokerage Careers in Pharmaceuticals
Careers in Investment Banking Careers in Brand Management
Careers in Venture Capital Careers in Consumer Products
Careers in Entertainment and Sports
Getting Hired
Financial Services Companies Careers in Health Care
Deutsche Bank Careers in Human Resources
Goldman Sachs Group Careers in Information Technology
JPMorgan Chase & Co. Careers in Marketing
Merrill Lynch & Co. Careers in Nonprofits and Government Agencies
Morgan Stanley Careers in Real Estate
UBS AG Careers in Retail
Careers in Sales
Careers in Supply Chain Management
Reference
For Your

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Insider

The Folger Building

Phone: (415) 284-7900 or 1-800-926-4JOB

Careers in investment banking

All illustrations by mckibillo

Glance 6 Overview 26 The Big Picture

8 The Bottom Line 26 Major Players

89 The Inside Scoop

at a glance Your life is the marketriding a bull is exciting

Opportunity Overview Major Minuses

MBAs compete for fast-track associate slots, and

positions at various levels. Although relatively few

The I-banking industry still pays more than most

Excellent opportunity to learn the financial

Chance to build a network of well-connected

Youve seen the headlines deriding Wall Street

even read some of the nonfiction books. Yet youre

(stocks and bonds)

Providing financial advisory services, such as

Investment banks offer these services to companies,

governments, nonprofit institutions, and individuals.

you should research the industry and think about

WETFEET INSIDER GUIDE 

The The Basics of

Bottom Line Investment

hold, hoping that the rumored layoffs and smaller-

risks. and in-house groups, such as the sales and trading

WETFEET INSIDER GUIDE 

Until recently, the research division has also played

in wooing the client with its knowledge of the clients

JMP Securities, Needham & Co., and Sidoti & Co.)

arms have generated outsized returns, some observers

it puts employees in place in new time zones.

interviews, you should understand whats happening

WETFEET INSIDER GUIDE 11

New Relationships between

Financial Supermarket? I-banking research scandals in the early part of this

Investment Banks by 2006 Revenue

Morgan Stanley 76,551 55,310

Goldman Sachs 69,353 26,467

Credit Suisse (USA)* 67,532 44,871

Lehman Brothers 46,709 25,900

JPMorgan Investment Bank 18,300 27,000

Bear Stearns 16,551 13,566

Deutsche Bank Corporate and Investment Bank 15,568 68,849

* Numbers for parent company

WETFEET INSIDER GUIDE 13

Global Debt, Equity & Equity-Related, 1/1/076/30/07

Citi 398,120.4 8.8 1,047

JPMorgan 338,479.4 7.5 930

Deutsche Bank 291,203.8 6.4 878

Merrill Lynch 280,043.6 6.2 835

Morgan Stanley 272,052.6 6.0 822

Lehman Brothers 243,689.2 5.4 640

Barclays Capital 236,186.9 5.2 619

Goldman Sachs 205,210.7 4.5 527

Credit Suisse 202,725.2 4.5 640

UBS 184,804.5 4.1 710

Source: Thomson Financial

Goldman Sachs 29,967.0 8.8 99

UBS 29,180.4 8.5 162

JPMorgan 27,173.8 7.9 130

Morgan Stanley 26,292.9 7.7 119

WETFEET INSIDER GUIDE

WETFEET INSIDER GUIDE