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THE VAULT GUIDE TO THE TOP 50

Banking Employers

2009 EDITION is made possible through the generous support of the following sponsors:

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TOP
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50
THE VAULT GUIDE TO THE

Top 50

BAN KI NG
2009 EDITION

EMPLOYERS

DEREK LOOSVELT and the staff of Vault


2008 Vault Inc.

BANKING EMPLOYERS

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Copyright 2008 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault Inc. Vault, the Vault logo, and the most trusted name in career informationTM are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault Inc., 150 W. 22nd St., 5th Floor, New York, NY 10011, (212) 366-4212. Library of Congress CIP Data is available. ISBN 13: 978-1-58131-490-8 ISBN 10: 1-58131-490-6 Printed in the United States of America

Acknowledgments
This book could not have been written without the extraordinary efforts of Mary Phillips-Sandy, Stephanie Myers, Anu Rao, Marcy Lerner, Laurie Pasiuk and Ed Shen. Thanks also to Samer Hamadeh, Todd Kuhlman, Joseph Naggiar, Tim Lough, Fletcher Tison, Jennifer OReilly, Jessica Connell, Sara Calabro, David Walsh, Elena Boldeskou, Anthony Quarino and Kristy Sisko. Special thanks to all of the recruiting coordinators and corporate communications representatives who helped with the book. We appreciate your patience with our repeated requests and tight deadlines. The Vault Guide to the Top 50 Banking Employers is dedicated to the professionals who took time out of their busy schedules to complete our survey.

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Table of Contents
A GUIDE TO THIS GUIDE 1

OVERVIEW OF THE BANKING INDUSTRY

Whats What? Industry Overviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Investment Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Commercial Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

THE VAULT PRESTIGE RANKINGS

15

The Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 The Vault 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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QUALITY OF LIFE RANKINGS

21

Quality of Life Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Best 25 Employers to Work For . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Overall Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Selectivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Relationships with Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

DIVERSITY RANKINGS

33

Best 25 Firms For Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Diversity with Respect to Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Diversity With Respect To Ethnic Minorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Diversity with Respect to Gays & Lesbians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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Vault Guide to the Top 50 Banking Employers 2009 Edition Table of Contents

THE VAULT 50

39

1. Goldman Sachs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 2. The Blackstone Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3. Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 4. Lehman Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 5. J.P. Morgan Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 6. Merrill Lynch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 7. Lazard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 8. Credit Suisses Investment Banking Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 9. Deutsche Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 10. UBS Investment Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 11. Citi Institutional Clients Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 12. Chase Commercial Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 13. Greenhill & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 14. Barclays Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 15. Rothschild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 16. Bear Stearns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
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17. Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 18. Wachovia Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 19. Citi Consumer Banking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 20. HSBC North America Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 21. Houlihan Lokey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 22. Royal Bank of Scotland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 23. Perella Weinberg Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 24. Jefferies & Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 25. Evercore Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 26. Deloitte & Touche Corporate Finance LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 27. Piper Jaffray Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 28. Wells Fargo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 29. Dresdner Kleinwort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 30. RBC Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 31. Thomas Weisel Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 32. Bank of New York Mellon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 33. BNP Paribas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 34. Allen & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 35. Oppenheimer & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 36. Macquarie Group (USA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

Vault Guide to the Top 50 Banking Employers 2009 Edition Table of Contents

37. KPMG Corporate Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 38. CIBC World Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 39. William Blair & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 40. Robert W. Baird & Co. (Baird) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 41. Gleacher Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 42. Moelis & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 43 (tie). Keefe, Bruyette & Woods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 43 (tie). JMP Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 45. U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 46. Raymond James Financial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 47. FBR Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 48. Cowen and Company LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 49. ABN AMRO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 50. Brown Brothers Harriman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290

THE BEST OF THE REST


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Bank Leumi USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 BB&T Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 BMO Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 Broadpoint Securities Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Calyon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Caris & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 Cascadia Capital LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Comerica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 Duff & Phelps Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Fifth Third Bancorp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 First Horizon National Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 FOCUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Fox-Pitt Kelton Cochran Caronia Waller LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 KeyCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 Leerink Swann LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Lloyds TSB Group plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 M&T Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Morgan Keegan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 National City Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Nomura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377

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Peter J. Solomon Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 PNC Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Regions Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 RSM EquiCo Capital Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Sandler ONeill + Partners, L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Scotiabank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408 Stephens Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 Stifel Financial Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 SunTrust Banks, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Susquehanna International Group, LLP (SIG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424 TD Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Union Bank of California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435 ThinkPanmure LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438 Webster Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 WR Hambrecht + Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449

APPENDIX
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About the Editor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457

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A Guide to this Guide


All of our profiles follow the same basic format. Heres a guide to each entry.

Firm Facts
Departments: The firms major divisions. The Stats: Basic information about the firm, usually information thats available to the general public. This includes the firms leadership (generally, the person responsible for day-to-day operations, though it can include the chairman and relevant department heads), employer type (e.g., public, private or subsidiary), ticker symbol and exchange (if public), 2007 revenue and net income (usually only for public companies; we do have some estimates from third-party sources for private companies and, in some cases, the firm has confirmed that information), number of employees and number of offices. Key Competitors: The firms main business rivals. Size, business lines, geography and reputation are taken into account when evaluating rivals. Uppers and Downers: The best and worst things, respectively, about working at the firm. Uppers and downers are taken from the opinions of insiders based on our surveys and interviews. Employment Contact: The person (or people) that the firm identifies as its contact(s) for submitting resumes or employment inquiries. Weve supplied as much information as possible, including names, titles, mailing addresses, phone or fax numbers, email addresses and web sites. As companies process resumes differently, the amount of information may vary. For example, some firms ask that all employment-related inquiries be sent to a central processing office, while other firms mandate that all job applications be submitted through the company web site. The Buzz: When conducting our prestige survey, we asked respondents to include comments about the firms they were rating. Survey respondents were not able to comment on their own firm. We collected a sampling of these comments in The Buzz. We tried to include quotes that represented the common outside perceptions of a given firm. The quotes may not always reflect what insiders say in our surveys and interviews. We think The Buzz is a way of gauging outside opinion of a company.

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The Profiles
Most profiles are divided into three sections: The Scoop, Getting Hired and Our Survey Says (some profiles have only Scoop and Getting Hired sections). The Scoop: The companys history, a description of the business, recent clients or deals and other significant developments. Getting Hired: An overview of the companys hiring process, including a description of campus recruiting procedures, the number of interviews, questions asked and other tips on getting hired. Our Survey Says: Quotes from surveys and interviews done with employees or recent employees at the company. This includes information on culture, pay, hours, training, diversity, offices, dress code and other important company insights.

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VAULT TOP 50

2
PRESTIGE RANKING

TOP
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OVERVIEW OF THE

BANKING
THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

I N D U STRY

BANKING EMPLOYERS
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Whats What? Industry Overviews


Investment Banking
Investment banking is the business of raising money for companies. Companies need capital to grow their business; they turn to investment banks to sell securities to investorseither public or privateto raise this capital. These securities come in the form of stocks or bonds. Generally, an investment bank comprises the following areas:

Corporate finance
The bread and butter of a traditional investment bank, corporate finance generally performs two different functions: 1) mergers and acquisitions advisory, and 2) underwriting. On the mergers and acquisitions (M&A) advising side of corporate finance, bankers assist in negotiating and structuring a merger between two companies. If, for example, a company wants to buy another firm, then an investment bank will help finalize the purchase price, structure the deal and generally ensure a smooth transaction. The underwriting function within corporate finance involves raising capital for a client. In the investment banking world, capital can be raised by selling either stocks or bonds to investors.

Sales
Sales is another core component of an investment bank. Salespeople take the form of: 1) the classic retail broker, 2) the institutional salesperson, or 3) the private client service representative. Brokers develop relationships with individual investors and sell stocks and stock advice to the average Joe. Institutional salespeople develop business relationships with large institutional investorsthose who manage large groups of assets, like pension funds or mutual funds. Private client service (PCS) representatives, often referred to as private wealth managers, lie somewhere between retail brokers and institutional salespeople, providing brokerage and money management services for extremely wealthy individuals. Salespeople make money through commissions on trades made through their firms.

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Trading
Traders also provide a vital role for the investment bank. Traders facilitate the buying and selling of stock, bonds or other securities, either by carrying an inventory of securities for sale or by executing a given trade for a client. Traders deal with transactions, large and small, and provide liquidity (the ability to buy and sell securities) for the marketoften called making a market. Traders make money by purchasing securities and selling them at a slightly higher price. This price differential is called the bid-ask spread.

Research
Research analysts follow stocks and bonds and make recommendations on whether to buy, sell or hold those securities. Stock analysts (known as equity analysts) typically focus on one industry and will cover up to 20 companies stocks at any given time. Some research analysts work on the fixed-income side and will cover a particular segment, such as high-yield bonds or U.S. Treasury bonds. Salespeople within the investment bank utilize research published by analysts to convince their clients to buy or sell securities through their firm. Corporate finance bankers rely on research analysts to be experts in the industry in which they are working. Reputable research analysts can generate substantial corporate finance business and substantial trading activity, and thus are an integral part of any investment bank.

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Syndicate
The hub of the investment banking wheel, syndicate provides a vital link between salespeople and corporate finance. Syndicate exists to facilitate the placing of securities in a public offering, a knock-down-drag-out affair between and among buyers of offerings and the investment banks managing the process. In a corporate or municipal debt deal, syndicate also determines the allocation of bonds.

Commercial Banking
Commercial banks, unlike investment banks, generally act as lenders, putting forth their own money to support businesses as opposed to investment advisors who rely on other folksbuyers of stocks and bondsto pony up cash. This distinction, enshrined by fundamental banking laws in place since the 1930s, has led to noticeable cultural differences (exaggerated by stereotype) between commercial and investment bankers. Commercial bankers (deservedly or not) have a reputation for being less aggressive, more risk-averse and simply not as mean as investment bankers. Commercial bankers also dont command the eye-popping salaries and prestige that investment bankers receive. There is a basis for the stereotype. Commercial banks carefully screen borrowers because the banks are investing huge sums of their own money in companies that must remain healthy enough to make regular loan payments for decades. Investment bankers, on the other hand, can make their fortunes in one day by skimming off some of the money raised in a stock offering or invested into an acquisition. While a borrowers subsequent business decline can damage a commercial banks bottom line, a stock that plummets after an offering has no effect on the investment bank that managed its IPO.
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Well take your money


Commercial bankers make money by their legal charter to take deposits from businesses and consumers. To gain the confidence of these depositors, commercial banks offer government-sponsored guarantees on these deposits on amounts up to $100,000. But to get FDIC guarantees, commercial banks must follow a myriad of regulations (and hire regulators to manage them). Many of these guidelines were set up in the Glass-Steagall Act of 1933, which was meant to separate the activities of commercial and investment banks. Glass-Steagall included a restriction on the sale of stocks and bonds (investment banks, which could not take deposits, were exempt from banking laws and free to offer more speculative securities offerings). Deregulationespecially the Financial Services Modernization Act of 1999and consolidation in the banking industry over the past decade have weakened these traditional barriers.

The lending train


The typical commercial banking process is fairly straightforward. The lending cycle starts with consumers depositing savings or businesses depositing sales proceeds at the bank. The bank, in turn, puts aside a relatively small portion of the money for withdrawals and to pay for possible loan defaults. The bank then loans the rest of the money to companies in need of capital to pay for, say, a new factory or an overseas venture. A commercial banks customers can range from the dry cleaner on the corner to a multinational conglomerate. For very large clients, several commercial banks may band together to issue syndicated loans of truly staggering sizes. Commercial banks lend money at interest rates that are largely determined by the Federal Reserve Board (currently governed by Ben Bernanke). Along with lending money that they have on deposit from clients, commercial banks lend out money that they have received from the Fed. The Fed loans out money to commercial banks, which in turn lend it to bank customers in a variety of formsstandard loans, mortgages and so on. Besides its ability to set a baseline interest rate for all loans, the Fed also uses its lending power to equalize the economy. To prevent inflation, the Fed raises the interest rate it charges for the money it loans to banks, slowing down the circulation of money and the growth of the economy. When it wants to encourage economic growth, the Fed will lower the interest rate it charges banks.

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Making money by moving money


Take a moment to consider how a bank makes its money. Commercial banks in the U.S. earn 5 to 14 percent interest on most of their loans. As commercial banks typically only pay depositors 1 percentif anythingon checking accounts and 2 to 3 percent on savings accounts, they make a tremendous amount of money in the difference between the cost of their funds (1 percent for checking account deposits) and the return on the funds they loan (5 to 14 percent).

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The Year in Review


A very bad year
During summer 2007, the phrase credit crisis took center stage. The nation watched helplessly as the subprime housing market imploded, affecting nearly every sector imaginable. Among the first to feel the crunch were the U.S. banking giants, some of which had seemed infallible. The crisis set off instability in financial markets both international and stateside, resulting in skittish investors. The crisis continued into 2008, and within the first quarter, more write-downs (reductions in book values of assets due to their being overvalued compared to their market values) at financial institutions only made investors wary, setting off drops in market liquidity. By March 2008, conditions were explosive, setting off the demise of global investment bank Bear Stearns, arguably the biggest financial news story of the past 12 months.

The fall of Bear


Though the effects of the credit crisis were felt throughout the industry, Bear Stearnsthe investment house with the highest exposure to overvalued mortgage-backed securitieswas harder hit than most. In October 2007, the bank announced that it would let go more than 310 staffers and combine its separate mortgage businesses into one. Its two home loan-related hedge fundsthe High Grade Structured Credit Strategies Fund and its similarly named Enhanced Leverage counterparthad imploded in July, turning $1.6 billion of investors funds to dust (this was seen by some as the beginning of the credit crisis). Bear Stearns was forced to write off $200 million with the stroke of a penand fired the executive responsible for the asset management department, co-president Warren Spector. Despite the lingering cloud and a disastrous third quarter (in which its revenue in fixed income declined 88 percent), Bear Stearns management asserted in October that it was cautiously optimistic, asserting that most of our businesses are beginning to
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rebound. This cautious optimism proved unfounded, and in December 2007, the firm revealed its quarterly results, including a staggering $854 million lossthe first quarterly loss in Bear Stearns history. Most of the losses came from write-downs, which the firm reported were $700 million greater than expected. Despite the quarterly results, Bear CEO James Cayne claimed his confidence in the company was rock solid. In response to the disappointing results, Cayne and other Bear executives noted that they were foregoing their holiday bonusesas it should be, according to Cayne himself. In January 2008, when Bears future took a turn for the worse, Cayne resigned. In March 2008, facing collapse, Bear received a temporary reprieve when JPMorgan Chase & Co. and the New York Federal Reserve moved in to provide the firm with emergency funding. Bear, whose shares immediately fell 53 percent on the news, admitted that its financial situation had significantly deteriorated after it fell prey to a cash shortage brought on by the credit crisis. But within a matter of days, the situation turned even more direr. Fearing Bears cash shortage, the firms clients withdrew approximately $17 billion over two days, leaving the 85-year-old Bear with no choice (other than claiming bankruptcy) but to sell. And on Monday, March 16th, that sale became official when JPMorgan Chase announced it would buy Bear for $2 a share just $236 million, or approximately 97 percent less than Bears value in the previous week. (After much grumbling from Bear shareholders, the deal was cut at a higher value: $10 a share.) To help finance the deal, the Federal Reserve agreed to provide JPMorgan with about a $30 billion credit line, believed to be the largest Fed advance on record to a single company, according to The Wall Street Journal. Aftershocks of the buyout were felt all around the world. In Japan, stocks immediately sunk to the lowest theyd been in two years. Analysts in the U.K. predicted a depression on the scale of that which occured in the 1930s. Swiss-based UBS announced it would likely cut another 8,000 jobs. And in the U.S., financial stocks plummeted during the first few hours of trading on March 17. JPMorgan Chase, meanwhile, stepped forward to answer questions about what would become of Bear Stearns employees. The bank stated that about 50 percent of job offers extended by Bear Stearns would be rescinded. Summer interns had it a little betterthe firm assured summer interns that they will be offered 10 weeks of pay if they work for a certain nonprofit organization and will get an early chance to apply for fall positions. Graduates denied full-time jobs were allowed to keep their signing and relocation bonuses, and given access to career services. The cuts came mostly in areas where there was overlap, such
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as M&A, equity underwriting and corporate finance. Offers in investment management and other areas such as commodities, merchant banking and prime brokerage (Bears jewel) were unaffected.

Plenty of pink slips


For others in the banking trenches, the situation didnt look much rosier. Credit Suisse was one of the first big finance firms to downsize in response to the credit crisis, slashing about 150 jobs in September 2007. By the beginning of 2008, Credit Suisse confirmed that market conditions had caused the company to cut about 500 investment banking positionsa total of about 20 percent of the group. Goldman Sachs, which had estimated job cuts to be around 10 percent earlier in the year, said in June 2008 that 25 percent of its investment banking employees (about 1,500) at the vice president level had been cut. Morgan Stanley didnt fare much better, announcing in February 2008 that it would cut 1,000 jobs in its operations, technology and asset management units, in addition to shutting down its U.K. home loan business and decreasing the size of its U.S. counterpart. And in reaction to a $6 billion write-down in the first quarter of 2008 and its third quarterly loss in a row, Merrill Lynch announced in April 2008 that it would cut 3,000 positions (adding to the 1,100 the firm slashed in the first quarter of 2008). Deutsche Bank, meanwhile, announced in April 2008 that it was cutting nearly 1,000 investment banking jobs in mortgage banking and other areas. Though the number was not in the realm of some its banking brethren, it still spelled trouble for Deutsche, which reported its first quarterly loss in five yearsa 131 million net loss for the first quarter of 2008, contrasted with a 2.12 billion profit in the first quarter of 2007. UBS felt the pinch of the credit crunch, too, announcing in May 2008, that it would be cutting approximately 5,500 jobs, in addition to the 1,500 positions it eliminated in 2007. No doubt the news had just a little bit to do with UBSs first quarter loss of $10.9 billions. Citi fared the worst of all the big banks, announcing at the beginning of 2008 that it was cutting 4,200 jobs, bringing its ultimate total number of layoffs close to 20,000 to 24,000. A few months later, it slashed another 2,000 positions. (Citi, perhaps in a damage control move, announced that it was simply culling the bottom 5 percent of performers each year.) Though no bank was able to remain truly impervious to the credit crunch, some firms had it worse than others. In March 2008, Lehman Brothers announced that it was laying off about 5 percent of its total workforce of 28,600 employees. The cuts, which affected all of its business units, were hardly the first wave of cutbacks for Lehmanin 2007, the company slashed about 4,000 jobs, mostly in its mortgage operations arm. In the second quarter of 2008, some analysts were predicting that Lehman would be the next firm to fallin a July 2008 poll on the financial site Motley Fool, more than 40,000 respondents chose Lehman Brothers as the next firm to have a Bear Stearns-style implosion. (As of mid-July, Lehmans stock price was hovering around $20 per share, well below its 52-week high of $70, but higher than its 52-week low of $12 per share, which the stock traded at in early July.)

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Cuts at all levels


All in all, estimated layoffs for the banking industry since its mortgage-related downfall were a staggering 79,000 jobs, the Bureau of Labor Statistics reported in January 2008. And those at the top were hardly exempt from the axe. In addition to the resignation of Bear Stearns Cayne, there were quite a few shake-ups at the top of banking pyramids. In July 2007, UBSs CEO Peter Wuffli was cut from the firm, and replaced by deputy CEO Marcel Rohner. Wufflis removal was largely attributed to the collapse of a hedge fund the firm managed. In November 2007, Merrill Lynch took drastic action after posting a $8.4 billion write-down and a $2.3 billion loss for the third quarter of 2007 (its largest quarterly loss ever), forcing CEO Stan ONeal to step down. In his place Merrill substituted New York Stock Exchange Chief John Thain; after BlackRock CEO Larry Fink declined the position, insisting on full transparency of Merrills exposure to the subprime market. In December 2007, Citi had a full-time search on its hands after CEO Charles Prince resigned in November. The firm settled on Vikram S. Pandit to take over the reins. Pandit had only spent six months at the firm, but still managed to beat out such candidates as Robert B. Willumstad, Citis former president, and Michael A. Neal, the head of GE Capitals commercial finance division. Wachovia also made a major change, asking CEO Ken Thompson to retire in June 2008. The request followed Wachovias significant losses (including $707 million in the first quarter of 2008) due to failure to successfully integrate A.G.

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Edwards and buying mortgage lender Golden West not long before the subprime mess. A month later, Wachovia found Thompsons replacement, naming Robert K. Steelformer undersecretary of the U.S. Treasuryas its new chief executive and president.

Tough times for the top women of Wall Street


In April 2008, Morgan Stanley co-president Zoe Cruzheir-apparent to Morgans CEO throne and the 16th most powerful woman in the world, according to Forbes magazine was summarily dismissed by CEO John Mack. Some argue that Cruz took the fall for Mack, who lobbied for her firing as a preemptive move to save his own job. Lehman Brothers Erin Callanconsidered the most powerful woman on Wall Street after Cruzsuffered a similar fate in June 2008, when she was demoted from her position as chief financial officer, a spot she only held for a few short months. In July 2008, Callan left Lehman to head up Credit Suisses global hedge fund unit. Callans departure came as little surprise for Lehman Brothers, which had suffered a net loss of $2.8 billion in the second quarter of 2008. (Throughout her term as financial officer at Lehman, Callan argued for more transparency in financial reporting.) Callans move to the Swiss giants hedge fund arm was a coming home of sortsshe worked for Lehmans hedge fund unit at the start of her 13-year career with the firm.

The ballad of Fannie and Freddie


Although the departure of CEOs and other top executives certainly made good drama, virtually nothing made the credit crisis more pronounced than the consumer fear surrounding the uncertainty of the future of mortgage giants Freddie Mac and Fannie Mae. The mortgage agencies stocks both lost half their value in July 2008an event that some analysts said was worse for the financial markets than the collapse of Bear Stearns. (Fannie has lost about $7.2 billion since mid-2007 and Freddie has lost about $4.6 billion.) Following the stock nosedives, the U.S. Treasury finagled a few favors from Congress on behalf of the two agencies: a temporary increase in a credit line for Fannie and Freddie, along with temporary authority to purchase equity in one or both of the mortgage companies. After much negotiation regarding the fate of Fannie and Freddie, House and Senate heads reached a tentative agreement within a few weeks. The Congressional Budget Office reported that a temporary plan to bail out Fannie and Freddie could cost the government $25 billion, including a $4 billion provision that would let local governments purchase and restore previously foreclosed houses.

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You can run, but you cant hide


In early 2008, the FBI announced that it had begun a criminal investigation into 14 companies, as part of a larger inquiry into what had gone wrong with the mortgage industry. Goldman Sachs, Morgan Stanley and famously-defunct Bear Stearns received requests for information about subprime mortgage-linked securities. The FBI investigation, which is being carried out in cooperation with the Securities and Exchange Commission, has also targeted mortgage lenders and loan brokers. By June 2008, effects of the investigation finally began to trickle down. Former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin were taken into custodythe first two arrests in conjunction with the probe. Cioffi and Tannin each face nine counts of conspiracy, securities fraud and wire fraud for purportedly deceiving investors about the stability of Bears hedge funds. More arrestsat additional firmsare expected to follow as the query into the $396.6 billion fraud deepens.

The tables dont lie


Despite the rocky second half of 2007, investment banking league tables looked much as they did in 2006. In total global debt, equity and equity-related underwriting volume, Citi ranked No. 1 for the second consecutive year, according to Thomson Reuters. Citi, which worked on 1,740 deals worth a total of $617.6 billion, had its hands in two of the worlds largest deals of the year: Blackstones $4.75 billion IPO, underwritten by Citi, Morgan Stanley and 15 other banks; and MF Global Ltd.s $2.92 billion IPO, underwritten by Citi, J.P. Morgan, Lehman Brothers, Merrill Lynch and UBS Investment Bank.

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Vault Guide to the Top 50 Banking Employers 2009 Edition The Year in Review

In worldwide announced M&A deal volume, perennial powerhouse Goldman Sachs again ranked No. 1, with Morgan Stanley in second place and Citi in third. Goldman also again took the top spot in the U.S., with Morgan in second and Lehman Brothers in third. As far as the largest worldwide transactions, BHP Billitons acquisition of Rio Tinto down under in Australia for $192.7 billion came in at No. 1, followed by ABN-AMRO Holdings $99.4 billion sale and the $61.4 billion spinoff of Kraft Foods. By industry sector, financial services was the busiest when it came to merging, acquiring and divesting in 2007, with more about 5,000 announced deals worth a total of $700 billion. In the U.S., overall M&A deal volume for the year hit a record $1.57 trillion, a 5.5 percent increase versus 2006.

The Fortune-ate ones


The 2008 Fortune 500 list included in its top 40 a number of big banking players, including Citi (No. 8), Bank of America (No. 9), JPMorgan Chase (No. 12), Goldman Sachs (No. 20), Morgan Stanley (No. 21), Merrill Lynch (No. 30), Lehman Brothers (No. 37) and Wachovia (No. 38). Goldman Sachs also ranked No. 2 on Fortunes Best Companies to Work For list.

Small goes big time


Since the credit crunch began, its been a big time for smaller boutique banks such as Moelis & Co., which advised on a number of big-ticket deals, including Yahoo!s $44.6 billion unsolicited proposal from Microsoft, Allied Wastes pending $12.7 billion sale to Republic Services and Anheuser-Buschs $61.2 billion sale to InBev. There has also recently been a good deal of jockeying for status between big name banking players. For years, JPMorgan Chase was the third-biggest bank in the U.S., trailing just behind Citi (Bank of America being No 1.). This rankled JPMorgan CEO Jamie Dimon, who spent many years at Citi under Sanford Weill. But Weill turned on Dimon in the late 1990s, ousting him and installing former CEO Charles Prince in his place. Dimon went on to a career at Bank One, which he then merged with JPMorgan Chase. In January 2008, Dimon had reason to cheer (despite the fact that his firm had taken a $1.3 billion subprime write-down and posted lower-than-expected earnings for 2007): For the first time, JPMorgan Chases market value surpassed that of Citigroups$136 billion to $129.8 billion, to be exact. Although Citi still holds more assets, Dimon won bragging rights, declaring his firm the second-largest bank in America by market value.

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Final completion
The long-awaited ABN AMRO transaction was finally completed in October 2007 after many months of anticipation and talks with Barclays, which ultimately bowed out of the deal. In April 2007, ABN AMRO received a letter from a consortium made up of Banco Santander, the Royal Bank of Scotland and Fortisan invitation to start exploratory merger talks. The three-bank consortium ultimately offered about $90 billion for ABN AMRO$10 billion more than Barclays was offering. In October 2007, Barclays withdrew its bid for ABN AMRO and received break-up fees of 200 million from ABN AMRO. ABN AMRO was then officially purchased by the consortium. Other high-profile (but less pricey) banking buys include Jefferies June 2007 purchase of the Putnam Lovell investment banking business from Canadas National Bank Financial Group, and Oppenheimer Holdings January 2008 acquisition of most of CIBC World Markets U.S. investment banking business.

Down and out on Wall Street


Following the onslaught of the credit crisis, job security for those working in the industry became shaky at best. And a 2008 report by the National Association of College & Employers concerning the job outlook for several industries confirmed the gloomy career picture: For jobs in the financial sectorincluding banking and other fieldshiring was down overall by 7 percent. Compensation will also be down in 2008. At a news conference in Albany in July 2008, New York Governor David Paterson said that Wall Street banks could end up slashing bonuses by approximately 20 percent in 2008. Paterson also scoffed at

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economists who believe the U.S. will not experience a recession: This has finally confirmed to me that flying saucers have landed and that people from outer space are in our midst, influencing policy. Whether alien life forms are trying to infiltrate legislative bodies or not, its highly probable that, given the hits that most banks have already taken, bankers will close 2008 with significantly lighter wallets.

More Bears ahead?


Analysts have predicted more bank failures in the industrys immediate future. The New York Times reported in July 2008 that federal regulators are steadying themselves for more bank closures, and analysts predict that some 150 of 7,500 small and midsized banks may fail over the next year to year-and-a-half. Meanwhile, in 2007, the Federal Deposit Insurance Corporation flagged 76 problem banks, up from 50 at the end of 2006. Still, the FDIC has also assured customers that the state of the industry has been much worsethere were more than 1,000 banks on the same list toward the end of the last banking crisis, in 1992. Nevertheless, the banking industrynot to mention the overall U.S. economyis hardly out of the woods. In May 2008, Federal Reserve Chairman Bernanke admitted in a speech to the Atlanta Fed that markets have recovered slightly but are still far from normal. By June, though, he had changed his tactic slightly, asserting that the risk that the economy has entered a substantial downturn appears to have diminished over the past month or so. Testifying before the Senate Banking Committee in July 2008, Bernanke was again stressing the reality of the economic pinch, saying that overall economic expansion was happening at a sluggish pace and that the housing market, fair from repairing itself, continues to weaken. In fact, Bernanke cautioned that if anything, the U.S. economy is being confronted with numerous difficulties. However, in July 2008, when Wachovia, Washington Mutual, SunTrust Banks, Fifth Third Bancorp and Regions Financial all reported total losses for the quarter to be more than $11 billion, their share prices increased an average of 14 percenton optimism that the stocks had hit rock bottom. So, perhaps, now theres nowhere to go but up.

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THE VAULT

TOP

50
RANKINGS

PRESTIGE

BANKING EMPLOYERS

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Prestige Rankings

The Ranking Methodology


The Vault Guide to the Top 50 Banking Employers rates 85 firms with significant North American operations in either investment bank or commercial banking. We chose the 85 firms based on previous Vault surveys that gauged opinions of industry insiders, as well as on factual data, including size in terms of revenue, assets or market capitalization. The firms we identified were all asked to distribute the online Vault 2008 Banking Survey to relevant employees. The survey consists of questions about life at the firm, as well as a prestige rating in which participants were asked to rate companies with which they were familiar on a scale of 1 to 10, with 10 being the most prestigious. They were not allowed to rate their own employer. Twenty seven firms agreed to participate (BB&T Corporation, BMO Capital Markets, Barclays Capital, Citi Institutional Clients Group, Cowen and Company LLC, Credit Suisses Investment Banking Business, Duff & Phelps Corporation, Evercore Partners, Goldman Sachs, Houlihan Lokey, J.P. Morgan Investment Bank, Jefferies & Company, Lehman Brothers, M&T Bank, Merrill Lynch, Moelis & Company, RBC Capital Markets, RSM EquiCo Capital Markets, Robert W. Baird & Company, Sandler O'Neill + Partners, SunTrust Banks, TD Securities, UBS Investment Bank, Union Bank of California, Wells Fargo and William Blair & Company). All surveys were completed anonymously. For those companies that did not participate, Vault sought contacts at the firm through other proprietary sources. Those professionals took the same survey as did the employees at firms that participated. All told, 1,167 banking professionals filled out Vaults 2008 Banking Survey from January 2008 through March 2008. Vault averaged the prestige scores for each firm, ranking them in order. Once again, the No. 1 firm was investment bank Goldman Sachs. New York-based Goldman scored 9.131, almost a full point higher than The Blackstone Group (8.415), which ranked No. 2 for the second year in a row. In fact, the top five looked exactly the same as last year, with Morgan Stanley taking the No. 3 spot (8.039), Lehman Brothers at No. 4 (7.776) and J.P. Morgan Investment Bank at No. 5 (7.652).
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The Vault 50 2009


The 50 most prestigious banking employers
2009 RANK
1 2 3 4 5 6 7 8 9 10 11
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BANKING EMPLOYER
Goldman Sachs The Blackstone Group Morgan Stanley Lehman Brothers J.P. Morgan Investment Bank Merrill Lynch Lazard Credit Suisses Investment Banking Business Deutsche Bank UBS Investment Bank Citi Institutional Clients Group Chase Commercial Bank Greenhill & Co. Barclays Capital Rothschild Bear Stearns* Bank of America Wachovia Corporation Citi Consumer Banking HSBC North America Holdings Houlihan Lokey Royal Bank of Scotland Perella Weinberg Partners Jefferies & Company Evercore Partners

PRESTIGE SCORE
9.131 8.261 8.039 7.776 7.652 7.174 7.138 7.000 6.824 6.714 6.520 6.340 6.109 5.866 5.690 5.678 5.661 5.546 5.503 5.502 5.445 5.402 5.371 5.322 5.258

2008 RANK
1 2 3 4 5 6 8 9 12 10 7 11 16 17 19 13 15 18 14 20 21 25 23 22 26

2007 RANK
1 3 2 4 5 7 8 9 13 11 6 10 15 19 18 14 17 20 12 22 21 28 NR 23 26

2006 RANK
1 2 3 4 NR 7 6 10 12 11 5 8 14 18 16 13 17 20 9 23 22 31 NR 26 42

LARGEST OFFICE/ HEADQUARTERS


New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY Charlotte, NC Charlotte, NC New York, NY London, UK Los Angeles, CA Edinburgh, Scotland New York, NY New York, NY New York, NY

12 13 14 15 16 17 18 19 20 21 22 23 24 25

NR = Not Ranked *Acquired by JPMorgan Chase in May 2008

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2008 Vault.com Inc.

2009 RANK
26 27 28 29 30 31 32 33 34 35 36
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BANKING EMPLOYER
Deloitte & Touche Corporate Finance LLC Piper Jaffray Companies Wells Fargo Dresdner Kleinwort RBC Capital Markets Thomas Weisel Partners Bank of New York Mellon BNP Paribas Allen & Company Oppenhiemer & Co. Macquarie Group (USA) KPMG Corporate Finance LLC CIBC World Markets William Blair & Company Robert W. Baird & Co. (Baird) Gleacher Partners Moelis & Company Keefe, Bruyette & Woods JMP Securities U.S. Bancorp Raymond James Financial FBR Capital Markets Cowen and Company LLC ABN AMRO* Brown Brothers Harriman

PRESTIGE SCORE
5.076 5.043 4.948 4.913 4.849 4.765 4.620 4.619 4.598 4.545 4.385 4.363 4.319 4.312 4.193 4.184 4.152 4.152 4.152 4.074 4.046 4.038 3.970 3.963 3.908

2008 RANK
30 27 24 31 29 28 35 34 33 NR 47 43 32 36 42 44 NR 38 NR 46 40 49 39 41 37

2007 RANK
NR 27 30 24 34 25 39 38 31 NR 45 NR 29 37 43 32 NR 36 NR NR 42 40 33 46 35

2006 RANK
NR 25 29 21 34 19 28 37 30 NR NR NR 24 35 40 33 NR 44 NR 46 41 43 41 47 39

LARGEST OFFICE/ HEADQUARTERS


New York, NY Minneapolis, MN San Francisco, CA London, UK New York, NY San Francisco, CA New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY New York, NY Milwaukee, WI New York, NY New York, NY New York, NY San Francisco, CA Minneapolis, MN St. Petersburg, FL Arlington, VA New York, NY Amsterdam, NL New York, NY

37 38 39 40 41 42 43 (tie) 43 (tie) 45 46 47 48 49 50

NR = Not Ranked *Acquired by Royal Bank of Scotland, Fortis and Santander in October 2007

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THE VAULT

TOP

50
RANKINGS

QUALIT Y OF LIFE

BANKING EMPLOYERS

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Quality of Life Ranking Methodology


In addition to ranking other firms in terms of prestige, survey respondents were asked to rate their own firms in a variety of categories. On a scale of 1 to 10, with 10 being the highest and 1 the lowest, respondents evaluated their firms in the following quality of life areas: overall satisfaction, selectivity, compensation, hours, relationships with managers, training, offices, diveristy with respect to women, diversity with respect to ethnic minorities, and diversity with respect to gays and lebians.. A firms score in each category is simply the average of these rankings. Only firms that distributed the Vault survey to their employees were ranked. Firms with fewer than 10 survey responses for any given question were excluded from that ranking category.

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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Best 25 Employers to Work For


Which are the best firms to work for? For some, this is a far more important consideration than prestige. To determine our Best 25 firms, we used a formula that weighed the most relevant categories for an overall quality of life ranking. Each firms overall score was calculated using the following formula: 40 percent satisfaction 10 percent hours 10 percent pay 10 percent manager relations 10 percent diversity (women, minorities and gays) 10 percent formal training Like our Top 50 prestige rankings, our Best 25 is meant to reflect the subjective opinion of insiders. By its nature, the list is based on the perceptions of insiderssome of whom may be biased in favor (or against) their firm.

RANK
1 2 3 4
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FIRM
Houlihan Lokey Moelis & Company UBS Investment Bank Goldman Sachs Lehman Brothers J.P. Morgan Investment Bank William Blair & Company Credit Suisses Investment Banking Business Wells Fargo Merrill Lynch Union Bank of California Evercore Partners Jefferies & Company BB&T Corporation Sandler ONeill + Partners, L.P. Cowen and Company LLC RBC Capital Markets Robert W. Baird & Co. (Baird) TD Securities Citi Consumer Banking Citi Institutional Clients Group M&T Bank RSM EquiCo Capital Markets BMO Capital Markets SunTrust Banks, Inc.

SCORE
9.803 9.707 9.406 9.281 9.196 9.106 9.031 8.964 8.855 8.846 8.841 8.785 8.640 8.637 8.624 8.542 8.506 8.343 8.268 7.884 7.866 7.742 7.583 7.566 7.544

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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2008 Vault.com Inc.

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Overall Satisfaction
On a scale of 1 to 10, where 1 is not at all satisfied, my overall satisfaction is:

RANK
1 2 3 4 5 6 7 8 9 10 11 12 13
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FIRM
Moelis & Company Houlihan Lokey UBS Investment Bank Goldman Sachs Lehman Brothers Evercore Partners Sandler ONeill + Partners, L.P. J.P. Morgan Investment Bank William Blair & Company Merrill Lynch Credit Suisses Investment Banking Business Jefferies & Company BB&T Corporation Wells Fargo RBC Capital Markets Union Bank of California Robert W. Baird & Co. (Baird) Cowen and Company LLC TD Securities M&T Bank

SCORE
9.450 9.333 9.261 9.058 8.968 8.917 8.900 8.862 8.762 8.539 8.529 8.458 8.421 8.356 8.346 8.286 8.269 8.161 7.792 7.515

14 15 16 17 18 19 20

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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Selectivity
On a scale of 1 to 10, where 1 is very easy and 10 is nearly impossible, how easy is it to get hired at your firm?

RANK
1 2 3 4 5 6 7 8 9 10 11 12 13
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FIRM
Evercore Partners Moelis & Company Houlihan Lokey UBS Investment Bank Goldman Sachs William Blair & Company Lehman Brothers J.P. Morgan Investment Bank RBC Capital Markets Robert W. Baird & Co. (Baird) Credit Suisses Investment Banking Business Merrill Lynch Citi Institutional Clients Group Cowen and Company LLC Jefferies & Company M&T Bank Duff & Phelps Corporation BMO Capital Markets TD Securities Wells Fargo

SCORE
8.696 8.571 8.556 8.500 8.294 8.227 8.191 8.153 7.962 7.840 7.735 7.720 7.711 7.452 7.391 7.000 6.969 6.875 6.792 6.789

14 15 16 17 18 19 20

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2008 Vault.com Inc.

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Compensation
On a scale of 1 to 10, where 1 is far below average and 10 is far in excess of industry average, my total compensation is:

RANK
1 2 3 4 5 6 7 8 9 10 11 12 13
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FIRM
Moelis & Company Evercore Partners Houlihan Lokey William Blair & Company Goldman Sachs Merrill Lynch Cowen and Company LLC Credit Suisses Investment Banking Business Jefferies & Company UBS Investment Bank J.P. Morgan Investment Bank M&T Bank Lehman Brothers Wells Fargo RBC Capital Markets BMO Capital Markets Union Bank of California Robert W. Baird & Co. (Baird) Citi Institutional Clients Group TD Securities

SCORE
8.667 8.435 8.389 8.268 7.640 7.440 7.250 6.696 6.739 6.708 6.691 6.593 6.400 6.378 6.167 6.125 6.044 6.000 5.581 5.450

14 15 16 17 18 19 20

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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Hours
On a scale of 1 to 10, where 1 is means not satisfied at all and 10 means very satisfied, please rank your satisfaction with the number of hours you spend in the office:

RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
Wells Fargo TD Securities Houlihan Lokey M&T Bank Union Bank of California RSM EquiCo Capital Markets BB&T Corporation Cowen and Company LLC SunTrust Banks, Inc. RBC Capital Markets Lehman Brothers UBS Investment Bank Goldman Sachs Merrill Lynch Jefferies & Company Credit Suisses Investment Banking Business Moelis & Company J.P. Morgan Investment Bank Robert W. Baird & Co. (Baird) William Blair & Company

SCORE
8.010 7.917 7.824 7.688 7.565 7.550 7.297 7.156 7.117 7.080 6.984 6.950 6.904 6.846 6.800 6.794 6.636 6.603 6.423 6.381

13 14 15 16 17 18 19 20

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2008 Vault.com Inc.

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Relationships with Managers


On a scale of 1 to 10, where 1 means poorly and 10 means with great respect, how would you rank your treatment, on average, by managers?

RANK
1 2 3 (tie) 3 (tie) 5 6 7 8 9 10 11 12
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FIRM
Houlihan Lokey Moelis & Company Evercore Partners Cowen and Company LLC Credit Suisses Investment Banking Business RBC Capital Markets William Blair & Company Lehman Brothers UBS Investment Bank Goldman Sachs J.P. Morgan Investment Bank Merrill Lynch Jefferies & Company Sandler ONeill + Partners, L.P. BB&T Corporation Robert W. Baird & Co. (Baird) Wells Fargo TD Securities Union Bank of California M&T Bank

SCORE
9.647 9.381 9.000 9.000 8.941 8.923 8.864 8.836 8.818 8.808 8.700 8.615 8.600 8.600 8.553 8.520 8.452 8.333 8.273 8.152

13 (tie) 13 (tie) 15 16 17 18 19 20

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Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Training
On a scale of 1 to 10, where 1 is non-existent and 10 is superior, the training at my firm (both formal and informal) is:

RANK
1 2 3 4 5 6 7 (tie) 7 (tie) 9 10 11 12 13
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FIRM
UBS Investment Bank J.P. Morgan Investment Bank BB&T Corporation Goldman Sachs Union Bank of California Credit Suisses Investment Banking Business Houlihan Lokey Moelis & Company Lehman Brothers Cowen and Company LLC Wells Fargo Merrill Lynch Jefferies & Company Citi Institutional Clients Group Robert W. Baird & Co. (Baird) William Blair & Company SunTrust Banks, Inc. BMO Capital Markets TD Securities Sandler ONeill + Partners, L.P.

SCORE
9.150 9.138 9.079 9.020 8.818 8.781 8.706 8.706 8.694 8.276 8.155 8.154 7.833 7.744 7.640 7.600 7.379 6.667 6.542 6.300

14 15 16 17 18 19 20

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CAREER LIBRARY

2008 Vault.com Inc.

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Offices
Where 1 is uncomfortable and 10 is ultra-luxurious, in terms of space, comfort, and decor, the offices I work in are:

RANK
1 2 3 4 (tie) 4 (tie) 6 7 8 9 10 11 12 13
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FIRM
William Blair & Company Houlihan Lokey UBS Investment Bank Evercore Partners Moelis & Company Lehman Brothers Union Bank of California TD Securities RSM EquiCo Capital Markets Credit Suisses Investment Banking Business Merrill Lynch Duff & Phelps Corporation Cowen and Company LLC Wells Fargo RBC Capital Markets J.P. Morgan Investment Bank BMO Capital Markets BB&T Corporation Robert W. Baird & Co. (Baird) Jefferies & Company

SCORE
8.619 8.444 7.565 7.500 7.500 7.413 7.364 7.208 7.025 6.971 6.885 6.882 6.781 6.775 6.739 6.655 6.647 6.474 6.269 6.250

14 15 16 17 18 19 20

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31

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THE VAULT

TOP

50
D IVE R S IT Y RANKINGS

BANKING EMPLOYERS

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Best 25 For Diversity


Insiders were asked to rate their firms commitment to diversity with respect to women, with respect to minorities, and with respect to gays and lesbians. To determine our Best 25 Firms For Diversity, we used a formula that weights the average score in all three categories equally. Like our other rankings, the diversity rankings reflect the opinions and perceptions of insiders.

RANK
1 2 3 4 5 6 7 8 9 10 11
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FIRM
Goldman Sachs Wells Fargo Moelis & Company J.P. Morgan Investment Bank Union Bank of California Lehman Brothers UBS Investment Bank Credit Suisses Investment Banking Business Houlihan Lokey RBC Capital Markets TD Securities Citi Consumer Banking Citi Institutional Clients Group Evercore Partners Jefferies & Company BB&T Corporation Merrill Lynch SunTrust Banks, Inc. Robert W. Baird & Co. (Baird) Sandler ONeill + Partners, L.P. RSM EquiCo Capital Markets BMO Capital Markets William Blair & Company Cowen and Company LLC M&T Bank

SCORE
9.015 9.002 8.990 8.965 8.917 8.789 8.569 8.536 8.350 8.339 8.270 8.258 8.192 7.916 7.885 7.840 7.892 7.330 7.235 7.169 7.051 6.783 6.750 6.149 5.805

12 13 14 15 16 17 18 19 20 21 22 23 24 25

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2008 Vault.com Inc.

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Diversity With Respect To Women


On a scale of 1 to 10, where 1 means needs a lot of improvement and 10 means exemplary, how receptive is your firm to women in terms of hiring, promoting, mentoring and other programs

RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
J.P. Morgan Investment Bank Union Bank of California Goldman Sachs Wells Fargo Moelis & Company Lehman Brothers Houlihan Lokey UBS Investment Bank TD Securities Citi Institutional Clients Group Credit Suisses Investment Banking Business SunTrust Banks, Inc. Jefferies & Company BMO Capital Markets Merrill Lynch RBC Capital Markets BB&T Corporation Robert W. Baird & Co. (Baird) William Blair & Company Evercore Partners

SCORE
9.019 9.000 8.981 8.968 8.875 8.771 8.647 8.632 8.409 8.256 8.161 8.157 8.143 8.133 8.039 8.000 7.944 7.600 7.550 7.191

13 14 15 16 17 18 19 20

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35

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Diversity With Respect To Ethnic Minorities


On a scale of 1 to 10, where 1 means needs a lot of improvement and 10 means exemplary, how receptive is your firm to minorities in terms of hiring, promoting, mentoring and other programs?

RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
Goldman Sachs Union Bank of California Moelis & Company J.P. Morgan Investment Bank Wells Fargo UBS Investment Bank Citi Institutional Clients Group Lehman Brothers Credit Suisses Investment Banking Business Houlihan Lokey RBC Capital Markets Evercore Partners BB&T Corporation TD Securities Merrill Lynch RSM EquiCo Capital Markets SunTrust Banks, Inc. Jefferies & Company Robert W. Baird & Co. (Baird) BMO Capital Markets

SCORE
9.039 8.842 8.824 8.796 8.772 8.700 8.683 8.617 8.571 8.529 8.480 8.273 7.943 7.800 7.760 7.556 7.500 7.421 6.917 6.714

13 14 15 16 17 18 19 20

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2008 Vault.com Inc.

Vault Guide to the Top 50 Banking Employers 2009 Edition The Vault Quality of Life Rankings

Diversity with Respect to Gays & Lesbians


On a scale of 1 to 10, where 1 means needs a lot of improvement and 10 means exemplary, how receptive is your firm to gays and lesbians in terms of hiring, promoting, mentoring and other programs?

RANK
1 2 3 4 5 6 7 8 9 10 11 12
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FIRM
Moelis & Company Wells Fargo J.P. Morgan Investment Bank Goldman Sachs Lehman Brothers Union Bank of California Credit Suisses Investment Banking Business TD Securities RBC Capital Markets UBS Investment Bank Jefferies & Company Houlihan Lokey Merrill Lynch Citi Institutional Clients Group BB&T Corporation Robert W. Baird & Co. (Baird) RSM EquiCo Capital Markets SunTrust Banks, Inc. Cowen and Company LLC M&T Bank

SCORE
9.273 9.267 9.079 9.024 8.979 8.909 8.875 8.600 8.539 8.375 8.091 7.875 7.688 7.636 7.632 7.188 6.867 6.333 5.706 5.583

13 14 15 16 17 18 19 20

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CAREER LIBRARY

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TOP
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50
THE VAULT

50

BANKING EMPLOYERS
CAREER LIBRARY

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VAULT TOP 50

1
PRESTIGE RANKING

Goldman Sachs
RANKING RECAP
Quality of Life #4 Training #4 Best Employers to Work For #4 Overall Satisfaction #5 Selectivity #5 Compensation #10 Treatment by Managers #13 Hours Diversity #1 Overall Diversity #1 Diversity with Respect to Minorities #3 Diversity with Respect to Women #4 Diversity with Respect to GLBT

85 Broad Street New York, NY 10004 Phone: (212) 902-1000 Fax: (212) 902-3000 www.gs.com

BUSINESSES
Asset Management & Securities Services Investment Banking Trading & Principal Investments

THE STATS
Employer Type: Public Company Ticker Symbol: GS (NYSE) Chairman & CEO: Lloyd C. Blankfein Net Revenue: $37.67 billion (FYE 11/06) Net Income: $9.54 billion No. of Employees: 26,959 No. of Offices: 50

KEY COMPETITORS
Citi Credit Suisse Lehman Brothers Merrill Lynch Morgan Stanley

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UPPERS
The people are truly the best and brightest Outstanding deal flow Incredible opportunity for pushing yourself

DOWNERS
Always running at 110 percent Tough to get ahead, with so many talented people Forget about free time

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

EMPLOYMENT CONTACT
www.gs.com/careers

Rolls Royce of banking Remains the M&A and equity leader, but the lead has significantly narrowed Great name, but not worth sacrificing your life for three or more years to get a good position The kings, still the best

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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs

THE SCOOP

First among many


Founded in 1869, the venerable Goldman Sachs has a slew of firsts to its credit. The bank played a major role in establishing the IPO markets in the early 1900s, and five decades later, Goldman became the first firm to focus on the institutional sales market. In the 1960s, Goldman set a now-familiar precedent, becoming the first investment bank to create a dedicated mergers and acquisitions group. Soon after that M&A landmark, it conducted the first negotiated trade on the New York Stock Exchange; in the 1980s, Goldman was the first firm to use emerging computer technology to distribute its research reports electronically. Goldman entered a new era when it went public in 1999, and a second major change came in 2006 when Lloyd C. Blankfein replaced Henry Paulson at the firms top post. Paulson, a longtime Goldman leader, left the bank to become Secretary of the U.S. Treasury. Today, Goldman provides investment banking, securities and investment services to corporations, financial institutions, governments and high-net-worth individuals around the world. Widely considered the most prestigious name in investment banking, Goldman is headquartered in New York, and has major offices in London, Frankfurt, Tokyo, Hong Kong and other financial centers. It employs nearly 27,000 people worldwide.

Doing the IB executive shuffle


After Lloyd Blankfein assumed the role of Goldman CEO in June 2006, he did some reorganizing within the investment bank. Scott Kapnick, co-chief executive of Goldman Sachs International (the firms European operations), was replaced by Richard Gnodde. David Solomon joined Kapnick and John Weinberg as a co-head of investment banking. In November 2006, Goldman announced that Kapnick was going to make another moveout the door. He retired from his post as investment banking cohead at the end of 2006. Solomon and Weinberg stayed on to lead the investment bank without a third co-head. Industry analysts watching the moves speculated that the changes at the top of the investment bank may reflect CEO Blankfeins rootsunlike former CEO Henry Paulson, a banker, Blankfein got his start as a salesman.

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Record revenue
Business at Goldman Sachs is divided into three departments: asset management and securities, investment banking, and trading and principal investments, which encompasses the equities, principal investments and fixed income, currency and commodities businesses. In 2006, Goldmans divisions reported record revenue across the board. Investment banking turned in net revenue of $5.63 billion for the year, up 5 percent from its previous record in 2000 and up 53 percent from 2005. This growth was spearheaded by Goldmans underwriting activities, which grew 73 percent from 2005, with debt and equity underwriting making equally strong showings. Goldmans other businesses had reason to celebrate, too. In 2006, fixed income, currency and commodities (FICC) reported a 60 percent increase in net revenue from 2005 to $14.26 billion, and asset management saw a 45 percent increase in net revenue from 2005 to $4.29 billion in 2006. The equities divisions net revenue increased 50 percent from 2005 to $8.48 billion in 2006, and principal investments garnered $2.82 billion in 2006, up from $2.23 billion in 2005. Securities services also passed to $2 billion mark, turning in net revenue of $2.18 billion in 2006, up from $1.79 billion in 2005.

Surprise rise
In March 2007, Goldman Sachs reported a record 29 percent boost in its first-quarter net income. The increase surprised analysts, who had expected a drop in earnings due mostly to the decline of the subprime mortgage business. Goldman reported $3.2 billion in profits for the quarter, easily besting the previous quarters $2.48 billion, while net revenue for the quarter came in at $12.7 billion. The firm cited strong client activity across every region and every segment of its business as a cause for the jump.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs

Meanwhile, Goldmans investment banking net revenue jumped to $1.71 billion for the quarter, a rise of 17 percent versus the previous years first quarter, which the firm attributed to growth in industrywide completed mergers and acquisitions.

Table topping
A fixture at the top of banking league tables, Goldman asserted its dominance when 2006s ranks were tallied. According to Thomson Financial, it came in first in both worldwide announced and completed mergers and acquisitions, raking in $2.3 billion in advisory fees and working on 377 completed deals. Goldman was tops in announced and completed U.S. M&A, too, with $562.9 billion in 2006 announced transaction value, a 30 percent increase from its performance the year before. The firm advised on 216 completed deals worth $564.3 billion, earning a 36 percent market share. This success was due in part to Goldmans role in the biggest M&A deal of the year, AT&Ts acquisition of BellSouth, a deal that created the countrys largest telecommunications company. In 2006, Goldman dominated non-M&A tables, too, ranking No. 1 in global equity and equity-related offerings as well as initial public stock offerings. It was No. 7 in global debt, with 915 deals worth $372.8 billion.

Big-time bonuses
Bonuses at the bank were reported to be sky-high, meaning lots of bankers were going to be in the market for big ticket items. No one profited more than CEO Blankfein, whose $53.4 million bonus was the highest ever paid to a chief executive on Wall Street. The firms compensation committee voted to give Blankfein $27.3 million in cash and $15.7 million in restricted stock, plus options to buy $10.5 million more of Goldman stock. Combined with his salary ($600,000 annually), Blankfein pocketed $54 million for the yearup from $38 million in 2005. But some reports claimed other top executives at Goldman had even higher bonuses, though the firm did not disclose exact figures. At any rate, the jaw-dropping bonus payout at Goldman prompted a fresh round of scrutiny regarding executive pay in the financial industry. Some questioned the rationale for such extraordinary compensation, especially since Goldmans bonus checks were exponentially higher than those at its rival banks.

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How do you spell relief?


Goldman Sachs and other top banksincluding Merrill Lynch, Morgan Stanley and Credit Suissegot an early Christmas present in December 2006 when a federal appeals court put an end to a looming class-action lawsuit. The suit alleged that the banks had manipulated the IPO prices for technology companies during the Internet boom of the late 1990s, thus cheating investors out of hundreds of millions. If the suit had been allowed to proceed, the investment banks stood to lose billions in settlement payments in what would have been the largest consolidated securities class-action case ever recorded. However, the appeals court decided that the investors had erroneously been granted class-action status, and if they wanted to go forward they will have to pursue their claims individually, perhaps through out-of-court arbitrations. Goldmans attorney, who worked as lead counsel for several defendant banks, described the ruling as a big win.

Gone with the wind


At the end of 2006, Goldman decided to sell its Texas-based subsidiary Horizon Wind Energy. Although a purchaser was not named, Goldman could get as much as $1.5 billion for the company, which it bought in 2005. Goldmans in-house M&A team will also earn fees from advising on the sale, which could be extremely lucrative as the renewable energy market heats up. Making money while protecting the environment is a central tenet of Goldmans philosophy, thanks to former CEO Henry Paulson. During his tenure at the firm, Paulson invested heavily in earth-friendly business practices, donating large chunks of money to charities and research aimed at environmental issues. In December 2006, Goldmans Center for Environmental Markets, a think tank that examines market-based solutions to environmental problems, awarded its first research grants to fund studies of climate change and fragile ecosystems. In all, the center gave out three grants totaling $2.3 million.

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In addition, Goldman claims to be one of the first investment banks to adopt an environmental policy, and its detailed Environmental Policy Framework, established in November 2005, outlines its commitment to reduce indirect greenhouse gas emission by 7 percent from its offices by 2012, to be a leading U.S. wind energy developer and to invest up to $1 billion in renewable energy and energy efficient projects, among numerous other green initiatives (the complete Framework is available on Goldmans web site).

In the middle, for once


Most companies in the U.S. are whats known as middle-market companiesthose with market values in the $500 million to $2 billion range. In February 2007, Goldman announced that it intended to boost its middle-market business, making the smaller M&A deals lucrative by advising, financing and investing capital with clients. At a Merrill Lynch investor conference in November 2006, Goldman CEO Lloyd Blankfein had admitted that the middle market was an area historically we do not cover very well, and vowed to make this segment a top priority for the firm in 2007 and beyond.

GETTING HIRED

Lots of fish in the pond


Competition is stiff at Goldman Sachs, where, as one VP puts it, we have our pick of the litter. The firm gets thousands of resumes each year, and sources say that many fully qualified candidates are turned away. One analyst recruiter says that very few candidates out of an extremely talented pool of applicants even get interviews, let alone offers. Of course, Goldman is extremely selective at all stages of recruiting, but one source says that the biggest hurdle is getting past the resume selection process. After that, getting hired is a matter of a personality fit. Active recruiting is focused at about 50 core undergraduate schools and about 15 core graduate business schools, including the Ivy League, Duke, Stanford, UVA, Georgetown and Howard, and NYU and Michigan. An insider notes that its very challenging, but not impossible, to get a job without attending a target institution. Having an in helps. We get some referrals from alumni of lesser-known schools for analyst and associate candidates, a current associate says. Non-core school students should make an effort to reach out to alumni or contacts at the firm, another advises. Traditionally, each business handles the final rounds of the interviews and the hiring decisions within Goldman, so the selection process depends on the division. One things for sure: its a very tough process, with a first-round interview (on campus, for school recruits) and eight to 12 interviews in a second round. And that might only be the second round, one source says. You may come back for additional rounds if youre interviewing for a full-time position. A few respondents say they went through 15 interviews, including with other team members as well as high-level management. Agrees an associate, You will likely meet with almost every professional in the team that youre interviewing with. Whats more, for someone to get hired, there needs to be consensus from the entire team. In the first round, says an insider, interviews are focused on personality and fit, while subsequent rounds focus more on technical skills. The first round at Goldman is different than at other firms, explains an analyst. The first round is a firmwide selection, and is not yet narrowed down divisionally. This allows us to select the best people first, and then try to narrow down where they would find the best fit within the firm. Round twowhich, for most candidates, is a Super Day at the firms officesmeans the questions get more technical and more specific. Insiders recall queries like Whats going on in the economy now that particularly interests you? What does the yield curve look like, and what does that mean in a historical context? and Describe a time when you used a model to solve a problem and how you did it. Behavioral questions could include What role do you like to play in a team and why? or Describe a time you failed and what you did about it.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Goldman Sachs

One way in
Many say the best way in to Goldman is through the summer internship door. It is significantly easier to get hired full time out of the internship program, an analyst says. Goldman is trying to do the majority of its full-time hiring from its summer analyst class, adds another. After all, since your two-day interview is extended to 10 weeks, ex-interns say, you have a better chance at proving you have the skill set, ability and personal drive to succeed. Interns are paid the same as full-time, first-year associates or analysts, and summer associates are generally rewarded with a small bonus at the end of the summer. The work I did was very similar to the work that I now do as a full-time analyst, a current staffer says of the internship program. Which means its no vacation on the beachsummer was difficult, another says. We had to rotate through several different sales and trading desks. We had to do presentations, take tests and meet with numerous Goldman professionals. Others describe the summer program as fantastic and a great way to learn about the company and possible careers. Its designed as an industry group/generalist hybrid, one former intern says, and offers the best of both worlds. Regular contact with upper-level management is a bonus, too. I met a lot of managers, and understood the nature of my business and a future role, a source says.

OUR SURVEY SAYS

Smart people, long hours


The Goldman Sachs standard means expectations are very high, but insiders say theres still a strong emphasis on teamwork. There is not a star culture here, one contact explains. People who seek to make themselves look good, particularly at others expense, tend not to do well. (Nevertheless, notes another insider, you know who the stars are.) The culture is competitive with outsiders, but internally its all about a team environment where people can learn and excel, while also enjoying what they do. Working hard is good, working smart is better, adds a source. Because there is a tremendous amount of pride in both the history of the firm as well as recent successes, reputation is everything, and that means innovation, a drive for perfection, intellectual rigor and some occasional tough love. Teamwork at Goldman isnt difficult, one source says, because people assume their peers are smart and interesting, and in my experience, they all are. A VP notes that it is very important that everyone is kept posted on projects, and other respondents say that resources are readily available to those who are willing to work hard and be intellectually engaged. The culture is ethical and client-focused, and if Goldmans employees are incredibly smart, theyre also non-cocky. Mavericks or loners do not survive at consensus-driven Goldman, but motivated, self-driven, multifaceted team players abound. One veteran of the firm says the strong culture is one of the reasons for our long-term success, adding, Sometimes I worry that we are growing to a point where we may lose some of that special sauce. The pressure to log long hours has become less strong over the past couple of years, says a Goldman contact. Working from home is becoming much more accepted. Still, like expectations, demands are high, and while a few investment bankers get away with 70-hour workweeks, many more investment banking analysts report putting in 100 hours. The most difficult part is having to be available with no warning and almost any time, says one source. In general, the hours and your ability to control them vary by division, and sources say that the firms remote access technology is pretty good in terms of letting them work from home at night and on weekends. The saving grace for many is the fact that its rewarding work and co-workers are genuinely interesting and fun to work with. Still, most warn that its all too easy to lose your work/life balance at Goldman.

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Poor old 85 Broad


There arent many fans of 85 Broad Street. The building is old and showing its age, says a Goldman insider of the firms headquarters. Its amazing how run-down it is, says another. Thankfully, were getting a new building in 2010 that is a much needed improvement. Conventional wisdom is that with a new, state-of-the art building opening in a few years, there isnt much point in spending a lot on 85 Broad, an insider reveals. At least, most say everything works, and many respondents

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believe that a building not focused on show fits just fine with the Goldman culture. One analyst tries to look the bright side: Theres no such thing as personal office space, even for managing directors. Helps with teamwork! Business appropriate is the dress code catchphrase at Goldman, where people tend to lean toward the business casual side unless theres a client meeting. There is a very wide range of dress, and no one seems to mind whether you are wearing a suit or a sweater, says a source. I dress quite casually, unless Im meeting with a client. Overall, Goldmans people figure theyre smart enough to know what to wear and when to wear it. Individuals do dress appropriately for important meetings, an insider says.

A few complaints
Goldman respondents are generally content with their compensation, and enjoy competitive perks like car services after 9 p.m., meal allowances of $25 for dinner, investment seminars, backup child care, and a discounted gym thats very convenient. Sources say they can also invest in private equity funds with reduced management fees and have the ability to become Goldman Sachs wealth management clients, and get the information and tools such clients have. The 401(k) plan options are described as flexible and very user-friendly. There are also some discounts with retailers, car manufacturers and mobile phone providers. Despite a very strong womens network at Goldman Sachs, sources say there are not a lot of women at the top here. Weve traditionally done an excellent job recruiting women, one insider agrees, but we could improve on retaining women as they advance in their careers. The demanding schedule at the firm does not always lend itself to flexible work schedules or parttime work, which may explain why there are relatively fewer women in the senior ranks. However, according to the firm, the number of female partners has increased from 7 percent in 2001 to 14 percent in 2006.
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Some feel the firm is trying to make changes in this regard. There is a big focus on diversity that carries over to a huge emphasis in recruiting, and large diversity networks. Concludes an insider, the firm is improving, but still needs to work better. However, one source points out that at Goldman Sachs, benefits are flexible with respect to same-sex partners.

Mostly respectful mentors


New hires are put through a rigorous training program that covers basic accounting and finance as well as advanced finance topics and other skills, like being more fluent with Excel. Continuing education is managed by Goldman Sachs University, the firms internal training group, which focuses on presentation and negotiation skills as well as hard skillsproducts, business lines, programming, quant analysis. Insiders also say Goldman is very supportive of pursing CFA designations and offers tuition reimbursement for approved external programs. Each month the firm distributes a list of available training classes that individuals can sign up for, if their schedules allow. Yet one insider says that the training within investment banking could stand to be even more rigorous at the analyst levela number of our new bankers get through [the IBDs] training without picking up much of the technical knowledge they are supposed to. Once on the job, informal training is ongoing, a vice president says. There is very much of an apprenticeship feeling, another source agrees. Managers always seem to be training and mentoring younger staffers. For the most part, managers respect your opinions and ideas and are approachable and respectful. This creates an open environment to debate the issues, but sometimes there are exceptions to the rule. Although Goldmans hierarchy is described by most as very flat, newcomers still have to prove themselves. Once they do, insiders say, everyones opinion is heard and valued. Managers try to respect the fact that we have lives outside of Goldman Sachs, despite the number of hours we work, an associate says. Another VP says good manager-subordinate relationships are tied to Goldmans endless pursuit of excellence. The firms success is based on teamwork, he says, and you can only achieve that if you have good relationships.

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VAULT TOP 50

2
PRESTIGE RANKING

The Blackstone Group


KEY COMPETITORS
Bain Capital Carlyle Group Goldman Sachs KKR Lazard Morgan Stanley

345 Park Avenue New York, NY 10154 Phone: (212) 583-5000 Fax: (212) 583-5712 www.blackstone.com

BUSINESSES
Corporate Advisory Services Corporate Debt Distressed Securities Advisors India/Asia Closed-End Funds Long/Short Equity Investments Marketable Alternative Investments Private Equity Real Estate Restructuring & Reorganizing Advisory Services

UPPERS
People like each other and respect each others immense talent Lots of responsibility early: analysts typically do a fair amount of work that associates at other firms might do Very prestigious name on resume

THE STATS
Employer Type: Public Company Ticker Symbol: BX (NYSE) Chairman & CEO: Stephen A. Schwarzman Revenue: $3.05 billion (FYE 12/07) Net Income: $1.82 billion No. of Employees: 1,250 (approx.) No. of Offices: 13

DOWNERS
Much of the learning is done on the jobtoo small to run a big training program High stress and people are very demanding Reputation hurting as of late

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EMPLOYMENT CONTACT
www.blackstone.com/careers/index.html

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Very prestigious Very overrated Dynamic, dealmakers Great name, but known more for its private equity practice than banking

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THE SCOOP

The Blackstone difference


In 1985, two top Lehman Brothers executives, Peter G. Peterson and Stephen A. Schwarzman, invested $400,000 to launch a boutique M&A firm they called Blackstone. Their first office operated with a staff of four, but Peterson and Schwarzman were convinced their singular approach would become a force in the business world. First of all, they decided to invest only in friendly mergers and acquisitionsa bold decision in the hostile takeover-happy environment of the 1980s. They also insisted that their own firm always invest large chunks of its own funds in the investments it made, and that their firm would strive to remain free of conflicts of interest (especially those born of competing business divisions within larger companies). As Blackstone grew, its founders gained reputations for holding its reins a little too closelyseveral partners departed under bitter clouds. But its clear that Peterson and Schwarzman have built a strong business. Today, Blackstone has approximately 1,250 employees in 13 offices around the world. It has also expanded its work beyond M&A advisory to include restructuring and reorganization advisory, private equity, real estate, corporate debt and marketable alternative investments, as well as closedend funds in India and Asia. In 1998, American International Group purchased a 7 percent nonvoting stake in Blackstone; it paid $150 million for its share, and has invested over $1.2 billion in Blackstone-sponsored funds. In addition to AIG, Blackstone has formed strategic alliances with several international financial institutions, including Roland Berger Strategy Consultants, Kissinger Associates, Alfaro Asesores Financieros and Scandinaviska Enskilda Banken. In June 2007, Blackstone put forward its long-awaited and much-hyped initial public offering, issuing 133.3 million units priced at $31 apiece. The $4.13 billion IPO, the largest U.S.-based IPO in five years, gave the public a 12.3 percent stake in Blackstone. After the IPO, the firm as a whole was valued around $33 billion.
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Diverse financial advisory


The firms financial advisory group includes corporate mergers and acquisitions, restructuring and reorganization advisory, and private placement advisory. The M&A group has a focus in several industry areas such as consumer products, energy, financial services, media and entertainment, and health care, among others. It also has an expertise in several product areas, including private company transactions, fairness opinions, structured products, demutualizations/conversions and financial advisory. Blackstone has had its hand in many big M&A deals since its inception. Blackstones restructuring group has been equally active on large deals, advising on more than 150 distressed deals involving more than $575 billion in total liabilities since its inception. In June 2007, the group opened an office in London (it already had outposts in Europe, as well as the U.S.). Clients have included Delta Air Lines, Enron and Global Crossing, among others. Fund placement services for Blackstone are handled by its subsidiary, the Park Hill Group, which services private equity funds, real estate funds, venture capital funds and hedge funds. Park Hill has been a solid contributor to Blackstone since its inception in 2005, raising approximately $65.9 billion in capital for 44 different clients.

The deal that wasnt


The future was looking bright for payment processor Alliance Data Systems when Blackstone agreed to acquire the company in May 2007 at the price of $81.75 per share, or about $7.8 billion. But as the credit market tightened throughout the summer, financing became tougher to come by and the acquisition dealings slowed. By the time January 2008 rolled around, rumors were circulating that Blackstone no longer wanted to pursue the deal, causing Alliances stock price to drop precipitously. By the end of the month, Blackstone had officially reneged on the deal with Alliance, citing unspecified unacceptable regulations by the U.S. Treasury as the reason for the change of heart. Shares of Alliance dropped once again, this time to $42.48, almost half the proposed price that Blackstone had arranged to buy it for.

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Vault Guide to the Top 50 Banking Employers 2009 Edition The Blackstone Group

The news of the failed Alliance deal followed directly after an earlier Blackstone deal to acquire mortgage lender PHH for $1.8 billion fell apart, also due to lack of financing. PPH announced the collapse of the sale on New Years Day 2008, and many in the industry pointed to the unsuccessful acquisition as a bad omen for the coming year in an environment when credit would be tighter than ever. PPH is now seeking a $50 million termination fee for compensation on the deal.

Acquiring Capital
In early January, 2008, Blackstone announced that it would reunite with one of its earliest investments: GSO Capital Partners, a $10 billion hedge fund. The move was seen as a relatively stable buy for the company, which has been shaken up by the credit crisis. Blackstones hedge funds have remained a steady source of income for the firm, gaining 88 percent in the third quarter of 2007 in comparison to the previous year. But the motivation for the acquisition of GSO is more complex than just a promise of increased income. The hedge fund invests in leveraged finance and may be an essential source of loans for the troubled private equity firm. Blackstone plans to pay $930 million in cash and stock for GSO and then buy back about $500 million of its own stock to cover part of the cost of the acquisition.

Stock slump
The debut of Blackstones IPO made a big splash in the financial and seemed to herald the coming of a new era of private equity firms going public with huge results. However, the timing of Blackstones foray into the public sphere proved to be ill fated. Since the stocks debut in June at $31/share (and then a quick rise to $38/share), things have gone steadily downward. As of June 2008, the stock was languishing in the high teens, nearly 50 percent of its original value. Though the firm reported steady earnings in three of its four financial divisions in its third quarter 2007 earnings press conference, the good news was offset by a 44 percent decline in the revenue made in its real estate division for the quarter. Earlier in the year, the real estate sector had looked promising with the $39 billion purchase of Equity Office Properties Trust and the $26 billion purchase of Hilton Hotels, but as the subprime crisis became evident, these gains were neutralized.

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Red for the quarter, black for the year


Although Blackstone took quite a hit in the fourth quarter 2007, the firms numbers for the year werent bad. The firm booked a $170 million loss contrasted with $1.18 billion in net income it booked for the same period a year earlier. According to Blackstone, causes for the 89 percent slide in income included its Financial Guaranty Insurance Co. investment and compensation costs related to its IPO. For the full year 2007, however, total revenue rose to $3.05 billion from $2.6 billion in 2006, and net income increased to $1.82 billion from $1.42 billion. Blackstone attributed the healthy full-year numbers to growth in three groups: real estate, marketable alternative asset management and financial advisory. As for the first quarter of 2008 and beyond, Blackstone Chairman and CEO Schwarzman didnt seem optimistic. When announcing the latest results, he agreed with many industry analysts, saying that difficult market conditions in the U.S. and Europe [will] continue in 2008. He was right. For the first quarter of 2008, Blackstone recorded a $251 million loss.

Schwarzman in the public eye


Prior to Blackstones IPO, CEO Schwarzman was a frequent media target, as many believed his lavish spending habits did not quite match up with his philanthropic efforts. After the IPO gave an approximate $650 million boost to his liquid wealth, Schwarzman became an even hotter target for members of the media, which pointed out, on several occasions, the going prices for his numerous homes (in the Hamptons, Jamaica, Saint-Tropez, Florida and Manhattan). Indeed, Blackstone going public and private equity increasingly coming under the public eye meant a lot of unwanted press coverage for CEO Schwarzman recently. But there were some bright pieces written about the controversial Blackstone cofounder and chief. Perhaps the most in-depth appeared in a February 2008 issue of The New Yorker. That profile included Schwarzmans recollections of his meteoric rise from middle class suburbia to 60-floors above Park Avenue. It also included less-publicized details such as Schwartzmans undergraduate major (intensive culture and behavior), the college subject that

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perhaps had the most impact on his future in the investment world (classical music), and the pill hes ingested every day for the past 15 years. Years ago, Schwarzman was found to have a rare blood-protein deficiency that put him at risk of a blood clot or embolism. As a result, he is tested often and takes a pill each day, which should help him to have a normal life span. Still, the CEO told The New Yorker, its a reminder that life is fleeting Every day should be a good day. People fool themselves that theyll be here forever. I get a daily wake-up call that thats not true. We have limited time, and we have to maximize it.

GETTING HIRED

Take your chances


Be prepared to gear up to show the firm that youre a standout, contacts say. Blackstone is extremely selective, recruiting only the top candidates from the top schools, says a first-year analyst. Overall, the caliber of candidates asked to interview is very high. For associate positions, one source says the firm primarily recruits at Harvard and Wharton, and occasionally interviews at Stanford or Columbia. Explains a London-based contact, Essentially all the MBAs hired are from Harvard. For analyst positions, Blackstone recruits at Columbia, Harvard, Virginia and Penn (Wharton), but concentrates on finding undergrads at Harvard and Whartonany others depend on which alum feels like going to their alma mater to recruit that year, offers an insider. Another source agrees that analysts primarily come from Harvard and Wharton, but admits, There are a few from other schools, including Yale and UT Austin. The contact adds, In principal, if someone gets their foot in the door, any good school will be given a chance.
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As far as the type of people Blackstone likes to put on salary, the firm says its looking for energetic, self-motivated, teamoriented individuals with fresh ideas and innovative solutions who thrive on challenge in a fast-paced, dynamic environment. Note that analyst and associate classes are smaller than the bulge bracket firms. Blackstone lists open positions in the careers section of its web site, with extensive descriptions of the qualifications and responsibilities of each position, and allows candidates to apply online.

Brace yourself
Candidates should expect an extensive interview process. One insider reports two rounds of interviews at Blackstone offices in New York, with four to six interviews in each round. But its not uncommon to have to go through more than three interview rounds. An analyst, who was tapped to interview by Blackstone says, The type of questions you get in interviews all depends on who you interview with. Some people like to B.S. and do a personality interview, and some like to grill you. Its hard to generalize. One insider claims the interview process is fairly normal and says he met almost every partner in the group to which he was applying. He adds, There were lots of culture fit questions, more than I had at previous employers such as Goldman and McKinsey. Another source recounts his experience in a later interview round: I met with three teams, for two to five hours each. Overall, the contact says, The interview process can be stressful at times and there is an emphasis initially on technical ability. I met people at every level, including several partners. Indeed, during final round interviews at Blackstone headquarters, analysts will meet with one or more partners, who all have their own styles, says a source. A former banker adds, Its really a crapshoot when you interview. So much has to do with who you meet and on which day you meet them, and if your personality jives with whom you meet. No matter who you get, though, expect some pretty technical questions in the first round, says one contact. If you go to Wharton, or had a summer internship in banking, anythings fair game. But no one expects you to get everything right. An insider says one of the favorite Blackstone questions is, If you increase depreciation by $10 million, how does that flow through all three financial statements? They also like to throw out the the clock questionthe one where youre asked how many degrees there are between the minute and second hand at a certain time. And, says a source, You better understand accretion

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and dilution. The contact adds that overall the questions are more accounting than finance, and Blackstone puts a large emphasis on cultural fitand its obvious they do this well, because everyone here has a pretty good time together. This insider also has a word to the very wise: Those who are too smart and try too hard dont make it.

OUR SURVEY SAYS

The ties that bind


The firm cultivates a culture of top-notch workers who enjoy each others company. Blackstone is made up of a group of people who like each other and respect each others immense talent, offers one insider, who adds, Theyre aggressive on the outside, very demanding on the inside and a bit old school as compared to the bigger firms. Another agrees, adding, While there are times of high stress and people are very demanding, everyone is very friendly and its not uncommon for people to spend time outside of work together. Indeed, numerous respondents admit theres a lot of camaraderie, and say Blackstone is made up of a tight group of people who, on the whole, like each other. But dont expect to invite everyone at the firm to your birthday party. At the higher levels there are some strong personalities, like there are anywhere, says a banker, which can be hard to deal with. So you hope you get staffed on the right deals with the right people. Another contact expresses a similar sentiment: Youre generally treated well, but because there are so many big-swinging senior people with rough elbows floating around the office, you need to be careful about how you behave, especially during normal work hours before the senior guys leave. One source has nothing but good things to say about his units junior bankers and, in particular, the units associates: Theyre a phenomenal group of people, incredibly smart and reasonable. To go somewhere where there are seven associates and I like all seven of them is extremely rare. Of course, this shouldnt be taken lightly because, according to a former analyst, your associate determines the majority of your experience. Says one junior staffer who revels in the great responsibility offered him, Analysts typically do a fair amount of work that associates at other firms might do. He adds that, overall, people respect not only your personal life, but also your opinion on day-to-day work-related matters.

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It isnt easy
Expect the daily grind to be taxing, sources report. Its intense, very challenging, and requires a lot of stamina and motivation, admits an insider. Another agrees the firms culture is tough, but says, If you work hard and have a good attitude, things will be pretty easy for you. He cautions those with bad attitudes: Those who dont work hard or dont have a good attitude will be miserable. Choose your department carefully. According to one banker, M&A is known as one of the better cultures in the firm, real estate is also supposed to be pretty good and private equity is pretty painful. The source adds that for the most part, though, the culture isnt as harsh as people outside the firm think.

No rest for the workers


Hours spanning the range of 90 to 100 per week with frequent weekend office visits arent uncommon, insiders say. One associate puts his hours at about 70 to 80 on average per week, but admits, Theres not much [B.S.] work, so I have less of a bad feeling about spending hours in the office as a result. Another analyst says hes logging in about 80 to 90 weekly. The first year was painful, says a former M&A analyst, who adds, It couldve been worsebut it couldnt have been much worse. The contact reluctantly recalls his old schedule: No vacation for the first 52 weeks, with maybe a couple of free weekends in that time. I averaged working from 9 a.m. to 1 a.m. from Sunday to Thursday; 9 a.m. to 7 p.m. on Friday; and noon to 6 p.m. on Saturday. So, on average, thats 96 hours a week. Although the contacts second year was better, it was more a result of a slower deal flow than seniority. He adds, Last year, second-year analysts here worked just as hard as the first-years. It all depends on how many deals you have and what kind they are. A private equity contact also admits the hours are very long, with significant weekend work, and with nights ending anywhere between 10 p.m. and 5 a.m. The contact adds that the hours do get better as you move up the ladder: first-year analysts have it the worst, associates have it significantly better, unless theyre on a live transaction, and senior analysts are someplace in between.

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Expect the firm to rule with a proverbial formal always fist when it comes to attire. Its formal all the time, adds a Blackstone source. And people here dress upcuff links, white collar shirts, monogrammed shirts, the works. Old-school, is how another describes attire around the office. Blackstone does, though, have casual Fridays in the summer, and on the weekends people wear whatever they want.

Few compensation complaints


In general, compensation receives extremely high marks from insiders. Although one first-year associate wont offer numbers, he does admit that his compensation is very high compared to other offers [he] got out of B-school. According to another insider, the private equity group pays above the Street but not at the highest tier. The contact adds, We have the Goldman attitude of we are the best in the world, so we dont have to pay top dollar to recruit and retain the best talent. Although perks are good, or at least standard for investment banking, its a far cry from years past. Still, Blackstone bankers get complimentary car service or a free cab ride home if they work past 9 p.m. Employees also get dinner stipends when working late during the week and meal allowances on the weekend. Blackstones New York office receives high grades from insiders; the firms new London offices have been completed.

Better coaching needed


Training programs at the firm are below par, insiders report. Unlike the bulge bracket banks, Blackstone doesnt have the typical several-week-long training program for new analysts and associates. Blackstone is too small to run a big training program, observes an insider. Historically, analysts went through a two-week training program, but beginning with the 2003 analyst class, the program was extended to three weeks. One analyst who went through the program says it was very good. You get exposed to a lot of information in a short amount of time and youre not required to study and take exams like at other places. He adds that theres a lot of emphasis on improving the programits good and getting better. Another analyst calls the training program fast and dirtyyoure expected to pick everything up in the short amount of time in which training is provided. In addition to extending the analyst training program in 2003, Blackstone implemented an associate training program. A current analyst opines that because higher quality candidates are typically recruited, the training program for analysts is much shorter. He adds, Much of the learning is done on the job.

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Just average
For the most part, Blackstone receives middling marks on the diversity front, although one insider says theres a lot of diversityat Blackstone. He does admit, though, there are a limited number of women in M&A group. The contact gives a possible explanation why this is so: We want to hire women, but its not easy. Every year we try, but either no one bites or we dont find someone who is adequate. An associate in London says his office has a number of [Asian] Indians, including one partner, which seems to indicate we are doing okay with respect to diversity. However, in New York, another contact says while there are several Asians, theres less than a handful of any other minorities.

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VAULT TOP 50

3
PRESTIGE RANKING

Morgan Stanley
KEY COMPETITORS
Citi Goldman Sachs J.P. Morgan Lehman Brothers UBS Investment Bank

1585 Broadway New York, NY 10036 Phone: (212) 761-4000 Fax: (212) 762-0575 www.morganstanley.com

BUSINESSES
Institutional Securities Investment Management Global Wealth Management

UPPERS
Hard to beat the prestige Very motivated and professional staff

THE STATS
Employer Type: Public Company Ticker Symbol: MS (NYSE) Chairman & CEO: John J. Mack Net Revenue: $5.49 billion (FYE 11/07) Income: $1.47 billion (FYE 11/07) No. of Employees: 45,506 No. of Offices: 661

DOWNERS
Six-and-a-half days a week in the office is normal Still a bit of an old boys club

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EMPLOYMENT CONTACT
www.morganstanley.com/about/careers/index.html

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Great reputation, consistently rated among the best Very strong franchise but very stiff culture Classic investment bank; old institution based on traditional values Had a couple of tough years so no longer in line with Goldman, but right up there

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THE SCOOP

Strong second
One of the leading investment banking firms in the world, Morgan Stanleys business is divided into three practice areas: investment management, wealth management and institutional securities. Morgan Stanley Investment Management (MSIM) provides global asset management products and services, including equity, fixed income alternative investments and a direct investing business. The firms global wealth management unit caters to individuals and small- to medium-sized businesses and institutions, offering retirement plan services, brokerage and investment services, financial and wealth planning, annuity and insurance, credit, trust and banking, and cash management. And the institutional securities unit covers Morgan Stanleys worldrenowned investment banking, sales, trading, financing, research and risk management analytics operations. An M&A powerhouse, Morgan Stanley again ranked No. 2 in both announced worldwide and announced U.S. M&A deal volume, trailing its arch advisory nemesis Goldman Sachs. In Europe, though, Morgan nabbed the top spot in announced deals. Overall, in 2007, Morgan Stanley advised on 431 M&A deals worldwide worth a total of $1.3 trillion. The Morgan Stanley story began in 1935 with just two partners: Harold Stanley and Harry Morgan, who left their jobs with J.P. Morgan in New York to open a self-titled securities firm. In 1997, the firm became Morgan Stanley Dean Witter after a merger with Dean Witter, Discover & Co., which had launched in San Francisco in 1924. In 2007, the Discover unit was spun off, which was hailed a smart step for Morgan Stanley. The bank had managed to increase the units revenue in 2006 after disappointing results in 2005, but still, many investors and analysts felt the bank should concentrate on its core investment banking and institutional trading businesses. And so Discover became independent again. Under the terms of the divestiture deal, shareholders received one share of Discover stock for every two shares of Morgan Stanley. Morgan Stanley kept no Discover shares for itself, and the new stand-alone Discover began trading in July 2007 on the New York Stock Exchange under the symbol DFS. Morgan Stanley, meanwhile, trades under the ticker symbol MS (which replaced its former symbol, MWD).

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Credit losses
The exuberance of a healthy market came to a screeching halt for many of the big investment banks in 2007, with losses in the credit crunch dampening the enthusiasm of those who thought the party might never end. Morgan Stanleys third quarter 2007 earnings reflected the realities of these losses, with profits dropping to $1.54 billion, a 17 percent versus the firms 2006 third quarter earnings. The driving factor in Morgan Stanleys losses was a write-down of $940 million in leveraged loans, but it also reported $480 million in losses on its quantitative equity funds. There was a silver lining in the numbers: the performance of the brokerage and asset management division. Brokerage reported profit increases of 9 percent while asset management posted an impressive increase of 62 percent. Revenue from commissions also increased from $880 billion to $1.3 billion. At the time the third quarter earnings were reported, Chief Financial Officer David Sidwell said that the losses would not deter Morgan Stanley going forward, stating that Risk is crucial to our survival.

Changes afoot
In November 2007, Morgan Stanley CEO John Mack made some management changes in the wake of the billions in losses tied to subprime loan trading. The most notable (and surprising) departure was that of co-president Zoe Cruz, who had overseen Morgan Stanleys trading and risk operations. Cruz (the 16th most powerful woman in the world, according to Forbes magazine) was widely seen as Macks most likely successor in the CEOs office, and earlier, Mack had insisted that she would not be fired because of the large trading loss. But as the bank faced additional multibillion-dollar write-downs, the largest losses in Morgan Stanleys history, he changed his mind. According to New York magazine, in its cover story entitled Only the Men Survive, the 52-year-old Cruz was called into John Macks office one day in November 2007 and promptly fired. Ten minutes later, she left Morgan Stanleys headquarters, and never returned.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Morgan Stanley

On December 1, 2007, Walid Chammah and James Gorman were installed as new co-presidents of the firm. Chammah, who had been serving as global head of investment banking and CEO of Morgan Stanleys international operations, now oversees the institutional securities division. Gorman, who had been chief operating officer of the global wealth management group, oversees wealth management and asset management. At the same time, Mack created a new office of the chairman, installing Robert Scully as its head. Scullys task is to build relationships with key clients, especially global sovereign investors. Michael Mitch Petrick, head of Morgan Stanley Principal Investments, was appointed to oversee the firms trading business and serve as co-head of institutional securities sales and trading.

Not a happy holiday for Morgan Stanley


The reasons for Macks shakeups became apparent when Morgan Stanley released its 2007 fourth quarter earnings reports: for the first time since 1986, the firm posted a quarterly loss. The $3.7 billion write-down from the fall had been just the beginning of the bad news. The firm added more than $5.5 billion more in U.S. subprime and other mortgage-related expenses at the end of the year, for a total write-down of $9.4 billionone of the worst on Wall Street. Many jobs in Morgan Stanleys global mortgage divisions were cut, too. In a statement about the earnings report, Mack called the write-down deeply disappointing, and added that he would not take a bonus for 2007. Ultimately, accountability for our results rests with me, and I believe in pay for performance. At the same time, he tried to reassure investors that Morgan Stanleys troubles were both isolated and contained. Across the firm, we have moved aggressively to make the necessary changes, and these isolated losses by a small trading team in one part of the firm should not overshadow the momentum we see in virtually all of our other businesses.
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Indeed, Morgan Stanleys non-mortgage businesses had a fairly strong year. Investment banking revenue was up 31 percent over 2006, climbing to a record $5.5 billion. This result was driven by gains in advisory revenue, which was up 45 percent from the previous year. Underwriting revenue also increased 21 percent. Global wealth management and asset management both delivered record results, thanks to both increased productivity and increased client business. Fixed income sales and trading posted 62 percent gains in interest rate and currency products, mortgage woes notwithstanding, and fixed income underwriting revenues of $1.4 billion set a new firm record. Equity sales and trading saw revenue rise 38 percent from 2006, with much of the growth coming from the prime brokerage and derivatives businesses.

Less hare, more tortoise


In December 2007, the battered Morgan Stanley followed Citigroup and UBS down a familiar roadto overseas investors. Like other major U.S. banks, Morgan Stanley turned to foreign investment groups for capital after recording losses from the home loan market. The China Investment Corporation, that countrys sovereign wealth fund, gave Morgan Stanley $5 billion in exchange for a 9.9 percent stake in the firm. (Citis cash infusion came from investors in Abu Dhabi, while UBS got its funds from Singapore and the Middle East.) Morgan Stanley assured its other shareholders that Chinas stake was passive, and the CIC would have no influence on the banks directors. CEO Mack added that the move was strategic, not just necessary. He called it an important step in increasing the flow of capital between our countries and across these increasingly critical markets. Still, in conversations with reporters, Mack signaled that a more conservative era may be on the rise at Morgan Stanley. We had been sprinting, he told The New York Times. Now we will be jogging. But we are in a risk business, and we will be in the market trading risk.

Out of the woods?


Despite the setbacks, Morgan Stanley ended up ahead of expectations when the first quarter of 2008 rolled around. While the companys overall profits were down 42 percent from the year before and revenue decreased 17 percent from the first quarter of 2007, Morgan Stanley still managed to surpass analysts predictions. But the firm was hardly in the clear. The firms equity

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Vault Guide to the Top 50 Banking Employers 2009 Edition Morgan Stanley

trading group managed to bring in the best quarter in its history, but Morgan Stanley also took two write-downs, worth a combined $2.3 billion, related to its mortgage and loan businesses. In the first quarter of 2008 Morgan Stanley also had more deals in the pipeline. Designer Tommy Hilfiger, whose brand was taken private by Apax Partners, hired Morgan Stanley to manage a forthcoming IPO. And in February 2008, news broke that Morgan Stanley and The Blackstone Group were advising Microsoft on its $44.6 billion bid for Yahoo. Morgan Stanley also announced some restructuring efforts in February 2008 that not only resulted in the closing of its mortgage lending unit, Advantage Home Loans, but also 1,000 job cuts in operations, technology, asset management, and other units in the U.S. and in England.

Expectations versus reality


Although Morgan Stanleys second quarter 2008 results beat analysts estimates, they were still much lower than the same period a year earlier. The firm posted net income of $1.02 billion, down from the $2.36 billion it booked in the second quarter of 2007. (The latest profit numbers wouldve been a lot lower if not for one-time gains due to the sale of its wealth management unit in Spain and a secondary offering of MSCI stock.) Meanwhile, net revenue decreased 38 percent to $6.5 billion, with nearly all of the firms units reporting lower revenue figures. Investment banking saw revenue dive 49 percent compared to the second quarter of 2007, while the firms fixed income and trading division experienced an 85 percent fall.

GETTING HIRED

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Try the back way


Getting a job offer with Morgan Stanley may begin with a typical job seekers move, such as answering an online job posting but thats certainly not the only way to begin your tenure there. The firm recruits at colleges, and one insider applied to a position through a job board without knowing the position was with Morgan Stanley. A head hunter got back to me and said I just applied with Morgan Stanley, and set up the interview, adds the insider. But you can also go the old-fashioned way (in this technological age, at least) and check out the careers section of its web site and read all about the current openings with the firm. The main page provides links to three key areas: university-level jobs, experienced-level employment and the financial advisor program. The university section provides information about the company, detailed descriptions of available programs, organized by department and education level, an on-campus recruiting calendar, profiles of current Morgan Stanley employees; interview tips and recruiting videos from various groups within the firm. Applicants can search for jobs within functional area, location, key word and line of business. Internships are also a very good way to get your feet wet at the firmand the pays not bad, either. Interns are paid as firstyear analysts, just with no bonus, explains one insider. Sources say if youre lucky enough to land a summer internship, youve just about got it made. A large percentage of my summer class got offers to return full time, reports one banker.

For the long haul


As far as interviews go, expect at least two or three roundsmaybe fourincluding the possibility of a Super Day in the offices with six interviews back to back. I had three additional rounds [after the on-campus interview], all in New York, reports one contact. An MBA student interviewing for an internship had a similar experience. He says the extensive interview process started with on-campus interviewing, then continued with a series of three callbacks in New York. A contact in Europe says, Associates have four to five rounds, which are pretty intense. The source also says even if you do land a job at Morgan, you might still have to do some more interviewing. Summer interns applying for full-time jobs go through an M&A game where they work with senior people on a simulated M&A case. It lasts all day long. And during your interviews, anticipate that more or less all questions asked to be based off of your resume.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Morgan Stanley

OUR SURVEY SAYS

Busy but professional


Its a very motivated, professional, respectful and busy environment at Morgan Stanley, and everybody seems to want to serve. But it also feels like everybody is running a marathon and to that end, you have to be very energetic and willing to adapt to changes. But all in all, Morgan Stanley is a good company to work for as it does provide a wide range of benefits, including 401(k) with an employer match, tuition reimbursement, medical, dental, vision and life insurance, vacation and sick time, flexible hours and a team/family environment. And Morgan Stanleys compensation receives high marks from sources. The firm also offers a gym membership subsidy, a $25 dinner allowance, cabs after 9 p.m., discounted Morgan Stanley stock and a car service home after 10 p.m.

Settle in
Work hours tend to be long. While the hours were typically market hours, workers have a tendency to go above and beyond the call of duty of a regular basis. Most employees arrive early and remain long after the market closes. Sources also report that six-and-a-half days a week in the office is normal, and add that its standard to start earlyaround 7:30and leave around 6 or 7 p.m. One insider admits that when it comes to hours spent at the office, Morgan is tougheven for an I-bank.

Melting pot?
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Diversity, some insiders say, is very goodalthough others say a more diverse culture is severely warranted for this whiteshoe firm. And while Morgan Stanley may get a passing grade on the ethnic diversity frontone insider says the bank is well diversified and includes international employeesits treatment of women may leave a little to be desired. One contact reports that the culture is not friendly toward women, and another adds somewhat resignedly that banking is one of the oldest boys clubs in the worldand I have no idea how to change it. That said, four women sit on Morgan Stanleys management committee and two women have seats on its board of directors. In addition, Morgan Stanley has been named one of the Top 50 Companies to Work For by Working Mother magazine for five consecutive years, and the firm offers several women-specific initiatives such as conferences, workshops, internships and a womens employee networking group with over 900 members. As for the firms immediate outlook, one insider notes, We just had a massive layoff across regions and divisions due to the subprime crisis, adding, The companys overall strategies are still on right track, but there is inevitable aftereffects of layoffs and some good people had to leave. Another contact says that the tough times are not Morgan Stanley-specific: Right now, the banking industry in general is going through a rough time due to the economy.

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VAULT TOP 50

4
PRESTIGE RANKING

Lehman Brothers
RANKING RECAP
Quality of Life #5 Best Employers to Work For #5 Overall Satisfaction #6 Offices #7 Selectivity #8 Treatment by Managers #9 Training #11 Hours #13 Compensation Diversity #5 Diversity with Respect to GLBT #6 Overall Diversity #6 Diversity with Respect to Women #8 Diversity with Respect to Minorities

745 Seventh Avenue New York, NY 10019 Phone: (212) 526-7000 Fax: (212) 526-8766 www.lehman.com

BUSINESSES
Capital Markets Investment Banking Investment Management

THE STATS
Employer Type: Public Company Ticker Symbol: LEH (NYSE) Chairman & CEO: Richard S. Fuld Jr. Revenue: $58.9 billion (FYE 11/07) Net Income: $4.2 billion No. of Employees: 28,600 No. of Offices: 65

KEY COMPETITORS
Goldman Sachs Merrill Lynch Morgan Stanley

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UPPERS
Exposure to brand name clients Bankers are incredibly intelligent and ambitious, yet caring and down-to-earth Proactive about diversity

DOWNERS
Expense management is very tight A ring below Goldman and Morgan Stanley in terms of compensation Suits every day

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

EMPLOYMENT CONTACT
www.lehman.com/careers

Always at or near the top High profile, but has not done well in the market downturn Leader, strong track record, good employee benefits Great reputation; have had troubles lately, but they should recover

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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers

THE SCOOP

Award-winning businesses
Lehman Brothers business lines include its capital markets business (equity and fixed income), investment banking and investment management. These divisions work closely together, and North American bankers collaborate with colleagues in the Asia-Pacific and EMEA geography groups on cross-border transactions. Lehman Brothers fixed income and equities capital markets divisions encompass traders, salespeople and origination specialists. The investment banking division serves corporations and governments worldwide, offering financial advisory and capital raising services. Investment bankers are organized by geography, product and industry. Product groups include mergers and acquisitions, equity capital markets, debt capital markets, leveraged finance, private capital markets and restructuring. Lehmans industry groups cover communications, consumer and retail, financial institutions, financial sponsors, health care, industrial, media, natural resources, power, real estate and technology. The investment management division consists of three businesses: private investment management, asset management and private equity. T In 2007, Lehman was ranked the No. 1 most admired securities firm by Fortune magazine, and Barrons named CEO Richard S. Fuld to its Worlds Most Respected CEOs list. The firm also placed No. 1 in both equity and fixed income research on Institutional Investors All-America polls for the fifth consecutive year. Institutional Investors inaugural survey of Americas best investment banks, released in December 2007, placed Lehman No. 1 in secondary equity offerings and No. 2 in asset securitizations, IPOs and M&A advice to buyers.

Three brothers, one firm


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Henry Lehman, a German immigrant, opened a small commodities brokerage and trading firm in his new home of Montgomery, Ala., in 1844. Six years later, his brothers Emmanuel and Mayer joined him in the business, which they named Lehman Brothers. The Lehmans opened a New York office in 1858 and became members of the New York Stock Exchange in 1887. In the early 20th century Lehman rose to prominence as a financier of now-legendary retailers like R.H. Macy & Company, the F.W. Woolworth Company and Sears, Roebuck. Later, the firm had a hand in building the Golden Age of Hollywood, advising on the consolidation of major movie chains and providing startup financing for studios like Paramount and 20th Century Fox. American Express acquired Lehman Brothers in 1984, part of a short-lived attempt to provide a complete range of consumer and business financial services. Lehman was divested in 1994, at which point it launched its own IPO and began trading on the New York and Pacific exchanges. Today, Lehman is a fully independent public company with global headquarters in New York, Tokyo and London. Although it has more than 50 offices worldwide, Lehman follows a guiding principle of One Firm, with strong links between its businesses and office locations.

Fixed income falls


Even though Lehman had been the No. 1 underwriter of subprime-related securities in 2006 and the bank was one of only a few Wall Street banks to escape massive losses from subprime mortgages in 2007 (2008 was another story), its fourth quarter profits of $886 million were down 12 percent from the same period in the previous year due to decreases in its fixed-income business. Exposure to residential and commercial mortgages made Lehman take an $830 million write-down at the close of 2007, but two significant one-off gains helped offset that figure. These included a $500 million profit on the initial public offering of GLG, a hedge fund in which Lehman is a stakeholder. The firm also saw a one-time gain from a leveraged loan sale. Still, more analysts were concerned with the fixed income divisions performance. In 2006, that division brought in 70 percent of the capital markets groups revenue; in 2007, its earnings fell 60 percent. Then-Lehman CFO Erin Callan said the firm was simply not immune to market conditions, calling November 2007 the absolute worst month on record by any measure for the fixed income markets.

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Overall in 2007, Lehmans capital markets revenues rose just 2 percent over 2006. Investment banking and asset management picked up the slack, climbing 24 percent and 28 percent, respectively.

Deluxe deals
Lehmans advisory business stayed strong in 2007, and the bank had a hand in some of the worlds biggest M&A deals for the year. Lehman advised Dutch bank ABN AMRO on its record-setting $99.4 billion sale to a banking consortium made up of the Royal Bank of Scotland, Fortis and Santander. Lehman also advised General Electric on its $11.6 billion sale of GE Plastics to the Saudi Basic Industries Corporation, and guided Triad Hospitals through its $6.4 billion merger with Community Health Systems. (This deal created the largest publicly traded hospital company in the United States.) Lehman also served as sole active bookrunner for CVS Caremarks $5.5 billion high-grade bond deal, the largest such transaction in the United States in 2007. By deal value, Lehman ranked No. 9 for worldwide announced M&A, according to Thomson Financial (now Thomson Reuters), and No. 7 for worldwide completed deals. These ranks represented 278 deals worth $767.1 billion and 240 deals worth $745.4 billion, respectively. On the U.S. league tables Lehman made the top five, placing No. 3 in announced transactions and No. 4 in completed. In global debt, equity and equity-related deals, Lehman held on to its No. 6 ranking in 2007, and held steady at No. 9 in global equity and equity-related underwriting. In global IPO volume, the firm rose two spots to No. 9. Meanwhile, Lehman slipped one spot to No. 5 in global debt deals, but rose one to capture the top spot in global mortgage-backed underwriting. It held on to its No. 1 ranking in U.S. mortgage-back securities and fell one spot to No. 6 in U.S. investment grade debt deals. For the first half of 2008, Lehman ranked No. 7 in worldwide announced M&A, advising on several large deals, including Altria Groups $113 billion spin-off of Philip Morris International (the largest spin-off in history), Hewlett-Packards $13 billion acquisition of Electronic Data Systems and Chinalcos $14.3 billion acquisition of a 12 percent stake in Rio Tinto. Lehman also ranked No. 5 in worldwide equity and equity-related underwriting for the first half of 2008, leaping from No. 9 in the first half of 2007. And for the same period, in U.S. equity and equity-related deals, the firm jumped to No. 2 from No. 6.

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Think global
In January 2008, Lehman announced some changes in its global mergers and acquisitions organization. Paul G. Parker, former U.S. head of M&A, was named global co-head of mergers and acquisitions. He now shares the post with Mark Shafir, who was also named chairman of global M&A and who has lead global M&A teams since 2003. The two men report to Hugh Skip McGee III, global head of investment banking. McGee noted that the change was the logical response to demand. As our M&A business continues to grow and becomes increasingly global, it is appropriate that the organizational structure of the franchise expand as well, he said. Shafir and Parker have each led some headline-worthy deals over the years, including Cingulars acquisition of AT&T Wireless, Kmarts merger with Sears and the merger of Wellpoint Health Networks with Anthem, Inc.

Oz and Russia
Further pushing its global business, Lehman has recently devoted resources to its operations in Australia and Russia. In early 2007, the firm acquired Australias Grange Securities, hiring 40 investment banking, equities, asset management, fixed income and real estate professionals to complement Granges workforce of 120. Then in December 2007, Lehman completed a rebranding effort: Grange Securities and Grange Asset Management became Lehman Brothers Australia Ltd. and Lehman Brothers Asset Management Ltd. According to Jesse Bhattal, Lehmans Asia-Pacific CEO, the firm is preparing to capitalize on the Down Under economys extraordinary growth potential. In January 2008, Lehman announced that it had been granted a broker-dealer license by Russias Federal Financial Markets Service. This will allow the firm to provide securities trading in Russia, and Lehman says it plans to roll out a full range of investment banking and capital markets services. Lehman also hired Peter Ghavami, a former head of commodities at UBS, to lead Russian expansion efforts in partnership with Nicholas Jordan, head of IB Russia.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers

Mortgage hurts
In February 2008, Lehman Brothers confirmed that it would be further reducing its workforce by 200 jobs throughout the year in its mortgage capital business in the U.K. These were in addition to the approximately 3,000 cuts that were announced in late 2007 and early 2008. In January 2008, Lehman announced plans to lay off approximately 140 fixed income employees. Earlier in the year, Lehman had closed its BNC Mortgage subsidiary, eliminating more than 1,000 jobs. In mid-January, Lehman decided to reduce its mortgage business even further, suspending its wholesale and correspondent lending activities at its Aurora Loan Services subsidiary, which meant 1,300 more pink slips were handed out. Previously, in September 2007, the firm restructured its residential mortgage origination business, scaling down its operations in the U.K. and U.S., and closing down its Korean mortgage unit completely. This restructuring meant the loss of approximately 850 jobs worldwide. At the same time, Lehman said its remaining residential mortgage businessesincluding Aurora Loan Services, ELQ Hypotheken and Libertuswould operate under the name Lehman Mortgage Capital.

Lehmans new top dogs


In June 2008, days before announcing $2.8 billion in quarterly losses, Lehman Brothers demoted its COO Joseph Gregory and CFO Erin Callan to lesser-ranking investment banking positions. Analysts and industry observers alike noted that the moves were made to appease investors, which, to say the least, werent happy with Lehmans share pricesince the start of 2008, it had fallen more than 50 percent. The demotions were a big blow to both Lehman insiders, though perhaps Callans ousting was the more significant, as she was one of the highest-ranking women remaining on Wall Street (not long after, Callan called it quits at Lehman, joining Credit Suisse as the head of its global hedge fund business).
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The firm made more personnel moves later in June, naming ex-employee Michael Gelband head of its capital markets department. Gelband had left the firm in 2007a departure that insiders attributed to differences of opinion with upper management regarding Lehmans fixed income division. The firm also announced that Alix Kirk, former co-chief operating officer of Lehmans fixed income department, is returning to the Lehman fold as global head of principal investing. Separately, after the firm reported particularly gloomy second quarter results, new Lehman President Bart McDade and CEO Dick Fuld said theyd be giving up their 2008 bonuses. For Fuld, that could mean foregoing several million dollars. In 2007, Fuld received about $40 million in salary, and according to Fortune magazine, hes raked in about $500 million from stock options and stock awards since 1994.

GETTING HIRED

Tough nut to crack


Lehman Brothers is highly selective about who it allows on board, competing for talent with other exclusive investment banks like Goldman Sachs and Morgan Stanley. The firms interview process involves significant vetting, as it is meant to identify candidates with extraordinary potential. Ideal candidates have leadership experience and senior banker potential. To find its well-rounded lot, Lehman thinks outside the box when analyzing candidates. Ideal candidates need to meet high standards academically, and the firm cares a great deal about choosing people who best fit the culture. Insiders say the firm is one of the bigger recruiters of MBAsbut only certain MBAs. They go to a select few MBA schools and the classes are skewed toward the top five or six schools. As an example of Lehmans selectivity, a contact says, Around 200 applicants submitted resumes from Columbia. Out of 200, less than 15 got first-round interviews. Out of those 15, four or five were chosen for second-round interviews. And even among those lucky few, only a small number of applicants are actually offered summer internships. Dont expect the competition to ease up any time soon. Thanks to increased interest in the firm as of late, Lehman insiders say selectivity is only going up.

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Getting to know you


Most analysts and associates have their first interview on campus, followed by a multifold second round. Some attend recruiting events in advance of formal interviews. A contact says of the recruiting process, Students are encouraged to attend firmsponsored recruiting events, schedule informational interviews with current employees, and research the firm before applying for a summer internship. On-campus interviews are usually one-on-one and tend to run about 30 minutes. These interviews are usually done by VPs and cover the resume, background, as well as technical questions for those candidates who have backgrounds in finance. Second-round interviews, which can sometimes occur the very next day, can involve anywhere from three-to-five back-to-back interviews. For some, one of these interviews will be a case study. The other second-day interview may involve a deeper dive into the candidates background and capabilities, while another interviewer may quiz a candidate to get a sense of fit with Lehmans culture. Fit interviews are often performed by a senior VP or MD at the firm. Analyst interviews tend to have a get-to-know you approach, and candidates must demonstrate strong quantitative and analytical skills, leadership and teamwork ability, initiative, integrity and presence. Associate candidates are asked to demonstrate a little more technical acumen. Case studies are par for the course in the second round. Associates, though, also should come prepared to discuss why they think theyll fit in at Lehman; according to the firm, associates should show up with compelling examples of leadership, teamwork and initiative taking. An insider notes, The firm puts great emphasis on preserving the culture, so they try to understand how the candidate would fit into organization. Investment banking associates are picked almost exclusively recruit from top business schools, such as Harvard, Wharton, Duke, Kellogg, Cornell, Columbia, NYU and Stanford, among others. Analysts come from (but not only) top undergrad institutions, including Harvard, Yale, Princeton, Dartmouth, Columbia, Stanford, U Penn, Cornell, Georgetown, UVA, Middlebury, Brown, Williams, MIT, Amherst and NYU. The firm also does a significant amount of recruiting at other undergraduate institutions where it doesnt have an on-campus presence.

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A smart way to spend the summer


Insiders across the board say Lehmans internships are important and helpful in getting a full time offer, and some say fulltime hiring at Lehman comes almost exclusively from the summer analyst program. However, it is not the only way you can get in. These 10-week internships grant great exposure to Lehman and investment banking in general. Interns participate in client meetings, getting a good flavor about what banking and the markets are about. It is an opportunity to act in the capacity of a full-time associate. Interns even make the same salary (on a prorated basis) as full timers. With Lehman recruiters plucking fewer and fewer full-time analysts from on-campus interviews, those who get in without performing one of these critically important internships ought to consider themselves lucky. Those who score an internship are also lucky, as insiders say the process to get a position is very competitive. A contact says, During the summer interview process, recruiters look to identify candidates whom they genuinely believe have potential to be managing directors at the firm.

OUR SURVEY SAYS

Unstoppable momentum
Lehmans culture is collegial with emphasis on working with other teams. This creates momentum across all geographies and products. Insiders say the firms One Firm motto is not just talk, but executed every day. The firms members are incredibly intelligent and ambitious, yet caring and down-to-earth. Most are friendly with a balanced outlook on life. A contact says, Lehman is a diverse place, where emphasis is placed on doing the right thing. This ethical environment is warm, filled with employees who are always willing to help each other out. Sources say this makes Lehman the best place to work on Wall Street, hands down. Its a firm that has it all. This is giving Lehman rising prestige on Wall Street, as people hear more and more about the challenging and interesting projects, and great deal flow that the firm offers.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Lehman Brothers

Lehmans extremely smart junior employees get a lot of respect from upper managers. We are given freedom to run with things because senior management trusts our abilities. Employees also have the freedom to telecommute if necessary. The firm makes a great investment in technology, which makes it easy to work remotelyand people do it; its not frowned upon. A contact says, Senior managers care about the career development of junior team members. It is a true meritocracy in which junior employees receive responsibility and exposure quickly. This work hard-play hard firm really values employees and makes concerted efforts to keep their valued employees. All of these factors give Lehman huge momentum and a high level of pride compared with peers. Make no mistakeit is still an investment bank, and thus, an extremely intense environment but insiders say employees collaborative and fun attitudes make the long hours much more bearable.

Comp could use an upgrade but benefits are plentiful


Lehman insiders arent overly thrilled with their compensation. Some say they feel underpaid relative to competitors, with the firm still a rung below Goldman and Morgan Stanley in terms of compensation. The firm can be stingy when it comes to headcount and perks, and expense management is very tight, which can be a downer at times. In addition to salary, bankers receive a bonus, a portion of which is paid in restricted stock options. Vesting occurs after three years. Employees also get a $25 meal allowance after 8 p.m. and a car service home after 9 p.m. The firms New York headquarters has a gym in the building, which is convenient, but you have to pay for it. Lehman also negotiates discount rates with major gyms, such as Equinox and New York Sports Club. There is also an on-site, pay-as-you-go cafeteria at the New York office. According to one source, Lehman also has relationships with many of the museums, so admission is free or discounted almost everywhere. Discounts also are available for a variety of consumer goods, including computers, cell phones and clothing. Lehman offers deeply discounted day car services as well. Most consider Lehmans perks relatively standard, but some say the firm is stingy overall, issuing employees five-year-old BlackBerries.
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Nothing beyond the norm


Lehman has a generally balanced approach to hours, though hours do vary by the division you work in. In the capital markets businesses (fixed income and equities), hours typically mirror tradings hours: 60 to 70 per week, say capital markets insiders. But in the investment banking division, employees could spend a good chunk of their lives at the office, with 80 to 90 hours per week not uncommon. That said, the firms partnership culture emphasizes work/life balance, even at junior banker level, and it is not a face time environment. However, there is a lot of work to do, and many investment banking insiders report working up to 100 hours a week, and frequently on weekends. Some complain that the firm is very thinly resourced, which means people are involved in a large number of projects simultaneously. Although this provides a great learning experience, it takes a severe toll on ones personal life. On a positive note, Lehman allows its bankers to do a great deal of work from home. A contact says, You can login into your computer from any outside location and work as if you were in the office. It greatly improves your quality of life. There can be high volatility in terms of hours worked, but most say it is manageable overall. One source says, I have not missed any big plans because of work. There may be the occasional all nighters one week, but then youll be able to leave at 7 p.m. the next week to get to the gym. Hours and the amount of required weekend work decreases with seniority. Lifestyle certainly improves over time.

Top-notch management and training


At Lehman, everyone is incredibly friendly and interested in helping your career development. The dynamic and capable managers at the firm constantly challenge subordinates to improve skills. They also make themselves available for any questions. The firms leaders have subordinates best interests at heart outside the office as well. A contact says, Managers are very supportive of maintaining a balanced life. There is no face time whatsoever. They understand that there are times where you will be working very long hours, so if you get some downtime, they want you to take advantage of it. Although communication flows can be spotty at times, most insiders say the firm provides incredible mentorship, as managers do a great job of not dumping on junior resources. A contact says, Lehman really stands out from the rest of Wall Street when it comes to how well managers and subordinates get along.

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Lehman also scores high in training. The firms training program is large, in-depth, multidisciplinary and well organized. Sources say they are constantly being offered training options that are interesting and relevant. The initial three-month training for associates covers a range of topics, including technical skills, interpersonal skills and tips for managing your career. The six-week analyst training is intense and very well done, offered by the firms top-performing employees. Sources say training at Lehman is excellent and taken very seriously. It is one the firms strengths.

Diggin it (for the most part)


With the exception of weekends, Fridays in the summer and the day before major holidays, such as Christmas Eve, its suits every day at Lehman Brothers. Theres not much wiggle room on this, as the dress code is very strict. Some say this rule gives the firm a more professional feel, while others consider it the biggest downside to working at Lehman. Lehmans offices offer lots of convenience-type amenities, such as coffee and ice machines, but insiders say their work spaces are not overly luxurious. The New York office is only six years old, which gives it a modern feel. Some find this look plain vanilla, and others note that the offices are not very spacious. In Lehmans well maintained, sensible offices, associates and vice presidents share two-person offices with chipped wood desks. Senior vice presidents and above have their own offices. One satisfied insider says, Our offices are significantly better than other investment banks I have visited.

Making everyone comfortable


Lehman Brothers is extremely supportive of women with respect to hiring, promotion and mentoring. The firms WILL program is a network that connects junior and senior women throughout the firm. Insiders say this program is best in class, involving lots of events, discussions, community service opportunities and social gatherings. The firm also is very supportive to working mothers, providing lactation rooms for nursing moms as well as backup day care. There are several moms who are associates. Lehman makes a huge effort to reach out to women during the recruiting process. That effort is evident in the large number of women at the firm. Based on how many females work here, it is apparent that more effort has been made in this regard of late. A contact says the current analyst class is 50/50 men and women. And women hold a range of positions, including vice chairman. Insiders report no cases of harassment, and women feel comfortable with their opportunities to move throughout the firm. Some say there is still room for improvement when it comes to promoting, but most agree that management is incredibly supportive of advancing this cause. As with women, Lehman makes a strong effort to hire ethnic minorities. The firm has several diversity networks, including recruiting and mentoring programs. Insiders say race and ethnicity is irrelevant to success or failure. Some say that despite Lehmans whole-hearted effort to recruit ethnic minorities, the actual number working at the firm has not caught up to the work going into the effort to recruit. And although the workforce at Lehman is getting more diverse, some feel the firm needs to do a better job of seeing ethnic minorities get promoted to senior management. This situation is not unique to Lehman: A contact says, There are still very few minorities in management positions across Wall Street. Lehmans open atmosphere extends to the gay and lesbian community as well. The firm has numerous mentoring programs and special events throughout the year for gays and lesbians, and insiders say there is no discrimination or bias. Lehmans strong gay and lesbian employee network plays an active role in identifying and recruiting strong candidates. The network also plays a terrific role in providing a resource to GLBT employees and bringing GLBT issues up in a way that straight employees can learn from. Insiders say the firms gay and lesbian recruiting network is a huge competitive advantage.

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VAULT TOP 50

5
PRESTIGE RANKING

J.P. Morgan Investment Bank


RANKING RECAP
Quality of Life #2 Training #6 Best Employers to Work For #8 Overall Satisfaction #8 Selectivity #11 Treatment by Managers #11 Compensation #16 Offices #18 Hours Diversity #1 Diversity with Respect to Women #3 Diversity with Respect to GLBT #4 Overall Diversity #4 Diversity with Respect to Minorities

270 Park Avenue New York, NY 10017 www.jpmorgan.com

BUSINESSES
Investment Banking Advisory Consumer/Retail Diversified Industries Financial Institutions Financial Sponsors Healthcare Natural Resources Rates Real Estate & Lodging Research Research Technology, Media & Telecom Research Research Corporate Quantitative Research Credit Credit Portfolio Group Equity Sales & Trading Commodities Credit Currencies Emerging Markets Equities Rates

KEY COMPETITORS
Citi Deutsche Bank Goldman Sachs Lehman Brothers Merrill Lynch Morgan Stanley

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UPPERS
Our scale, scope and prestige People are fantastic Potential for lateral mobility

THE STATS
Employer Type: Division of JPMorgan Chase & Co. Chairman & CEO, JPMorgan Chase & Co.: Jamie Dimon Revenue: $18.1 billion (FYE 12/07) Net Income: $3.1 billion No. of Employees: 25,000 (approx.) No. of Offices: 2,300* *JPMorgan Chase & Co.

DOWNERS
Can seem too big Some nepotism still goes around

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

EMPLOYMENT CONTACT
www.jpmorgan.com/careers

The best integrated (non-pure play) bank out there right now One of the most prestigious Dynamic CEODimon is impressive Market leader

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THE SCOOP

The Best Overall bank


J.P. Morgan Investment Bank operates through three divisions: investment banking, sales and trading, and research. In addition to the investment bank, the firms parent, JPMorgan Chase & Co., encompasses asset management, treasury and security services, commercial banking, retail financial services and card services. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. is a global financial services firm with over $1.6 trillion in assets and a staff of more than 170,000 in over 60 countries. It serves millions of U.S. consumers, plus corporations, hedge funds, governments, high-net-worth individuals and institutional investors in 100 countries. J.P. Morgan Investment Bank is headquartered in New York, with major international offices in London, Tokyo, Hong Kong and Singapore. It was ranked the Best Overall Investment Bank according to a survey of 350 CEOs, CFOs and other senior corporate leaders conducted by Institutional Investor magazine. And Risk magazine named the bank the Best Derivatives House over the past 20 years.

Rescuing Bear
In March 2008, after news surfaced that New York-based Bear Stearns was facing a cash shortage in the midst of the industrywide credit crisis, the firms clients withdrew approximately $17 billion in two days, sending what was already a financial institution on very shaky ground into proverbial earthquake mode. As a result, J.P. Morgan stepped in, announcing that it would be purchasing Bear for $236 million in stockor just $2 a share, 97 percent less than Bears market value just one week earlier. (The backlash from Bear shareholders at such a measly per share offer resulted in J.P. Morgan raising its bid one week later to $10 per share.) To help finance the deal, the Federal Reserve agreed to provide J.P. Morgan with a $30 billion credit line, which, according to The Wall Street Journal, was believed to be the largest Fed advance on record to a single company. The news of Bears end meant ominous things for financial markets (and beyond), and the U.S. Federal Reserve immediately cut lending rates for banks in an effort to try to stabilize the wildly fluctuating markets. Meanwhile, in a statement, the firms CEO Jamie Dimon assured Bear Stearns clients and counterparties that they should feel secure that J.P. Morgan is guaranteeing Bear Stearns counterparty risk. In April 2008, J.P. Morgan also added some security to more than 100 undergraduate and grad-school students. After it was announced that about half of the recent job offers made by Bear Stearns would be rescinded, J.P. Morgan assured summer interns affected by the announcement that they will be offered 10 weeks of pay if they work for a certain nonprofit organization and will get an early chance to apply for fall positions. Meanwhile, the firm said that graduates denied full-time jobs will keep their signing and relocation bonuses and will have access to career services. The cuts came mostly in areas where there was overlap with J.P. Morgan such as M&A, equity underwriting and corporate finance. Offers in investment management and other areas such as commodities, merchant banking and prime brokerage (Bears jewel) were said to be unaffected. In May 2008, Dimon announced that J.P. Morgan had secured positions available for about 40 percent of Bears 14,000 employees; at the end of the month, the acquisition became official, as Bear Stearns shareholders approved the deal in a brief meeting presided over by the firms chairman, James Cayne.

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Making of a giant
Parent company JPMorgan Chase & Co. takes its name from the merger between two diversified financial institutions with long histories. J.P. Morgans roots go back to 1838, when American George Peabody opened a London merchant bank. Chase Manhattans history can be traced back to 1799, when Chases first predecessor company, The Manhattan Company, was chartered to supply water to New York City. The merger between the two, valued at approximately $38.6 billion, was completed on the first day of 2001, instantly creating the third-largest financial institution in terms of assets in the U.S.

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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank

On July 1, 2004, JPMorgan Chase & Co. officially merged with Bank One Corporation for a purchase price of $58.5 billion. Upon the merger, the combined company possessed $1.1 trillion in assets, rivaling Citigroups $1.2 trillion.

Fixed income leads the loss in 2007


Facing an impending multibillion-dollar write-down on several of the banks assets, J.P. Morgan announced in October 2007 that it would be eliminating jobs in its fixed income department. A firm spokesman said the cuts would be less than 10 percent in their respective areas. J.P. Morgan was just one of scads of companies forced to slim down in the wake of the credit crisis of 2007, which left hefty loans high and dry as investors backed out of the plummeting market. For the fourth quarter of 2007, things didnt look that much better. J.P. Morgan reported revenue of $3.2 billion, a $1.7 billion drop from the prior year. Net income for the quarter fell even more sharply, declining 88 percent to $124 million. The problem of the dwindling numbers didnt stem from advisory fees or equity underwriting feesthese were up 34 percent and 66 percent, respectively. The hits came from debt underwriting fees, which fell 39 percent in the quarter, the result of lower loan syndication and bond underwriting fees. Worse, J.P. Morgans fixed income markets group saw its revenue drop 70 percent, to $615 million (a $1.4 billion loss compared to the same quarter in 2006). This decrease was caused by a $1.3 billion write-down on subprime mortgage investments, including broad exposure to the subprime collateralized debt obligations (CDOs) that sent so many banks into a year-end tailspin. Still, both JPMorgan and parent JPMorgan Chase were able to report modest profits for the full year 2007, while several of its peers took net losses. Job cuts in JPMorgans troublemaking fixed income division were lower than at other firms, too.

At the top of the league tables


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On the 2007 Thomson Financial (now Thomson Reuters) banking league tables, J.P. Morgan was No. 4 in both worldwide announced and completed M&A deals, advising on 433 transactions worth $1.07 trillion and 359 transactions worth $820.4 billion, respectively. In the U.S., J.P. Morgans rank was slightly lower, with the firm placing No. 5 in completed and announced M&A. The bank was also the years No. 2 bookrunner in global debt, equity and equity-related deals, both by imputed fees and by deal proceeds. In global debt, it was again the No. 2 bookrunner, working on 1,294 deals with proceeds of $476.3 billion. (In these categories, rival Citi took the No. 1 spot.) On the equity capital markets tables, J.P. Morgan was tops, taking in $1.7 billion in feeswhich beat runner-up UBSs $1.6 billion in equity underwriting fees. At the end of first half 2008, J.P. Morgan ranked No. 1 in several categories, including global debt, global equity, global loans, and global debt, equity and equity-related deals. The firm also ranked No. 1 in global fees for the first six months of the year, according to Dealogic, booking $2.5 billion in fees. A major deal contributing to these results was acting as lead left bookrunner on Visas $19.7 billion initial public offering, the largest IPO ever completed in the U.S. and the second largest ever completed worldwide. For its work, the firm recently received numerous accolades across the Atlantic; in Euromoneys 2008 Awards for Excellence, J.P. Morgan was named the Best Global Emerging Markets Investment Bank, Best Global Debt Capital Markets House, Best M&A House in Asia and Best Bank in North America.

Jamming with Tony


In January 2008, J.P. Morgan landed a high-profile new employee: former British Prime Minister Tony Blair, who signed on as a part-time advisor. At J.P. Morgan, Blair will serve as an advisor to Jamie Dimon and other senior managers and directors, offering strategic and political advice. He was also given a seat on the J.P. Morgan international advisory council.

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According to the Financial Times, Dimon made a personal recruiting call to Blairs office. I went to visit him and we hit it off, Dimon said, adding that he and Blair will try to make the world a better place and have a bit of fun doing it. Toward that end, Dimon said that Blairan accomplished guitar playerwas going to teach him some chords after work.

Latest results are lukewarm


J.P Morgan was hit especially hard in the second quarter of 2008, with profit decreasing 67 percent versus the second quarter of 2007 and revenue declining by 5.7 percent. The investment banking unit also slashed the value of some of its securities including ones associated with mortgagesby $1.1 billion. Overall, parent JPMorgan Chase reported a 53 percent decrease in net income for the second quarter of 2008, booking $2 billion versus the $4.23 billion it recorded in the second quarter of 2007. The shortfalls it experienced were magnified by a $540 million loss connected to the acquisition of Bear Stearns, a purchase that JPMorgan Chase CEO Dimon expected to decrease earnings for the quarter by about $500 million.

GETTING HIRED

Welcome, superstars
Want a job at J.P. Morgans investment bank? Then you need to be the best of the best, according to sources. The firm is extremely selective, and the process is very competitive, especially if you do not attend one of J.P. Morgans core schools. We are fiercely protective of what weve built an executive explains. Few people have the right mix of raw intelligence and humility to succeed long term at J.P. Morgan. Looking at the numbers, one source says, The ratio of people who are qualified versus people who actually get hired is eight or 10 to one. Adds a contact, J.P. Morgan typically receives more than 100 resumes for each analyst position. Now for the good news: J.P. Morgan is very open-minded and aware of the fact that talented candidates come in many forms. The firms diverse employee base actively participates in the interviewing and selection process, which is described as fair and unbiased. We want the best and brightest, a senior insider says, and will always find spots for those we deem real superstars.

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What makes them tick


J.P. Morgans campus hiring focuses on core schools across the U.S., says one woman, but we recruit at other schools and accept applications from anyone online. We recruit from the top schools, or the top candidates at the next tier of schools, another insider says. Within the investment bank, there are different core schools for investment banking, research and sales and trading, a source explains. In addition, alumni from various non-core schools lead recruiting efforts at their alma maters. Employees say the firm strives for efficiency in recruiting, with most candidates getting a decision after just two rounds of interviews. The first round takes place on campus, and is usually a one-on-one meeting with an interviewer or, in some cases, a two-on-one. At the second round Super Day session in New York, expect several one-on-one interviews with senior-level bankers. Questions were hardafter all, this is investment banking, recalls an analyst. But they were aimed more at understanding how you thought about issues as opposed to how well you had crammed in formulas right before your interview. Expect fit and personality questions as well as specific market-based questions, and some discussion of accounting and finance and business ethics. While there may be some brainteasers, the goal is to see how the candidates derive their answers, not whether theyre right or wrong. As one source puts it, we prefer the process to be conversational rather than confrontational. And, adds an analyst, the response time is very expedient.

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Ready to go
Doing a summer internship here definitely gives you a leg up on the competition if you do well, says a source. The firm hires most of its analyst class through the summer internship program. Interns get to know the people, products and culture of J.P. Morgan, and say that if you get an internship, its your job to lose. The intern training program was comprehensive, says a current employee. I was actually put in a position where I could contribute to the business. Indeed, J.P. Morgan makes sure interns are not viewed as merely job shadowers for the summer. I worked on live mergers and acquisitions and private placement deals, says a former intern who took a full-time position following the internship. Another source says that the firm sets up the summer program so that interns have a chance to meet both senior and junior people in other groups throughout the bank.

OUR SURVEY SAYS

Flying first class


There are very smart, tremendously motivated people across the investment bank, creating a culture based on teamwork and direct, honest, frequent feedback at all levels. Although expectations are very high, the J.P. Morgans culture can be characterized by a modest confidence and one is provided all the necessary tools to succeed. Then, of course, theres the firms official motto: First-class business in a first-class way. That phrase weaves in and out of the corporate culture, says a source. Every member of the firm is highly regarded and valued. Analysts and associates are expected to make an immediate impact and dive into live deal flow. We are highly regarded for our ability to innovate, says a contact, and another notes that the firm places a high priority on being socially and environmentally responsible. In addition, mobility is a key initiative at J.P. Morgan, an analyst says. They want to keep you around and make you happy instead of decamping to a competitor. J.P. Morgan takes a very heightened view of making sure analysts are getting the best experience possible, from mentors down to work/life balance or rotating if they wish, agrees a managing director. And while things may be busy, theyre rarely cutthroat, an insider concludes. Were too busy competing with the other banks to compete with ourselves.

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Go with the flow


Hours at J.P. Morgan are long when there is heavy deal flow, but face time is discouraged, says a recent hire. My first year as an analyst I worked 80 to 100 hours pretty regularly, says a source. Now the market is slower, and I am more senior, so its not uncommon to work more in the range of 60 to 70 hours per week. While hours are similar to the hours at other investment banking firms, sources say J.P. Morgan is very reasonable and has worked to be better with analysts. There is a noted effort on the part of senior managers to encourage analysts and associates to take their vacation time of four weeks per year, adds an insider. Another notes that its becoming easier to work from home or remotely. Managers are considerate of weekends, holidays and vacations and make every effort to minimize redundant or unnecessary work. You will work hard anywhere in this industry, a banker concludes. The key is to be around people you like and want to work witha big advantage at J.P. Morgan. Most employees feel their compensation is competitive with the market. The perks include company discounts at retailers, discounts on gym memberships and museums and a meal allowance for late dinners and even discounts on hybrid cars. The firm also matches 401(k) contributions up to 5 percent of your salary, and those at senior levels can co-invest in private equity, restricted stock and options. Additionally, in some groups, third-year analysts promoted to the associate level receive four consecutive weeks off before starting as an associate.

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Vault Guide to the Top 50 Banking Employers 2009 Edition J.P. Morgan Investment Bank

Proud to be diverse
Diversity is a challenge the entire industry faces, but J.P. Morgan employees say their firm spends a meaningful amount of time recruiting women and minorities. The firm maintains relationships with Toigo, MBA Jumpstart and SEO, and recently created a new scholarship and internship program called Launching Leaders, which is targeted at black, Hispanic and Native American students in their freshman and sophomore years of college. Students can also take part in J.P. Morgan Launching Leaders Experience, Winning Women and Proud to Be events, which provide students an inside look at the firm and industry through training sessions, networking and job shadowing. One analyst says that there are many female achievers at the bank who have reached very senior roles and serve as great mentors. J.P. Morgans Junior Women in Banking program plans events that allow women to interact with senior management, too. Respondents like to tout the number of diversity awards J.P. Morgan has won, including its ranking among the Top 5 Companies for Diverse MBAs by DiversityMBA magazine and the firms 100 percent rating on Human Rights Campaigns Corporate Equality Index. J.P. Morgan has a great networking group for gays and lesbians called PRIDE that sponsors monthly events and encourages networking. And the firm offers events and networking opportunities for GLBT employees and potential employees, under the Proud to Be brand. The firm is committed to diversity at the highest levels, one man says. Jamie Dimon leads J.P. Morgans corporate diversity council. The view isnt that diversity is good for diversitys sake, explains an executive. Weve found that diversity of opinion and background leads to a better end product for our clients than if we had a bunch of people with identical backgrounds trying to tackle the same problem.

Express yourself
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Plain and not luxurious sums up J.P. Morgans current digs, but the firm is renovating its Midtown headquarters and moving the majority of its investment bank employees into 383 Madison Avenue, the old Bear Stearns headquarters. In the meantime, employees enjoy a nice Starbucks lounge in the building and an extensive art collection. Average cubes is the norm for employees; at least the San Francisco office boasts a great view of the San Francisco Bay. Dress code ranges depending on group, explains an analyst. Industry coverage groups tend to be more formal, while product groups tend to be formal only when client-facing. The dress code is pretty clear on what is and is not appropriate, another analyst adds, so people can definitely express some personal style while still working in a conservative, professional place.

Respect goes around


Insiders praise the top-notch treatment by managers at J.P. Morgan. Working for people I genuinely respect makes it much easier to see this as a career, and not just a two-year program, an insider says. It is truly an open-door policy, says another. I can walk into my managers office whenever I want and ask him a question or just shoot the breeze. Ive found my managers have always been seeking out ways to help me do my job better rather than simply looking for ways to make themselves look better or put me down, adds another insider. Communication is kept open through an analyst and associate development council that allows us to express our comments and concerns to senior management. If there are any complaints about management at J.P. Morgan, theyre related to the firms size. Large teams do create some inefficiency, admits an insider. But, many managers do an incredible job of juggling everything and mentoring analysts. The outstanding initial training is a two-month program with other international analysts (the networking is almost as good as the training itself, one man says). J.P. Morgan definitely puts a lot of resources into providing first-class training, adds an analyst. Employees can take optional IB University classes on a range of topics, and there are online training guides for those making career transitions throughout the year.

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VAULT TOP 50

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PRESTIGE RANKING

Merrill Lynch
RANKING RECAP
Quality of Life #6 Compensation #10 Overall Satisfaction #10 Best Employers to Work For #11 Offices #12 Selectivity #12 Treatment by Managers #12 Training #14 Hours Diversity #13 Diversity with Respect to GLBT #15 Diversity with Respect to Women #15 Diversity with Respect to Minorities #17 Overall Diversity

4 World Financial Center 250 Vesey Street New York, NY 10080 www.ml.com

BUSINESSES
Global Markets & Investment Banking Global Wealth Management

THE STATS
Employer Type: Public Company Ticker Symbol: MER (NYSE) Chairman & CEO: John A. Thain Revenue: $62.6 billion (FYE 12/07) Net Income: -$7.8 billion No. of Employees: 63,100 No. of Offices: 900

KEY COMPETITORS
Citi Credit Suisse Goldman Sachs Lehman Brothers Morgan Stanley

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UPPERS
Smart people you can learn a lot from Not snotty Ability to work on incredible transactions

DOWNERS
Red tape Hours can be long Politics

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

EMPLOYMENT CONTACT
See ml.com/careers

Market leader, highly sought after, competitive Falling in prestige Good name despite subprime meltdown Looks for all kinds of studentsvery diverse

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Vault Guide to the Top 50 Banking Employers 2009 Edition Merrill Lynch

THE SCOOP

From two to more than 63,000


The Merrill in Merrill Lynch was Charles E. Merrill, who founded the firm in New York City in 1914. He met his partner, Edmund Lynch, while living in a rented room at the YMCA. From these meager beginnings grew a firm that now has about 900 offices in 40 countries, and total client assets of approximately $1.6 trillion. Merrill Lynch has established itself as one of the worlds leading wealth management, capital markets and advisory companies, serving private clients, institutions and corporations and small businesses. As of mid-2008, the firm employed nearly 63,100 people worldwide. Headquartered in lower Manhattan, Merrill Lynch is divided into two business segmentsglobal markets and investment banking (GMI) and global wealth management (GWM), which includes global investment management and global private client. GMIs subdivisions include global sales and trading; fixed income, currencies and commodities (FICC); global equities; and investment banking. Since February 2006, Merrill has held a significant stake in BlackRock, a top global investment management firm with $1.3 trillion in assets under management.

So long, Stan
Perhaps the biggest news at Merrill Lynch in late 2007 was the ouster of its chairman and CEO, Stan ONeal. Rumors of his demise began in October 2007, when Merrill reported a third quarter loss of $2.3 billion and an additional $8.4 billion charge linked to failed credit and other mortgage-related investments. It was the biggest quarterly loss in Merrills 93-year history. After Merrills board announced that ONeal would retire, the firm quickly appointed Alberto Cribiore, a Merrill board member and founder of the Brera Capital private equity firm, as interim nonexecutive chairman. Cribiore led a brief search for ONeals replacement, settling on New York Stock Exchange Chief John Thain in November 2007. (Interestingly enough, Thain had also been considered a front-runner for the chief executive position at Citigroup, which was left open when Charles Prince was forced to step down because of that banks losses.) Win Smith Jr., a former chairman of Merrill Lynch International and son of one of the firms first executives, called Thain a very good candidate for the future. Smith added, He has a great background, did a good job stepping into the NYSE when it had troubled times, and comes out of a firm that has a very strong culture. He can help bring the pride back. Indeed, Thain is widely seen as one of Wall Streets best and brightest. He began his career at Goldman Sachs, rising from a bond trader position to chief operating officer. At the New York Stock Exchange, he took over when former head Richard Grasso was fired amidst controversy over his salary. Thain managed to restore confidence within the NYSE board, helped the Exchange go public and led the acquisition of Euronext, creating the worlds first trans-Atlantic stock exchange.

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Thain rebuilds
Thain had his work cut out for him at the troubled Merrill Lynch, however. Bad news included the last earnings reports of 2007: Merrill posted a $9.83 billion fourth quarter loss. This figure reflected $16.7 billion of write-downs on leveraged loans and mortgage-related investments, and far exceeded analysts expectations. For the full year 2007, Merrills net loss was $7.8 billion, a far cry from its net income of $7.5 billion in 2006. Thain tried to make the best of the news, saying that while the results were unacceptable, Merrill still had the capital base now that we need to go forward. He also told The New York Times that Merrills investment banking, equity capital markets and global wealth management businesses did really, really well in 2007, achieving record results for the year. He added that contrary to speculation, Merrill had no plans to sell its stakes in BlackRock or Bloomberg L.P. Still, Thain admitted he had some rebuilding work to do, and criticized the fixed income group for its heavy losses. Thain took several steps to improve Merrills risk management protocol, hiring Nelson Chai as the new chief financial officer. He also tapped Noel B. Donohoe to co-head the risk department with Edmond N. Moriarty. Another new procedure is a weekly risk
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Vault Guide to the Top 50 Banking Employers 2009 Edition Merrill Lynch

meeting, at which Thain discusses risk issues with all business heads. Finally, in early 2008, Thain indicated that there would be some general layoffs during the year but said they are not going to be significant. Previously, in December 2007, largely thanks to Thain, Merrill also received a much-needed cash infusion by selling stock worth $6.6 billion to foreign investors. This sale came one month after Merrill sold $6.2 billion stakes to Singapores Temasek Holdings and Davis Selected Advisors. Januarys investors included the Kuwait Investment Authority, the Korea Investment Corporation and Mizuho Financial Group of Japan. According to Merrill, none of these groups will have any influence in the firms operations or the boards decisions.

Merrills Downtown move


In May 2008, Merrill Lynch reportedly inched toward relocating its New York City headquarters to the former site of the World Trade Center. The three-million-square-foot building, which will be erected at the corner of Cortlandt and Church Streets, might serve as the new home for about 10,000 Merrill employees. (Currently, Merrills headquarters are located at 2 and 4 World Financial Center, and the lease expires in 2013.) The Port Authority of New York and New Jersey is still in talks with Larry Silverstein, who is developing the new building.

Streamlining
In December 2007, Merrill sold its life insurance businesses, Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York, to insurance conglomerate AEGON USA for $1.25 billion in cash. Part of the deal involved a strategic partnership that allows AEGONs Transamerica companies to supply insurance and investment products through the acquired subsidiaries. Meanwhile, Merrill will continue to offer some insurance services to clients in its core advisory and distribution businesses. Also in December, Merrill announced that it would sell its middle-market commercial finance business, Merrill Lynch Capital, to GE Capital. Based in Chicago, Merrill Lynch Capital includes corporate finance, equipment finance, real estate finance, energy and health care finance units. It added more than $10 billion in assets and $5 billion in commitments to GE Capitals existing holdings. Merrill CEO John Thain said the sale reflects Merrill Lynchs continued strategic focus on divesting noncore assets and optimizing capital allocation, while also enabling the redeployment of approximately $1.3 billion of capital into other parts of our businesses.

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Still making deals


Despite its troubles in 2007, Merrill stayed in the top 10 on the Thomson Financial (now Thomson Reuters) investment banking league tables. The firm ranked No. 8 in worldwide announced mergers and acquisitions, with 355 transactions worth $787.7 billion. (This was a drop from Merrills No. 5 spot the previous year.) In global completed deals Merrill held steady at its No. 5 spot, wrapping 282 transactions valued at $793.5 billion. In U.S. M&A dealmaking, Merrill remained just below the top five, ranking No. 7 in announced deals and No. 6 in completed ones. These ranks represented 137 deals worth $372.6 billion and 127 deals worth $396.5 billion, respectively. Merrill was also the No. 4 bookrunner in global debt, equity and equity-related deals, working on 1,429 transactions with total proceeds of $431.4 billion. In global IPOs, it ranked as the No. 6 bookrunner, with 92 deals worth $17.9 billion.

Eugene steps in
In February 2008, former president of Freddie Mac Eugene McQuade took over as president and vice chairman of the Merrills banking group, which primarily provides loans and mortgages to the firms clients. McQuade, who resigned from Freddie Mac in September 2007 after turning down an offer to become the firms CEO, replaced McIntyre Mack Gardner, who stepped down in January 2008 shortly after Merrills former CEO, Stan ONeal, resigned. McQuade has also previously worked for Bank

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of America and FleetBoston Financial. Hell oversee Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Co., reporting to Robert McCann, president of the firms global wealth management unit. More recently, Tom Sanzone joined the senior management team as executive vice president and chief administrative officer. His responsibilities include overseeing the firms technology, operations and corporate services groups. Additionally, Fares Noujaim was named president of Middle East and North Africa, a newly created senior management position. Based in New York and the Middle East, Noujaim is also global head of sovereign wealth funds.

The cruelest month


In April 2008, Merrill announced that it had endured a $1.96 billion loss for the first quarter of the year, a figure that stood in stark contrast to the $2.03 billion in earnings it booked in the first quarter of 2007. Revenue also plummeted, falling to $2.93 billion from the $9.6 billion it reported in 2007. Merrill attributed much of the losses to $6.5 billion in mortgage-related writedowns. The bad news unfortunately didnt end there. Merrill also announced plans to slash 3,000 positions by the end of 2008. The cuts were largely spurred on by a $6 billion write-down and its third quarterly loss in a row. Previously, Merrill had written down $24 billion in subprime-related debts, and had already decreased its U.S. headcount by 1,100 in the first quarter of 2008. The most recent wave of cutbacks was expected to continue to affect Merrills bottom line in 2008, producing a $350 million restructuring charge for the second quarter. May and June werent much better for Mother Merrill, as Wall Street analysts predicted in late June that Merrill would post anywhere from $3.5 billion to $5.4 billion in additional write-downs when the firm announces its second quarter 2008 results in mid-July.
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Fourth times not the charm


May and June werent much better, as Merrill Lynch lost $4.6 billion in the second quarter of 2008, its fourth consecutive quarterly loss. The loss, compared with a $2 billion second quarter profit in 2007, was especially abysmal considering analysts had predicted just a $1.8 billion loss. Merrill also reported negative revenue of $2.11 billion for the quarter compared with $9.46 billion in revenue in the second quarter of 2007. The firm simultaneously announced $9.7 billion in write-downs. On the same day, though, Merrill completed the sale of its 20 percent share of Bloomberg L.P. to parent Bloomberg Inc., which will bring in some much needed capital.

GETTING HIRED

Picky and proud


As one analyst explains, the firm is choosy for a reason: Merrill Lynch is a world class institution, and the hiring process is incredibly competitive. People are attracted to the reputation of the franchise, and the number and quality of applicants reflects that. This means a very competitive hiring process, with recruiters seeking natural intelligence, optimism and fit. Merrill makes its choices based on merit, social and academic achievement, and involvementas well as personality. Indeed, Merrill Lynch takes pride in the individuals that make up the company. And as a result, the firm places tremendous emphasis on hiring only the most highly skilled, competent, disciplined and self-motivated people. However, says an insider, Firm selectivity obviously differs on a group to group basis. My group has every person to sign off for a full consensus. Merrill Lynch recruits at many of the top colleges in the United States, including Harvard, Columbia, Cornell, Georgetown and major MBA programs like Harvard Business School, Wharton, Stanford, Kellogg, etc. Sources say recruiting is heaviest at

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Vault Guide to the Top 50 Banking Employers 2009 Edition Merrill Lynch

Ivy League schools, and at least one source says, I think they should branch out more. While the bulk of new hires come straight from schools, off-campus initiatives are in place.

Technical challenge
The hiring process is very similar to other investment banks, insiders say. For students, There is an on-campus interview process to screen the best candidates. Selected students are invited to New York for a Super Day. At company headquarters, candidates usually interview with four or five individuals on-site, mostly senior employees on the business side. The interview process is rigorous, warns a source. During each round, a candidate can expect to meet with six to 10 bankers in various industry and product groups, an analyst says. One contact recalls meeting with a diverse group of interviewers, from the group head to second-year associates. After surviving Super Day, the student is either given an offer or asked to come back for more interviews. Interview questions at Merrill can be very technical, such as stating the three basic financial statements and how they tie together. There may also be specific questions about prior work experience, interest in the business and knowledge of the market. From my experience, the interviews can range in material from the typical fit interview to highly technical questions, an analyst says. A candidate can expect almost every interviewer to ask them to walk through their resume highlighting relevant work and leadership experience.

Want in?
An internship is a huge advantage for those seeking employment at Merrill Lynch. Most of those hired had an internship with us, says a contact. I think it is critical, another agrees. One former intern says that the firm emphasizes hiring the best talent into summer positions and tries to retain those employees for full-time positions. My colleagues and I have noticed that, as a result, Merrill performs less recruiting for full-time positions than our peers, but it is more difficult here to land a summer position. The firm offers summer internships for analysts (undergrad) and associates (grad students). I essentially functioned as a firstyear associate while I was a summer associate in investment banking. I was paid, pro rata, a first years salary, says one employee. A former summer analyst reports earning the same salary as a first-year analyst, adding that the work is geared toward building up to that of a first-year analyst. Interns are more likely to move to the head of Merrills hiring line, but they get other benefits, too. Networking and mentoring offered during the summer allows you to build what could be lifelong friendships, an ex-intern says. The global markets summer rotational program allows you to test more than one part of the business to find a good fit for you and your skill set. Interns may participate in several networking events throughout the summer and are often staffed directly on projects with other employees. Work assignments can vary based on the demonstrated ability of the intern as well as the workload, but some summer analysts may even get the opportunity to travel on a road show or to client meetings.

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OUR SURVEY SAYS

Intense individuals
Merrill Lynch can be intense (perhaps because there are many smart people), but the firm still allows you to be an individual in a team environment. As one employee explains, I chose Merrill because the atmosphere was more congenial than other places. Others agree that its much more flexible and freer than other bulge bracket firm culturesand comfortable. That means, You can be you and be rewarded for it. The culture is a meritocracy, not cutthroat. You can easily develop a lasting and beneficial relationship with senior management, one source says. Because people focus on results and ability rather than title and seniority, employees at all

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levels are given the opportunity to take on a lot of responsibility. The camaraderie and instantly-recognizable brand name are other plusses; on the minus side, sources say its a very large place, so one can get lost in the shuffle. Other complaints include occasionally losing a mandate to Goldman, and recent bad press tied to 2007 earnings reports and write-downs. Still, an insider says, the firm is headed back in the right direction after our fourth quarter [2007] setback. Overall respondents describe themselves as extremely satisfied. Merrill is an awesome place to work and cultivate a long-term career, says a source. I feel challenged and continue to see opportunity in the future.

Keeping things dynamic


Theres a big focus on diversity at Merrill Lynch, which sources say prides itself on being diverse. I would describe our firm as a melting pot where individuals can bring their personalities and talents to create a productive and highly regarded work environment, one says. Another agrees that Merrills emphasis on diversity creates a dynamic work environment where every employee often has a different approach to solving the same problem. In my time at the firm, this has helped create a tremendous learning experience. A woman whos been at Merrill for four years applauds the very active womens network with fantastic female leadership, and a source who works with recruiters says that the office of diversity and inclusion has shown tremendous success with the diversity initiatives set forth by management. The firm has formed professional networks for minority employees, but some say retention of talented minorities is a huge challenge, largely due to a lack of mentoring and sponsorship. An AfricanAmerican contact suggests more group-wide team building activities to help improve overall acceptance. And, as at so many firms, theres still a way to go at the management level even though Merrills lower levels have become more diverse.

Productive, not pressured


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Merrill Lynch sources give average marks to their pay but enjoy perks that include discounted rate at the Merrill Lynch gym, car service to and from the airport when traveling, and transportation and dinner covered for late-night work. The employee stock option program allows us to buy stock at a five percent discount, and because of Merrill Lynchs stake in BlackRock, employees are provided with a wide array of fund options for the 401(k) program. But they work hard for the benefits. My hours are very intensethere is no downtime while I am at work, a contact says. Product groups have more manageable hours than others within the investment bank; one associate says that the hours can be brutal at times. He adds, The upside is that they vary, so there can be weeks when you get out at a reasonable hour and weekends that are mostly free, although it is often the opposite. However, there is no pressure to bill, just to produce. The number of hours I spend in the office on a given week is reasonable given the industry standard, a source says. What is important, I feel, is that at Merrillin my group at leastthere is no such thing as face time, and your superiors try to provide as much clarity with regard to scheduling as possible. My superiors recognize that the ability to get rest and exercise when able only adds to the end product, adds another. One insider lays out the schedule: As a first-year analyst in most product and industry groups at Merrill, you can expect to work between 85 and 95 hours per week, including weekends. The load can lighten as rank rises, though, since employees develop closer relationships with senior bankers and typically gravitate toward working with smaller deal teams, which is more manageable.

Not too stuffy


Stop by a Merrill Lynch office on a Friday and youll see a lot of khakis, insiders report. The dress code is business casual always, though polos are acceptable in the summer. The office itself has a standard trading/cubicle feelits not luxurious, but its not meant to be explains a source. A New York-based contact describes the Merrill trading floor as slightly antiquated and very dirty, and only those with seniority have a view: Officers get a window, analysts and associates dont.

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Excellent and extensive training


Merrill places a big focus on analyst and associate development. New hires, whether analysts or associates, start off with an extensive training program thats described as excellent. Additional training is also available, although the reason has to be justified, an associate says. Another source adds, Summer analysts and associates also go through a short training program before they begin.

Great management
The Merrill culture strives for flatness, sources say. I have found that the painfully hierarchical reputation of Wall Street investment banks does not ring true at Merrill, an analyst says. While there are always exceptions to the rule, I think Merrill more than most banks encourages a team atmosphere with less distance between the top and bottom of the ladder. Another says, Most of the managers express a strong desire to develop junior talent and most have an open-door policy. Likewise, I feel that I spend a great deal of time, especially during the summer, assisting the summer analysts and associates in getting up to speed. My managers are great, a contact raves. They have created a very open and easy-going work environment. This allows for more productivity. Another agrees, saying, Im extremely fortunate to work for a direct superior who constantly teaches, gives me significant responsibility, expects a lot from me and is concerned with my career development.

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VAULT TOP 50

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PRESTIGE RANKING

Lazard
KEY COMPETITORS
Goldman Sachs Lehman Brothers Morgan Stanley

30 Rockefeller Plaza New York, NY 10020 Phone: (212) 632-6000 www.lazard.com

BUSINESSES
Asset Management Financial Advisory

UPPERS
Very prestigious and active firmits pure advisory model is winning a ton of business Much safer place to work as far as cuts goit can absorb more pain because it doesnt have massive overheard.

THE STATS
Employer Type: Public Company Ticker Symbol: LAZ (NYSE) Chairman & CEO: Bruce Wasserstein Revenue: $2.01 billion (FYE 12/07) Net Income: $322.7 million No. of Employees: 2,490 No. of Offices: 40

DOWNERS
Because Lazard has less people, people tend to work harder than they do elsewhere Salary used to be way above market but in recent years has been at market or only marginally higher

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EMPLOYMENT CONTACT
www.lazard.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Top-notch firm, well-respected across numerous industries High prestige but they kill their workers Premier M&A shop Blue blood; often hear that its people are pretentious

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Vault Guide to the Top 50 Banking Employers 2009 Edition Lazard

THE SCOOP

A public success
Lazards dynamic CEO Bruce Wasserstein had a plan when he took leadership of the company in 2002to expand the firms business so that the Lazard name would be known throughout the world. After six years, it seems he is succeeding. Lazards influence reaches almost every corner of the globe with offices in 40 cities across 21 countries on five major continents. This 160year-old company launched its IPO in May 2005. Since then, things have been steadily positive and a continued growth plan promises to make Lazard an even more renowned name in the annals of history. At Lazard there are two businesses only: financial advisory and asset management. Its respected mergers and acquisitions practice is divided into industry groups that include consumer, financial institutions, financial sponsors, health care and life sciences, industrial, power and energy, real estate and technology, media and telecommunications. Each industry group is managed by regional or global heads. Lazard also offers financial restructuring, government advisory, alternative investment fund raising and corporate finance services. Lazards asset management business is mainly comprised of equity products, but it also offers fixed income and alternative investments. Lazards principal executive offices are in New York, London and Paris.

Full steam ahead


Wasserstein was assured the chance to see through his plans to expand the company through at least the end of 2012, due to a contract he signed in 2008 extending the term of his CEO role past its previous end date of May 2008. Wassersteins new base salary will be $900,000, less than his previous salary of $4.8 million a year. However, Wassersteins new compensation comes in the form of 2.7 million restricted stock units, which will be fully vested at the end of 2012. Wasserstein will also receive incentive compensation in his role as CEO. In 2007, Wassersteins bonus was $36.2 million of stock, which will be redeemable in March 2011.

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Gold rush roots


How much does it cost to start a financial services firm? For the Lazard brothers of New Orleans, the initial investment was $9,000, which funded a dry goods business in 1848. One year later the Lazards relocated to the gold rush town of San Francisco. The brothers, French immigrants, expanded into banking in Paris in 1852. An office in London and a new American headquarters in New York were opened in 1870 and 1880. For decades the three Houses of Lazard operated mostly autonomously, developing their own specialties and client lists. Unification took place in 2000 when the three Houses merged following criticism of Michel David-Weill, a distant relative of the original Lazards, who took over the company in 1977. After the merger David-Weill became manager of the firms executive committee, naming William Loomis as CEO. Loomis resigned in 2001 (reportedly because of wrangling between partners in London and Paris, all of whom were accustomed to having their way). Bruce Wasserstein, founder of Wasserstein Perella, stepped in to lead the firm, and embarked on an ambitious plan to expand the firms international business and recruit top investment bankers from around the world.

Business is booming
Times are good for Lazard, proving that even in a bear market, theres still money to be made. The investment bank was largely shielded from the losses in the subprime market in 2007 due to its prudent and cautious strategy of steering clear of mortgagebacked securities and leveraged buyouts. Its year-end numbers were impressive, with an annual net income of $322.7 million reflecting at 37 percent increase over last years numbers. Operating revenues also shot up to $2.01 billion, an increase of 28 percent from the year before. This boost was largely buoyed by the success of the financial advisory division which soared to a record $1.24 billion in revenue for the year. M&A surged upwards with annual revenue of $964.4 million, an increase of 22 percent for the year.

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Lazard also got a huge bump in finances this year from the growth of its financial restructuring business, which increased its operating revenue 80 percent from the previous year as of year-end 2007. The company worked on deals with distinguished companies such as Adelphia Communications, SunCom Wireless, Eurotunnel, Tower Automotive, New Century Financial Corporation, Northwest Airlines Creditors Committee, the UAW and Calpine. Lazard is also working on financial restructuring deals for Movie Gallery, Tarragon Corporation and Technical Olympic USA (TOUSA), among companies.

Granddaddy of M&A
The forces driving the windfall of cash in the M&A arena are due to Lazards involvement with some of the biggest deals of the year. In 2007, Lazard proved that its reputation as the granddaddy of M&A may not be overstated. The firm advised on several multibillion dollar sales including the $45 billion takeover of Texas power company TXU to an investor group led by KKR and TPG, the $16.5 billion merger between The Bank of New York and Mellon Financial, Nestls $5.5 billion acquisition of Gerber and Nestls $2.5 acquisition of the medical nutrition division of Novartis. Overall in 2007, Lazard ranked No. 2 in M&A deal volume for transactions under $100 million, according to Thomson Financial (now Thomson Reuters). It also ranked No. 11 in both worldwide M&A deal volume on all transactions and U.S. announced M&A. In a statement released at the time of 4th quarter earnings, Vice Chairman Steven Golub indicated that the firms M&A was posed for even more growth in M&A advisory, noting that during the fourth quarter and since the beginning of the year, the firm had worked on several deals, including Gaz de Frances 44.6 billion merger with Suez, Tranes $10.1 billion sale to Ingersoll-Rand, Resolution plcs 5 billion sale to Pearl Group, Louis Dreyfus 2.1 billion sale of its 29 percent stake in Neuf Cegetel to SFR and Sempra Energys $2.7 billion joint venture with the Royal Bank of Scotland.

Growth strategy
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Wassersteins global expansion plan completed several key acquisitions in 2007. The firm extended its business down under with the acquisition of Carnegie, Wylie & Company, an Australian independent financial advisory firm. The new company, operating under the moniker Lazard Carnegie Wylie, has offices in Melbourne, Sydney and Brisbane. Lazard also added middle-market investment bank Goldsmith Agio Helms to its empire in order to expand its reach for U.S. midsized private companies. The August 2007 increased Lazards access to U.S. markets such as Minneapolis and allowed the company to boost its middle-market financial advisory business. Lazard also opened a new office in Boston in September as well as one in Zurich, which will expand the European arm of the financial advisory business. The firm also activated a cooperation agreement with Austrian bank Raiffeisen, which will allow it to jointly pursue financial advisory in Russia, and Central and Eastern Europe.

An inside story (or two)


In 2007, much to the chagrin of the firm, former Lazard banker William D. Cohan released his tale of the banks mysterious roots in his book The Last Tycoons: The Secret History of Lazard Frres & Co. Cohan, who began his career as a journalist and then spent six years working for Lazard, details his experience and tells stories regarding the banks beginnings to its present-day dealingsand including everything from extramarital affairs to murdered bankers in the process. The bank has called the book substantially inaccurate, adding that it has nothing to do with the present state of Lazard or its business. Publisher Doubleday shot back that the tome gives a well-rounded, historical portrait of the bank.

GETTING HIRED

Only top-shelf, please


Walk into what the firm calls an entrepreneurial, nonhierarchical environment Lazard limits its recruiting efforts to a select group of top-tier colleges, universities and business schools. For undergrads, this list includes Harvard, Yale, Wharton and other Ivy

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Vault Guide to the Top 50 Banking Employers 2009 Edition Lazard

League schools, as well as the University of Illinois, University of Virginia and University of Michigan. Lazard sends MBA recruiters to a similarly elite pool of universities and collegesHarvard, Wharton, Columbia, Chicago, Stanford and Berkeley. Sources say that theres a very strong representation of Wharton and Princeton at all levels inside the firm. Another adds, Most Lazard people are from the Ivy League, the University of Virginia or Duke. Its mainly a Northeast crowd. A recruiting schedule for investment banking and contact information for other departments are available at the firms web site.

Best foot forward


Be sure you have your GPA in top shape before applying to the firm. Lazard isnt only looking for students from the best schools, its also interested in those schools crme de la crme. In other words, students who dont have top marks need not apply. Otherwise, Lazards full-time analyst and associate recruiting process is pretty standard. First, says a contact, We go to campuses and give a presentation. We say this is who we are, and were coming back on such-and-such date to do on-campus interviews. After those initial on-campus interviews, which are usually two-on-ones, Lazard brings back a select group for a Super Saturday in its offices, where recruits will meet with five to six bankers for 30 minutes each, in mostly one-on-one interviews. All in, candidates should expect to meet approximately eight to 10 people.

Fit in
At a prestigious bank like Lazard, you might expect interviews to include some tough technical questions, but this isnt the case, say insiders. I found the interview process to be quite informal, remarks a source. Interviews are relaxed. That contact adds that the interview with her future boss was completely fit-basedno technical questions. One Lazard source who has conducted several interviews agrees, saying, Interviews are fair. I dont believe that undergrads should know all sorts of technical stuff. Were not going to ask technical questions to a history major at Brown. We might, though, ask where they think theyve learned analytical skills, or to tell us about a group project. A recent candidate says, My interview was very straightforward. I dont think these guys want to hear B.S. about culture; they want to hear that you are willing to work ridiculously hard and that you have the ability to hit the ground running. The contact does say that his interview was a bit more technical than others, but admits, maybe that was because I have a finance background. According to one insider, Lazard believes you can teach all that technical stuff to bright people. So we give [recruits] a chance to talk, to tell us what theyve been taught. Even so, expect a few questions to include some numbers such as, How many hours are in a week? and What would you say if I told you that youd be working on average almost 120 of them? (The answers are 168 and sounds good.) The firm does offer summer internships, and one Lazard intern-turned-full-time employee says during that program, I did typical first-year analyst work and was paid the same rate as a first-year [full-time] analyst. After that, it was very easy to talk to and get offers from all the other investment banks.

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OUR SURVEY SAYS

Smells like team spirit


Insiders describe Lazard as a hardworking bank with team spirit. However, it doesnt have as much of a frat guy culture as other firms, says one insider. It has a more professional atmosphereits really quiet. Sources say this low-key vibe results not only from the mentality of the firms senior bankers, but also from the physical layout of the place. Lazard doesnt have huge bullpens with 200 people sitting in an open space where people are throwing a football back and forth like there are at bulge bracket firms, explains a contact. At Lazard, at most four analysts sit together in a pod. You go in there, get your work done and get out of there. People arent hanging out and [messing] around as much as they do at other places. Even after working hours, the firm has a less fraternal atmosphere than other banks. People dont go out with co-workers as much as at other places, explains one former insider. Its not because people are mean or snobbish, but I guess they figure they spend enough time with each other at the office. That said, another source describes the firm as kind of like Goldman, with a club to go with it. He adds, Its a little too touchy-feely and very politically correct.

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Up from the Streeta little


Lazard, long recognized for record remuneration, may not be so far ahead of the pack any longer. Says one insider, Generally, Lazard is known for paying better than the Street, but during the last few years compensation has been all over the place. Another comments, Salary used to be way above market but in recent years has been at market or only marginally higher. One insider says he received an offer to be a second-year analyst at Lazard midway through my second year in an analyst position at a Wall Street bulge bracket firm. The contact adds, Lazard offered a $70,000 signing bonus for me to jump ship. But the cash may be a trade-off. For the time Lazard analysts put in, some would argue that they pay employees relatively poorly. According to a current analyst, Because Lazard has less people, people tend to work harder than they do elsewhere, regularly putting in 100hour weeks. A former summer intern says that no matter what your paycheck looks like, you will work your butt off. I did roughly 80- to 120hour weeksmore than anybody else I knew on the Streetand only had about five days completely off the whole summer. That said, the contact did get to work on one of the top-10 biggest deals ever, and had the experience of dealing directly with partners. He adds, If you can come to terms with [the long hours], there is no better summer opportunity in the world, and there is no experience that will open more doors for you down the road. Another positive spin on the long hours is that analysts at Lazard, unlike peers at bulge bracket firms, dont have to worry about face time. Also, says one source, Partners know you work hard, so it is common for them to say that they dont want to waste your time coming to pick up a book from their office and that you should send your secretary. There are trade-offs. Lazard expects more [than other banks] from an analyst in terms of getting work done accurately, and some analysts function as associates or VPs in their second year, explains an analyst in M&A. Partners will give you more responsibility than you can get elsewhere, but theyll likely care less about you as a person elsewhere.
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The personal touch


If you like feeling like a face and not a number, Lazard may be the firm for you. Something you wont get everywhere else is personal attentionthe admin person knows who you are, says a Lazard contact. The firm is good about handling all the little stuff. You dont get nickel-and-dimed like you might at big firms. And you dont get lost like you might at Citigroup or Merrill. One source says other perks include free transportation home after 8 p.m. and $25 dinner allowances. Training receives good marks as well. The firms formal six-week analyst training program is very good, says one former staffer. They bring in all kinds of professors from different schools to teach business skills, accounting, etc. The contact adds, And bankers teach you Lazard-specific stuff such as building merger models and leading a restructuring. One analyst has a different spin on life at Lazard, describing the environment as tough and saying managers can be arrogant. In terms of preparing new hires, the source says that while the initial program is similar to other banks classroom training,onthe-job training is tougher. They expect you to come in running and get the numbers right. On a more positive note, You will learn how to build models from a blank Excel screen, unlike at most firms, where they have an in-house model.

Playing it safe
Lazard is a much safer place to work as far as cuts go, says a former banker. It can absorb more pain because it doesnt have massive overheard. Thats because Lazard is an advisory and asset management firm, absent of conflicts that other banks have: it doesnt underwrite securities, and it doesnt provide research. As a result, Lazard is in a good position, says a source. Other places are out of favor because of their research, insider trading and underwriting problems. However, the contact adds, A few years ago, during the Internet boom, we werent as flexible. Other banks were cashing in. In other words, While Lazard didnt soar the way some of its competitors did during the bull market, today its pure advisory model is winning a ton of business.

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VAULT TOP 50

8
PRESTIGE RANKING

Credit Suisses Investment Banking Business


RANKING RECAP
Quality of Life #5 Treatment by Managers #6 Training #8 Best Employers to Work For #8 Compensation #10 Offices #11 Overall Satisfaction #11 Selectivity #16 Hours Diversity #7 Diversity with Respect to GLBT #8 Overall Diversity #9 Diversity with Respect to Minorities #11 Diversity with Respect to Women

11 Madison Avenue New York, NY 10010-3629 Phone: (212) 325-2000 Fax: (212) 325-6665 www.credit-suisse.com/ib

BUSINESSES
Corporate Clients Institutional Clients

THE STATS
Employer Type: Division of Credit Suisse Group CEO, Credit Suisse: Brady Dougan CEO, Investment Banking: Paul Calello No. of Employees: 48,100* No. of Offices: 57* *Credit Suisse Group

KEY COMPETITORS
Goldman Sachs Merrill Lynch Morgan Stanley

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UPPER
Training is the best on the Street

DOWNER
Hours can be intense

EMPLOYMENT CONTACT
www.credit-suisse.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Crme de la crme Inconsistent track record Solid: great deal flow and brand name recognition Not a fun place to work

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THE SCOOP

Dawn of a new day


Credit Suisse Group began a comprehensive One Bank reorganization in December 2004 when it streamlined its business divisions into investment banking, asset management and private banking. In May 2005, Credit Suisse legally merged with Credit Suisse First Boston, and in January 2006, the subsidiary names Credit Suisse First Boston (and Credit Suisse Asset Management) were dropped. From that point on just one name and one brand has been used: Credit Suisse. The firms trading execution business, formerly part of private banking and corporate and retail banking, was folded in as well. The final addition to the new Credit Suisse investment banking division was a private funds group that had been part of a wealth and asset management division. Today, the unified Credit Suisse Group employs about 48,100 people around the world. The Zurich, Switzerland-based bank has its U.S. headquarters in New York; other important hubs include London and Hong Kong. American-born Brady W. Dougan, formerly CEO of the investment banking division, took over the helm of the Credit Suisse Group in May 2007. At that time, Paul Calello, Credit Suisses CEO of the Asia-Pacific region, became CEO of the investment banking division.

How it breaks down


In its investment banking business, Credit Suisse offers securities products and financial advisory services to users and suppliers of capital around the world. Operating in 57 locations across 26 countries, Credit Suisse is active across the full spectrum of financial services products, including debt and equity underwriting, sales and trading, mergers and acquisitions, investment research, and correspondent and prime brokerage services. The banks other two divisions include private banking and asset management.

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Succumbing to subprime
In the fall 2007, Credit Suisses biggest domestic competitor, UBS, announced a $3.4 billion write-down as a result of mortgagerelated products in October, followed in December by the stunning announcement it would have to write-down an additional $10 billion due to collateralized debt obligations. For once, it looked like Credit Suisse had bested its biggest rival. Though Credit Suisse hadnt escaped unscathed, its mortgage losses were less than half of UBSsabout $1.6 billion in write-downs. Earnings were affected in the investment banking sector, but Credit Suisses private banking and retail banking divisions were both ahead of what analysts had predicted for them. The banks outlook on the future seemed rosy, as Credit Suisse projected the aura that it was less vulnerable than other banks in terms of its subprime exposure. However, as the new year rolled around, rumors quickly surfaced that Credit Suisse had not been transparent about the extent of its exposure to the subprime market. Swiss newspaper Sonntag released a report in early January predicting additional writedowns of $2.2 billion in the fourth quarter of 2007, sending the banks stock price into a downward spiral. The report also predicted that if there were a U.S. recession, Credit Suisse would face additional write-downs, possibly as much as $4.5 billion.

Award season
Despite its problems in the credit market, Credit Suisse managed to rack up an impressive number of awards during 2007 from a host of different sources. One of the more interesting honors bestowed upon the bank was the title of Best Foreign Investment Bank in Indonesia, an award given to it by both The Asset in its November Triple A Country Awards and Finance Asia in its Country Awards for achievement. Credit Suisse also managed to gather several more trophies in The Bankers annual investment banking awards, garnering top honors for the categories of Global Investment Bank of the Year, Best Leveraged Finance House, Best High Yield Bond House and Best Convertibles House.

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Credit Suisse also was given kudos for its deals in 2007. The Asset awarded the firm recognition for two international deals: the $13 billion takeover of Corus by Indias Tata Group and the $1.3 billion KEB block trade. Euromoney also recognized the firms international prowess giving it awards for Best Debt House in Mexico, as well as the title of Best M&A House in Brazil, Central Asia, Germany, Indonesia, Kazakhstan, Latin America and the Philippines. As for the investment banking league tables in 2007, Credit Suisse ranked No. 6 in both global and U.S. announced M&A deal volume, according to Thomson Financial (now Thomson Reuters). Halfway through 2008, the firm ranked No. 5 in global announced volume and No. 9 in U.S. volume. On the equity charts, Credit Suisse leaped two spots to take the No. 2 ranking in global IPO volume in 2007, and ranked No. 7 in both global equity and equity-related underwriting as well as global common stock deals. In the U.S. in 2007, Credit Suisse ranked No. 7 in equity and equity-related deals, No. 8 for common stock underwriting and No. 7 in IPOs.

Cutting back
As almost every Wall Street was forced to do in late 2007 and early 2008, Credit Suisse began handing out some pink slips in January 2008 due to the subprime mortgage meltdown. After a rumor surfaced from inside Credit Suisse that approximately 20 percent of the firms fixed income group received pink slips, it was revealed that the firm would indeed have to cut about 500 investment banking positions. A spokesman for the firm cited market conditions and projected staffing levels required to meet client needs as causes for the cuts. Despite the current market conditions, Credit Suisse has had relatively low RIFs since fall 2007. In a recent Bloomberg article, Credit Suisse was recognized for initiating a rare recruitment program to help place RIFed staff in other jobs within and outside the company. A former employee who found a job as a result of this effort, stated that in a tough market its important to get that type of recommendation.
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Sovereign wealth steps in


Sovereign wealth funds have stepped into the position of the white knights of struggling investment banks lately, pumping money into giants like Morgan Stanley, Merrill Lynch and Citigroup. In February 2008, Credit Suisse became an addition to the growing number of firms who are partly owned by these foreign wealth pools when Qatar Investment Authority acquired an approximately 1.5 percent of Credit Suisses stock. The deal gave Credit Suisse $500 million in capital.

Chinese connection
Credit Suisse partnering with another powerful nation in June 2008, when regulatory agencies approved a joint venture it had proposed with the Chinese brokerage firm Founder Securities. The Swiss bank announced that it was seeking to partner with Founder Securities in January in order to get a foothold on securities underwriting and wealth management, among other things, in China. The announcement followed on the heels of chief rival UBSs acquisition of Beijing Securities that formed UBS Securities.

Extreme conditions
Credit Suisse reported a net loss of $2.1 billion for the first quarter of 2008, a 23 percent decrease from the previous years first quarter. Net revenue also looked grim, coming in at $2.9 billion, a 72 percent decline. Despite the fact that it wrote down $5.3 billion in bad investments, the gloomy numbers still surprised some analysts, many of whom had placed their predictions about three times higher. The firms investment banking business had a particularly tough quarter, reporting a pre-tax loss of $3.4 billion. Prior to these results, the firm seemed to have largely avoided the subprime crisis plaguing its competitors, but this quarter brought in extreme conditions, said Credit Suisse CEO Brady Dougan.

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GETTING HIRED

Fit is most important


Credit Suisse is focused on attracting the highest caliber candidates to further develop the firms teamwork-oriented culture. To find such people, the firm looks for top candidates from the top schools. Insiders say the firm is highly selective, especially for its smaller, regional offices. Insiders also say the process is tough but fair, designed to find people who work in terms of fit. A contact notes, There is no set criteria. Were looking for smart people who we think would fit well here and who would benefit from exposure to other smart people. The firm receives thousands of resumes each year from qualified students from all over the country. Extra attention is paid to target schools, particularly the Ivies and other big-name colleges. The firm looks mainly to its list of 15 to 20 targets schools. But applications from non-targeted schools are still reviewed and receive consideration. Insiders say this makes the firm extremely competitive, since many banks disregard resumes from nontargeted institutions. According to one source, Receiving a job at Credit Suisse is comparable to acceptance to the countrys best undergraduate schools for high school students. Credit Suisse is not the hardest firm on the Street to get into, but applicants are up against very high standards both culturally and intellectually.

Be ready for anything


Credit Suisse has a comprehensive multi-round interview process that covers technical knowledge as well as cultural fit. Most candidates endure two rounds, the first of which assess technical market knowledge, and involve math and brainteasers. These first round interviews are commonly performed on-campus and normally involve two interviewers to every one candidate. Credit Suisse also sponsors school events, which give another opportunity for candidates to meet the bankers in advance of the formal interview process. Second rounds, or Super Day interviews, tend to be more relaxed and focused on fit and behavior-based questions. These normally take place at the hiring office, which gives the candidate an opportunity to meet potential colleagues. Super Day involves interviews with multiple people, ranging from associate through managing director. The second round can be highly rigorous, with about five or six hours of interviews, but varies per business area. Candidates may meet with as many as 10 different people. At this stage, interviewers are really looking to get a sense of an individuals personal motivations and background. A contact recalls the experience, We were asked a range of questions, from what books we read to ways to value a company. Heres another typical question: Whats an example of a time when you were working on a team and a difficult situation presented itself, and how did you handle it?

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Time well spent


Credit Suisse internships are important in terms of networking, although insiders say they are not the only avenue for fulltime hires. Still, the majority of full-time analysts come from the summer analyst program. Interns are responsible for two major projects over the course of the summer, one as a group and one independently. This experience makes it much easier to get a full-time offer if you come out of the internship pool. Its also fun. Interns are asked to join full-timers at events like Yankee games, bowling nights, casino nights and even days at the beach.

OUR SURVEY SAYS

Proud to call Credit Suisse home


Credit Suisse employees enjoy working in a collegial atmosphere in which people are committed to working together. The firm is filled with people of high character and integrity. Colleagues are encouraging of one another, which creates a less

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competitive environment than you find at other firms. Insiders say Credit Suisse is a great place to start a career, because there are a lot of opportunities for junior people. The firms friendly and open attitude provides the chance to get what you want and be as big or small as you want. Its a meritocracy that offers continuous intellectual development. A contact says, Unlike the stiff culture at Goldman Sachs or Lehman Brothers, Credit Suisse has a very relaxed and jovial atmosphere. Unfortunately, some say outsiders have been slow to recognize the growing strength of the firm and still dont count it in the league of Morgan Stanley or Goldman. Insiders dont let them bring them down, however. Employees express a high level of satisfaction with Credit Suisse, and appreciate its entrepreneurial spirit yet global orientation towards deals. And its nice working someplace where there is a very low jerk factor. Some say the firm can sometimes feel a bit top heavy, while others complain of rigid promotion stipulations. But generally speaking, people are happy to be working for the firm and take a lot of pride in the Credit Suisse name. One source sums it up, People are happy and proud to work at the bank, and strive to make it the most prestigious investment bank around.

Everyone must pull their weight


As is the norm in investment banking, employees of Credit Suisse put in difficult and intense hours. Most report working a minimum of 60 hours a week and as many as 90. Sources say newbies should be prepared to put their head down and crank product. Fortunately, as you progress to the higher levels in investment banking, you tend to spend fewer hours in the office and more time traveling and meeting with clients. And all employees are provided with various means for remote access, which greatly reduces time spent in the office. Hours can be very demanding but also very productive. A source says, I never find myself trying to fill idle hours. There is very little face time pressure, but everyone is expected to work hard, be available when needed and pull their weight. Senior managers definitely notice if you stay late and put in the extra effort.
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Worth the effort


Although hours can be long, insiders at Credit Suisse say they are well compensated, so the reward is well worth the effort. The firm had a difficult year in 2007, but prior to that, pay had been exemplary. A contact says, You make a lot of money in New York City. At the associate level, the firm offers stock as part of the bonus, as well as profit sharing. In addition to salary, the firm offers perks that are comparable to other bulge bracket firms. Bankers get a meal allowance for late dinners during the week and a more generous meal allowance on weekends and holidays. There are also free cars home after 9 p.m. during the week and anytime on weekends. There is a fairly priced gym conveniently located on site that is convenient and a great way for us to interact with our colleagues away from our calculators, spreadsheets and pitch books. Credit Suisse also has an excellent expat relocation package.

Knack for mentoring


Credit Suisse really cares about developing the talent amongst the junior folks. In general, people tend to like their subordinates and superiors. Senior managers have an open-door policy and almost always make themselves available to answer questions or talk through issues. Mentoring seems to come very naturally for many of the managers at Credit Suisse. Junior bankers are expected to be engaged, to ask questions and to share ideas. In turn, managers are thoughtful about the scope of the projects they initiate and are respectful of the teams time and efforts. A contact says, Its rare for any managers to pull rank. They appreciate input and encourage you to argue your case. Some managers are even up for having a drink or dinner with their subordinates. Credit Suisse respects training, evident by the fact that the firm allows summer interns to fully complete training before starting work in their banking group. The training program is rigorous but enjoyable. A contact says, Trainers are entertaining and enlightening, and spending time with fellow analysts is fun. Trainees are taught technical skills as well as softer skills. The firm has the view that an employee is only as good as we can train them. Some say this attitude makes the

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firms training the best on the Street. Others note that theyd like more experience across different products, but the more popular opinion is that the firm has extensive training overall.

Historic location
The firms New York City headquarters is in a great location and very conveniently situated. The office overlooks Madison Square Park and is in an excellent location with lots of restaurants, clubs and shopping. Plus, the building is a landmark and the lobby is immaculate. A contact says Credit Suisses New York office is in the best building of all the banks. The interior conditions are nice but not overly luxurious. But NYC bankers complain of bad chairs and spotty IT. In the Los Angeles office, bankers have plenty of space, a nice view of the city and a convenient location. In Chicago, the office has more space than in New York and its also more upscale. The firms policy on dress code is business casual, but collared shirts and dress pants are required. Ties and jackets not required unless there is a client meeting. Casual attire is allowed on Fridays in summertime, but even then, a collared T-shirt, shirt or sweater is appreciated. In the Los Angeles office, people tend to be relaxed about dress. One source, whos worked at other large investment banks, says of the firms dress code, You are allowed to be an individual here much more than at other top-tier banks.

Room for improvement


The hiring and development of female bankers is a clear priority at Credit Suisse. Its a place where all people are treated equally and a persons gender is not a factor. The firm has a lot of female representation in the lower ranks, with the Chicago office in particular having a strong track record of hiring female analysts. As you go up in the ranks, however, there are fewer women. A contact says there are not very many senior female bankers, which can make it tough if youre a female junior banker with no one to look up to. Although insiders give overall high marks to the firms receptivity to ethnic minorities, some say there are few minorities at the firm. For those who are there, everyone is treated the same. And some say the recruiting effort is getting better, and that the firm is making a real effort and starting to have more ethnic minorities in senior management. Credit Suisse insiders also give high marks to treatment of gays and lesbians, but offer no details on any specific programs or efforts geared toward this community.

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VAULT TOP 50

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PRESTIGE RANKING

Deutsche Bank
KEY COMPETITORS
Citi Credit Suisse Goldman Sachs J.P. Morgan Lehman Brothers Merrill Lynch Morgan Stanley UBS Investment Bank

60 Wall Street New York, NY 10005 Phone: (212) 250-2500 www.db.com

BUSINESSES
Corporate & Investment Bank (CIB) Private Clients & Asset Management (PCAM)

THE STATS
Employer Type: Public Company Ticker Symbol: DB (NYSE) Chairman, Management Board: Josef Ackermann Revenue: $30.7 billion (FYE 12/07) Net Income: $6.5 billion No. of Employees: 78,275 No. of Offices: 1,868

UPPER
When it comes to hours, DB is among the more reasonable banks

DOWNER
High-pressure environment

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EMPLOYMENT CONTACT
www.db.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong and prestigious, theyve made good strides in the US Long hours Young; up-and-coming in the US Average; just another investment bank

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THE SCOOP

Moving up in M&A
Deutsche Bank is made up of two divisions: corporate and investment bank (CIB) and private clients and asset management (PCAM). The whole group is directed by a management board, which controls resource allocation, accounting and disclosure, strategy and risk management. Deutsche Banks corporate and investment bank group oversees the firms capital markets business, including the origination, sales and trading of capital markets products, in tandem with the banks corporate advisory, corporate lending and transaction banking businesses. It also oversees mergers and acquisitions and gives general corporate finance advice primarily for global corporations, financial institutions, and sovereign and multinational organizations. In 2007, the firm had a good year in merger acquisition advisory. According to Thomson Financial (now Thomson Reuters), it ranked No. 7 in global announced M&A deal volume, moving up two spots from 2006 while working on 289 deals worth $868.6 billion. It also moved up two spots in U.S. announced M&A, coming in at No. 8 while advising on 76 deals worth $250.3 billion. Deutsche was especially hot in the summer 2007, climbing to the top spot on the announced M&A league tables in the month of July. Deutsche worked on 29 deals valued at $162 billion in July 2007 alone, beating out Goldman Sachs by almost $40 billion in deal value. Two of the deals that helped Deutsche over the top were Rio Tintos $48 billion acquisition of Alcan and Blackstones $20 billion buyout of Hilton Hotels. Deutsche also jumped two places in European announced M&A in 2007, ranking No. 6 while advising on 194 deals worth $566.4 billion. On the debt and equity markets tables, where Deutsche usually ranks in the top 10, the firm held on to its No. 3 ranking in global debt, equity and equity-related underwriting, according to Thomson. However, it slipped one spot to No. 3 in global debt, fell two spots to No. 4 in global asset-backed securities and dropped three spots to No. 7 in global mortgage-backed securities. In U.S. investment grade debt, though, the firm rose two spots to No. 9, working on 150 deals worth $62 billion. Additionally, the firm held strong to its No. 8 rankings in the three most important global equity tables: equity and equity-related offerings, common stock and IPOs. It also had a decent year on the U.S. equity tables, moving up one spot to No. 8 in equity and equityrelated deals, holding onto its No. 9 ranking in common stock and leaping three spots to No. 9 in IPOs.

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The other units


Deutsche Banks private clients and asset management group, or PCAM, comprises two divisions: asset and wealth management services, and private and business client services. Its asset management services include traditional asset management and alternative investments, the latter encompassing absolute-return strategies and specialist real estate asset management. Its client base includes retail clients and institutional investors such as pension funds. With approximately 555 billion in assets under management as of December 2007, the asset management group at Deutsche Bank is one of the largest asset managers in the world. The banks private wealth management division caters to high-net-worth individuals and families. It offers traditional and alternative investments, risk management strategies, lending, wealth transfer planning and philanthropic advisory, among others services. In 2007, the private wealth management unit increased assets by 13 billion, ending the year with 194 billion. Finally, the corporate investments group manages Deutsches own industrial and other holdings, real estate assets, private equity investments and venture capital holdings. This division was at the center of a comprehensive streamlining plan in 2005; noncore assets were sold off and the divisions old three-part structure was consolidated into a single operating unit.

A complex history
In 1870, a private banker named Adelbert Delbruck and a politician named Ludwig Bamberger opened Deutsche Bank in Berlin as a specialist bank for foreign trade. By 1876, it had become the largest bank in Germany and, by 1880, investments were

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scattered across the globe, including in North and South America, Eastern Asia and Turkey. Before the turn of the century, the German giant had invested in projects like the Northern Pacific Railroad in the U.S. and the Baghdad Railway. After World War II, Deutsche Bank closed its offices in Soviet-occupied areas and was scattered into 10 regional offices while western Germany was under occupation. By 1957, the bank had regained its footing as a unified Deutsche Bank AG with headquarters in Frankfurt am Main. By 1986, the firm made its first major bank acquisition outside of Germany with the purchase of Banca dAmerica e dItalia. Other acquisitions included the Morgan Grenfell Group (1989), the U.S. Bankers Trust (1999), the U.S. asset manager Scudder Investments (2002), the Swiss private bank Rued Blass & Cie (2003) and the Russian investment bank United Financial Group (2006). Meanwhile in 2001, shares of the bank were also traded for the first time on the New York Stock Exchange.

No European immunity
Though Deutsche Bank does hold the advantage of being located across the ocean from the debt debacle, it wasnt able to completely avoid the fallout from the U.S. subprime and credit crisis. In fall 2007, it reported a write-down of 1.5 billion ($2.1 billion) on structured credit products and securities backed by residential mortgages. Though no one likes to take a $2 billion hit, relative to the potential losses that it could have incurred, the losses looked almost rosyespecially when coupled with third quarter net profit, which exceeded 1.4 billion ($2 billion), a number that was more or less on point with its profit targets for the year. Chief Executive Officer Josef Ackerman said at a banking conference in London in October 2007 that the reason for the relatively stable numbers was the success of the asset management and private and corporate client divisions, which offset the losses relating to volatility in the credit market.
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Deutsche announced its full-year earnings on Ackermans 60th birthday, and his gift was the absence of any disastrous results. The banks numbers were expected to drastically decline for the year as a consequence of its losses in the subprime market, but the results that came in were rosier than many had predicted. The banks only losses due to the credit crisis in the fourth quarter of 2007 were a meager 50 million write-down to compensate for LBO loans. The company posted a 7 percent increase in net income for the full year, with total net income for the year rounding out at 6.5 billion. Net revenue was also modestly higher for the year, by a margin of 8 percent at 30.7 billion. The change was driven by strong advisory revenue of 314 million and increases in global transaction banking of 12 percent for the year. Again, the investment banking unit trailed behind the rest of the company, posting a 43 percent decline (514 million) in pre-tax profits in the final quarter. The first quarter of 2008 wasnt as rosy, as Deutsche reported its first quarterly loss in five years. The firm took 2.7 billion ($4.2 billion) in leveraged buyouts and asset-backed securities write-downs during the quarter, and posted a net loss of 131 million, versus the 2.12 billion profit it booked in the first quarter of 2007. The good news was the firm was not hit nearly as hard as some if its rivals. During the first quarter of 2008, Deutsche eliminated less than 1,000 investment banking jobs, compared to the several thousands of cuts that competitors such as Citi and Merrill Lynch were forced to make.

Pay up
In February 2007, Deutsche reached a settlement with hundreds of wealthy investors, ending a yearlong civil battle over charges that the bank created aggressive tax shelters based on fake loans. The shelter, known as BLIPS (bond-linked issue premium structure) was the basis for a criminal case against Deutsche and accounting firm KPMG. According to the The New York Times, Deutsches settlement could potentially be higher than tens of millions of dollars. That still leaves the pending criminal charges brought against Deutsche by federal prosecutors in Manhattan and the U.S. Justice Department. If a settlement is reached on those charges, Times sources said Deutsche will face a criminal penalty of up to $1 billion, as well as a mandatory admission of criminal wrongdoing.

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Qatar oasis
In November 2007, Deutsche Bank officially set up shop in the Qatar Financial Center, offering investment banking and private wealth management services to the wealthy Middle Eastern country. The plan to expand into Qatar had been in the works since January 2007 when authorities there granted Deutsche Bank license to operate in their nation. Deutsche is no stranger to the Middle East, as it also has offices in the Dubai International Financial Center as well as branches in Saudi Arabia. The company hopes to become even more active in the Middle East and North Africa by growing its securities offices in Cairo, Bahrain, Abu Dhabi and Algeria. The office in Qatar will be headed by Mounir Husseini, who will serve as chief country officer and general manager in Doha. Qatars economy is fed on its resources: it has one of the worlds largest gas reserves.

Carbon credits
Deutsche Bank cleared the way for streamlined carbon trades in early 2008 when it announced that it was initiating a custody, clearing and settlement service for carbon credits. The service, which will be based on the infrastructure of the Depositary and Clearing Centre in London (which provides services for London Money Market instruments), will cover carbon credit instruments issued under both the EU Emissions Trading Scheme and the Clean Development Mechanism set up during the Kyoto Protocol. It will manage the often complex world of carbon trading by removing the operational responsibility for the settlement process from traders, and creating a platform for different currencies and markets.

Bargain basement
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Deutsche Bank revealed in July 2008 that it will buy several ABN Amro commercial-lending units from Fortis Bank for $1.13 billion. Specifically, Deutsche will purchase two corporate client groups and 13 commercial banking offices in addition to segments of Hollandsche Bank Unie and IFN Finance BV. The acquisition seems to be welltimed for Fortis, which has suffered the loss of approximately 50 percent of its market value since buying ABN Amros asset management and banking groups in 2007 and selling off the units at a deep discount. According to Deutsche, the deal will significantly strengthen its corporate banking operations in the Netherlands. Deutsche also recently said it will report a profitable second quarter when it announces its results on July 31st.

GETTING HIRED

Cutting to the chase


Deutsche Bank recruits on campuses and through its online job postings, and it seems that its interviewing process is similarly clear cut. The method of acquiring a position at Deutsche Bank can be surprisingly very straightforward and much more friendly than insiders say they initially expected. Other contacts call the process by far, the most laid-back on the Street and say that there are no trick questions. Mostly, they want to make sure that there is a personality fit as well as the desire to work hard. Expect at least two to three rounds of interviews, much of them behavior-focused. Just be willing to voice your interest but also be flexible.

OUR SURVEY SAYS

Steel yourself
When it comes to the company culture, well, if youre not hard-nosed now, you soon will be. Its a high-pressure environment and its very hectic, with everyone being responsible for everything. Even though the firm works hard towards

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creating a fun, relaxed work environment, sometimes, according to workers, theres not enough of a payoff. DB bonuses are usually below the rest of the Street, reveals one insider. They pay just enough so you wont leave immediately, but not enough to keep you there long termand thats why the attrition rates are so much higher than the rest of the big names. But despite the compensation issues, working at Deutsche is very rewarding and management definitely appreciates your efforts and contributions, and works hard toward creating a fun, relaxed work environment. And when it comes to time spent in the office, hours at all banks are awful and DB is among the more reasonable, with only a few all-nighters.

Getting up the ladder


When it comes to advancing, opinions differ. The culture at Deutsche is pretty flat and open to meritocracy, some say, but others complain that opportunities for advancement are linked to relationships or perceptions of those who matter, like senior bankers on the compensation and promotion committees. Some believe that although politics matter significantly if you want to succeed in certain parts of the bank, and despite a number of hires from rival banks, there are many more recent examples of promoting from within on grounds of merit. Insiders at Deutsche relish the up-and-coming feel of the firm, even though it lacks the brand recognition of some of its peers. Dont underestimate this firms competitiveness, declares one insider. One insider says that Deutsche is beginning to reap the benefits of some smart moves in the past. When the competition began laying off talented employees during the bear market, Deutsche was selectively picking up some of the best minds in finance. This investment has started to come to fruition.

Relaxing a little
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While Deutsche is home to some of the smartest, but most demanding senior managers on Wall Street, sources report a slight recent loosening of the banks tie. Dress is business casual at the moment, one contact says, a shift from the formal-only policy of the past. The code is business casual, although we are in formal business attire for client meetings, concurs an analyst. Deutsche is a pretty diverse place, both in terms of race and gender, insiders say. The bank maintains a host of diversity networks, including Women on Wall Street, Rainbow Group/LGBT Networks, Deutsche Banks Diversified Network and Multicultural Partnership Network. In addition, it works with the National Black MBA Conference, Reaching Out MBA Conference, Inroads and the Sponsors for Educational Opportunity (SEO) Program. Sources also believe the banks willingness to implement flexible work schedules helps women and parents juggle their lives; Deutsche also offers programs that allow employees lengthy unpaid leaves of absence to care for children or relatives. All in all, Deutsches people say theyre satisfied. Employees seem genuinely happy to be here, but not in a cultish, drink-the-punch sort of way, as at some other banks, opines one insider.

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VAULT TOP 50

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PRESTIGE RANKING

UBS Investment Bank


RANKING RECAP
Quality of Life #1 Training #3 Offices #3 Overall Satisfaction #3 Best Employers to Work For #4 Selectivity #9 Treatment by Managers #10 Compensation #12 Hours Diversity #6 Diversity with Respect to Minorities #7 Overall Diversity #8 Diversity with Respect to Women #10 Diversity with Respect to GLBT

299 Park Avenue New York, NY 10171 Phone: (212) 821-3000 www.ibb.ubs.com

BUSINESSES
Equities Fixed Income, Rates & Currencies Investment Banking

THE STATS
Employer Type: Business Unit of UBS AG Chairman, UBS AG: Peter Kurer CEO, UBS AG: Marcel Rohner Chairman & CEO: Jerker Johansson No. of Employees: 21,932 No. of Offices: 60

KEY COMPETITORS
Credit Suisse Goldman Sachs Lehman Brothers Merrill Lynch Morgan Stanley

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UPPERS
Great managers Global and cross-border opportunities Personal development, intellectual stimulation

DOWNERS
Stamford location a drawback for urbanites Recent negative news Lower-than-industry pay

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

EMPLOYMENT CONTACT
www.ubs.com/graduates

Theyve done a good job getting into the US market Sinking ship Highly-regarded Lost most of its talent

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THE SCOOP

The big Swiss


A division of UBS AG, UBS Investment Bank has dual headquarters in New York City and London, and employs just over 21,900 people in 36 countries. The investment banks three business lines include equities, investment banking and fixed income, rates and currencies (FIRC). Parent company UBS AGSwitzerlands largest financial services firm, with over 80,000 employees in 50 countries worldwidealso encompasses UBS Global Asset Management as well as UBS Global Wealth Management and Business Banking. Approximately 39 percent of UBS AGs staff is based in the Americas, 35 percent in Switzerland, 16 percent elsewhere in Europe and 10 percent in Asia. The current version of UBS was formed in 1998 with a merger between the Union Bank of Switzerland and the Swiss Bank Corporation (SBC). SBC dated back to the 1870s, and during the course of its international growth had acquired a number of foreign firms. One of these, Londons S.G. Warburg Group, became SBCs investment banking division (SBC Warburg). In 1997 SBC Warburg brought its business to the United States through the acquisition of Dillon, Read & Co. After the UBS-SBC merger in 1998, the investment banks name was mercifully shortened from SBC Warburg Dillon Read to UBS Investment Bank. In 2000, UBS made its initial public offering on the New York Stock Exchange. That same year, the firm bought New Yorkbased PaineWebber for $11.8 billion, further solidifying its presence in the U.S.

Shuffling the top


U.K. citizen Huw Jenkins became CEO of the UBS Investment Bank in July 2005, leaving behind his position as UBSs head of global equities. In 2006, Jenkins was also awarded the chairmanship of the investment bank. But his tenure with UBS came to an abrupt end in October 2007 as the bank reported a massive third quarter loss. Like its peers, UBS has been hard hit by problems in the credit market, and with the announcement of $3.4 billion write-downs in October, it won the dubious honor of being Europes biggest bank victim of the American mortgage crisis. UBS Group CEO Marcel Rohner dispatched Jenkins and named himself CEO of UBS Investment Bank, saying also that he would trim 1,500 jobs from the unit. At the time, Rohner had been at the helm of UBS for just three monthshe had succeeded Peter Wuffli in July 2007 after Wuffli was deposed over losses in UBSs hedge funds. After replacing Jenkins, Rohner also tapped Marco Suter, a risk-management expert, to become the investment banks new chief financial officer. Before the problems began, UBS had been on track to become a major player in the global investment banking leagues. Jenkins was credited with overseeing a speedy expansion of the investment bank, bringing it into the top five worldwide. In the U.S., UBS had been aggressive about hiring experienced bankers and was beginning to compete head-on with giants like Morgan Stanley and Goldman Sachs. Still, in the days after the executive changes, UBS shares rose as analysts gave Rohner credit for his transparency and quick response to the losses.

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Jerkers turn to clean up


Perhaps hoping to boost confidence in the day before its disastrous earnings release, on February 13, 2008, UBS CEO Marcel Rohner announced that he had appointed Jerker Johansson to serve as chairman and CEO of UBS Investment Bank. Johansson, Morgan Stanleys European vice chairman, took his post in March. In announcing his appointment, Rohner was quick to point out that the investment banks problems were confined to the fixed income division, and he expected UBS IB to make a full recovery. While this has been a difficult time for the investment bank, because of the losses in fixed income, we have continued to see strong performances in both our equities and our investment banking divisions, he said in a statement.

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Raising capital overseas


When the dust of 2007 settled, UBSs write-downs totaled $14.7 billion, prompting the bank to seek capital injections from foreign investors. In December 2007, UBS announced that the Government of Singapore Investment Corp. (GIC) was willing to invest $9.8 billion for a 9 percent stake in the bank. At the same time, an anonymous Middle Eastern investor offered $1.8 billion for a smaller stake. (Media reports suggested that the Middle Eastern investor could be a government agency in Oman or an investment fund in Abu Dhabi.) These investments included a sale of UBS convertible notes that will convert into ordinary shares in 2009.

On top of the charts


Despite its subprime woes, UBS stayed at the top of several investment banking league tables in 2007 and the first half of 2008. According to Thomson Financial (now Thomson Reuters), UBS ranked No. 5 in global announced M&A deal volume in 2007, advising on 463 transactions worth a total of $1.02 trillion. In U.S. announced M&A deal volume, the firm ranked No. 9, advising on 204 deals worth $280.5 billion. Halfway through 2008, the firm ranked No. 8 in worldwide announced M&A volume and No. 6 in U.S. volume. On the equity charts, the firm fared even better and, in fact, ranked No. 1 on several big tables. UBS was the No. 1 underwriter of global equity and equity-related deals, global common stock deals and global IPOs (it worked on 123 initial public offerings worth a total of $34 billion in 2007). In the U.S. in 2007, UBS ranked No. 8 in equity and equity-related deals, No. 7 in common stock underwriting and No. 5 in IPOs. Halfway through 2008, UBS kept its hold on the No. 1 spot in global IPOs, but slipped a bit in other tables, ranking No. 6 in global equity and equity-related deals and No. 5 in global common stock underwriting. In U.S. equity and equity-related deals, the firm ranked No. 9, and placed No. 7 in U.S. common stock and No. 5 in U.S. IPOs.
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The streamlining continues


To further scale back its risk-taking activities, in January 2008, UBS closed its U.S. principal finance unit and reduced the capital base of its real estate unit by two-thirds. UBS also cut in half its employees who worked in underwriting, packaging and trading mortgage-related securities. Talking about the fixed income unit, CEO Rohner said he would continue to examine and refine our strategy, with the objective of improving efficiency and returning the area to profitability. However, he warned that 2008 could be another difficult year.

Heart palpitations
On February 14, 2008, UBS had an anti-valentine for its shareholders: the bank confirmed its preannounced losses for the fourth quarter and full year 2007, and they were as bad as expected. UBS Investment Bank recorded a fourth quarter loss of CHF 15.4 billion, compared with a profit of CHF 1.3 billion in the final quarter of 2006. The banks fixed income, currencies and commodities division led the units downfall, reporting a loss of CHF 15.5 billion. As the bank had previously announced, these losses were due to securities linked to U.S. subprime mortgage markets. Groupwide, the numbers werent much prettier. UBS AG took a fourth quarter loss of 12.5 billion CHF ($11.3 billion) and a full-year loss of 4.4 billion CHF ($4 billion). This was the largest fourth quarter loss reported by any bankeven Merrill Lynch and Citigroup, which saw profits plummet as a result of subprime exposure, were able to keep their quarterly losses under $10 billion. It was the first annual net loss in the banks history. In its earnings announcement, UBS shed more light on its financial situation. In December, it had lowered its subprime exposure from $29 billion to $27.6 billion, but in February, officials admitted UBS still held $26.6 billion of exposure to Alt A mortgages. While Alt A mortgages didnt grab headlines the way subprimes did, they are still high-risk and potentially costly. UBS also delved into the details of its $14 billion-plus write-downs for 2007as it turned out, only $10.8 billion was linked to subprime investments. At least $2 billion was attributed to Alt A mortgages, and just under $1 million involved credit protection for investing in collateralized debt obligations (CDOs).

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No April Fools joke for UBS


On April 1, 2008, UBS AG announced it would be writing down approximately CHF 19 billion in losses associated with the U.S. housing market, adding to the already approximately CHF 18.4 billion it wrote down in the second half of 2007. UBS said that its latest write-down will ultimately produce an approximately CHF 12 billion loss for the first quarter of 2008. In addition, it said that its chairman Marcel Ospel would not be standing for re-election to the board of directors. Peter Kurer, group general counsel of UBS and a member of its executive committee, was nominated to succeed Ospel.

Big setbacks
In May 2008, UBS announced two big blows: a first quarter loss of $10.9 billion and another 5,500 job cuts. UBS said the most current wave of layoffs, which came on the heels of 1,500 cuts it announced in 2007, will involve all levels within the company, and mostly affect its U.S. and U.K. business units. UBS also noted it will be shuttering the U.S. arm of its municipal bond business and selling $15 billion in distressed mortgage assets to investment management company BlackRock. However, UBS CEO Marcel Rohner said the firm will also continue to rebuild its investment banking business and even add staff to some of its units throughout 2008.

Ex-UBS banker pleads guilty


In June 2008, ex-UBS banker Bradley Birkenfeld pleaded guilty to participating in a scheme that helped one of his customers dodge millions of dollars in taxes. Birkenfeld confessed that he and other UBS employees assisted several of its wealthy U.S. clients to hide their possession of overseas assets and therefore avoid Stateside taxes. According to the cases prosecutors, UBS produced $200 million a year in revenue from helping to manage its wealthy clients assets. Birkenfeld, who faces up to five years in prison and $250,000 in fines, will be sentenced in August 2008. UBS, meanwhile, is currently undergoing questioning from the U.S. Justice Department to find out the identities of its other U.S. clients.

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No buyer in sight
In June 2008, UBS announced that it would be shuttering its municipal debt business, resulting in the termination of about 280 employees. The firm had tried to sell the unitthe third-biggest municipal bond business in the U.S.but said the complexities of selling [it] in the current market and limited market capacity for a business of this size made a deal unlikely.

Mr. Fix-It
In July 2008, UBSs new chairman Peter Kurer began to make some big changes to pacify investors, whove been extremely frustrated with the way UBS has performed in the wake of the credit crisis (its stock is down 65 percent since announcing its first major write-downs in fall 2007). Kurer, who took the top post in April 2008, said board members Stephan Haeringer, Rolf Meyer, Peter Spuhler and Lawrence Weinbach will be replaced with new directors who do not currently work for the firm. He also abolished the chairmans office, a part of the firms board management. Kurer told The Wall Street Journal that the changes should set an example for the rest of the company that we should keep things simple, reduce complexity [and] reduce bureaucracy.

GETTING HIRED

No easy in
Because UBS is incredibly focused on fit, sources say theres a very extensive interview process and a low hire rate. UBS hires based on how they feel the person will fit into the culture, an insider explains. Its very difficult to predict someones candidacy accurately. The firm was highly selective in 2007, a source in California reveals.

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The quite selective process begins with recruiting top students at top universitiesthink the top 10 MBA schools, the Ivy League, Carnegie Mellon, MIT, University of Chicago as well as a limited number of other institutions across the country. A current analyst whose school wasnt on the UBS target list says, Coming from a nontarget school made the process even harder. The firm looks for men and women who not only have the education and intelligence to be a valuable addition to the firm, but also the work ethic to back it up. Connections are key to getting a foot in the door, and non-target school candidates should make every effort to get those resumes into the hands of a recruiter. The resume drop may be followed by a phone interview screen, after which candidates may be invited up to the firm for a super day.

From fit to brainteasers


For the first round I had one on-campus interview where I was interviewed by two associates for 45 minutes, an associate recalls. My second round was at the firms offices where I was interviewed by three different groups and met one to two people in each group. Another source went through seven interviews with 10 different interviewers. An insider who began the recruiting process at business school remembers that in the on-campus round two people interviewed me, including a managing director. After that, I was flown to Stamford for the second round where I had six interviews, which lasted about 30 minutes each. During the second round, candidates may meet with executive directors and managing directors in various roles. At the Super Day, says a source, Each interview had a particular aspect they wanted to test or review, which made the interview rather stilted. There were both fit and technical questions. The second round may cover everything from fit and resume questions, brain teasers and interest in the markets. One insider with a nontraditional banking background says, As an undergrad with a history degree, I was asked a lot of questions about the markets to prove my interest in them. I was also taken through my resume and specifically asked what skills I have developed through my experience. Some say they completed a basic logic/math exam during the interview process, and candidates will perform team-building exercises and group problemsolving at the end of the second round to see how you interact in a group setting.

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Start in the summer


A summer internship at UBS is very important, insiders say. Nearly all the interns come back to work full time, and we only hired a couple of new graduates to enter our training program. While its not impossible to go through the full-time recruiting cycle, in most UBS offices full-time hiring may be limited depending on how many summer staffers receive and accept their offers. Adds an analyst, Every summer intern is told at the beginning of the summer that there is a full-time position for him or her at the end of the summer if they are deemed suitable for the position. An equity employee says of the internship, We rotated through three desks and received projects on each desk. We were also encouraged to walk around and meet everyone on the trading floor to get a full understanding of the business and the products we offer. We were also in charge of making a sales call to an MD on the floor every morning with investment ideas. This gave us practice talking on the phone, while also giving us contact with high level managers. My summer internship was awesome, another source agrees. I learned more about the macro economy in those 10 weeks than I did in three and a half years at school. Though interns may be called upon to do anything from answering phones to helping someone work Excel to making coffee runs, insiders say the program is very focused on development and teaching new hires. It is very proactive, adds an insider. You get what you put into it.

OUR SURVEY SAYS

Euro-style
As befits its Swiss roots, UBS has an intellectual, slightly European feel, in that most people are laid-back, especially compared to other banks of its size. There are also lots of opportunities to transfer divisions, as well as to work at one of our

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countless international offices, insiders say. Theres encouragement from managing directors to travel to one of these countries before getting settled down. While the people are friendly, the work is intense, a source in New York says. UBS has an entrepreneurial culture and a drive to climb the rankings, agrees an associate. But others say a good work/life balance can be had, though one woman warns that each desk has its own culture. The rotations are important to see where you fit in with the different personalities. Some desks can be like night and day. Firmwide, however, sources find interaction with group heads and MDs, cross-product exposure, camaraderie and positive attitudes. I found that people had a diverse set of experiences, not just plain banking, an associate adds. Raves another, Im a huge fan of the culture at UBS, especially for young people starting out in their career. Ive found nearly everyone here to be extremely smart and driven to succeed, but also very approachable and unpretentious.

Want to work late?


Hours can vary greatly at UBS. Sources say this is, at least in part, a function of ambition. Its a very entrepreneurial atmospherethe longer you spend in the office the better it will be for your career; however, there is no pressure to stay late. Many junior employees put in 80 to 90 hours per week, and while some report working weekends frequently, others say weekends are very casual and used to prepare for a few hours before the week ahead, but never mandatory. Of course, weekend work may be expected if an important project is due. Though one source at UBSs Stamford headquarters praises the firms compensation structure as New York City paychecks, Connecticut bills, some believe UBS is just average when it comes to pay. Benefits include very low-cost health, dental, vision, life and accidental death insurance, as well as backup child care in some locations. Gym memberships are available for a small fee, and a source in New York explains that UBS offers a $25 dinner allotment on weeknights, plus $20 for breakfast/lunch and $25 for dinner during the weekend, and car service or taxi after 8:30 p.m.

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Emphasizing diversity
UBS is extremely supportive of diversity initiatives, and insiders say there are several different company organizations aimed at minority groups within the firm. The co-head of my group is one of the highest-ranking women on Wall Street, an associate director brags. Theres a good percentage of women in my group and other groups, from what Ive seen. Insiders believe UBS is a true meritocracy, which means lots of opportunity for people of all backgrounds. An AsianAmerican employee calls UBS one of the most diversity-supporting banks on the Street, and recent hire notes that my class is very diverseracially, culturally, religiously, gender-wise and politically.

Pretty nice digs


Dress at UBS is upscale business casual, says one source, except when meeting with clients. Another employee enjoys wearing jeans on Friday and the no ties required [rule] on the trading floor. But shirts and ties are required for men during meetings, explains another source. When women have to meet with clients, they come to work in suits, or pants or a skirt with a sweater. Company headquarters in Stamford boasts the largest trading floor in the world, and sources give the rest of the building high marks as well, calling it very spacious and well lit. The floor itself is remarkably quiet for a trading floor. The acoustics are amazing. New Yorkers work in nice, comfortable offices with good space. Conference rooms are roomy, with top technology. Parts of the office, including the lobby downstairs, are currently being redone, adds a source in New York.

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Close contact
Employees enjoy great managerial relationships and daily interaction with superiors who are very focused on younger people and on growing the business. Managers respect the ability and value subordinates add to the group and greater firm, says a source. My manager sits directly across from me, an analyst adds. That means opportunities to sit in on meetings with her and ask her questions throughout the day. UBS training involves a rigorous 12 weeks in class, followed by weekly sessions with senior employees during the first year. An analyst says theres much attention on trainingbasic finance, accounting, bond math, economics, derivatives, etc. The firm brings in cross-product speakers to increase knowledge of both equities and fixed income products, and employees at all stages of their careers can take advantage of loads of e-learning and training facilities.

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PRESTIGE RANKING

Citi Institutional Clients Group


RANKING RECAP
Quality of Life #13 Selectivity #14 Training #19 Compensation #21 Best Employers to Work For Diversity #7 Diversity with Respect to Minorities #10 Diversity with Respect to Women #13 Overall Diversity #14 Diversity with Respect to GLBT

388 Greenwich Street New York, NY 10013 www.citigroup.com

BUSINESSES
Alternative Investments Corporate Banking Global Capital Markets Investment Banking Markets & Banking Transaction Services

THE STATS
Employer Type: Division of Citi CEO, Citi: Vikram S. Pandit CEO, Institutional Clients Group: John Havens Revenue: $10.5 billion* (FYE 12/07) Net Income: -$5.2 billion* No. of Employees: 310,000** No. of Offices: 7,500**
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KEY COMPETITORS
Goldman Sachs Lehman Brothers Merrill Lynch

*Markets and banking **Citi

UPPERS
Breadth of the company Incredibly smart people Great deal flow

DOWNERS
Inefficiencies across the bank because its so large Facilities really arent top notch Too much work, too little time

EMPLOYMENT CONTACT
www.careers.citigroup.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Very prestigious, strong player Poor management destroyed this firm Great deal flow and brand name recognition Massive layoffs spell problems

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THE SCOOP

A changing Citi
Citi previously divided its businesses into four lines: markets and banking, global consumer group, global wealth management and alternative investments. In October 2007, Citi made some significant changes to its structure, merging markets and banking with alternative investments to create one group called institutional clients. The realignment came on the heels of a 60 percent drop in net income for the third quarter of 2007. As many expected, Citis capital markets businesses suffered from slowdowns in the credit markets and losses linked to mortgage-backed securities. At the same time, Citi announced that Thomas Maheras, chairman and co-CEO of the old markets and banking group, would leave the firm. James Forese took his place as co-head of investment banking operations, alongside former markets and banking co-CEO Michael Klein. Meanwhile, Vikram Pandit, a former Morgan Stanley executive who joined Citi earlier in 2007 when the banking giant acquired his private equity and hedge fund management firm Old Lane Partners, was appointed chairman and CEO of the institutional client group. Two months later, Pandit moved up the organizational chart even further, becoming Citis CEO. Not long after, John Havens was named CEO of the institutional clients group and chairman of alternative investments. In December 2007, Pandit succeeded Charles E. Chuck Prince III as chief executive. Prince had resigned in November amidst concerns over the banks downfall in the third quarter. After revealing that Citi was taking a $5.9 billion write-down, Prince told a small circle of bank executives that he took responsibility for the losses and felt it would be better for Citi if he stepped down. Pandit was named Princes replacement after a brief search by the banks board. Before founding Old Lane, Pandit had served as president and chief operating officer of Morgan Stanleys institutional securities group (which included Morgan Stanleys investment banking, fixed income and capital markets businesses). Pandit had been previously considered a possible heir to John Macks throne at Morgan Stanley.

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Global reach
With operations in more than 100 countries, Citis widespread businesses include consumer banking and credit, corporate and investment banking, securities brokerage and wealth management. Its clients include consumers, corporations, governments and institutions; brands included under Citi include Citibank, CitiFinancial, Smith Barney and Banamex. The newly formed international clients group includes markets and bankingwhich advises institutional investors, governments and corporate clientand the alternative investments division, which manages capital on behalf of Citi itself, as well as highnet-worth individuals and institutional investors. Citi Alternative Investments works across five asset classes, including private equity, real estate, hedge funds, fixed income and infrastructure. The markets and banking division is further broken down into investment and corporate banking, which offers strategic and financial advisory services and securities underwriting and distribution; global capital markets, which includes equity and debt sales and trading, research, underwriting and structuring in all asset classes; and transaction services, which provides cash management, trade finance, treasury, custody, clearing, depository receipt, agency trust services and fund services.

See how it grew


Before his departure, Chuck Prince helped give his bank an image makeover: in 2007, he changed the brands name from Citigroup to Citi and reinvented the traditional red umbrella logo as a simple red arc. But the Citi sprawl was born a decade earlier, when Citicorpthe holding company for Citibank N.A.merged with Travelers Group, creating Citigroup. The merger combined Citibank (formerly First National City Bank), Travelers Corp. insurance, Primerica financial services, Commercial Credit Co. and Salomon Smith Barney, an investment banking operation. Upon its formation, Citigroup was helmed by Sandy Weill and John Reed. (Prince replaced Weill in 2003.) Citi can also boast a piece of

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U.S. banking history: its roots lie in the City Bank of New York, a commercial bank founded in 1812 by Samuel Osgood, the first commissioner of the United States Treasury.

Down in the fourth


In the fourth quarter of 2007, Citi reported a net loss of $9.83 billion, the result of $18.1 billion in write-downs on subprime exposure in fixed income markets and $4.1 billion in costs related to its U.S. consumer loan business. For the full year, net income was just $3.62 billion group-wide. Citis markets and banking division was hit with negative quarterly revenue due to write-downs and losses linked to mortgagebacked securities and the credit market crisis. The figures included write-downs of $17.4 billion on subprime-related direct exposures and lower revenue due to write-downs on non-subprime assets and losses in fixed income trading. (For the full year 2007, the fixed income markets division recorded negative revenue of $16.9 billion.) Some businesses fared well despite the storm: markets and banking reported strong revenue growth in interest rate and currency trading as well as commodities. Advisory fees were also up, increasing 43 percent over the previous year. Despite losses in the equity markets grouprevenue fell 18 percent due to write-downs and weak performance in derivatives and convertiblesequity underwriting revenue remained steady. When all the losses were totaled, for the full year 2007, markets and banking earned $10.5 billion, down from $27.1 billion in 2006. Its partner in the institutional clients group, Citi Alternative Investments, brought in $2.1 billion. Securities and banking activities resulted in earnings of $2.6 billion, down from $21.2 billion the previous year; transaction services contributed $7.8 billion, up from $5.9 billion. (For the sake of comparison, the global consumer groupCitis revenue cornerstoneearned $56.9 billion in 2007, while global wealth management brought in $12.9 billion.)
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Citi still saw a 17 percent increase in operating expenses for 2007. The bank attributed this figure to administrative costs linked to business development projects, but it also reflected a $370 million pre-tax charge related to layoffs.

Speculation continues
Citi laid off about 17,000 people in April 2007 in anticipation of losses in the second half of the year. And, in fact, its $9.83 billion fourth quarter loss was the biggest in Citis history. Shortly before that earnings report was made public, several media outlets reported that Citi was planning another large round of layoffs in an attempt to cut costs. And in January 2008, Citi did indeed announce that it was cutting an additional 4,200 jobs, and that its ultimate total number of layoffs could be close to 20,000 to 24,000. Two months later, the firm released plans to lay off an additional 2,000 workers. In a statement, Citi spokesman Dan Noonan said, Each year we identify the bottom 5 percent of performers in the institutional clients group, and some number of these people leave the firm. The reductions occurred worldwide, though most took place at the firms New York and London offices.

First quarter results


Citis first quarter results produced a loss of $5.1 billion, compared with a $5 billion profit for the first quarter of 2007. Its revenue figure wasnt much better, falling 48 percent from the first quarter of 2007 to $13.2 billion. Despite significant writedowns resulting in negative revenue for the markets and banking unit overall, there were some bright spots. The firms transaction services unit put up record revenue, growing 42 percent versus the same period a year earlier. In fact, all three subdivisions of the unitcash management, securities services and tradeproduced record revenue. Transaction services also put up record net income, booking $732 million. Along with its results, the firm announced a $622 million restructuring charge. Meanwhile, Citi CEO Vikram Pandit remained resolute that the firm would not break up, despite the fact that it will be dealing with billions more in mortgage-related write-downs in 2008.

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Closing time
In June 2008, Citigroup said it would be shuttering its struggling hedge fund Old Lane Partners, which had not yet reached its first birthday. As noted earlier, the fund, purchased by Citi for $800 million in July 2007, was co-founded by Citi CEO Vikram Pandit, who was estimated to receive $165 million from Old Lanes sale. Old Lane had suffered due to lower than anticipated returns and its top employees, such as Pandit, leaving the fund for bigger positions.

Topping the charts


Citi remained a major player on the banking league tables despite its earnings losses. According to Thomson Financial (now Thomson Reuters) the firm held on to its No. 1 ranking in global debt, equity and equity-related underwriting in 2007, working on 1,740 issues worth a total of $617.6 billion. It also ranked No. 1 in U.S. equity and equity-related issue volume, and took the top spot in both global and U.S. convertible stock underwriting. For the first six months of 2008, Citi also ranked No. 1 in global equity and equity-related underwriting, global common stock deals, U.S. equity and equity-related deals, and U.S. global common stock underwriting. In 2007, Citi also grabbed No. 1 rankings in several debt categories, including global debt, global asset-backed securities, global collateralized debt obligations, U.S. investment grade debt and U.S. asset-backed securities. Three seemed to be the magic number in M&A for 2007. Citi ranked No. 3 in worldwide announced mergers and acquisitions, working on 539 deals worth $1.15 trillion. This represented a 25.7 percent market share, just behind No. 1 Goldman Sachs and No. 2 Morgan Stanley. In U.S. announced M&A deal volume, Citi also ranked No. 3, again coming in right behind Goldman and Morgan Stanley. Citi worked on 239 announced deals worth $523 billion. Halfway through 20008, Citi put No. 3 behind it and jumped to No. 2 in worldwide announced M&A volume as well as in worldwide number of deals. It was also No. 2 in U.S. announced volume, trailing only perennial M&A leader Goldman Sachs.

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GETTING HIRED

Follow the targets


Citi recruits at a select number of schools, and engages in a long recruiting courtshipschool visits, informational interviews and phone callsbefore the first round even begins. Candidates at nontarget schools may have to do a number of informational interviews before getting to the recruiting process. According to one analyst, the recruitment process is extremely competitive and nearly impossible if you are from a non-target school. The firm is extremely selective, given the small size of its associate class, agrees another source. In terms of MBAs, Citi recruits at approximately 10 of the top MBA programs in the U.S., a recent hire explains. In addition, there are recruiting opportunities at conferences like the Women in Business Conferences, and the National Black and Hispanic Business Association Conferences. Sources say Citis target schools for MBAs and undergrads include top state schools and the Ivy League, but the list is reviewed every year. Once candidates make it to the recruiting rounds, they find a process that is very personality-based. Citis hiringmore than many financial institutionsfocuses on what kind of a fit the prospective employee will be within the firms culture, one insider says. As a result, those who form relationships with members of the business have a very good chance of getting in.

Q&A
For one woman, the road to a Citi job began with a number of firm-specific recruiting and networking events on campus. Next, I applied online through the firms web site in December and was invited to interview in early January. My first-round interview was with one vice president and one director. My second round interview was on site and consisted of three one-on-one interviewseach with one director and two managing directors. Others report having gone through five different interviews,

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each 30 minutes long during the second round. In general, sources say that the first round focuses on background and previous experience while the second round can delve into more technical issues. Each of the second-round interviews focused on something different, says a source. One was technical, and one was ethical. Another says some typical behavioral questions include Why do you want to work in [this division]? Why this firm? What qualities do you think make a good [employee in this division]? Another recalls queries like Tell me about a time when you were innovative and Why did you pick your school? Besides talking about leadership and analytical topics, the second round might also include technical questions like What is the market forecast for a given year? If you had $1 million, what would you invest in? And pick any stock and pitch it to me. In both rounds, sources say interviewers want to see enthusiasm.

The way to Citis heart is through an internship


A summer internship at Citi is a feeder into a full-time job, sources say. (One hired as a summer associate notes, Of 13 summer associates, 12 were asked to return full time the next year.) As a result, internships require a rigorous interview process. My interview for the internship was more difficult than my interview for full-time employment because it was my first attempt to enter the bank, one contact says. Some candidates who bypass Citis internship program say they have leveraged an offer from a rival firm into an offer at Citi. During the summer, sources say it is strongly encouraged to rotate through fixed income and equities as well as sales and trading desks. Doing so, youll get broad exposure to different products and to the sales and trading division, and this will help you network throughout the firm. One current employee admits of Citis internship, I was exposed to a great deal of work. I was doing project analysis the second week at the firm, working on a large client acquisition deal. Indeed, interns do all sorts of work, from modeling to data-digging. For this, they receive a prorated base salary of a full-timer. There are also opportunities to participate in training sessions and guest speaker sessions with the heads of the firm and various divisions, as well as worldrenowned professors and lecturers. One insider warns that candidates with other plans should decline an internship gracefully. Its important to be mature if you choose to turn down a summer offer, he says. If you leave a bad impression from summer recruiting, you will be crossed off for future consideration.

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OUR SURVEY SAYS

Find your way


Citis much like other investment banks on the Street, with late hours and the classic focus on the next deal. Insiders call it fast-paced and filled with smart, experienced and driven people. Its fairly collegial though at times is aggressive and very intense. The organization can be difficult to navigate when youre new, but provides a great network to leverage later in life. However, an analyst adds, Only those who get noticed move up. One woman cautions that a lot of layers of management can impact career trajectories. At an associate level, it doesnt honestly affect you that much, she says. Insiders say that internal rivalries between businesses can make the place a little political. You definitely need a mentor or strong supervisor to navigate some of the potholes, says a source. But ultimately, the highly energetic way of life creates a great environment for learning.

Some good, some bad


Employees experience with management, like the culture of the bank itself, depends on the group, but for the most part, analysts are treated very well. The managers who get high marks are really great and take care to develop you, while others view you as a resource and suffer from a lack of communication at times.

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Insiders say one perk is being given as much responsibility as you can handle, and most managerseven senior managementfollow an open-door policy. Very professional is how one contact describes superiors. There is a lot of focus on training and learning, he says, and subordinates can rely on their superiors to help them when needed. A woman agrees, saying her managers have found the right balance between wanting to stay in the loop, but also giving me room to do my own thing. While some insiders quibble that their initial training is too long, others laud it as some of the best in the industry. My friends at other firms call Citi analysts sometimes with questions, brags an analyst. As for informal training, it also depends on the group you are init could be great or nonexistent.

Tough hours
Sources say there are not as many perks as other firms, and give mediocre marks to compensation. Like so many in the banking industry, Citi employees are uncertain about their bonuses, given market conditions. However, Citi does offer discounted gym memberships, late night car service and meal allowance, discounts on local attractions, stock options, a 401(k) plan and investment opportunities. The work and hours can be grueling, insiders say. Its investment banking, so youre going to work a ton, an analyst explains. Even though the market is slower right now, youll still be working long hours. Many respondents say they put in weekend time, too. My default assumption is I will be working on the weekend, a contact admits. If I happen to not have work, that comes as a bonus. Most agree that its pretty bad as a first-year analyst, but the hours can improve dramatically later on. Plus, most employees have remote access, so while you may be working longer hours on certain days, you are frequently able to do so from home.
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United nations of Citi


The firms efforts at recruiting minorities have paid off. Citi might be more diverse than the United Nations, jokes one insider. Another agrees, saying that there are more ethnic minorities around here than at any other shop I know. Women have established themselves at Citi, too. One female respondent says the firm does an excellent job of recruiting women. I was initially attracted to the firm for their strong representation and presence at a Women in Business Conference, she says. And when I came to visit the offices, I was impressed with the number of women on the trading floor. However, the firm is less diverse on all counts as you move higher into senior management. The leadership at Citi is predominately male, estimates one woman. As for GLBT staffers, one source says, Although there are gay people at the office, I would call it a dont ask, dont tell culture. Still, adds another, Citi treats everyone equally, and cares more about their abilities to work with the team then it does their race, gender or sexual orientation.

Keeping it basic
Citis offices are nothing overly lavish, a New York source says. Theyre about what youd expect from an investment bank. Its wall-to-wall cubes, adds another. No use of color or art. The biggest complaint is that its HQ is a little bit old. However, at least its a good location if you dont want to be in the hustle and bustle of Midtown or Downtown. We are expected to dress formally, a source says, commenting on dress code. This is not the case in other parts of the firm. Business casual with a slight emphasis on more formal works in most divisions, though some still wear suits every day (and always when meeting clients). Insiders also note that Citi doesnt have casual Friday or casual summer policies.

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VAULT TOP 50

12
PRESTIGE RANKING

Chase Commercial Bank


KEY COMPETITORS
Bank of America Citi

270 Park Avenue New York, NY 10017 Phone: (212) 270-6000 Fax: (212) 270-2613 www.jpmorganchase.com

BUSINESSES
Chase Business Credit Chase Capital Chase Capital Placements Chase Equipment Leasing Commercial Real Estate Community Development Banking Mid-Corporate Banking Middle Market Banking

UPPERS
Relaxed environment Nice perks

DOWNERS
Can be bureaucratic Advancement needs to be more structured

THE STATS
Employer Type: Division of JPMorgan Chase Chairman & CEO, JPMorgan Chase: Jamie Dimon CEO, Chase Commercial Bank: Todd Maclin Revenue: $71.3 billion* (FYE 12/07) Net Income: $15.4 billion* No. of Employees: 4,000** No. of Offices: 2,300* *JPMorgan Chase **Chase Commercial Bank

EMPLOYMENT CONTACT
jpmorganchase.com/careers

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Top choice if you want to be a commercial banker Average Well runquality management One of the most prestigious, but behind Citi in this area

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THE SCOOP Commercial success


Headquartered in Chicago, Chases commercial banking unit employs over 4,000 professionals in 129 cities in 27 states. Its 30,000-plus clients include municipalities, nonprofits, corporations and financial institutionsfrom art galleries to Native American tribes to labor unions to major retailers. Generally speaking, its clients annual revenue ranges from $10 million to $2 billion. Chases commercial bank had a strong 2007, as its net income rose 12 percent versus 2006 to a record $1.1 billion and net revenue increased 8 percent to a record $4.1 billion. During 2007, Chase ranked No. 2 in both middle-market lending and asset-based lending, and it launched seven new offices, expanding its domestic footprint in Atlanta, Nashville, Philadelphia and Seattle, and its international reach in Vancouver, Mumbai and Singapore. According to the firm, it added more than 2,200 new banking relationships in 2007 through accelerated calling efforts and targeted marketing initiatives. Chases commercial bank falls under the umbrella of JPMorgan Chase, which boasts assets of more than $1.6 trillion and has operations in 60 countries. JPMorgan Chases world headquarters are in New York City, where it oversees six main business lines: investment banking, retail financial services, card services, treasury and securities services, asset management and commercial banking. The investment banking, private banking, asset management, treasury services, securities, private banking and private clientas well as the firms One Equity Partners unitoperate under the J.P. Morgan brand. In the U.S., its consumer and commercial banking businesses use the Chase brand. Chases commercial bank includes eight distinct businesses: middle-market banking, mid-corporate banking, commercial real estate,Chase Business Credit, Chase Equipment Leasing, Chase Capital, Chase Capital Placements and Community Development Banking. Middle-market banking serves companies with revenue of $10 million to $500 million, and the 600 bankers in this unit handle everything from credit to cash management to investment banking and wealth management services. Corporate clients with annual revenue over $500 million are served by the mid-corporate banking business, which provides traditional banking services and investment banking products. The commercial real estate business provides loans, deposits and cash management services to property investors and developers, and also helps arrange financing, debt and equity placement and other investment banking services. Chase Equipment Leasing provides equipment financing for commercial and corporate clients, state and municipal governments and nonprofits. Chase Business Credit provides structured asset-based financing, including loan structuring, syndication and collateral analysis, as well as collateral monitoring, field examination and loan servicing support, for both syndicated and sole lender transactions. Chase Capital provides subordinated debt and equity to finance growth, recapitalizations and turnaround situations. Chase Capital Placements helps clients access alternative sources of capital through privately placed subordinated debt and equity. Finally, Community Development Banking provides loans, investments and community development services to meet the needs of lowand moderate-income households and communities across the U.S.

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Permission to buy
When legendary financial institution Bear Stearns crumpled under the pressure of the credit crisis, JPMorgan Chase was standing by to pick up the piecesliterally. In May 2008, JPMorgan Chase announced that it had completed its acquisition of Bear Stearns; under the terms of the deal, each share of Bear would be converted into 0.21753 shares of JPMC common stock. Bears fall sent shockwaves through the banking industry, and U.S. regulatory agencies went to extraordinary lengths to smooth the acquisition effort and subsequent transitions. In July 2008, the Federal Reserve allowed JPMorgan Chase to purchase a $44 billion portfolio of derivative transactions and hedgesincluding Bear Stearns Forex and Bear Stearns Credit Productsfrom the remains of Bear Stearns, which it already owned. Under normal circumstances, a buy that big would be prohibited by rules governing asset sales between banks and their affiliate companies. The Fed also exempted JPMorgan Chase from regulations governing its transactions with Maiden Lane, a limited liability company constructed with the New York Fed to hold some of Bear Stearns assets.
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Chasing history
A look at JPMorgan Chases predecessor institutions reads like a whos who of American banking history: todays financial services giant grew from roots in J.P. Morgan & Company, Chase Manhattan, Manufacturers Hanover, Chemical Bank, Bank One, the National Bank of Detroit and First Chicago. Its earliest predecessorthe Chemical Bank of New Yorkwas formed in 1824, but the JPMorgan Chase of today began its evolution in 1991 with the merger of Chemical Banking Corporation and Manufacturers Hanover. The tie-up created Chemical Bank, then the second-largest bank in the U.S. Another big merger took place in 1995, when National Bank of Detroit and First Chicago combined, giving birth to a mega-regional bank called First Chicago NBD. Both Chemical and First Chicago underwent even bigger transformations a few years later: Chemical merged with Chase Manhattan to create the countrys largest bank holding company in 1996, and in 1998, First Chicago joined Banc One Corporation to form the Bank One Corporation. The Morgan and Chase names became linked in 2000, when J.P. Morgan & Company formed J.P. Morgan Chase in a merger with Chase Manhattan. The last piece of the puzzle was completed in 2004, when Bank One and J.P. Morgan Chase finalized their merger. When the deal wrapped, J.P. Morgan CEO William B. Harrison passed the torch to current CEO Dimon, who had been the CEO of Bank One. Dimon was named president in 2004, taking on the roles of chairman and CEO at the beginning of 2006.

Whos next?
According to a CNBC report in July 2008, soon after JPMorgan Chase completed its purchase of Bear Stearns, it set its sights on a new acquisition target: Wachovia Corporation. According to the reportbased on information from JPMorgan Chase insidersWachovia had become an attractive option for JPMorgan Chase, in part because the Charlotte, N.C.-based bank had been struggling to survive. Like Bear Stearns, Wachovia is a well-known name that fell on tough times in the first half of 2008, the result of its staggering exposure to bad mortgages. By June 2008, Wachovias CEO, Ken Thompson, was dismissed from his post, leading to speculation about a takeover. Although analysts were quick to point fingers at JPMorgan Chase as a potential buyer, thered be some challenges to overcome: most important, U.S. laws forbid any bank from controlling more than 10 percent of the nations deposits. JPMorgan Chase controls 7 percent of U.S. deposits, and Wachovia holds 6 percent, which would put a combined entity over the federal cap.

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Parent slides, commercial unit soars


JPMorgan Chase reported a 53 percent decrease in net income for the second quarter of 2008, booking $2 billion versus the $4.23 billion it recorded in the second quarter of 2007. Revenue for the quarter also declined, dropping to $18.4 billion from $18.91 billion. However, Chases commercial banking unit had a very strong quarter, as its net income rose 25 percent versus the second quarter of 2007 to $355 million. The units revenue also increased, rising 10 percent to a record high $1.1 billion, thanks in part to healthy increases in middle-market banking and mid-corporate banking revenue.

GETTING HIRED Sell yourself


Chase is very selective when it comes to hiring, only bringing in individuals who are highly qualified and have great skills. Indeed, the effort they put into the process showsthey screen well and they have a return of reliable and hardworking people. One such source says the process consisted of a pre-interview dinner with senior bankers and one interview with two senior bankers at my school. The questions the firm likes to ask are largely behavioral in nature, such as give me an example of when you were a leader, describe how youve worked in a team environment and name three things you like and dislike. You may also get asked questions regarding what classes youve taken. They asked me a wide range of questions, explains a

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source, from working in teams to ideas on how to improve the bank from an outsiders perspective. Occasionally theres also one written test and one group activity observed by the managers.

Fit in
Expect at least three rounds of interviews that will help determine candidates who have the best fit. So always remember to be prepared to discuss what the firm does and how your department contributes to the firms bottom linethe answer is not always a financial one. Questions might target your skill and ability to deal with the scope and complexity of the diverse enterprises that make up the firm. Interviewers want to partly know if youre good at your jobbut more importantly, they want to know if you can function in the environment. But interviews arent necessarily hard or nerve-wracking and seem based largely on fit. I was asked about my motivations, knowledge of the banking industry, and why I chose to attend the university I did, reports one insider. You may also be asked is money or enjoyment more your objective in this position?

OUR SURVEY SAYS Relaxed, but not on ethics


Chase, insiders say, provides a highly ethical, very relaxed, very open great environment with a flat structure. All the employees are helpful and treat everybody with respect. Workers at the firm get the work done when they need to get it done, but they try to have fun and interact with other people while doing it. Youre also given responsibility early in your career within a flat structureyou can go into anyones office and ask them for help. And the firm trims the fat where it canwe are goal-oriented to cut costs and achieve results while being a diverse firm that provides the best financial services.
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Layer after layer


Insiders report mixed feelings regarding management. One insider says there are too many layers of management, although he concedes that it is easy to see how unproductive the bureaucracy can be. Another contact concedes that in the nearly five years Ive worked at Chase, Ive reported to 12 different managers, but adds that you have to embrace change and get used to the manager shuffle that goes on there. And while there are also people there who have managed to hold onto the same position and job for long periods of time, even they cycle through many managers. But there is also constant team-building throughout the firmnot just managers paying lip service to corporate mandates. Managers were flattered when you reached out to them, one insider. Expect to work mixed hours, too. Although most employees leave at 5 p.m., there is a strong group of people who stay late. In spite of this, hours are flexible and many work from home on Fridays. Mostly, as long as you get your work done and make your meetings, its not mandatory to be in the building. (Of course, if your team worked with a remote group in India, you would need to be at work by 8:30 for conference calls, but if you are not working with a remote team, it would be very feasible to show up at 10.) For the most part, the dress code is a generally business casual one when client meetings arent involved, where slacks and a button-down become many employees standard dress. Depending on the department, however, some would go quite casual with dark tennis shoes and rolled up sleevesbut most stick with the standard.

Hear it through the grapevine


As far as advancing goes, opportunities happen pretty much through the grapevine. You get to know people and they ask your superior if they could acquire you for their team. Meanwhile, salaries and perks receive high marks from insiders. The pay is, in my opinion, exceptional, says one insider. Employees enjoy the generous bonus plan, 401(k) plan and vacation time. The firm also offers free lunch on Fridays.

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Diversity is mandatory
Insiders call the diversity at the firm amazing. Diversity efforts put forth by Chase include mandatory group sessions that used large physical maps that included details like what the diversity mix will be in 2050, says one insider. Another contact adds that people from all races and socioeconomic levels work hand in hand at the firm.

The future
The outlook for the firm is strong, maybe because the firm is highly regarded. Chase is seen as the only bank lately that can add value to shareholders, says one insider. Indeed, its the only publicly owned bank that can utilize its size and strength to lend credibility in shaky times. Its also very well positioned relative to other banks suffering from credit write-downs and liquidity issues.

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13
PRESTIGE RANKING

Greenhill & Co.


KEY COMPETITORS
Credit Suisse Houlihan Lokey Morgan Stanley

300 Park Avenue New York, NY 10022 Phone: (212) 389-1500 www.greenhill.com

DEPARTMENTS
Merchant Banking Mergers & Acquisitions Restructuring

UPPERS
Hours are less than at bulge bracket firms Close-knit and team-oriented culture

THE STATS
Employer Type: Public Company Ticker Symbol: GHL (NYSE) Co-CEOs: Scott Bok & Simon Borrows Revenue: $400.4 million (FYE 12/07) Income: $115.3 million No. of Employees: 214 No. of Offices: 5

DOWNERS
Not as much formal training as at bigger firms Earnings potential is low unless youre a partner or managing director

EMPLOYMENT CONTACT
See careers section of www.greenhill.com
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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Very prestigious M&A boutique Works on much smaller deals Niche investment bank where you can learn a lot and receive a significant amount of responsibility Stronger in Europe than US

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THE SCOOP

Open book
In 1996, Robert F. Greenhill, former head of Smith Barney and former president of Morgan Stanley, struck out on his own and founded an eponymous boutique firm. The founder sat atop his profitable hill for 11 years, before stepping down from his CEO post in October 2007. Handing the reins to new co-CEOs Scott Bok and Simon Borrows, Greenhill said he would remain chairman of the firm. Greenhill calls itself a unique investment firm, and to be sure, it follows a model thats quite unlike the structure of its behemoth competitors. At Greenhill, independence is the guiding philosophybecause it is not part of a larger financial institution, the firm can avoid getting snarled in conflicts of interest (nor do its managing directors answer to anyone but themselves). Greenhills second rule is focus. It has no research, trading or lending divisions to distract from its advisory work. Thanks to the firms tiny size, it can also afford more transparency than most on Wall Street. In January 2007, Greenhill President Scott Bok told the press that theres no heated whispering about year-end bonuses at Greenhill. Instead, the firm writes a detailed memo that explains each managing directors bonus, and every MD receives a copy of the memo. Its a strange policy, Bok admitted. But it works. Greenhill went public in 2004 but remains closely held by its managing directors. Many of these MDs are former Morgan Stanley bankers who knew Greenhill during his 30-year tenure there. The firm is headquartered in New York, with additional offices in Dallas, Toronto, London, Frankfurt and San Francisco.

Cross-border expansion
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Greenhills first acquisition came in June 2006 when it bought Beaufort Partners, a Canadian independent advisory boutique launched in 2005 by former bankers at Morgan Stanley and Goldman Sachs. Initially, Greenhill and Beaufort discussed embarking on some kind of joint venture, but decided an acquisition would do just as well. Beauforts five partners had close ties to several Greenhill partnersmany of whom also began their careers at Morgan Stanley or Goldman Sachs. After the deal, Beauforts Toronto office became a Greenhill outpost. October 2006 brought more international expansion when Greenhill hired Brian Phillips, a veteran of Legal & General Ventures, to head its newly created European merchant banking business. This business, based in London, is affiliated with Greenhills private equity arm in the U.S., called Greenhill Capital Partners (GCP). In 2005, GCP raised $875 million for its second fund; it focuses mainly on midsized investments in the energy, telecom and financial services sectors. In late 2006, Greenhill boosted its Nordic business, hiring Leiv Nergaard, chairman of Norwegian insurance company Storebrand, as a senior advisor for the region.

King of retail
In January 2007, Greenhill made a major hire. Richard M. Steinman, former head of global retail atyou guessed itMorgan Stanley was brought in as a managing director. During his 17 years at Morgan Stanley, Steinman worked on some of that firms biggest deals, advised May Department Stores on its $17 billion acquisition by Federated Department Stores, and Sears Roebuck on its $11 billion acquisition by Kmart. At Greenhill, Steinman works in New York as part of the firms retail sector advisory practice.

Just keeps getting better


During the third quarter of 2007, while other banks were struggling to stay afloat in the wake of the credit crunch, Greenhill was putting up great numbers. For the three-month period ended September 30, 2007, Greenhills revenue grew 39 percent versus the previous years third quarter and net income more than doubled from the same period in 2006. According to The Wall Street

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Journal at the time the earnings were releases, Though those results reflect deal assignments secured in the good old days before the current credit crunch stopped the leveraged-buyout boom in its tracks, [Chairman Bob] Greenhill says the firm is positioned to benefit from an increase in corporate takeovers. Motley Fool had another theory about why Greenhill has such a successful third quarter, noting, Greenhills closed transaction list for the quarter is almost entirely made up of foreign deals, with a heavy concentration in Europe. This isnt a new development for Greenhillthe firm has always been strong around the world but its a point worth emphasizing as a questionable economy weighs on expectations for the M&A market in the U.S. The firm didnt disappoint in the fourth quarter, and finished the year well in the black. Net income grew by 51 percent versus 2006 to $115.3 million and total revenue rose 38 percent to $400.4 million. Advisory revenue, Greenhills bread and butter, grew by 75 percent during the year, helped by the firms work advising Fortis on its joint takeover of ABN AMRO, which was the biggest M&A deal of the year. The deal also helped Greenhills performance on Thomson Financials 2007 banking league tables. Greenhill jumped nine spots in U.S. announced M&A deal volume in 2007 to No. 16, advising on 14 deals worth a total of $45.1 billion. Greenhill made even bigger strides worldwide. In global announced M&A, the firm came in at No. 16, an impressive 10-place improvement from 2006.

Big-time deals
Indeed, Greenhills renowned advisory teams had a hand in some noteworthy transactions in 2007. The first weeks of 2007 wrapped The Blackstone Groups purchase of Greenhill client Cardinal Health, for $3.3 billion. In June, the Greenhill provided oversight of the process and an informal second opinion to the senior management of Slough Estates in its $2.9 billion sale to Health Care Property Investors. That same month, the firm advised Tesco on its $448 million acquisition of Dobbies Garden Centres. In July, Greenhill acted as the sole advisor to IHOP Corp. when it bought Applebees for $2.1 billion. In August, the firm advised Central Lewmar on its $185 million sale to International Papers xpedx distribution business. In November 2007, Greenhill wrapped things up on its advisory role to the Kogan Family, on the $203 million sale of Oakland Mall, a regional shopping mall in Michigan.

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A plan for restructuring


While Greenhills M&A advisory is its claim to fame, the firm signaled its intent to ramp up its restructuring advisory practice in February 2007 when it hired Martin F. Lewis as a New York-based managing director. Lewis, a former MD at The Blackstone Group and a founding member of Miller Buckfire Lewis & Co., was hired away from his most recent post at the Rhone Group. A veteran financial restructuring expert, he has been charged with expanding the scope of Greenhills restructuring advisory practice. As CEO Robert F. Greenhill noted, a focus on restructuring advisory will serve as preparation for when the economic cycle turns. By the beginning of 2008, the economic tides had indeed turnedand not in favor of investment banks that are largely dependent on merger advisory fees. Boutique firms could feel the pain more sharply if merger activity continues to be sluggish in 2008, according to The New York Times. However, strategies like Greenhills, to beef up restructuring practices, could be right on target. On the other hand, they may be able to compensate by advising troubled companies through their restructuring arms, said the Times.

Wild West
Greenhill announced plans in January 2008 to open its sixth office, and its first on the West Coast. The firm named Andrew Woeber, another ex-Morgan guy, as a managing director, charging him with opening a new office in San Francisco. Woeber has been an investment banker at Morgan Stanley since 2000. Prior to that, he worked in mergers and acquisitions at Merrill Lynch and was an attorney with Cravath, Swaine & Moore. In an article about Greenhill opening a San Fran outpost, The New York Times notes, With the opening of its San Francisco office, it will gain its first beachhead on the West Coast, possibly opening the door to more tech-related advisory work.

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$400 million blank check


In February 2008, the Greenhill-founded GHL Acquisition Corp., a special-purpose company (also called a SPAC or blank check company), raised $400 million in an initial public offering. Greenhill, which plans to buy stakes in U.S. and European growth companies through GHL, has a 20 percent interest in the firm. Scott Bok, Greenhills co-chief executive, is GHLs chairman and CEO.

GETTING HIRED

Sharp skills
Generally, the firm seeks out those with strong academic backgrounds and analytical abilities who have communication skills, leadership ability and teamwork orientation. Individuals interested in working for Greenhill can enter the firm as an analyst (full time or summer), associate or lateral hire. The full-time analyst program typically lasts two years, with strong performers offered the option to stay on for a third. And standout third-years may be offered an associate position. For analysts and associates, Greenhill offers a unique opportunity to work across the firms three groupsmergers and acquisitions, private equity investing and corporate restructuring. Interviews for the full-time analyst and associate positions typically take place during the fall, while candidates for summer positions usually meet with the company in February and March. Lateral hires can apply at any time and should send their cover letters and resumes to the appropriate offices e-mail address (for New York: nylateralhire@greenhill.com).

Best of the bunch


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As a small investment banking boutique, Greenhill is somewhat selective in its recruiting. In general, the firm looks for the best employees possible, says one source. Another notes that the firm looks for candidates at Harvard, Yale, Wharton, the University of Virginia and UT Austin. Expect many, many interviews if your resume passes muster. Says one source, I met with nearly every professional in the office I interviewed foreveryone from Bob Greenhill [the chairman] and Scott Bok [CEO and president] down to the analysts. The contact does admit that given how much bigger firm is now than when I started, you probably dot meet with everyone anymore. Another contact agrees that you should expect to meet with a bunch of bankers before getting the nod. The firm will try to get as many employees as possible to conduct interview, adding, The final decision always rests with the partners and managing directors. Speaking of managing directors, one says he went through five rounds of interviews to land his spot.

OUR SURVEY SAYS

Bring on the results


The firm receives high marks when it comes to the workplace atmosphere. Insiders characterize the firms culture as close-knit, conservative and team-oriented, as well as entrepreneurial and results-driven. In New York, young bankers can expect to experience tons of interaction with everyone in the office. One associate knocks the quality of this interaction. Generally speaking, unless you are quite senior, your opinions and views are rarely taken into consideration. He adds, Relationships with colleagues remain very professional in general.

So-so salaries
If youre not in the higher ranks of the firm, you may be in for some sticker shock when it comes to compensation, which receives average marks from insiders. One source says, Earnings potential is very low in this firm unless youre a partner or managing director, and limited stock options were allocated when the firm went public. The contact adds those options vest over a five-

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year period. As far as perks, the firm seems to provide all the basics, plus a little more. Explains one associate in New York, Theres a gym at the office thats stocked with workout clothesall you need to bring is sneakers. Additionally, he says, You get a $25 meal allowance and a free car service or taxi if you work late. And the company provides cereal for breakfast, free sodas and beverages, designer coffee and snacks. Another contact adds that theres equity participation for officers, and an associate points out that the modern New York office has a new floor and nice chairs and desks. As far as dress code, its banker blues and grays only, which means formal attire. Though, the firm does go casual on Fridays. One insider is happy to report that theres no face time. You only stay if youre busy. He adds, Hours fluctuate widely due to the small size of firmwhen youre working on something important, you work very hard, but when youre not, hours can be light. Another contact notes that hours are less than at bulge bracket firms. Most employees, from associate on up, report working between 60 and 70 hours per week, which usually includes one weekend office visit a month. Although theres not as much formal training [at Greenhill] as at bigger firms, its very adequate, says one young banker. In addition, he notes that theres lots of on-the-job training. Others, though, arent as pleased with the firms training practices, rating the firm well below average in this area. Diversity hiring practices also receive below-average marks. There are still not many women working here, says one source, but were very fair and ready to hire more.

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PRESTIGE RANKING

Barclays Capital
KEY COMPETITORS
Goldman Sachs Morgan Stanley UBS Investment Bank

5 The North Colonnade Canary Wharf London, E14 4BB United Kingdom Phone: +44-20-7623-2323 www.barcap.com

DEPARTMENTS
Commercial Paper Commodities Corporate Finance Advisory Ecommerce Equities Fixed Income Foreign Exchange Global Hedge Fund Services Indices Inflation Private Equity Research Securities Borrowing, Lending & Repo Syndications & Global Loans
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UPPERS
Managers are extremely nice and supportive Women share an equal standing and quite a few are in very important positions

DOWNERS
Culture can be hectic Household name abroad but lesser known in the US

EMPLOYMENT CONTACT
See careers section of www.barcap.com

THE STATS
Employer Type: Subsidiary of Barclays Bank PLC CEO: Robert (Bob) Diamond Jr. No. of Employees: 16,200 No. of Offices: 42

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Internationally known, respected Good in Europe; only a bond shop there Up and comer in the US So far, doing OK in credit crunch

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THE SCOOP

Fast riser
Barclays Capital is the investment banking arm of Barclays Bank PLC, a venerable London bank that dates back to 1690. The investment bank was created in 1997 to provide financing, risk management and advisory services to corporate, government and institutional clients around the world. It also offers foreign exchange management, capital raising, and equity and interest rate services. Although its younger than many of its peers, Barclays Capitals relationship with Barclays Bank PLC allowed it to grow at an astonishing rate: today it has offices in 29 countries and over 16,200 employees.

Homing in on the U.S.


At the January 2007 World Economic Forum in Davos, Switzerland, BarCap President Bob Diamond announced his intention to grow the firm between 15 and 20 percent a year for the next several years. Where will the growth be focused? In the United States, Diamond said, where we can still increase the scale of our business. He added that he planned to look at developing Asian markets as another place to expand, and noted that although he wasnt averse to the idea of future acquisitions, we have a lot of opportunity to grow organically. In recent years, BarCap has been building up its leveraged finance business. Now, Diamond says, the idea is to move from the best of the non-U.S. firms to being right up there with the best of the U.S. firms. Indeed, the investment bank with ineffably British roots seems poised to make a bigger splash in the U.S. In the early weeks of 2007, Barclays Bank PLC signed a $300 million marketing deal with the New Jersey Nets basketball team, a move intended to raise Barclays brand profile in America. The most visible part of the Nets deal thus far is the banks 20-year naming rights to
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the Barclays Center, the stadium planned for the sprawling (and controversial) Atlantic Yards development in Brooklyn, N.Y. Diamond described the naming rights as a clear statement that we are serious about building our business in the U.S.

Return to Russia
In 1998, a year after Barclays Capital was created, the bank abandoned its operations in the former Soviet Union. A widespread Russian debt default that year cost Western banks millions; BarCap lost about $489.5 million. But in February 2007, Barclays revealed that it was planning a return to the country. The firm hopes to avoid the arduous process of obtaining Russian bank licenses by acquiring existing, small-scale banks in the country and conducting its operations through them. Although Barclays is starting with a retail branch network, the project will open the door to future investment banking work in the new Russian economy. In July 2005, Barclays Bank PLC purchased a 53.9 percent majority stake in Absa Group, South Africas largest consumer bank. The 2.6 billion deal represented the largest direct foreign investment in South Africa, and as a result, the Johannesburg-based Absa Capital (Absa Groups investment bank) was integrated with Barclays Capitals operations.

More equity in Asia


BarCap made a significant investment in its prime services business in February 2007 when it signed a partnership agreement with Orc Software, the worlds foremost provider of technology for advanced trading, market making and brokerage. Under the terms of the agreement, Orc clients (including global hedge funds, broker-dealers and corporates) will be able to trade securities directly with Barclays Capital via the Orc ExNet platform. The initial system will allow trading of Asia-listed equities, but BarCap says it will soon grow to include all exchange-traded products, including futures and options. The project is overseen by BarCaps 150 prime services professionals in New York, London, Hong Kong, Singapore and Tokyo.

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Table topping
On the 2007 Thompson Financial (now called Thomson Reuters) investment banking league tables, the firm was ranked No. 8 in global debt, serving as book runner on 960 deals worth a total of $352.8 billion. In U.S. debt, BarCap jumped a whopping seven slots to No. 3, just behind giants JPMorgan and UBS, book running on 216 deals worth $65 billion.

Winning environment
BarCap closed out 2007 with a slew of awards. Environmental Finance and Carbon Finance magazines named BarCap the best trading company in the EU Emissions Trading Scheme for the second consecutive year. Also in 2007, BarCap was named Most Innovative Trading Room at Waters magazines Third Annual American Financial Technology Awards, which honor achievements in financial IT. In addition, the firm won two House of the Year awards from IFR magazine: Covered Bond House and Commodity Derivatives House. Structured Products magazine gave BarCap two 2007 awards as well: Structured Products House of the Year-Asia and Structured Products House of the Year-Europe. Meanwhile, Derivatives Week handed BarCap three awards: Global Derivatives House of the Year, Credit Derivatives House of the Year and Structured Investment Distributor of the Year.

Lots of late nights


While BarCap was busy growing its upper ranks, bottom line and trophy case, its parent, Barclays Bank PLC, spent most of 2007 embroiled in a battle for Dutch bank ABN AMRO. In March 2007, ABN AMRO revealed that it was in exclusive merger talks with Barclays. According to an ABN AMRO press release, a merger with Barclays would create a U.K.-incorporated holding company with a primary listing on the London Stock Exchange and a secondary listing on Euronext Amsterdam.
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As closed-door discussions continued, more information about a potential ABN AMRO/Barclays tie up hit the press. Barclays was said to have $80 billion on the table, but a pending U.S. Justice Department investigation at ABN AMRO was considered a major roadblock to the deal. Although the exact nature of the investigation was not revealed, ABN AMRO had been fined $80 million in 2005 for violating U.S. money-laundering laws and sanctions against Iran and Libya, and it was widely assumed that the criminal probe was linked to these violations. Barclays also said that if it took over ABN AMRO, it planned to eliminate hundreds of investment banking jobs as part of an effort to cut 3 billion in costs at the Dutch bank. While Barclays and ABN AMRO negotiated, a new twist took place in April 2007. ABN AMRO confirmed that it had received a joint letter from a consortium made up of the Royal Bank of Scotland (RBS), Banco Santander and Fortisan invitation to start exploratory merger talks. ABN AMRO was tight-lipped about the possibilities, but confirmed that its managing and supervisory boards would consider the letter carefully, in line with their responsibilities while continuing talks with Barclays. The three-bank consortium ultimately offered about $90 billion for ABN AMRO$10 billion more than Barclays was offering. Before Barclays stepped forward, RBS had been seen as a likely buyer for ABN AMRO. In October 2007, Barclays withdrew its bid for ABN AMRO, and the RBS-led consortium went on to purchase the bank. Barclays received breakup fees of 200 million from ABN AMRO.

Subprime mortgages bring troublesand new heir-apparent


In January 2008, BarCaps Co-President Grant Kvalheim resigned from the firm, and his Co-President, Jerry del Missier, who has been with the firm since 2005, was named sole president. The move came two months after the company announced 1.3 billion in write-downs due to the subprime crisis plaguing numerous banking firms.

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GETTING HIRED

Friendly folks
True, Barclays interview process is a very selective, very difficult one, but you can also expect very friendly interviewers, insiders say. Candidates need to meet the personality the firm is looking for, proving that they have the right skills and talents. The firm puts candidates through a relatively long and challenging selection process. Only once a candidate has passed through several rounds of scrutiny can one expect to receive a job offer. And the candidates who do get asked in for interviews must be a fit with Barclays corporate culture in addition to having the technical skills required. You may be asked behavioral/fit-type questions, too, so be prepared. Insiders have also reported being asked about experience in previous positions and general question like Why are you leaving your current job? Also, make sure youre able to put a good spin on your departurethe firm likes to ask questions about the most and least enjoyable part of your previous work. Overall, interviews are pretty painless. We had some interesting discussions, enthuses one contact. And at the end of interview, you can ask any questions to the interviewer. As for school preferences, Barclays targets more than 30 schools but mostly top-tier graduate and undergraduate schools, such as NYU, Cornell, Penn, Princeton, Duke, Columbia, Dartmouth, Carnegie Mellon, Chicago, Boston College, Colby, Georgetown, Rutgers, UVA and MIT. If you are not from a target school, says an insider, its extremely difficult to get in the door, especially if you dont know anyone within the bank to refer you. Still, sources note its not impossible to get hired from a midrange school.

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On the same level


One intern recalls that workers treated me more like an employee than an intern and found his internship to be worthwhile, saying, I was never asked to do any of the typical intern activities like getting coffee or ordering lunch. He also reports going beyond my assigned tasks and getting to learn quite a lot, including how exactly securities are acquired and structured. Still, the firms summer internship program is what you make of it. One insider recommends taking advantage of the time meet with senior management, talk to them about possibilities to move around once you are hired full time and prove that the firm should hire you. The compensation for interns is competitive with other firms on the Street. One insider notes, My internship really helped to receive the job offer.

OUR SURVEY SAYS

Good people
Insiders report that Barclays is a good company to work for and a very pleasant experience. This might partially be because its a British company and, therefore, not as aggressive as it American counterparts. Just be prepared to work. Since it is a growing company, the work culture is hectic and employees are generally involved in enhancements and process improvements rather than just business as usual, admits one insider. Even so, innovation is encouraged. Hours spent at the firm tend not to be hectic. Working hours are what you would expect at any investment bank, but there are not too many long days. Another insider agrees that hours are not too bad, adding, You still have a life.

Lean on them
Management receives high marks from respondents, who call higher-ups extremely nice, supportive and always ready to help. Basically, you can meet anyone you want to meet, and they are all helpful. Offices receive high marks from insiders

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as well, as does the company dress code, which contacts describe as smart casual, meaning you can leave the top hat and tails at home.

Equality in action
Diversity within Barclays is huge and encouraged, which might be why people from all over the world work together within the company. The firm is an equal opportunity employer and its proven it from the new hires and the promotions. Insiders describe the company as a true melting pot, saying there are people from virtually everywhere with no predominance. Women, too, share an equal standing and quite a few are in very important positions throughout the firm.

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15
PRESTIGE RANKING

Rothschild
UPPER
Easygoing workplace

Rothschild North America 1251 Avenue of Americas, 51st Floor New York, NY 10020 Phone: (212) 403-3500 Fax: (212) 403-3501 www.us.rothschild.com

DOWNER
Not as well known in the US as it is overseas

BUSINESSES
Asset Management Investment Banking Real Estate

EMPLOYMENT CONTACT
www.us.rothschild.com/careers

THE STATS
Employer Type: Private Company Chairman: Baron David de Rothschild No of Employees: 72 (US) No. of Offices: 2 (US)

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Classic European boutique Great in Europe, third-tier bank in US White shoe, relationship-focused bank; good experience, a door-opener Strong M&A and restructuring, but prestige is not as strong as it should be

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Vault Guide to the Top 50 Banking Employers 2009 Edition Rothschild

THE SCOOP

The big independent bank


Londons N.M. Rothschild Group is the worlds largest independent merchant and investment bank, owned for more than 230 years by the Rothschild family. Its investment banking division is simply called Rothschild, and Rothschild North America is its operation in the U.S. and Canada. Rothschild North America has U.S. offices in New York and Washington, D.C., and Canadian locations in Toronto and Montreal. Its services are divided among three business lines: investment banking, asset management and real estate. The investment banking division works in tandem with the Rothschild global network on cross-border deals and services for multinational clients; its expertise includes mergers and acquisitions advisory, restructuring, private placements and project finance. Asset management is provided by Rothschild Asset Management, an independently operated business unit with headquarters in New York City. Founded in 1970, Rothschild Asset Management manages more than $5.6 billion in assets for its clients. These include corporations, endowments, foundations, health care organizations, public pension funds and Taft-Hartley plans. Finally, Rothschild Realty has $800 million under management through Five Arrows Realty Securities, a family of funds established in 1996. Aimed at institutional investors, as of late 2007 these funds had invested over $1.2 billion in 19 public and private real estate operating companies.

Stellar pedigree
The Rothschild family tree is renowned for its deep roots and its legacy of luxury. Mayer Amschel Rothschild opened an eponymous financial firm in Frankfurt in 1769, and soon sent his sons to London, Paris, Vienna and Naples to establish branch offices. As their business grew, the Rothschilds developed the fastest courier operation in Europe (the better to send current market information between their banks). The familys success in finance paved the way for a classy lifestyle thats been handed down through the centuries: the Rothschilds also operate private vineyards and oversee several estates crammed with fine art and famous architecture. But instead of abandoning banking for fine wine or expensive art, Mayer Rothschilds descendents have kept a tight hold on the family business. Today, the N.M. Rothschild Group has 40 offices in 30 countries, providing investment banking, corporate banking, private banking and trust services to governments, individuals and corporations around the world.

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Mid-market skills
In the second half of 2007, Rothschild advised global industrial manufacturer Tecumseh Products Company on the $220 sale of its Fasco business unit to the Regal Beloit Corporation, and counseled French nuclear power company Areva on its $2.5 billion bid for UraMin Inc., a South African uranium exploration firm. According to Thomson Financial (now Thomson Reuters), Rothschild placed No. 10 in 2007 global announced mergers and acquisitions, advising on 390 deals worth $566.1 billion. The firm also ranked No. 10 in worldwide completed M&A with 329 deals valued at $354.1 billion. These positions were up one spot from Rothschilds 2006 ranking at No. 11 in both announced and completed mergers and acquisitions. In the United States Rothschild ranked No. 25 in announced transactions, with 82 deals worth $31.3 billion. In completed U.S. M&A it ranked No. 20, advising on 75 transactions worth $46.9 billion. Based on imputed fees, Rothschild dominated the mid-market M&A market in 2007. It ranked first for deals with values up to $50 million, $100 million and $200 million, and for transactions valued at $500 million and up Rothschild took second place, just behind Goldman Sachs.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Rothschild

End of an era
In 1996, Rothschild teamed with Dutch bank ABN AMRO to form a global equity markets joint venture, ABN AMRO Rothschild. The project came to a halt in December 2007 following the 99.1 billion takeover of ABN AMRO by a banking consortium led by the Royal Bank of Scotland. Apparently the Royal Bank never intended to keep ABN AMRO Rothschild aliveas soon as the consortium gained control of ABN AMRO, it began reducing headcount in the Rothschild joint venture. By the time its demise was announced one month later, RBS had already laid off half of ABN AMRO Rothschilds staff. Before its shuttering, ABN AMRO Rothschild had ranked among Europes top-10 equity underwriters, and had completed deals worth $7.6 billion in 2007. According to a joint statement from the two banks, ABN AMROs equity capital markets activity would be completely absorbed into RBSs global banking and markets division. For its part, Rothschild said its ECM team would continue providing research, advisory services and execution support to issuers. Many analysts speculated that Rothschild will seek a new partner for its equity business in 2008, so it can continue its work as an underwriter.

Nice deals, pricey egg


Rothschild landed a plum assignment in November 2007, signing on to advise Icelandic retail conglomerate the Baugur Group on its proposed bid for Saks Inc., the American luxury retailer. Baugur pulled other international advisors into the deal, including Sir Tom Hunter, a Scottish billionaire and entrepreneur, and New York-based investment boutique Financo Inc. Already a stakeholder in Saks, Baugur was said to be considering an offer in the $3.7 billion to $4.3 billion range. Also in November, Rothschild was hired by New Jerseys Tekni-Plex Inc., a global manufacturer of PVC polymers, as the company considered possible sales, divestitures, debt refinancing and restructuring options. The Rothschild name made news again in fall 2007, but this time it wasnt for a banking deal. For over a century the Rothschild family had owned a pink Faberg eggknown simply as the Rothschild eggbut had refused to sell it. In November, for reasons the family chose not to disclose, the egg was put up for auction at Christies. After only 10 minutes of bidding it was sold to a private Russian bidder for the record-setting price of $18.5 million.

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Win, win, win


At the January 2008 Acquisitions Monthly Awards ceremony, held in London, Rothschild picked up three major awards: debt advisory firm of the year, Germany mergers and acquisitions advisor of the year and health/pharmaceuticals sector advisor of the year.

GETTING HIRED

A little bit of everything


The company looks for a variety of candidates to fill their openings listed on its web site. Rothschild North America recruits undergrads and grads for mergers and acquisitions, strategic advisory services, corporate restructurings, private placements, debt capital markets and project finance. For its two-year analyst program, Rothschild says it considers candidates from all disciplines who have demonstrated both academic achievement and extracurricular excellence. More specifically, the firm is looking for applicants with a high degree of maturity and self-confidence who are highly motivated and have strong analytical, writing and communication skills, and computer literacy. Interested applicants should send a covering letter explaining why they feel career with Rothschild would be of benefit to you and to us. Those chosen to be interviewed will go through a first round of questioning on campus and a second round consisting of four to five interviews with VPs, MDs and potentially a vice chairman, in which youll be asked mostly fit questions and a few technical questions, covering finance and economics.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Rothschild

Rothschild looks for associates who hold an MBA or equivalent advanced degree. The firm wants candidates with strong analytical skills, good grades, polished written and verbal presentation skills, and leadership and teaching skills. In addition, the firm hints that its looking for speed. Rothschild says to succeed as an associate youll need to be able to think on your feet and be able to move quickly from one priority to another.

Strap on those boots


In Europe, Rothschild starts out undergraduates in a training program. Following the six-week boot camp, analysts spend short placements in M&A, debt capital markets and equity capital markets. This phase of the analyst training involves live work and the chance to gain invaluable hands-on experience. Ultimately, new hires will be placed into a specific group based in part on their preference. Rothschild says its looking for recruits who are good team leaders and good team players. The firm is also seeking good communicators with strong numerical skills, and proficiency in Excel, Word and PowerPoint.

Pick your position


Rothschilds internships are divided into long term, summer and gap year categories on its web site. For those still in college, the firm offers a summer internship program in one of four cities in the U.K.London, Birmingham, Manchester and Leedsas well as in France, Germany and Italy. Undergrads interested in the internship program can apply online. Interns should be individuals still in full-time education who are considering a career in banking or investment banking. Those seeking positions in France, Germany and Italy must be fluent in the local language. The firm says interns will spend [their] first week in a training course in London. Subjects covered include financial analysis and accounting, computer training and data research tools, as well as an introduction to our London office and the city of London. After finishing training, interns will be placed into a specific group and will be expected to work on live transactions and marketing projects, assisting in the research and analysis of different companies and sectors. Insiders report that an internship with Rothschild is fairly typical. One source says, There are no major differences from what you would be doing in other banksresearch, Excel, writing notes, etc.

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OUR SURVEY SAYS

Shiny happy workers


For the most part, there arent any complaints when it comes to the workplace culturein fact, employees seem downright blissful. Rothschild North America has an easygoing work environment, and employees work on small deal teams with great people, receiving very good international deal exposure. On the whole, people are happy and work hard, but hours are normal for investment banking analysts in New York. Many second-year analysts stay on for a third year, says a contact, which is a very good indicator of analyst quality of life. The respondent opines that Rothschild has a high analyst retention rate relative to its peers. Those who land an analyst job with Rothschild should expect to undergo an intensive six-week training program, which includes schooling in everything from basic accounting and capital structures to valuation and M&A modeling. Salary is very competitive, and perks include an in-office chef who serves breakfast and lunch, free Treo phones, dinner allowance, free car service, a two-week trip to London, 401(k), insurance and three weeks vacation.

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Bear Stearns*

In March 2008, things went from bad to worse for Bear Stearns. Facing collapse, Bear received a temporary reprieve when JPMorgan Chase & Co. and the New York Federal Reserve moved in to provide the firm with emergency funding. Bear, whose shares immediately fell 53 percent on the news, said that its financial situation had significantly deteriorated after it fell prey to a cash shortage brought on by the credit crisis. But within a matter of days, Bears clients withdrew approximately $17 billion from the firm, leaving the 85-year-old Bear with no choice (other than claiming bankruptcy) but to sell. And on Monday, March 16th, JPMorgan Chase announced it would be buying Bear for $2 a sharejust $236 million, or approximately 97 percent less than its value in only the previous week. To help finance the deal, the Federal Reserve agreed to provide JPMorgan Chase with about a $30 billion credit line, which The Wall Street Journal said was believed to be the largest Fed advance on record to a single company. The mood at Bear Stearns U.S. headquarters the day after its demise became public news was an expectedly solemn one, though there was a spot of humor mixed in, albeit of the dark variety. On the morning of March 17th, some Bear employees arrived to work to find a $2 bill taped to one of the buildings main entrances representing the firms$2-a-share buyout. Later, according to Reuters, one employee joked, Where is the $2 bill? I might need that tomorrow! A few months later, on May 29, 2008, in a meeting that lasted just 10 minutes, Bear Stearns shareholders officially approved the firms $1 billion acquisition by JPMorgan Chase (the backlash from Bear shareholders at such a measly per share offer resulted in the offer being raised to $10 per share.) Although Bear Chairman James Cayne said in a statement that the feeling behind the transaction was simply remorse and that there was no anger regarding the deal, others felt differently. According to The Wall Street Journal, shareholders expressed outrage that Cayne was not going to be suffering financially like a lot of other people within the firm. Other Bear employees turned their backs against the deal entirely, voting against the buyout with the intent of putting Bear in bankruptcy territory.
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*Acquired by JPMorgan Chase in May 2008

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Bank of America
KEY COMPETITORS
Citi Wachovia Corporation Wells Fargo

100 North Tryon Street Charlotte, NC 28255 Phone: (704) 388-2547 Fax: (704) 386-6699 www.bankofamerica.com

BUSINESSES
Global Global Global Global Business & Financial Services Capital Markets & Investment Banking Consumer & Small Business Banking Wealth & Investment Management

UPPERS
Good work/life balance Flexible hours

THE STATS
Employer Type: Public Company Ticker Symbol: BAC (NYSE) Chairman, President & CEO: Kenneth D. Lewis Revenue: $119.0 billion (FYE 12/07) Net Income: $14.9 billion No. of Employees: 198,000 No. of Offices: 6,100
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DOWNERS
Highly competitive culture Going through a rough spot as of late

EMPLOYMENT CONTACT
www.careers.bankofamerica.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Excellent commercial abilities Expansion into investment banking was a disaster Good reputation, but centered in the US only; given the upcoming recession, this could be very difficult for them OK, but too big; if they dont mess up, theyll be fine

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Vault Guide to the Top 50 Banking Employers 2009 Edition Bank of America

THE SCOOP

Americas bank
Not often is it good to be all things to all people. But Bank of America has managed to serve the needs of millions of Americans as the countrys first coast-to-coast bank. Second only to Citi in terms of worldwide assets, Bank of America boasts 59 million consumer and small business relationships, more than 6,100 retail banking offices, nearly 18,500 automated teller machines and more than 25 million active online banking users. Outside the U.S., Bank of America serves clients in 150 countries, and as of early 2008, BofAs client list included 99 percent of the U.S. Fortune 500 and 83 percent of the Global Fortune 500. In February 2008, BofA was added to the Dow Jones industrial average, the first change to the Dows composition since 2004. The bank serves its customers through three main business units: global consumer and small business banking, global corporate and investment banking, and global wealth and investment management (GWIM). BofAs corporate headquarters are in North Carolina, but most of its investment banking operations are centered in its offices in New York City. Despite recent restructuring and layoffs in the global corporate and investment banking division, BofA said it would continue with plans to build a new tower for its business in New York. The Bank of America tower, a 55-story, $1 billion skyscraper near Bryant Park in Midtown Manhattan, is was completed in early summer 2008.

Opportunity knocks
Now known by its tagline The Bank of Opportunity, BofAs roots go back to 1784 when Massachusetts governor John Hancock signed a charter for the Massachusetts Bank, one of the first three commercial banks in the U.S. More than 50 predecessor banks were eventually folded into the BofA behemoth. The company adopted the Bank of America name in 1988 when NationsBank acquired California-based Bank of America. Major recent mergers include the $47 billion FleetBoston deal in 2004 and the $35 billion acquisition in 2006 of credit card giant MBNA, which boasted more than 40 million accounts. Immediately after the MBNA deal wrapped, BofA became the largest credit card issuer in the U.S. More recently, in October 2007, BofA completed its purchase of LaSalle Bank Corporation. The $21 billion acquisition of LaSalle made BofA the largest bank by deposits in Illinois and Michigan, and added 17,000 commercial banking clients, 1.4 million retail customers, 400 banking centers and 1,500 ATMs to BofAs holdings. In May 2008, LaSalle branding was replaced with Bank of Americas at bank locations and ATMs. BofA saw one acquisition slip away in 2007, though. In April, the bank had announced it would buy a 24.9 percent stake in SLM Corp, better known as the student lender Sallie Mae. The $2.2 billion deal was supposed to close in late 2007, but because Sallie Maes outlook suffered in rough credit markets, the deal fell apart in December 2007.

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Credit collapse
While Bank of America was steadily growing its global markets and investment banking business, the market was slowly gearing up for a major downturn. The bad news finally hit hard across the financial services industry, and in the third quarter of 2007, Bank of America had a net income decline of 32 percent to $3.70 billion from $5.42 billion a year earlier. It also reported a drop in diluted earnings per share of 31 percent to $0.82 from $1.18. But the company took its biggest hit in its global corporate and investment banking division, which reported a 93 percent decrease in net income from $1.43 billion last year to a paltry $100 million this year. The decline was due mainly to write-downs in its global markets business. The firm took $607 million in trading losses, $527 million in losses related to mortgage and credit derivatives, and a $247 million write-down for leveraged loans. CEO Kenneth Lewis responded to a question on the third quarter conference call about the potential acquisition of an investment bank by saying, Ive had all the fun I can stand in the investment banking business at the moment. Bank of America moved quickly in response to changes in the market to reduce its investment banking capabilities. The company eliminated 3,000 banking positions, mostly within the business lending, treasury services, capital markets and advisory services

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Vault Guide to the Top 50 Banking Employers 2009 Edition Bank of America

and support services divisions. At the same time, Brian Moynihan, who had previously led the GWIM business, was tapped to succeed Gene Taylor at the head of BofAs global corporate and investment bank. Taylor, who had spent 38 years with BofA, agreed to remain on board as a temporary adviser to Moynihan to assist with the transition. Keith Banks, president of BofAs asset management business, took Moynihans place in the GWIM division. A strategic review of the capital markets and investment business concluded in January 2008, with BofA saying it would focus the divisions operations on areas of traditional strength. That meant reducing activities in structured products, especially risky collateralized debt obligations (CDOs); realigning overseas businesses to build on debt, cash management and trading; and selling off the equity prime brokerage business. This led to employment reductions of 650 in the global markets and global investment banking groups. Approximately 12 percent of BofAs capital markets and investment banking staff were affected. Lewis called the cuts a reaction to the realities of today and as far as we can see in the future. One week later, news spread that BofA cuts included a large number of securities stock analysts. Robert Morris, Institutional Investors top-ranked oil and gas analyst for six consecutive years, was among those who lost his job. John McDonald, Institutional Investors No. 2 large-cap bank analyst in 2007, was also let go.

A rough quarter
Immediately after announcing its restructuring, BofA had bad news for its investors: earnings in the fourth quarter of 2007 fell 95 percent, the result of $5.28 billion in write-downs related to mortgage-related losses. These write-downs reduced trading profits in the capital markets group by about $4.5 billion, and other income by about $750 million. BofA lost $400 million to struggling cash funds, which led to additional write-downs of $400 million linked to securities originally purchased from those funds. Market conditions also shook BofAs equity investment businesses, sending income down $750 million for the quarter.
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BofAs corporate and investment bank took a $2.76 billion loss in the fourth quarter, quite a slide from the $1.4 billion profit it booked in the fourth quarter of 2006. Earnings at the consumer and small business division were also down, falling 28 percent to $1.87 billion. However, the firm remained in the top 20 of few important investment banking league tables, according to Thomson Financial (now Thomson Reuters). BofA ranked No. 19 in global announced merger and acquisition volume, No. 10 in global debt, No. 10 in U.S. announced M&A, No. 10 in U.S. equity and equity-related underwriting, and No. 10 in U.S. IPO proceeds.

Countrywide on board?
In January 2008, BofA announced it would be acquiring the countrys largest mortgage lender, Countrywide Financial, for approximately $4 billion in stock. The price valued the troubled Countrywide at $7.16 per share, and under the terms of the deal, Countrywide shareholders would receive 0.1822 of a BofA share in exchange for each Countrywide share. In 2007, California-based Countrywide Financial had become a symbol of the American mortgage market collapse, as its foreclosure rate doubled, it recorded its first quarterly loss in 25 years and rumors flew that it was on the verge of bankruptcy. So why would BofA make the acquisition? For one thing, the bank already owned a 16 percent stake in Countrywide (BofA paid $2 billion for the share in August 2007), and part of its stakeholder rights was the ability to beat any other bid for the lender. In communications about the deal, BofA noted it will gain significant capabilities, including Countrywides proven distribution and technology operations. In addition, the merger will position BofA as a leader in the effort to help keep more Americans in their homes and ensure that more Americans have the opportunity to achieve home ownership. Although Countrywides subprime mortgage issues topped headlines, its core business is its loan servicing portfolio, in which revenue has remained steady (subprime-related mortgages only account for 10 percent of its portfolio). Analysts also noted that BofAs proposal was priced at a discount, and in 10 years, BofA could turn it into a profitable piece of its pie. The purchase is expected to close in July 2008.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Bank of America

GETTING HIRED

Casting a careful net


Clearly, we are very selective, declares one Bank of America contact. Still, there are several ways to get a foot in the door. BofA recruits at top-20 business schools for MBA candidates, and at top-20 universities for undergraduate applicants. The BofA web site maintains an up-to-date calendar of campus recruiting events; there is also an online application system called the Candidate Profiler, which is the first step for those who dont begin with a school career event. In the past, BofA recruiters have turned to places like Columbia, Wharton, Wellesley, Barnard, NYU, Harvard and Duke, sources say, as well as Clemson, Howard, Georgia Tech, Purdue, MIT, Arizona State, UNC, Florida State and Texas A&M. It was difficult to get a job at Bank of America, says one respondent, because at the time, my MBA school was not a core school that they traditionally recruited from. Adds another source in investment banking, For non-junior hiring, the process is driven by a teams need, and therefore can be very specific. We have narrowed our list of schools in recent years, one insider reveals. Overall, BofA is looking for students who are well rounded and intellectually curious. Yet one non-campus applicant says that after submitting my resume through the Bank of America web site, I was contacted by a recruiter and then quickly invited to a series of interviews that culminated in a job offer. A summer internship is another optionand its definitely much easier to get hired after completing the internship, a current insider says. Intern applicants must apply online, must be full-time graduate or undergraduate students and must carry a GPA of 3.0 or higher in a business or technical major.
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Gear up
The hiring process is a positive one, but it can also be disorganized, insiders report. Some describe it as an initial informal interview, others as a very lengthy and tricky process. Another source says the interviews are very relaxed, more like a conversation, and I was not asked any specific questions. It seemed more like they already knew they wanted to hire me and were just spending the requisite 45 minutes talking to me, confides one contact. Yet another interviewee says, Everyone was very social, personable and kind, and they treated me and all others with respect.

OUR SURVEY SAYS

Competing for balance


Theres a definite work/life balance at Bank of America, but its a highly competitive culture nevertheless. Still, its a great place to work thats extremely good to all its employees. Most insiders shrug off the occasional long hours, saying when they signed up they knew theyd be working bankers hours. Sources say some departments allow flexible hours and a very fair work structure. The dress code is another factor that varies by department and corporate title. Just expect to be polished and professional without necessarily having to wear a suit every day (unless youre in a client-facing role, says one insider). Casual Fridays are also in effect. But since its a fairly conservative culture, you may want to stay away from loud colors. When it comes to advancement, opportunities are far and wide and the firm looks favorably upon interoffice promotions. Overall, the bank does a fantastic job to develop its talent, and the organization really invests in you. The firm also invests in diversity. Contacts call the bank very diverse and say that people of all cultures work here. Bank of America is a very diverse organizationcheck any diversity ranking and you will see the bank in the top 10, if not the top five, boasts one insider.

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Wachovia Corporation
KEY COMPETITORS
Bank of America Citi JPMorgan Chase SunTrust Banks, Inc. Wells Fargo

301 S. College Street, Suite 400 Charlotte, NC 28288 Phone: (704) 374-6161 Fax: (704) 383-0996 www.wachovia.com

BUSINESSES
Capital Management Corporate & Investment Bank General Bank Wealth Management

UPPERS
Reasonable hours Great diversity

THE STATS
Employer Type: Public Company Ticker Symbol: WB (NYSE) CEO & President: Robert K. Steel Net Income: $6.312 billion (FYE 12/07) No. of Employees: 122,000 No. of Offices: 3,889

DOWNERS
Management hierarchy in place Advancing can be difficult

EMPLOYMENT CONTACT
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www.careers.wachovia.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Expanding out West; has done a good job aligning businesses and formulating a new company model Another corporate giant trying to catch Bank of America Prestige is rising Investment banking advisory isnt competitive with bulge bracket firms

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Vault Guide to the Top 50 Banking Employers 2009 Edition Wachovia Corporation

THE SCOOP

From the blue Danube


The Wachovia Corporation of today was created in 2001 when North Carolina banks Wachovia Bank and First Union merged, a $14 billion deal that created the countrys fourth-largest bank holding company by assets. In October 2006, the new entity evolved further with the acquisition of California-based Golden West Financial, and Wachovias international presence grew in February 2007 with the purchase of United Kingdom investment manager European Credit Management Ltd. Then, in May 2007, the bank picked up A.G. Edwards, the St. Louis-based retail brokerage, and folded it into Wachovia Securities. Wachovias name can be traced all the way to late 1700s Germany. Wachovia is the Latin form of a German valley called Wachauin 1753, Moravian settlers in North Carolina named their new home after a valley along the Danube known as Der Wachau. Wachau was near the present town of Winston, where Wachovia National Bank first opened in 1879. Nearly 130 years later, Wachovia is now the fourth largest bank holding company in the U.S. based on assets. It serves 13 million households and businesses and more than 14 million online product and service enrollments. The firms four business areas are the general bank, capital management, wealth management and the corporate and investment bank. Its major subsidiaries include Wachovia Securities, which provides investment banking and retail brokerage; investment manager Evergreen Investments; OFFITBANK wealth management; and Calibre, an investment advisory and management service for high-net-worth families. The corporate and investment bank offers asset management, benefits and retirement services, capital markets, cash management and deposit services, domestic correspondent banking, insurance, international banking, lending and financing, online services, risk management and sales and trading.
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In 2007, Wachovia implemented some organizational changes, making the banks real estate financial services group a part of the corporate and investment banks global markets group. A brand-new marketing division emerged, offering corporate marketing, e-commerce, market research and customer service. As of early 2008, Wachovia Corporation reported assets of $782.9 billion and total deposits of $449.1 billion.

Voting rights
In February 2007, Wachovia Corporation announced that it wanted to change the way its directors were elected. The bank asked shareholders to authorize annual elections for directors, and to require that directors running in uncontested elections obtain a majority of votes. The Wachovia board of directors approved the plan first and shareholders backed their decision at a meeting in April 2007. The new policies, which took effect in 2008, are designed to improve corporate governance. In January 2008, the CTW Investment Group sent letters to Wachovias board of directors risk committee to ask them to explain what they did to protect the company from exposure to the subprime mortgage crisis. The letters were sent to directors Dona Davis Young, Donald M. James, Van L. Richey and William H. Goodwin. According to Reuters, those four will be expected to explain how their actions were meant to protect Wachovia. If they cant provide an adequate explanation, CTW will recommend that they not be re-elected to the board when voting takes place this year.

Empire building
In the past few years, Wachovia has been busy building an empire. Less than two years after its $14 billion merger with First Union in 2001 (although First Union actually purchased the significantly smaller Wachovia, the Wachovia handle survived the marriage), Wachovia and Prudential Financial completed the legal merger of their retail brokerage business in July 2003. In November 2004, it acquired Birmingham, Ala.-based SouthTrust Corporation for $14.3 billion. In 2006, Wachovia added Golden West Financial to its ranks for a price tag of $25.5 billion. One of the companys most significant acquisitions came in 2007, when it snapped up brokerage firm A.G. Edwards for $6.8 billion in cash and stock. The transaction made Wachovia the third-largest retail brokerage firm in the world. With A.G. Edwards

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Vault Guide to the Top 50 Banking Employers 2009 Edition Wachovia Corporation

under its belt, Wachovia has expanded its global reach and now has almost 15,000 financial advisers. A.G. Edwards shareholders received $0.98 share of Wachovia common stock and $35.80 in cash for their A.G. Edwards shares. The merger integration process is not expected to be fully realized until sometime in 2009. While all this acquisition may be padding the companys coffers, the move to acquire various businesses hasnt been particularly well received by shareholders. As of May 2008, Wachovias share price was $28, down from a trailing 52 week high of $57, and the firm hasnt experienced any major earnings as a result of the new additions. Wachovia employees have also suffered as a result of the merger bonanza. The company said in reports on the merger that it would be eliminating 4,000 jobs over a four year period and closing approximately 230 brokerages.

Subprime suffering
Wachovia became one of the many victims dreaded mortgage crisis in 2007, taking losses of nearly $1.1 billion in collateralized debt obligations. As subprime concerns hit their peak in fall 2007, Wachovia suffered losses across the board that were reflected in its third quarter earnings report from 2007. Earnings in the corporate and investment banking division were down $428 million as a result of the billion-dollar losses on CDOs. However, there were bright spots in the companys quarterly report. The wealth management division recorded earnings of $92 million, while growing revenue by 4 percent. In addition, net interest income was up as a result of the merger with Golden West, and Wachovia garnered high company loyalty scores of 53.1 percent, a record for the company. After an 80 percent drop in profits at Wachovias investment banking division in the third quarter of 2007, layoffs were imminent. In late October 2007, the bank cut about 200 jobs, or about 5 percent of its investment banking division. The layoffs primarily affected workers in North Carolina and New York, but other areas were also involved.
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In January 2008, Wachovia announced that it had barely made money in the fourth quarter of 2007, as profits plummeted 98 percent, a loss it attributed to a $1.7 billion reduction in the value of its portfolios as well as a $1.5 billion write-down for bad loans. Profit fell to $51 million, down from $2.3 billion in the same period in 2006. The first quarter of 2008 wasnt much better, as Wachovia reported a net loss of $350 million before preferred dividends. These results, which reflect higher credit costs and the continued disruption in the capital markets, compared with earnings of $2.30 billion, or $1.20 per share, in the first quarter of 2007. And during the second quarter, more bad news surfaced, as it was revealed that the firm was being investigated by federal authorities for allegedly laundering drug proceeds by Mexican and Colombian money-transfer companies. Wachovia is one of several firms that have come under investigation for such activities. According to The Wall Street Journal, Wachovia and other U.S. banks severed relationships with Mexican foreign-exchange firms in December and January after authorities began their inquiries. Some have struck agreements with the government to improve their efforts to fight money laundering, avoiding prosecution.

Several bright spots


There were some things to celebrate in 2007 and early 2008. Wachovia announced in October 2007 that it had surpassed the $1 billion in daily remote deposit capture transactions (businesses use Wachovias RDC to manage their paper check payments). In February 2008, the firm was also named No 1 in customer satisfaction in the American Customer Satisfaction Index for the seventh straight year, and placed in the top five in customer satisfaction in the June 2007 J.D. Power and Associates Retail Banking Satisfaction Study. In addition, Wachovia was No. 1 among major banks in overall customer satisfaction and No. 3 among all banks surveyed by Consumer Reports in 2007. Wachovia Wealth Management was named the High Net Worth Leader of the Year by the publication Private Asset Management in September 2007. In December 2007, Wachovia placed highest in customer satisfaction for primary mortgage loan originators for the year, according to a report issued by J.D. Power and Associates. And in February 2008, it placed No. 1 for the seventh

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straight year on the American Customer Satisfaction Index, a survey conducted by the University of Michigan Ross School of Business. As far as being a great place to work, Wachovia consistently scores high marks. Recent honors include being named one of Working Mothers 100 Best Companies for the 11th consecutive year, ranking in the top 50 Companies for Diversity by DiversityInc magazine for sixth consecutive year and appearing on Essence magazines Top 25 Great Places to Work list. In addition, CollegeGrad.com named Wachovia one of its Top 100 Companies for the fifth consecutive year and Training magazine ranked the firm on its list of North Americas top 125 companies for Developing Human Capital. Wachovia is also one of Pink magazines Elite Eight of Top Companies for Women. But the awards dont only speak to the banks client satisfaction. The bigwigs of Wachovia have recently racked up a few prizes in the last few years. Former CEO Ken Thompson was named one of the Best Chief Executive offices among financial services companies in Institutional Investor, while CFO Tom Wurtz was named one of U.S. Banker magazines Top 10 CFOs in 2007. Institutional Investor also named Wachovia its Most Shareholder Friendly Company among large cap banks in its April 2007 issue.

Still giving
Even though Wachovias in a financial rough spot right now, the company continued to give to charity in 2007. Among its contributions last year were: a $1 million gift to help California wildfire victims rebuild their lives. The Wachovia Foundation also awarded an unprecedented $8.25 million to two community development finance institutions the Latino Community Credit Union in North Carolina and ACCION in Texasas part of a joint award with the Opportunity Finance Network. The so-called NEXT awards strive to help financial institutions serving low-income individuals.
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Its learning time


In June 2008, Wachovia admitted that it had hired investment bank Goldman Sachs to help advise on the next move for its mortgage portfolioswhich insiders say is likely an attempt to estimate the worth of its loans in order to sell off the unit. The bank initially got into mortgage hot water with its Pick-a-Pay mortgages, which let customers decide their own monthly payment. Because of these mortgageslargely attributed to its purchase of lender Golden West Financial Corp. in 2005the bank became heir to about $120 billion in mortgage debt.

Shouldering the blame?


In June 2008, Wachovia announced that it would be casting out CEO Kennedy Thompson after dismal recent losses, and what chairman and newly-appointed interim CEO Lanty Smith called a series of previously disclosed disappointments and setbacks. These included failing to successfully integrate A.G. Edwards, buying mortgage lender Golden West not long before the subprime mess and the mess itself. As a result, Wachovias share price dropped by more than 50 percent during the past 12 months, and it reported its first quarterly loss since 2001. In addition, by the first quarter of 2008, Wachovia had racked up $23.9 billion in outstanding construction loans, much of which were related to subprime housing woes. Although shareholders had insisted on Thompsons removal at its annual meeting in April 2008, Smith had conveyed his support for Thompson up until his departure. Instead of backing up Thompson, Smith then found himself heading up a search committee for his replacement. Meanwhile, Thompson, who had worked at Wachovia for 32 years, received a going-away prize of $1.45 million in cash and $7.25 million in restricted stock. In July 2008, Wachovia found Thompsons replacement, naming Robert K. Steel as its new chief executive and president. The bank is hoping that Steel, who most recently served as undersecretary of the U.S. Treasury, will have the background and connections to turn Wachovia around. Stung by charges and write-downs, the firm is expecting to report a second quarter loss of about $2.6 billion. Although Steel has never worked for a commercial bank, he has helped with a number of deals in his employment with the Treasury, including JPMorgans acquisition of Bear Stearns.

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Second quarter blues


In the second quarter of 2008, Wachovia had some bad news for investors. The firm reported an $8.7 billion loss for the quarter, contrasted with $2.34 billion in net income in the second quarter of 2007. Meanwhile, revenue decreased 14 percent from the year before to $7.51 billion. The firm acknowledged that some of its difficulties are a consequence of its $25.5 billion acquisition of Golden West Financial in 2006which brought Wachovia into the housing market just as the state of subprime mortgages ballooned into a crisis.

GETTING HIRED

A thorough review
The recruiting process at Wachovia can be long and tough, insiders say. Wachovia recruits heavily at undergraduate and graduate schools; an up-to-date list of target schools can be found in the careers section of the banks web site. Theres also an online application system for candidates whose schools arent on the list, and the process for summer positions mirrors the one for full-time employment. Campus candidates usually begin with an on-campus screening interview. If that goes well, it will lead to an invitation to a Super Day interview, often in Charlotte but sometimes in New York or another major regional office. In some years, Wachovia has two Super Days, says a source. It is best to go to the first one, because the firm fills its positions early. The second day has fewer jobs available. Insiders report different Super Day experiences. One analyst recalls five interviews with various people, and no questions were all that surprising or out of the ordinary. Another survived eight interviews with various associates, vice presidents and managing directors. One contact in New York says he had an additional
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two half-hour phone interviews between the initial interview and the Super Day. These interviews were both technical and behavioral, he says. I got the feeling they had a list of technical questions and behavioral questions and they simply chose one of each.

You like to party?


The scene: You beginning the interview process at Wachovia. The possibilities? Expect two to three rounds of interviews with your potential managers. Youre likely to face mostly situational questions, and oftentimes there are two or three managers in the room during the interview process. Questions might also include rhetorical scenarios like a customer walks in about somethinghow do you handle the situation? You might also be asked to name a time when youve exceeded customer expectations. Interviewers may also ask about your interest in the company or in a particular position and your strengths and weaknesses. But dont expect it to be a lightning-quick processthe firm has a long process of hiring and youll also likely be subjected an assessment test or a personality test, which tend to consist of over 200 questions. And they wont be run-of-the-mill questions, eitherthe test may ask whether you have high energy, whether you like to party and what your favorite color is.

OUR SURVEY SAYS

Focus, people, focus


Wachovia is a good company thats truly focused on the customer service experience of each client. One insider adds its a great company if you get into the right branch and work with the right people, but says its also extremely short staffed which leads to a lot of stress. But if you can get into a good branch that is staffed appropriately, you will be the happiest person alive. Its a performance-based culture thats committed to pleasing their customers, but this concept extends over their treatment of employees.

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As far as specific positions go, the financial specialist role is a good fit for a college grad with a business or finance concentration. And it is also good for someone who has done sales or persons who have worked in real estate sales. But either way, the bank is termed as honestly one of the most and equitable employers I have ever seenespecially for their size. The firm is also fair about making sure employees get enough training. Once hired, you will go through roughly a month of training, comprised primarily of self-paced computer instruction, observation of a teller mentor, simulated transactions, and finally hands-on practical application of learned skills before being released as a full-fledged teller. Also, Wachovia will pay for employees to go through four months of training and pay for the employee to get their Series 6 and 63 licenses so they can sell mutual funds and annuities.

Big bucks
What you make seems to depend on how hard you want to work. A financial specialist is offered a base pay, and then gets paid sales credits for every product they sell, such as checking accounts, check cards, online banking, mortgages, home equity credit lines, credit cards, business lines of credit and merchant services. Those who make the most on this pay scale can get $15,000 and $20,000 bonus checks in a month because they brought in a large commercial account to the bank. Advancing within the firm is a distinct possibility, but as you become more successful and have more sales to make, you still have to handle the walk in traffic and meet their needs too. So it can become a lot of pushing crap off your desk while youre in middle of amortizing a loan to help someone with a question about their safe deposit box, a scenario that one insider admits can get aggravating. Another insider says that opportunities for advancement arent just handed to you based on job performance. You have to actively seek them out, or else you will be kept at the same level until you leave the company.

Fairly reasonable
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But as far as hours spent at the office go, expect to spend nine to 10 hours a day working. For the first year, I was working until 8 p.m. or 9 p.m. and coming in at 8 a.m. or 8:30 a.m., says one insider. The secret seems to be utilizing a good old fashioned bit of time management. To get all of your paperwork done, make your outbound sales calls, learn new stuff and work your loans on the computer system can be a long day. But you will be happy if you perform well. Part of performing well means adhering to the formal dress code. All employees are expected to dress professionally every day, which means a shirt and tie with slacks, belt and dress shoes for the men, and blouse and skirt or dress pants with closed-toe shoes for the ladies.

A melting pot that will survive


But one thing the firm seems to nail on the head is employee diversity, which is called great. I have never seen a company so explicitly try to embrace everyone in our community, says one insider. Another says, People from all racial, ethnic and religious backgrounds are welcome at Wachovia, and this mix can be seen at any of the financial centers. One insider says that Wachovias management puts together diversity videos and, for issues affecting gay employees, will actually interview different employees who are gay. The employees will explain how they interface with their community, how they help their customers, how they feel as gay employees and how they have able to positively impact the workplace, etc. Additionally, Wachovia also has a video highlighting African-Americans, and interviews African-Americans from the financial center manager level all the way up to top executives. As far as the future, its true that Wachovia faces a tough market, and the firm was not able to avoid the whole subprime mess, but insiders are confident that the company is strong and will survive these turbulent times, and continue its expansion plan throughout the U.S.

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VAULT TOP 50

19
PRESTIGE RANKING

Citi Consumer Banking


RANKING RECAP
Quality of Life #20 Best Employers to Work For Diversity #12 Overall Diversity

399 Park Avenue New York, NY 10043 Phone: (800) 285-3000 Fax: (212) 793-3946 www.citi.com

BUSINESSES
Commercial Business Consumer Finance Retail Banking Retail Distribution

KEY COMPETITORS
Bank of America J.P. Morgan Chase

THE STATS
Employer Type: Division of Citi CEO, Citi: Vikram S. Pandit CEO, Consumer Banking North America: Terri Dial Revenue: $56.9 billion* (FYE 12/07) Net Income: $7.8 billion* No. of Employees: 170,000** No. of Offices: 7,500**
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UPPERS
Culture is friendly, professional, supportive and energetic Superb training

*Consumer Banking **Citi

DOWNERS
Bureaucratic Some improvements need to be made with respect to diversity

EMPLOYMENT CONTACT
www.careers.citigroup.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Premier commercial bank Bad news after credit crunchhas been hit hard by the economy Strong relationships with Fortune 1000 companies Good organization, but awful financials right now

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THE SCOOP

Global giant
Citi is a global banking giant, with over 200 million customer accounts in more than 100 countries around the world. Its four main business groups are consumer banking, global cards, global wealth management and institutional clients, which includes the markets and banking and alternative investments divisions. Citis commercial and consumer businesses are carried out by the consumer banking group, which includes U.S. and international retail banking (offered by Citibank, CitiFinancial, Primerica Financial Services and Citibank Direct), U.S. consumer lending (including student loans, real estate lending and auto loans), international consumer finance, a commercial finance group (offering banking, leasing and commercial real estate), and a microfinance group. The global consumer group is one of Citis biggest revenue drivers, typically bringing in more than half of each years Citi-wide earnings.

From City Bank to Citibank


In 1812, Samuel Osgood, the first commissioner of the U.S. Treasury, used $2 million of capital to found a commercial bank called the City Bank of New York. His creation expanded through the 1800s, offering consumer lending and conducting business internationally. It took the name City Bank in 1865 and, by 1894, was the largest bank in the U.S. By 1929, it was the largest commercial bank in the world. First National City Bank (as it was then known) became Citibank N.A. in 1976; its holding company was known as Citicorp. In 1998, Citicorp merged with Travelers, a corporation which included the Travelers Corp. insurance company, the Salomon Smith Barney investment bank, the Commercial Credit loan company and Primerica financial services. The resulting entity was Citigroup, led by former Commercial Credit chairman Sandy Weill. In 2003, Charles O. Chuck Prince III took over from Weill. Prince led a 2007 overhaul of the banks image, swapping its red umbrella logo for a streamlined red arc and changing its brand name from Citigroup to simply Citi. The old red umbrella can still be seen at Travelers insurance officesTravelers was spun off from Citi and merged with the St. Paul Companies in 2004, becoming St. Paul Travelers.

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Fix it!
Citi had no choice but to go into recovery mode after the U.S. housing market collapsed in 2007. In spring 2007, Citi eliminated 16,000 jobs worldwide; by fall, rumors that the banks third quarter earnings had fallen by 60 percent were proven accurate. This led to major executive changes (and equally major write-downs). Citis chairman and CEO, Chuck Prince, resigned from both posts in November 2007. After a monthlong search, Citis board named Vikram S. Pandit its new chief executive. Sir Win Bischoff, a London-based executive who served as acting CEO during the search period, became chairman. Pandit joined Citi in May 2007 when the bank bought Old Lane, a hedge fund he ran. Before that, he had been president and chief operating officer of Morgan Stanleys investment bank. To further stabilize Citi after the losses, the bank sold a $7.5 billion stake in itself to Abu Dhabis investment authority, receiving much-needed capital in exchange.

Little loans, big business


Microfinance made the news in 2006 when the fields pioneer, Muhammad Yunus, won the Nobel Peace Prize. Citis consumer group has been in the microfinance business since 2004, offering credit, savings, insurance and other financial services in the poorest parts of the world. In August 2007, Citi teamed up with the worlds largest nongovernmental organization (NGO), the BRAC (Bangladesh Rural Advancement Committee). BRAC, which has over five million borrowers, entered into a backstopped facility with Citibank to

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provide rural development financing, particularly in areas damaged by flooding. Citibank coordinated the establishment of the 1.23 billion BDT (Bangladeshi Taka) facility, which was the first such facility created for a microfinance institution. Citi provided 710 million BDT up front and arranged the rest through partner banks. A BRAC spokesman said the collaboration underlines Citis commitment to supporting the cause of microfinance globally.

Building a greener Citi


Citi has plans to achieve environmental certification for every new office and operations center it builds, anywhere in the world. (In the U.S., this certification is known as LEED.) The bank is also conducting evaluations of its existing facilities and investigating ways of reducing their carbon footprints. With more than 14,500 offices and centers worldwide, its a big task but Citi has pledged to reduce its emissions levels by 10 percent by 2011. Its also planning to roll out LEED-certified retail branches in the United States. In October 2007, Citi won its first Gold Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. The designation was for its brand-new, 15-story skyscraper in Queens, New York. The building currently houses 1,500 employees and runs on certified green wind power. Citi is considering its staff in its new green building plans, too: at the new tower in Queens, for example, 90 percent of the cubicles, offices and conference rooms have outdoor views. And in Citi offices around the world, a Sustainable IT program is finding ways to cut down on paper usage and recycle or refurbish used electronics.

Princes legacy
The fourth quarter 2007 brought a net loss of $9.83 billion, $18.1 billion of write-downs and credit costs linked to subprime exposure in fixed income markets, as well as a $4.1 billion increase in consumer credit costs and losses on consumer loans. Citis full-year net income was just $3.62 billion. The consumer banking group fared better than the institutional clients group (which houses the fixed income division). U.S. consumer revenue grew 6 percent versus the fourth quarter of 2006, and deposits and managed loans were both up 10 percent. However, costs were up 13 percent, because Citilike several other major banksshared the costs of litigation aimed at Visa Inc. (But when Visa went public in 2008, these banks received shares in compensation.) The consumer credit crunch dented global consumer, as borrowers fell behind on their mortgages, loans and credit card payments. The U.S. commercial business division was affected, too, as higher credit costs and losses offset increased deposit balances and loan business. For 2007, U.S. consumer revenue totaled $31.7 billion, with net income of $4.1 billion; international consumer revenue was $25.2 billion, with net income of $4.2 billion. In the wake of 2007s earnings reports, most analysts placed the blame on Chuck Princes inability to contain costs as the credit market imploded.

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Order, please
Early 2008 saw Pandit taking several key steps to get Citi back on track. He outlined a plan to raise $12.5 billion of capital through a private stock sale; buyers included the Government of Singapore Investment Corporation (GIC), the Kuwait Investment Authority, Prince Alwaleed bin Talal bin Abdulaziz Alsaud, the New Jersey Division of Investment and former Citi CEO Sanford Weill and his private family foundation. At the same time, a public sale of $2 billion in newly issued stock took place. Additionally, Citi lowered its quarterly dividend to 32 cents per share, and sold off Citis ownership interest in Japans Nikko Cordial Simplex Investment Advisors.

Rock on
In February 2008, Citi became the exclusive credit card partner of music giant Live Nation, creating an exclusive Private Pass program that will give cardholders access to presale concert tickets, box seats, premium seating, exclusive merchandise and VIP artist events. Live Nation will benefit from exposure to Citis 150 million U.S. credit card holders, and as part of the deal Citi

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will also receive marketing perks like venue naming rights, branding rights at concerts and a special partnership with Live Nations new ticketing operation.

Reed vs. Weill


In April 2008, a prominent Citi alum made a surprising declarationthat the $166 billion merger in 1998 between Citigroup and Weills Travelers insurance group was a mistake. The declaration came from former Citibank chairman John Reed, who coplanned the merger with Sandy Weill, the former Travelers head who later took over the reigns post-merger. Reed, who left Citigroup in 2000, told the Financial Times that Citis quality had largely dropped off post-merger, saying that Citi had turned out to be a sad story and there has been a general weakening of the management fabric within the firm. He also said that Citis consumer business became product-pushers, and that some of our people had a product mentality and they did not integrate it around the customer. Weill, in turn, rebuffed Reeds comments, saying that the merger produced a model that worked very well for customers, employees and shareholders.

Tough times for Citi


Citis disappointing first quarter results produced a loss of $5.1 billion, compared with a $5 billion profit for the first quarter of 2007. The consumer banking group reported net income of $138 million, as compared to $1.26 billion for the first quarter of 2007. Along with its results, the firm announced a $622 million restructuring charge and plans to slash 9,000 jobs throughout 2008, mostly due to the shaky subprime market. The reductions are in addition to the 4,200 cuts the firm announced in the fourth quarter of 2007. Meanwhile, Citi CEO Pandit remained resolute that the firm would not break up, despite the fact that it will be dealing with billions more in mortgage-related write-downs in 2008.
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GETTING HIRED

Come on board
If youre hoping to jump on the Citi train, be aware that the firm is very selective and its very difficult to attain a position. Citi tends to recruit from the top universities, although this is not to say it is impossible to be hired if youre a student of a non-core school. Some of the schools Citi are likely to target, however, include Cornell, Rutgers, University of Illinois, Columbia, Yale, NYU and Georgetown. The financial management associate program is called extremely selective and exclusivethe hiring is competitive. Plus, there are only a few graduate level positions available each year. And even though there are many on-campus interviews, typically only a couple at most make it through to the next round. For that reason, deep program research is recommended. A Super Day meeting with people from all levels is typical to encounter at some point during the process. A tip from an insider: Depending on your school and proximity to the Citi offices you are interviewing with, you might want to meet with people for informational interviews. As for the job interview process for other positions within the firm, expect anywhere from one to three general firm informational sessions, and questions that explore a combination of fit, behavioral and technical aspects. Also anticipate various questions from your background to quantitative analysis.

Summers in the Citi


Once youve secured an internship, youre likely to find it to be worth your while. One insider says, I was given access to very senior company managers. Just put your best foot forward, because summer associates who perform well are very likely to be offered a management associate role after finishing their internship. And if you dont happen to get an internship with Citi, dont fretmany people also come in full time having had summer internships in other companies.

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OUR SURVEY SAYS

Giant steps
You cant get around it: Citi is a giant. Because of this, the culture is large, bureaucratic and in flux. And this makes it critical to be flexible, adaptable to constant change and good at networking. Still, the organization is friendly, professional, supportive and energetic, and the firms main asset is its people. One insider admits, It is great to work with very talented people who are accessible and willing to share their knowledge with you even if the culture can be very political in some parts of the company. It also helps to be willing to sacrifice for the good of the firm. Then again, the culture varies based on the underlying business unit. As versatile as things sometimes are at Citi, you should probably try not to apply those ideals to your dress within the office. It is, in many ways, a traditional work environment that promotes dress thats at least business casual (although suits and ties are worn by some every day). Also keep in mind that theres not a big emphasis on flexible work schedules, and long hours are common (although it does depend on the work you do). Even if youre not in the office, it looks like the firm makes sure youre always connected. One insider says, We are offered remote access and BlackBerries to be connected even if were out of the office or traveling. But mostly, if you get your work done, youre free to leave. One insider adds, I feel like I work a lot of hours, but I also have interesting work to keep me engaged and happy here. Compensation seems to be pretty engaging for respondents as well. Insiders rate their salaries highly, and perks are extensive snacks throughout the day, a relocation allowance, meals after 8 p.m., a sign-on bonus, company discounts in gyms and free access to most museums in NYC for employees and guests. In addition, some sites have on-site gym and child care facilities for employees. Time off is also generous.
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Watchful eyes
There is plenty of work to do at Citi, and managers always ensure that youre busy and challenged by the kind of work they give you. But rest assured that people are treated with respect. I have had the opportunity to manage people and to be managed by several people, and I am satisfied with both, declares one insider. Another contact says his manager encourages participation in all projects and activities and compliments a job well done. Training is participatory-based as well. Citi believes in the 70-20-10 approach, in which 70 percent of learning comes from onthe-job training, 20 percent comes through mentoring and 10 percent through formal education. One insider calls the formal part superb, adding that training is organized and efficient and provides ample experience in various subjects from executive writing to credit analysis. And informal training and mentoring is also focus, as many people are concerned with helping you develop your career.

Ramping it up
The firms diversity efforts are very good for the most part, contacts say. There is a large representation of women at the firm (even if numbers of women in top slots are few). Women employee networks have increased significantly in the last couple of years. And a focus on ethnic diversity is visible in all businesses. However, there are some improvements that need to be made. Citi is inclusive and very diverse, but diversity seems to concentrate in the most metropolitan areas such as New York, D.C., California, Miami and Dallas. In other words, it still needs significant improvement in some areas were Citi has a presence in the U.S.

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VAULT TOP 50

20
PRESTIGE RANKING

HSBC North America Holdings


KEY COMPETITORS
Bank of America Citi JPMorgan Chase

2700 Sanders Road Prospect Heights, IL 60070 Phone: (847) 564-5000 www.hsbcusa.com

DEPARTMENTS
Commercial Banking Consumer Finance Corporate Investment Banking & Markets Personal Financial Services Private Banking

UPPER
Committed to a good work/life balance

DOWNER THE STATS


Employer Type: Subsidiary of HSBC Holdings plc CEO: Brendan McDonagh No. of Employees: 53,000 No. of Offices: 450+ branches More well known overseas than in the US

EMPLOYMENT CONTACT
See careers section of www.hsbcusa.com

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong international presence; weak in the US Not as widely known, but up-and-coming Global monstera huge player in Asia Great commercial bank, weak for advisory

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THE SCOOP

Organizing North America


HSBC North America Holdings, a subsidiary of London-based HSBC Holdings, was formed in 2004 as an umbrella for HSBCs U.S. and Canadian business. This includes HSBC USA, HSBC Bank Canada and HSBC Finance (formerly Household International). HSBC North America and its subsidiaries offer personal and commercial banking services, mortgage services, consumer finance, private banking, insurance and corporate investment banking under to more than 60 million customers. The bank had more than $494 billion in assets under management at the end of 2007. Parent company HSBC Holdings is the U.K.s largest banking company, with total assets of over $2.35 billion at the end of 2007. As of April 2008, HSBC also has 10,000 offices in 83 countries and territories. It provides a full range of financial services, including consumer and business banking, asset management, investment banking, securities trading, insurance and leasing to its 125 million customers. HSBC North Americas biggest subsidiary is HSBC USA, which operates HSBC Bank USA. The unit, which is one of the U.S.s 10-largest bank holding companies by assets, has more than 450 bank branches in the U.S.; about 400 of those are in New York, but HSBC is expanding its branches in states like New Jersey, Florida and California. Branches also exist in Delaware, Oregon, Pennsylvania, Washington state and Washington, D.C.

From riches to rags


In March 2003, HSBC finalized its monstrous $14.2 billion acquisition of Household International, a major provider of consumer finance and a top-10 issuer of credit cards in the U.S. The company later changed the name of that Household International business to HSBC Finance Corporation. The acquisition of Household International paid off well at first. At the time, Household was the largest subprime mortgage lender in the United States, and that status worked well with HSBCs plans to expand into the U.S. market. The rising costs of housing fueled profits, and in 2006, the HSBC Finance Division led the subprime home loan industry with nearly $53 billion in loans. But by early 2007, the U.S. mortgage marketespecially among the subprime sectorwas in trouble, and so was HSBCs Finance Corporation. HSBC became one of the first banking giants to be severely affected by delinquent subprime mortgages, and in February, executives announced that the company had increased its reserves in loans by more than $10.5 million, more than 20 percent higher than analysts predictions.

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The household fallout


By the time the first quarter of 2007 was finished, Bobby Mehta, head of HSBC North America and HSBC Finance, was forced to resign. Sandy Derickson, an HSBC Bank USA executive and vice chairman of HSBC Finance, also was forced out. In September 2007, more layoffs came. HSBC announced that it would close its Decision One Mortgage unit, a division of HSBC Finance that offers subprime loans. The closing affected 750 employees at offices in South Carolina, North Carolina, and Arizona, and cost the company $65 million in restructuring as well as an $880 million goodwill impairment to HSBC Finance. The company said it would continue to provide service to customers whose Decision One mortgages hadnt yet been securitized; there are nearly $350 million of those loans in existence. In November 2007, HSBC announced that it would cease trading subprime-backed securities from the U.S. market entirely, cutting another 120 jobs at offices around the world.

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Going global in California


As a company with a strong worldwide presence, HSBC wants to show its global prowess in the U.S., too. In September 2007, HSBC opened a nonresident Indian office in Fremont, Calif., to facilitate banking for the many Indian customers who are not native to the U.S. The office will not only allow this specific group to conduct cross-border transactions, but also choose from tailored deposit, mortgage and investment programs. Today, there are 22 million nonresident Indians around the world who expect, and indeed demand, global banking expertise and the highest levels of service, said Manasije Mishra, head of NRI Services, HSBC India, in a news release. Between the U.S. and India, HSBC currently serves more than 160,000 NRI customers and the new joinedup solution with HSBC USA will make this process even more seamless.

Affluent Americans abroad


Following a 2007 survey of its American customers, HSBC found that more than 50 percent had considered living abroad or traveling for extended periods of time, but found that it might be hard to manage their finances while doing so. That revelation led to the development of HSBC Premier, which the company deems the worlds first truly global personal banking service for the worlds 200 million mass affluent and internationally mobile consumers. Nearly half of those surveyed cited setting up my finances as a challenge of living abroad; HSBC Premier will be available in 35 foreign countries and territories.

New appointments
If promoting its workers is just a natural extension of keeping talented employees interested in the bank, HSBC is on the right path. In February 2008, HSBC announced that Brendan McDonagh would be taking over as CEO of HSBC North America Holdings. The appointment comes a year after McDonaghs promotion to chief operating officer of the firms North American consumer finance unit. Niall S.J. Booker is succeeding McDonagh, who in turn is succeeding Siddharth Mehta, who left the company in February 2007.

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Whoops
In March 2008, MarketWatch reported on banks that received the most federal complaints via the Office of the Comptroller of the Currency, which supervises banks and credit card issuers. The results were somewhat surprisingHSBC North America came in fifth place in having the largest number of customer complaints in 2007 (Bank of America received the dubious first place honors on the offices list). Within the same month, the Office of the Comptroller of the Currency also announced that it was ordering HSBC (along with eight other banks) to give the office their monthly home loan data so the regulator could monitor the banks and their loans on a closer basis.

Green power
In January 2008, the Environmental Protection Agency released its Top 25 list of green power purchasersthat is, companies who purchase more than 300 million kilowatt-hours of green power each year. HSBC captured the No. 10 spot on the list, moving up seven spots from the previous year. Due to its purchasing of 10 times the agencys minimum requirement, HSBC also received membership into the EPAs Green Power Leadership Club. EPA spokesman Stephen Johnson applauded HSBCs move, adding that by voluntarily shifting to renewable energy, HSBC North America is proving you dont need to wait for a signal in order to go green. The firms green efforts are ongoingin October 2005, HSBC also became the first bank to become 100 percent carbon neutral, a practice that severely limits carbon emissions.

Back in black
Despite enduring what its chairman Stephen Green called extraordinary strain, including its share of subprime mortgage issues, HSBC Holdings plc managed to come out in the black for 2007. In the face of $2.1 billion in write-downs related to subprime

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credit exposure and other factors, the bank still ended up with a $19.1 billion profit for the year, up from $15.8 billion in 2006. Revenue was up as well, soaring 20 percent from the previous year to $79 billion. The firms asset management unit had a good year, booking total operating income of $1.34 billion, up from $1.07 billion in 2006. And the banks private banking group which encompasses its investment banking, corporate banking and insurance servicesbrought in record results, including a $1.5 billion profit, up 6.2 percent from 2006.

Ranked with distinction


On Thomson Financials 2007 investment banking league tables, HSBC ranked No. 13 in worldwide announced M&A deal volume, a two-slot improvement from 2006. The firm announced 110 deals worth a total of $314.9 billion. HSBC made huge strides in the U.S. M&A market in 2007. The firm was No. 23 in U.S. announced M&A, a substantial improvement from its No. 52 ranking in 2006. HSBC was handed a number of awards in 2007 as well. The Banker named the firm Interest Rate Derivatives House of the Year. Euromoney honored HSBC with two awards: Best Cash Management House and Best Risk Management House. And in 2008, the firm came in at No. 1 on the Forbes 2000, a list of the worlds largest companies, measured by sales, profits, assets and market value. It was the first time that a non-U.S.-based firm topped the list.

GETTING HIRED

More of a challenge
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If anything, HSBCs recruitment process is getting tougher, warns one insider. As far as qualifications go, the firm tends to select the best, but a big part of getting hired is your timing and the position youre applying for. Potential candidates must go through several rounds of one-on-one interviews, group interviews, analytical and verbal tests, and case studies. After the process concludes, each candidate is discussed and an offer is extended only to those on whom all interviewers agree. Expect up to seven individual and group interviews that include the standard background and experience questions as well as slightly offbeat tests and exercises, such as what is your favorite color? HSBC recruits from all over the country and the globe but tries to woo candidates who are mostly from the top-20 undergraduate schools, although they will interview applicants from any school, provided that he or she has what it takes.

Settle in
The interviewing process seems to varybut seems to include a bevy of different questions asked by interviewers. These questions might range from what is your strategy to be up-to-date with current financial news? to whats a situation when a group of people disagreed with you and how did you manage it? (For the latter, one insider suggests briefly explaining the situation, your role, your contribution and what you ultimately learned from it.) You might also have to field these: Tell me an example of a time where you realized more than what you expected, Give me an example of a time where people where against your decision and how you managed it, Tell me about a time where you used something you learned in your studies and applied it to a real business situation, and What recent events may have an influence on HSBC? In addition, be ready to answer these: How HSBC can help the company in achieving its objectives? and How do you see this company in five to 10 years? Most of all, they want to get a feel for you as a person. The interview aims at understanding whether you feel confident when your ideas are challenged and whether you are able to change your opinion based on new facts. You might also get asked about your educational background, personal achievements and youre willingness to work long hours.

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OUR SURVEY SAYS

Striking the balance


While long hours at the firm might be in the cards, rest assured that the bank is committed to a good work/life balance in theory, and has an ongoing campaign to be a best place to work. The culture is collegial, but life in the branch was revolved around getting new customers, serving existing ones, sales meetings, and one-on-one meetings with branch managers who would push us to reach the numbers. And even though it can be demanding, people are friendly. One example of this comes from an insider relates how HSBC accommodated his severe allergies. The department I work for has made tremendous efforts to accommodate me, he says, including implementing a scent-free office. They were very willing to accommodate me with a special schedule.

Life at HSBC
The dress code at HSBC is business casual Monday through Thursday, but on Friday, jeans and casual clothing are permissible. In fact, the only office that seems to follow a formal dress code is the Washington, D.C., office. Most employees wear a shirt and pants, although the dress code is formal when working with clients. And when it comes to management, employees report an overall very good experience. There is a good dialogue that goes on and I feel comfortable consulting with my managers if Im confused. One insider says he works for a great team and has never been berated or made to feel like I dont play an important part of the team. Offices mostly receive less-than-stellar marks, however. The building is quite old, and it shows, says one New York contact. On some trading floorsthere are three in New Yorkthe ceiling is too low, and there is very little space on the desks and between rows, making you feel cramped. The insider concedes that the London and Hong Kong offices are much nicer. Another New York contact says, I covet high walls, but they are renovating our floor this year, so things will be changing presently. My floor happens to be fairly boring, but other floors are very nice.

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Covering the bases


The training offered by the firm is a nine-week process thats pretty comprehensive. It involves not just finance stuff, but also interpersonal training that enabled the analysts to form lasting connections, though instructors in some cases couldve been better. But nothing beats the real world. Another contact notes that a lot of what you learn doesnt mean anything to you until youre actually in the middle of it.

Always room for improvement


For the most part, HSBC is an incredibly diverse group, and I see absolutely no evidence of discrimination. While women are often not seen in trading roles, there is a good amount in sales and structuring. And some very high positions are staffed by women, so I dont think that its an issue for HSBC. But the representation of ethnic minorities could improve somewhat, admits one insider, though he adds that it might be representative of the industry. The hiring of gays and lesbians at the firm receives high marks, though one contact comments, I believe racial diversity is more evident. Another insider reports that employees are very diverse ethnicity-wisethere are many Chinese, French and Indian workers as well as many Canadians.

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21
PRESTIGE RANKING

Houlihan Lokey
RANKING RECAP
Quality of Life #1 Relationship by Managers #1 Best Employers to Work For #2 Offices #2 Overall Satisfaction #3 Selectivity #3 Compensation #3 Hours #7 Training Diversity #7 Diversity with Respect to Women #9 Overall Diversity #10 Diversity with Respect to Minorities #12 Diversity with Respect to GLBT

1930 Century Park West Los Angeles, CA 90067 Phone: (310) 553-8871 Fax: (310) 553-2173 www.HL.com

DEPARTMENTS
Financial Options & Advisory Services Financing Mergers & Acquisitions Restructuring

THE STATS
Employer Type: Private Company Co-CEOs: Jeffrey Werbalowsky & Scott Beiser No. of Employees: 800+ No. of Offices: 14

KEY COMPETITORS
Citi Credit Suisse Goldman Sachs

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UPPERS
Sense of community and teamwork hard to find at a big bank Working on deals in a capacity few bankers at [the junior] level in other firms do Secure environmentwere not cutting people like the other investment banks

DOWNERS
Some growing pains as the firm expands Our name is not high profile on Wall Street Lots of hours

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

EMPLOYMENT CONTACT
See careers section of www.HL.com

Great middle-market investment bank; nice people Gets more credit than it deserves Strong restructuring practice; fairness opinion specialists Dominant in middle marketworks on a lot of dealsbut doesnt have a prestigious name

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THE SCOOP

Top-notch advisor
Since California-based Houlihan Lokey was founded in 1970, financial advisory services have been the firms stock in trade. Over the years, financial restructuring and mid-market M&A have become an equally important part of the firms arsenal. In 2007, the firm was the No. 1 mergers and acquisitions advisor for U.S. deals under $1.25 billion, and M&A Advisor again named Houlihan Lokey the Investment Banking Firm of the Year in the middle-market sector. In addition, the firm also nabbed one Dealmaker of the Year and three Deal of the Year awards from M&A Advisor in 2007. The firm was also the No. 1 M&A fairness opinion advisor in 2007, according to Thomson Financial (now Thomson Reuters), and named the No. 1 restructuring investment banking firm by Bankruptcy Insider. Houlihan Lokey employs 800 people in 14 offices in the U.S., Europe and Asia, serving over 1,000 clients ranging from some of the largest corporations in the world to small, closely held companies.

Financial restructuring specialists


Business at Houlihan Lokey is divided into four core groups: mergers and acquisitions, financing, financial opinions and advisory services, and financial restructuring. Unlike many of its peers, the financial restructuring division is especially strong at Houlihan Lokey, employing over 100 bankers. The firms financial restructuring professionals advised creditors committees in the three largest bankruptcies of all timeWorldCom, Enron and Conseco. The financial opinions and advisory practice offers consulting, compliance and transaction opinions. Houlihan Lokey consistently ranks among the industrys top fairness opinion providers.
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Houlihan Lokeys financing division, like its M&A group, is focused on mid-market companies. The firm has raised over $7 billion of private capital for its clients in the past six years. Finally, in the M&A division, Houlihan Lokey offers services by industry sector. It also arranges financing and has special capabilities in distressed M&A situations.

New chairmen of the board


In February 2007, Houlihan Lokeys board of directors elected senior managing directors Irwin Gold and Bob Hotz as cochairmen. Kit Lokey, the firms co-founder, was named chairman emeritus. Hotz came to Houlihan Lokey in 2002 from UBS, where he was vice chairman. He is co-director of Houlihan Lokeys corporate finance group. Gold has been with Houlihan Lokey for 20 years, and co-directs the financial restructuring group (which he helped create). The board also appointed firm cofounder Jim Zukin chairman of Asia.

Building up real estate


Houlihan Lokey beefed up its real estate banking group in February 2007, when it hired a team of bankers from Trammell Crow Company. The new team took over top posts in the firms real estate investment banking division, and launched asset-level real estate products in addition to traditional real estate advisory. Bob Hotz, co-chairman of Houlihan Lokey, said that the firm planned to take a more active role in the real estate markets, adding to its existing strength in finance and advisory services. The hires, he said, give Houlihan Lokey the expanded capability to deal directly with buying, selling and financing real estate assets.

Energetic acquisition
Houlihan Lokey continued to advance its industry-focused platform in May 2007, this time in the energy sector. The firm acquired Baxter Energy Partners, a New York-based, energy M&A advisory boutique. Baxter Energy Partners has longstanding relationships in the energy sector and has in depth industry experience spanning the majors, large-cap E&P and downstream sectors. As part of the acquisition, Scott Baxter, founder and managing partner of Baxter Energy Partners, joined Houlihan Lokey

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as a managing director in corporate finance. Baxter now heads global energy investment banking for the firm, focusing on companies engaged in oil and gas exploration and production, transportation, service, refining and marketing. We are committed to finding meaningful ways to expand our industry coverage and grow our business, said co-chairman Hotz. Scott has successfully advised energy companies and executed a number of large-scale energy transactions, and has built a reputation as a trusted advisor to CEOs in the energy sector. This proven commitment to building relationships and finding ways to best service clients complements our structure and we are pleased to add this energy component to our existing platform.

Dialing up business in Asia


In early 2006, Japanese financial services company ORIX Corp. merged a segment of its U.S. lending and capital markets businesses with Houlihan Lokey to form a more diversified financial services enterprise. Despite some initial uncertainty about Houlihan Lokeys ability to maintain its own identity after the deal, in the end, the firm managed to keep a sense of independence. The merger didnt change Houlihan Lokeys management or brand, and Houlihan Lokey decided to use ORIX as a pathway to increased investment banking capabilities in Asia. It also gained the strength of ORIXs not-inconsequential resources for global financing projects. Following the merger, Houlihan Lokey opened a representative office in Hong Kong and began making plans for locations in Japan. In September 2006, the firm hired David Putnam, a former M&A executive at Citigroup Hong Kong, to serve as its new head of Asia-Pacific investment banking. In May 2007, commenting on Houlihan Lokeys expansion in Asia, co-founder Zukin said, We believe the Asian markets are experiencing dramatic growth in cross border M&A and are now secure enough to handle a wave of financial restructurings, particularly in the state owned enterprise sector. And David Putnam, head of Asia-Pacific investment banking, added, Whilst the firm is new to Asia, we are already experiencing a full pipeline of deals and the demand for our services has been extraordinary. Our goal is to strategically recruit dealmakers who are knowledgeable of the region, experienced in executing complex deals and dedicated to providing the level of service our clients have come to expect from Houlihan Lokey. In September 2007, Houlihan Lokey opened an office in Tokyo and hired Ryuta Fujino as managing director and head of the office. Previously, Fujino was with PwC Advisory Co., where he served as a managing director in the firms valuation and strategy practice. Before that, he was chief manager of the stock investment department of Nippon Life Insurance Company in Tokyo, and also held a position with the Japan Center for International Finance in Washington, D.C.

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On the rise in Europe, too


Europe is another region where Houlihan Lokey is committed to expansion. To help accelerate this growth, in September 2007, the firm appointed E.W. (Sandy) Purcell and Jean-Florent Rerolle as co-heads of the European financial advisory services practice. Purcell, a managing director in the firms London office, has more than 20 years of experience in the financial services and advisory industry, and previously headed Houlihan Lokeys Midwest financial advisory services practice in the U.S. Rerolle, managing director and the head of financial advisory services for France, joined Houlihan Lokey in 2005. Previously, he was a partner with Ernst & Young. Also in September 2007, Houlihan Lokey acquired Blenheim Advisors Ltd., an independent leveraged debt advisory firm in Europe. Based in London, Blenheim Advisors provides high quality advice to financial sponsors and their portfolio companies active in Europe. The acquisition was another step in the growth of Houlihan Lokeys European investment banking advisory platform. As part of the acquisition, William Allen and Jonathan Guise, the founders of Blenheim Advisors, joined Houlihan Lokey as managing directors and were made joint heads of European debt advisory.

M&A done right


Although down a bit from its impressive 2006 performance, Houlihan Lokey still came out a winner on Thomson Financials 2007 banking league tables. The firm ranked No. 17 in U.S. announced M&A volume, down one spot from No. 16 in 2006. The

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firm advised on 123 deals worth a total of $38.7 billion. In U.S. completed M&A, the firm was also number No. 17, down two from its 2006 ranking. Houlihan Lokey closed 132 deals worth a total of $62.6 billion. Houlihan Lokey has been involved in a number of big deals in the recent past. In October 2007, the firm wrapped up advisory work on Sequa Corporations acquisition of Chesapeake Finished Metals, a deal which had been ongoing since January 2007. Also in October, Houlihan Lokey advised on the sale of PCORE Electric Company to Hubbell Incorporated. Houlihan Lokey was part of a big-name deal in August 2007, when it served as the exclusive advisor to Movielink on its sale to Blockbuster. Houlihan Lokeys experience on the Movielink-Blockbuster deal may have been a contributing factor in Sony Pictures October 2007 decision to hire the firm to assess the possible sale of portions of its animation-studio and digital visual-effects divisions. At the time, The New York Times reported, An outright sale of both, which is possible, could bring around $500 million, according to people involved in the discussions. All told, Sony has invested more than $400 million in the animation and effects businesses over the years.

GETTING HIRED

Keeping it tight-knit
Houlihan Lokey is a relatively small firm without a lot of annual openings. So, its selective, you say? Yes, indeedin fact, the firm tends to hire only those with applicable work experience and then only chooses very well-qualified candidates willing to invest in their future. Insiders even tell of Houlihan becoming increasingly selective over the years and how the firm requires everyone to be able to contribute at a high level. And because the firm was built on its very strong reputation as a financially technical firm, candidates tend to be strong technically, good communicators and have a well-rounded personality. Even though the selection process varies by group, many groups in regional offices are difficult to penetrate. And because Houlihan has a short training program, it tends to hire those with applicable work experience. Bottom line: Houlihan looks for well-rounded individuals that are dynamic, quick learners, hard working and self-starters. Plus, Houlihan is a highly technical shopso knowing all the valuation, modeling and other financial analytical tools is a given. We recruit the brightest individuals, but also consider the candidate knowing that on a deal we may have to sit across from them in a conference room for 24 hours straight. The firm also looks for extremely proactive individuals who are comfortable taking on a lot of responsibility early in their career. Though deal teams tend to be smaller compared to some of the larger bulge bracket banks, this enables junior professionals to be involved in all aspects of the deal process.

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Ramp it up
Just dont turn off the charm once you get called in for an interview. The firm has a thorough interview process for limited spots. There are typically two rounds of interviewsyou meet with one individual in the first round and then three to four interviews in the second round. Interviews focus on financial knowledge and fit/personality, especially since relatively few are hired on an annual basis. The interview process can also include a written exam. Expect that interviewers will ask a wide range of questions and draw out conversation on topics such as discrete valuation principals to macro/microeconomic events impacting the market, so candidates should be prepared for engaging discussions about more than their resume.

Getting you in the door


Internshipsprovided you can snag oneseem to be tremendously helpful. All of the summer interns in my group took fulltime positions, reports one insider. And while the firm recruits candidates nationally, it focuses regionally as well, recruiting at Notre Dame and a number of big-10 schools such as Michigan, Indiana, Iowa, Illinois and Wisconsin. Houlihan also recruits at the top finance programs such as UVA and Wharton, and at some of the top-quality schools such as Columbia.

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And though it is not a prerequisite, Houlihan tends to hire employees with a background or educational concentration in business, finance, or an analytical major such an economics, math, physics, etc. One insider reports going through first-round interviews on campus and second-round interviews at the respective office of interest. During second rounds, expect four to six interviews with associates, VPs and MDs who will ask everything from how a candidate believes they are able to contribute from day one to integrated accounting questions related to fund flows across financial statements. Either way, Houlihans recruiting efforts are extremely coordinated and well-managed.

OUR SURVEY SAYS

Thumbs up
Insiders give the firm some serious props, calling the firm phenomenal, collegial, down-to-earth, entrepreneurial, challenging, open and relaxedbut also high-energy and aggressively working hard. Overall, the firm is tremendous to work for and it treats employees the right wayas a result, not many people leave. Working at Houlihan feels like living in a small town as opposed to a big city, says one source. Another says, We are all on a first-name basis, all considered important to the firm mission and all empowered. How so? Well, through the firm e-mail suggestion box and an open line to the CEOs, for one. There, employees can comment on any element of firm operations or strategy, and get a guaranteed answer from the CEO. Others call the atmosphere very hardworking but rewarding due to the high deal flow that we have. The culture is also very supportive because our goal is to make everyone as successful as possible. Another insider adds that we are unrivaled in our approach to investment banking. The firm is meritocratic by encouraging the notion that you can have as much responsibility as you can handle.
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One insider frankly says that not being a bulge bracket, we operate with a chip on our shoulder and always seek to upstage the industry giants. But Houlihan is also not pretentious and full of normal, passionate, entrepreneurial people with a passion for our jobs.

Learn as you go
But then again, Houlihan Lokey is not a place to work if you expect a rigid hierarchy and formal training. Our analyst/associate training program is three weeks long, notes an insider. New hires are thrown into the fire and expected to perform at a high level from day one. My foot has not come off the gas pedal since I started over eight months ago, and I wouldnt have it any other way. And theres also little anonymity here, which is beneficial because ones work product gets the creditor lack thereofthat it deserves, but perhaps more importantly, it fosters a sense of community and teamwork that I think is hard to find at a big bank. For the most part, the firm allows you to direct your career in any way you see fit, so long as you are being productive at the same time. Management is amazing and insiders report they are consistently shown that [they] are cared about and an integral part of the growth of the firm. I wouldnt know half of what I know now if it hadnt been for my many more experienced colleagues, from analyst to MD, who have taken the time to explain the seemingly infinite facets, big and small, that make up so much of this discipline, admits one insider. Houlihan also cares about your growth as an employee, insiders say. During my time here, I have learned a tremendous amount about banking and about being a banking professional, because Ive benefited from being involved on my deals in a capacity few bankers at my level in other firms are, says one contact. Its not because Im a rock star bankerIm notits because one of the main tenets of our firms philosophy is to train bankers for the next position they will hopefully get promoted to. The firm also takes care to be inclusive of new workers. As an analyst, I was included in meetings, both in and out of house, whenever possible, one respondent says. On several occasions, I was the sole member of the team traveling for a deal, and it always felt great to be trusted to represent Houlihan at such a junior level.

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And theres a sense of camaraderie throughout the firm as well. I have made real friendships at this bank with contemporaries and my bosses, friendships that wont end when I or they leave, says one insider. As far as professional courtesy goes, I have never once been yelled at in my four years here, nor have I been made to feel belittled in any way by any of the people I work for. Its just not what we do here.

Long, but no face time


Work hours are good here, says one insider simply. Of course, there are oftentimes you work long days, but when you have finished your work and it is the end of the day, then you can definitely head home and enjoy the night. Young bankers clock in around 70 to 80 hours a week, but if you finish your work, theres no pressure to stick around for face time. Weekend work, too, can sometimes be a necessity. Then again, the firm allows home access through the server, so weekend work in many situations can be done from home unless you are junior staff and probably need to be in the office some weekends. The firm is also good about working with employees outside engagements. I have some flexibility to work at home later at night as well to complete engagements and manage projects. Even so, the volume and diversity of engagements analysts and associates tackle in live deals offers a unique opportunity to learn skills more quickly than many of their contemporaries at other investment banks. That said, analysts and associates should expect to work hard, often late into the evening, on weekends and under the pressure of deadlines. For the most part, though, workers dont seem to mind. Choosing to work in the investment banking industry means you are making a commitmentyou will learn a lot, earn a high income and establish an incredible platform for your careerbut be prepared to earn it. And if you do need time away from the office, Houlihan is pretty good about meting it out. When I truly need time away from the office, I can always get it, relates one insider. For instance, while my wife was pregnant, I never had anyone give me a hard time about accompanying her to the doctor for routine or unscheduled visits. Then, when my daughter was born, the officers insisted that I be away from the office for a while. And the firm doesnt stop thereevery time I have had something come up on a personal level, either an officer or a peer has always stepped in to help out. Houlihan seems to have wised up to the productivity that work/life balance brings. Being successful at having a life outside of the office is 100 percent dependent on your ability to prioritize and work efficiently. If you can do that, you can become the master of your own domain.

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Its a trade-off
Then again, maybe employees tolerate the hours because compensation and perks make up for it. Theres the standard perks including car service after a certain hour and meal allowances, but theres also strong bonuses, a secure environment (were not cutting people like the other investment banks, adds one insider), discounted gym memberships, free New York MetroCards, and fun perks such as sodas, juice, breakfast on Friday and filtered waterwere environmentally conscious and do not use bottled water to not waste plastic per our co-CEO. Officers within the firm also have the option to purchase stock. As for compensation, be prepared to prove yourself. Top performers will always get top dollar, admits one insider. But funds like the company 401(k) help make up for it. Participation in the 401(k) program, which matches 50 percent of the first $1,000 contributed and 25 percent of next $2,500 is good. The dress code also gets high marks from insiders, which mostly adheres to a business casual vibe, although officers tend to wear ties more often than not. Theres also a jeans Friday during the summers that insiders believe is great. One high-ranking insider who leans toward the very casual says, I try to let people emulate my style to the extent they feel comfortable doing so, adding, I think people work better when theyre comfortable, and our dress code embodies that. In some locations, Levis seem to be the code. The dress code in the Minneapolis office is unique, reports one insider. Were allowed to wear jeans most of the time. Its a wonderful perk. Still, for all offices, when client contact is involved, business formal dress is required. Dress seems to match the office space, which insiders say is extremely nice but not over the top. We upgraded our offices in the last few years and clients are impressed when they visit, says one insider. And in some locations, associates and above

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have officeswhich could be furnished with wraparound desks and lots of file space. Though offices arent ultraluxurious, cubicles for analysts are more than spacious and we get large monitorsor two monitors if we want. But before you get those accoutrements, youll need to get trained up in the ways of Houlihan. A first-year analyst will have two weeks of training in New York, although a bulk of the training occurs on the job. Insiders seem to enjoy this feet-to-thefire approach, however, calling it effective, efficient and valuable. Generally, employees get frequent, on-the-job training in which superiors are always ready to make the effort to ensure that you understand issues thoroughly. As for the formal training, its focused primarily on how the firm approaches specific situations such as valuation methodologies, integrated cash flow modeling, etc. For the most part, though, informal training occurs every dayand this is why I think Houlihan Lokey is so successful. One insider even makes a Goldilocks and the Three Bears analogy, explaining that trainings not too long or too short, but just right.

Room for all


Sources also rave about the diversity in place at Houlihan, especially when it comes to women in the workplace. We have sensational women at levels in the organization, says one insider. I can guarantee that we go out of our way to try and attract, hire and retain capable women at all levels of our firm, adds another. And even though investment banking as a whole tends to be a male-dominated atmosphere, the firm still strives to attract and retain strong female candidates as well as or better than any bank. While one contact admits that the firm is very receptive to hiring women, he says, We still have a ways to go to match the diversity mix of our peers. Evidently, Houlihan is making strides. Our incoming class of analysts has almost as many women as men, and this should tell you all you need to know, says one insider. On the ethnic diversity front, theres been great strides in the past few years since new recruiting management. And because of that, we have excellent African-American and Hispanic bankers in our group and theres a commitment at the board level
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to try and reach out to qualified people of diversity to attract, hire and retain them. The firm also makes sure the environment is a positive, accommodating one. We have a respectful culture and derogatory remarks with respect to race, religion or anything else arent appreciatedor tolerated, says one contact. Our firm treats everybody with the same dignity and respect that each human being deserves, adds another insider. With respect to gay and lesbian hiring, one source says, We think sexual orientation is a private manner, and we are officially and I believe practicallyblind to this issue. Our representation is very light, notes another. Then again, one respondent says, We have openly gay bankers, and no one thinks a thing about it. Another says, Houlihan is receptive and accepting of gays and lesbians, and sexual preference would not play into the decisions of hiring, promoting or mentoring.

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VAULT TOP 50

22
PRESTIGE RANKING

Royal Bank of Scotland


KEY COMPETITORS
Barclays Capital Citi HSBC

36 St. Andrew Square Edinburgh, EH2 2YB United Kingdom www.rbs.com

BUSINESSES
Global Markets Global Banking & Markets Global Transaction Services RBS Insurance Regional Markets Asia Retail & Commercial Banking Europe & Middle East Retail & Commercial Banking UK Retail & Commercial Banking US Retail & Commercial Banking

UPPER
Friendly and open, with an emphasis on teamwork

DOWNER
Big name overseas but lesser known in the US

THE STATS
Employer Type: Public Company Ticker Symbol: RBS (NYSE, LSE) Group CEO: Sir Frederick A. Goodwin Revenue: 33.4 billion (FYE 12/07) Net Income: 7.55 billion No. of Employees: 170,000 No. of Offices: 2,300

EMPLOYMENT CONTACT
www.rbs.com/careers

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Great reputation Solid reputation in Europe; not sure of US activities Great culture, fun place to work Good bank; overpaid on acquisitions

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THE SCOOP

Growing fast
The Royal Bank of Scotland Group operates in more than 50 countries, providing approximately 40 million customers with retail and corporate banking, financial markets, consumer finance, insurance and wealth management services. The company boasts more than 100,000 employees in the U.K., 26,000 in the Americas and 170,000 worldwide. But not long ago, it had a lot fewer insiders. From 1998 to 2008, the firm expanded rapidly, growing its international staff from just 30,000. During that time, it also grew its annual income, which swelled from 3 billion to more than 30 billionthanks in part to the 29 acquisitions it made during the decade. In the U.S., RBS operates its commercial banking activity under the brand names Citizens and Charter One (Citizens acquired Charter One in 2004, a deal that added about 600 branches to its network). Citizens is certainly no newcomer to the U.S.its had a presence in New York, Houston, Chicago and Los Angeles since the 1960s. Today, it has operations in Connecticut, Delaware, Illinois, Indiana, Massachusetts, Michigan, New Hampshire, New York, Ohio, Pennsylvania, Rhode Island, Vermont and Virginia. Further south, it maintains offices in the Bahamas, Bermuda and the Cayman Islands. RBS Asset Finance is the No. 8 bank lessor in America, with over $5 billion in assets. Citizens credit card arm, RBS Card Services, is headquartered in Bridgeport, Conn., and provides consumer and commercial credit cards nationwide. RBS Lynk, meanwhile, provides electronic payment processing services. In the U.S., RBSs global banking and markets group encompasses corporate banking, leveraged finance, project finance, loan and high-yield markets, as well as RBS Greenwich Capitalan institutional fixed-income firm that supplies corporate finance and debt capital markets services. In addition to the U.S., RBS has a presence in Argentina, Brazil, Chile, Columbia, Mexico and Uruguay in the Americas.

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The big one


In October 2007, a banking consortiumincluding RBS, Spains Banco Santander and Dutch-Belgian bank Fortiswon a seven-month bidding battle for the Dutch bank ABN AMRO. With a price tag of $99.1 billion, the deal ranked as the largest financial services takeover in history. The RBS-led consortium beat out big-name rivals (most notably fellow Brits Barclays) for the Dutch prize, but the complicated takeover is not without its drawbacks. The transaction was completed in fall 2007, a quarter in which markets were turbulent, to put it mildly. Theres also the matter of logistics: three banks from three different countries acquired another bank with a wide international footprint. The consortium announced plans to divide ABN AMRO both by geography and by business line, which fueled concern that the resulting structure would become costly and complex. Analysts also pointed out that the consortium paid three times ABN AMROs book value. In response, RBS said it planned to cut 19,000 jobs at ABN AMRO and implement cost savings programs aimed at making the acquisition pay off by 2010. As for the division of the Dutch bank, Banco Santander took ABN AMROs Brazilian and Italian operations, valued at 19.9 billion. Fortis, the largest Belgian financial services company, paid 24 billion for the Dutch consumer banking business, the asset management division and the private banking unit. As for RBS, it paid 16 billion for ABN AMROs Asian and investment banking businesses. The consortium further tightened its control over ABN AMRO by dispatching its longtime CEO, Rijkman Groenink, with a 28 million farewell gift. (Groenink had been a vocal opponent of the RBS consortiums offer, throwing his support behind the Barclays bid.) To replace Groenink, RBS installed Mark Fisher, one of its own board members.

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From Edinburgh to the world


The Royal Bank of Scotland is one of the U.K.s oldest banks, dating back to a royal charter issued in Edinburgh in 1727. In 1874, it expanded to England, opening a branch office in London before spreading out to smaller towns. In 1970, the Royal Bank merged with the National Commercial Bank of Scotland, a combination that held 40 percent of Scotlands banking business. Another merger followed in 1985, adding Williams & Glyns Bank to the Royal roster. That deal brought the Royal Bank deeper into Welsh and English markets, and eventually led to the consolidation of the group under the name Royal Bank of Scotland. Citizens, the U.S. commercial bank, was acquired in 1988, and grew from the seventh-largest bank in Rhode Island to the ninthlargest commercial bank in the nation (based on assets). A period of expansion and diversification followed, as RBS added a car insurance unit, telephone banking services and, in 1997, the U.K.s first comprehensive online banking operation. Before the ABN AMRO takeover, the biggest merger in RBS history was its 2000 acquisition of National Westminster Bank (NatWest). At the time, the $41 billion deal was the biggest in British banking history. These days NatWests operations survive as a brand within the RBS retail banking unit.

Capital markets kudos


But mergers and acquisitions werent a strong point for RBS in 2007. According to Thomson Financial (now Thomson Reuters), RBS barely cracked the top 25, coming in at No. 23 in worldwide completed M&A. This rank represented just two deals worth a combined $99.3 billion. On the U.S. league tables RBS scored even low, ranking No. 24 in announced deals, with one deal valued at $46.8 billion. In Europe, its standing was slightly higher: No. 18 in completed transactions and No. 25 in announced transactions. And in the U.K., RBS ranked No. 14 in completed deals and No. 23 in announced deals. In the capital markets, however, RBS showed its strength. In the fourth quarter of 2007, it was the leading underwriter for international securitizations, holding a 13.4 percent market share. For all of 2007, RBS was the No. 9 bookrunner in global debt, with 787 deals worth $282.2 billion. It was also the No. 5 manager of global mortgage-backed securities and No. 6 manager of global asset-backed securities, with 97 deals worth $79.8 billion and 141 deals worth $67.3 billion, respectively. In U.S. mortgage-backed securities, RBS ranked No. 7, serving as bookrunner on 68 transactions with proceeds of $52.3 billion. On the global project finance tables, RBS fell from its 2006 top spot to No. 2, working on 68 issues worth $11.8 billion.

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Some subprime losses


Problems in the U.S. mortgage industry had a big impact on the RBS bottom line in 2007. The bank announced a $3 billion write-down for the yeara figure that was actually much better than analysts expectations. Besides its significant exposure to the American subprime market, RBS took a hit from its leveraged finance portfolio. Still, there was some good news for RBS in the U.S. According to Group CEO Sir Frederick Fred Goodwin, Citizens Bank saw gains in its commercial banking and payments businesses, despite the difficult market conditions. RBS also won several year-end awards in 2007, including the Shipping House of the Year award in Janes Transport Finance Gala Awards. The bank was recognized for its work on two major U.S. port financing deals: Ontario Teachers Pension Plans acquisition of Global Container Terminals and San Francisco-based MTC Holdings acquisition of a multimodal terminal facility in Mexico. The Banker named RBS the 2007 Global Bank of the Year, and Acquisitions Monthly dubbed it the Senior Debt Provider of the Year. RBS was also ranked the top North American securitization house at the 2007 IFR Awards.

Profits up, more write-downs


For the full-year 2007, the Royal Bank of Scotland posted net profit of 7.3 billion ($15.3 billion), in increase of 18 percent versus 2006. Meanwhile, revenue increased 11 percent to 31.1 billion ($61.8 billion). The banks results included those of ABN AMRO, which RBS acquired in the fall of 2007; RBSs net profit wouldve been slightly higher (7.55 billion) without ABNs numbers on their statements. Releasing its year-end earnings, RBS also disclosed a fresh 450 million pound write-down due to

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credit market troubles. Previously, in December 2007, the bank announced 1.2 billion in mortgage-backed security and loan write-downs. Analysts said the results would likely not change the markets short-term perception of RBS. An analyst at Collins Stewart called the results okay, adding that risks remain. And an analyst at Hargreaves Lansdown Stockbrokers said, Bears of RBS will want to hear that the write-downs have finally been put to bed, which cannot yet be definitely confirmed. That analyst added, Further out, the market will want to understand the full earnings impact and synergies from the successful ABN AMRO acquisition.

GETTING HIRED

Candy, dog treats and more


Its not just the lollipops and dog biscuits offered by the bank that sets Citizens Bank apart, the firm insists. (Royal Bank of Scotland is represented in the U.S. by Citizens Bank.) Candidates looking for a job with Citizens should check out the careers section of the company web site (www.citizensbank.com), which has information about career opportunities and life at the bank, as well as answers to a list of frequently asked questions. The trail of job search links eventually leads to monster.com, where the bank has positions listed by date, title and location. Although RBS does not have graduate programs in the U.S., recent grads wishing to check out opportunities in Europe should follow the graduate link on the RBS web site (www.rbs.com). Here, candidates can choose from opportunities in U.K. graduate development programs or opportunities in European graduate development programs. Either choice will give prospective employees a closer look at the details of graduate job opportunities, the selection process, how to apply and what
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kind of benefits to expect. Outside of the U.K., RBS has graduate and internship opportunities in Frankfurt, Paris, Madrid and Milan. Candidates should have boundless energy and bags of enthusiasm, according to the firm, which also values fluency in a second European language and previous work experience.

Face the challenge


The interview process tends to take place in two stages: one thats based more around fit questions and another thats based more around competency. The interviews are usually two-on-one, and the questions are challenging and based on scenarios, actions and results. But dont fret too much about the toughness. Though they do try and stretch you, they also try to get the right information out of you.

OUR SURVEY SAYS

Walk the extra mile


The banks culture places an emphasis on delivering as a team with exceptional standards and pushes to be market leader in all its markets. Its also friendly and open, and everyone in the office works extremely hardbecause there is an emphasis on teamwork, people are happy to go the extra mile. And workers actually enjoy each others company, it seems. There are company social activitieseveryone seems to get along extremely well with each other, reports one insider. Theres also a focus on teamwork when it comes to hours spent in the office. Since everyone on the team puts in the hours, it really doesnt feel like an issue. Hours vary, but, if the pressure is on to meet a project deadline, it isnt uncommon to put in 60-hour weeks and come in on the odd weekend.

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Add it up
It pays to look at the big picture when it comes to compensation, insiders report. They may not pay huge salaries like some other firms, but when the package is totaled up, it works out to be pretty competitive. And pension contributions are paid at 15 percent of base salaryI have not heard of many better offers than this, admits one respondent. On its web site, the firm also offers perks ranging from pet insurance to the option of buying or selling a week of allotted vacation during the banks annual benefits enrollment. There are few complaints when it comes to the dress code, too. Although attire is business casual in many areas, formal dress is only required if there is a meeting with a third party.

Credit where credit is due


An ironclad pecking order is something thats conspicuously absent within the bank, sources say. It was difficult to notice much of a hierarchy, because the work station of the head of the department was the same as mine. And while the workload can be very demanding at times, management is good at recognizing commitment with either a quick e-mail to the team or a social event covered by the company. And the bank doesnt leave workers out in the cold when it comes to their personal development. Theres a seemingly unlimited budget for training, particularly for professional qualifications, and theres also the opportunity to move around the group they offer training to help you reach your goals, even if they do not sit in your existing business area. Advancing within the firm is based on your performance and displayed behaviors, so it is as meritocratic of an environment as you can expect in a large organization. Diversity is a near-tangible concept at the firm, contacts say. It was extremely diverse, as I would hear several different languages every day. One insider adds that a lot of the people that I worked with had MBAs from top U.S. business schools, but it seemed like there were analysts from all over the world.

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PRESTIGE RANKING

Perella Weinberg Partners


KEY COMPETITORS
BlackRock Evercore Partners Lazard

767 Fifth Avenue New York, NY 10153 Phone: (212) 287-3200 Fax: (212) 287-3201 www.pwpartners.com

DEPARTMENTS
Asset Management Financial Advisory

EMPLOYMENT CONTACT
See careers section of www.pwpartners.com

THE STATS
Employer Type: Private Company Chairman & CEO: Joseph Perella No. of Employees: 220 No. of Offices: 3

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

A bunch of superstars Strong name in M&A Lots of employees, not many assignments Up-and-coming, newcomer on the Street, perceived as smart money

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THE SCOOP

Morgan and Goldman alum team up


Perella Weinberg Partners launch in June 2006 was one of the most closely watched debuts in banking history. Founder Joseph Perella made his name as a pioneer dealmaker at First Boston in the 1980s, then left to create Wasserstein, Perella & Co. with Bruce Wasserstein (now chairman and CEO of Lazard). Perellas last gig was as vice chairman and managing director of Morgan Stanley, where he became close with some of Americas top M&A talent. A shareholder revolt at Morgan Stanleythe ruckus that led to the 2005 resignation of chairman Philip Purcellprompted Perella to leave the firm, sparking rumors that he would open his own boutique. Indeed he did, and several Morgan Stanley advisors jumped ship to join him, becoming Perella Weinbergs first hires. As for Weinberg, that would be Peter Weinberg, former CEO of Goldman Sachs International and an accomplished banker as well. The two teamed up with quite a lineup of senior bankers and talented professionals recruited from a wide variety of leading global financial institutions. The firm raised $1.1 billion in capital from a group of noteworthy investors (including Mitsubishi UFJ Financial Group and Dubais Istithmar PJSC) to establish operations and fund investments in its asset management business. It was Perellas name and the team assembled that made that kind of fundraising possibleafter all, he worked on deals like America Onlines 2001 purchase of Time Warner (the biggest merger in history), and the $36 billion merger between Ciba-Geigy and Sandoz that created Novartis in 1996. He also advised MBNA on its $35 billion sale to Bank of America. Perella Weinberg Partners offers two services: advisory (including mergers, acquisitions and restructuring) and asset management, which focuses on alternative investment products. Currently, the firm consisted of 35 partners, more than 60 advisory professionals, over 60 asset management professionals, and a team of administrators and operations professionals. Its staff is divided between New York, London and Austin, Tex.

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He knows how to pick em


Besides being known as a king of deals, Joseph Perella is famous for finding and training Wall Street talent. He is credited with discovering Bruce Wasserstein (back in his First Boston days), and when he and his protg formed Wasserstein Perella, they built a team that has gone on to take the business world by storm. The illustrious group still meets for an annual reunion called the Associates Lunch. It also maintains a scholarship in the name of Gordon Rich, a Perella find who was co-head of M&A at Credit Suisse until his death in 2000. Some of Perellas other winning picks include Robert Wiesenthal, who got his start as a Wasserstein Perella summer intern and is now CFO of Sony; Raymond McGuire, co-head of global investment banking at Citigroup; Douglas Braunstein, head of investment banking at JPMorgan; Gail Zauder, who became the first woman managing director in Credit Suisses M&A group and then founded her own boutique, Elixir Advisors; and Walid Chammah, head of investment banking at Morgan Stanley.

Restructuring experts welcomed aboard


In November 2006, Perella Weinberg Partners acquired restructuring experts at Kramer Capital Partners (KCP). Under the terms of the deal, KCP founders Michael Kramer and Derron Slonecker joined Perella Weinberg as partners; KCPs team of professionals also joined the firm. KCP moved its office and small staff, and active engagements, from Stamford, Conn., to Perellas New York office. Since the acquisition, Perella Weinbergs restructuring deals have included advising the New York State Insurance Department in connection with a review of the monoline industry, Calpine Corporation on its restructuring of approximately $20 billion of liabilities and Northwest Airlines on a $16 billion restructuring of its liabilities. Additionally, Perella Weinberg Partners advisColumbia Sussex Corporation in connection with Tropicanas restructuring of $3 billion of liabilities.

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Asset management appointments


Despite his legendary M&A career, Joseph Perella shows no signs of letting his firms asset management practice be overshadowed by the advisory division. The firm has several alternative asset management funds, including a global real estate effort based in London. In March 2007, three new partners joined the asset management division, and Perella Weinberg Partners announced that it was adding a new asset management capability based on the large endowment investment model, which will be marketed under the brand name Agility. Bob Boldt, former chief investment officer of University of Texas Investment Management Company, was tapped to lead that effort from his home base in Austin. Reporting on Boldts appointment, The New York Times said, The move comes as more endowment managers are leaving the education sector to open funds that cater to universities. Mr. Boldts fund at Perella Weinberg will most likely be marketed to universities that do not have the capacity to actively manage their endowments and to other institutional investors.

Opening up the credit market


Perella Weinberg Partners made another asset management-related acquisition in October 2007, when it bought Xerion Capital Partners, a New York-based investment manager that focuses on distressed credit and special situations investments. Daniel Arbess, Xerions founder and managing principal, will join Perella Weinberg as partner, along with his investment and business teams. As part of the transaction, Perella Weinberg Partners said it would invest $100 million in strategies managed by Arbess. The New York Times, reporting on the acquisition, noted that the acquisition may prove timely due to the credit crisis, and that other hedge funds like the Citadel Investment Group to private equity firms like The Blackstone Group, have begun bulking up their distressed-asset investing teams.

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Here come the deals


Just a few months after setting up shop, the Perella Weinberg deal machine started churning. And by 2007, the firm had its hands in several notable transactions. In March, the firm was hired by Environmental Defense, a major environmental group, to help it play a bigger role in the $38 billion buyout of Texas energy giant TXU. That same month, the firm began working with billionaire activist investor Nelson Peltz, who had recently increased his stake in the U.K.-based confectionery and beverage company Cadbury Schweppes and put pressure on management to break itself up to create more value for shareholders. In April 2007, Perella Weinberg Partners advised on two significant deals in less than a week. Along with ABN AMRO and Morgan Stanley, Perella Weinberg advised French real estate company Unibail Holding on its $14.9 billion bid for Hollands Rodamco Europe. The same week, Perella Weinberg advised OMI, a transportation service provider for crude oil and petroleum products, on its $2.2 billion to Teekay Shipping and Denmarks A/S Steamship Co Torm. April wasnt all roses, however: According to The Detroit News, Members of the family that founded Ford Motor Company recently considered hiring Perella Weinberg as an outside financial adviser but ultimately voted against it.

The deal that turned the corner


Following the Ford miss, word began spreading that Perella Weinberg, despite being led by one of the industrys M&A legends, had yet to land a big-time deal. But in May 2007, the firm was handed just the thing to quiet all doubters, when it was named co-lead adviser to the Thomson Corporation, alongside the now defunct Bear Stearns, in its negotiations to acquire the Reuters Group for $17.5 billion. Reporting on the assignment, The New York Times noted, Perella Weinberg had already worked on multibillion-dollar deals$34 billion worth, as of late last monththough none had the size and brand recognition (at least on this side of the Atlantic) of Thomson Reuters. The firms largest deal to date was overseas: it advised the French real estate giant Unibail in its $19 billion acquisition of Rodamco Europe. In the United States, it advised Pathmark on its sale to supermarket chain A.& P. for nearly $700 million.

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By June 2007, Perella Weinberg had landed another big assignment, to advise London-based GLG Partners, one of the largest hedge funds in Europe, on its public offering on the New York Stock Exchange, a deal valued at $3.4 billion. That same month, Perella Weinberg acted as sole advisor to Antalis, a subsidiary of Sequana Capital, on its proposed acquisition of Map Merchant Group, the paper merchanting division of M-real. The deal, worth $520 million, would create the leading paper distribution company in Europe. Later that summer, in August, Perella Weinberg acted as exclusive advisor to The Lamson & Sessions Co., on its review of strategic alternatives and proposed sale to Thomas & Betts Corp. In December 2007, Perella Weinberg was sole advisor to International SOS, a provider of medical assistance services to multinational corporations, in relation to its capital reorganization, through which Cobepa acquired an 18 percent stake and a group of minority financial shareholders sold their position. That same month, the firm was sole advisor to Deutsche Lufthansa on its $310 million acquisition of a minority equity interest in JetBlue Airways. Perella Weinberg also worked for Olympus Corporation on its proposed $2.1 billion acquisition of medical device company Gyrus Group.

Off with a bang in 2008


Perella Weinberg kicked off 2008 with a whopper of a deal, acting as exclusive advisor to the Kuwait Investment Authority, one of the worlds leading sovereign wealth funds, on its $2 billion investment in Merrill Lynch. The firm got some more good news in January 2008, when it was tapped by Maurice R. Greenberg, former CEO of the American International Group, to advise him on determining how much his 12 percent stake in AIG is worth. Greenberg had been forced out of AIG after 40 years with the insurance conglomerate (which, one year after Greenberg left, paid $1.64 billion to settle charges brought by federal and New York State authorities).

Hold the line


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In June 2008, Perella Weinberg Partners took on an advising role for France Telecom regarding the prospect of taking over Sweden-based phone company TeliaSonera. If the deal goes through Perella Weinberg would become one of the biggest advisers in the industryTeliaSonera is worth in the neighborhood of $40 billion. So far, the biggest deal Perella Weinberg has advised since its creation in 2006 has been Thomson Financials $18 billion purchase of Reuters Group.

GETTING HIRED

Take the best, leave the rest


Perella Weinberg Partners interviews at an admittedly very limited number of universities and graduate business schools in the U.S. and Europe; it wont even name specific campuses on its roster. This selective campus recruiting is how the firm fills the majority of its full-time and summer internship positions in its advisory practice. However, interested candidates may mail a resume and cover letter, addressed to human resources, to either the London or New York office. According to the firm, Analyst and associates can make an impact early on and get the opportunity to interact with these senior professionals dailya differentiator for those looking to join the business. Perella is still open to top-notch lateral hires, though it doesnt make its job openings public and says it hires on a very opportunistic basis. Candidates presently employed at another firm can mail their materials to human resources in New York or London, specifying their interest in advisory, asset management or firm administration. If theres a match, Perella will be in touch. Either way, the firm says its looking for exceptional talentand people who are excited about the idea of working in a small, private partnership. Since its advisory partners currently have an average of 20 years experience, only the best of breed will do.

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PRESTIGE RANKING

Jefferies & Company


RANKING RECAP
Quality of Life #9 Compensation #12 Overall Satisfaction #13 Treatment by Managers #13 Training #13 Best Employers to Work For #15 Selectivity #15 Hours #20 Offices Diversity #11 Diversity with Respect to GLBT #13 Diversity with Respect to Women #15 Overall Diversity #18 Diversityt with Respect to Minorities

520 Madison Avenue, 12th Floor New York, NY 10022 Phone: (212) 284-2300 www.jefferies.com

BUSINESSES
Asset Management Investment Banking Private Client Services Research Sales & Trading

THE STATS
Employer Type: Public Company Ticker Symbol: JEF (NYSE) Chairman & CEO: Richard B. Handler Revenue: $2.718 billion (FYE 12/07) Net Income: $144 million No. of Employees: 2,400 No. of Offices: 25
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KEY COMPETITORS
FBR Capital Markets Houlihan Lokey Piper Jaffrey Companies UBS Investment Bank

UPPERS
Small deal teams equal greater responsibility Fantastic pay

DOWNERS
Lacks the name recognition of other firms Hours can be brutal

EMPLOYMENT CONTACT
www.jefferies.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Top-notch middle-market firm Small deals Rising star Growing brand but still far away from being a powerhouse

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THE SCOOP

A good idea gets big


Boyd Jefferies eponymous firm was established in 1962 with a $30,000 business loan and one employeea floor runner. Jefferies and his runner began conducting business on the floor of the Pacific Coast Stock Exchange; along the way, he realized that a market need was not being met: institutional investors often wanted to trade large blocks of stock without making an impact on the market (or tipping their hand to other traders) but had no mechanism for doing so. Jefferies began catering to these investors, discreetly matching large institutional buyers and sellers off the exchange. Nowadays, this is a standard practice known as third-market trading, but in the 1960s, it was a novel idea. Jefferies prospered, becoming a respected equity trading firm and launching an IPO in 1983. Expansion followed in the 1990s, as Jefferies began offering investment banking, asset management and research services. The firm also opened offices throughout North America, Europe and Asia. Today, New York-based Jefferies & Company, a global investment bank and international securities firm, operates as a principal subsidiary of the Jefferies Group. (Jefferies International Limited is headquartered in London.) The firm employs about 2,400 people in 27 offices in the U.S., Canada, the U.K., France, Dubai, Germany, India, China, Singapore, Switzerland and Japan. Jefferies offers investment banking, sales and trading, research and asset management services to midsized companies in several industry sectors, including aerospace and defense, energy, financial and business services, gaming and leisure, health care, industrials, maritime and oil services, media and communications, retail and consumer products and technology. Theres also a dedicated private equity coverage group that links industry and product groups, and maintains relationships with midsized American private equity funds and hedge funds.
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Jefferies likes to call itself a firm of shareholders, and sure enough, almost every employee (or employee-partner) owns Jefferies stock. According to the firm, employee ownership has increased significantly since 2002, and Jefferies employees own approximately 40 percent of the firms equity.

M&A masters
In recent years, Jefferies has been named the Middle Market Investment Bank of the Year by Buyouts magazine as well as Investment Dealers Digest. And in 2007, according to the Thomson Financial (now Thomson Reuters), the firm continued to master the middle-market merger and acquisition market, ranking No. 5 based on imputed fees in worldwide announced M&A deals with values up to $50 million, $100 million and $200 million. For deals with values up to $500 million, the firm came in at No. 9. In U.S. deal making, based on number of transactions, Jefferies ranked No. 2 for deals with values up to $50 million, $100 million and $200 million, coming in behind Houlihan Lokey. For deals with values up to $500 million, Jefferies worked on 90 transactions with a total value of $7,065 millionenough to earn a third-place slot behind Houlihan Lokey and Credit Suisse. In addition, in 2007, Jefferies topped a number of other industry league tables, as it ranked No. 1 in technology M&A deals (for the third year in a row), energy deals (for the second consecutive year) and aerospace and defense M&A deals (for three years running). In the capital markets, the firm has ranked as the No. 1 high-yield underwriter of U.S. high-yield new issues valued at $150 million and under, for seven years running Some notable 2008 transactions include: advising Maven Networks in its $160 million acquisition by Yahoo!, acting as joint bookrunner on IPC the Hospitalist Companys $95 million IPO, serving as joint bookrunner on Genco Shipping & Tradings $282 million follow-on offering and advising Sony Pictures in its $286 million acquisition of 2Way Traffic.

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Acquiring minds
In 2007, Jefferies continued its streak of acquiring boutique firms as a way of enhancing its capabilities. It bought U.K.-based LongAcre Partners, a media and Internet M&A advisory firm, as well as the Putnam Lovell investment banking business from Canadas National Bank Financial Group. An advisor to the financial services industry, Putnam Lovell, was comprised of 21 bankers in New York, London and San Francisco, and its client list included Allianz, American Express, Bank of America, BNP Paribas, Deutsche Bank, Nuveen Investments, Prudential Financial and Royal Bank of Scotland. These acquisitions marked the fourth and fifth acquisitions, respectively, for Jefferies in less than five years. The firm also acquired a consumer-focused team in Charlotte, N.C. Jefferies hired Jim Walsh away from his post as head of the food industries investment banking group at Wachovia Securities to head its consumer activities. Within a few weeks of Walshs hire, Jefferies announced that it had added four senior investment bankers to the consumer and retail team, and by the end of 2007, it had more than 20 professionals in its consumer and retail practice in Charlotte and New York.

Across the Pond


In 2007, Jefferies acquired a Frankfurt-based investment banking team serving German-speaking markets, as well as Sponsor and NOMAD status on the Alternative Investment Market (AIM) on the London Stock Exchange. The firm also nabbed former Deutsche Banker David Weaver to drive its activities in Europe, Asia and the Middle East. Additionally, Jefferies captured three 2008 Deal of the Year awards from The Banker magazine for energy-related transactions involving companies in Bangladesh, Gabon and Mauritania. The firm also served as bookrunner for the Quoted Company Awards 2007 International IPO of the Year, and one of its transactions, a pre-IPO convertible offering, was named Equity Deal of the Year at the Euromoney and Ernst & Young 2007 Annual Global Renewable Energy Awards.
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In the past two years, Jefferies has established offices in Frankfurt, Dubai, Singapore, New Delhi and Shanghai, and in November 2007, it consolidated its various London offices into one centralized location.

No subprime here
The firm hasnt had an unprofitable year in nearly three decades. Although Jefferies took a net loss of $24 million for the fourth quarter of 2007, it still eked out an eighth year of record net revenue, and reported profits of $144 million for the year. The downturn in the last quarter was caused by difficult market conditions and poor results in the firms high-yield and asset management businesses, plus a number of postponed deals for the investment banking division. On the upside, Jefferies had no major write-offs and no exposure to the devastated subprime loan market, unlike many of its competitors. Still, Richard Handler, chairman and CEO, reassured investors and employees that the firm had taken immediate and decisive action in the wake of the fourth quarter earnings report. In addition to cutting operating expenses, Handler announced that he and executive committee chair Brian Friedman would forgo their own bonuses for 2007. Handler and Friedman also instructed the compensation committee to reduce their future compensation by $13 million and $6.5 million, respectivelythe value of their 2007 restricted stock awards. If we are asking our shareholders to make this investment for the long-term success of Jefferies, we should put our money where our mouth is and pay our fair share, Handler said.

GETTING HIRED

More lenient than bulge brackets


Jefferies small size means it does not hire large classes of analysts or associates. Because the average class size is smaller than most bulge brackets, Jefferies is very focused on fit, which can make the selection process a little trickier and selective. In order to make it only Jefferies very lean staff, candidates must past muster with the firms strongest bankers, who can be very particular when interviewing. Although the process is not super rigorous, candidates must demonstrate competence

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in general finance and some understanding of banking principles. The firms competitive position does require that we be more accommodating in hiring, but the doesnt mean a free ride. One contact recalls, When I was interviewing for the summer associate position, we ultimately had five summer associates out of a total candidate pool of about 100 to 200. The firms recruiters look for future stars at top-tier undergraduate and graduate institutions in the U.S. and Europe. Undergrad favorites include Boston College, Bowdoin, Columbia, Harvard, Michigan, NYU, UPenn, Princeton, University of Texas, UVA, Berkeley, UCLA and USC. Outside the U.S., Jefferies recruits at Oxford and Cambridge. For business schools, Jefferies looks to Columbia, Darden, Fuqua, HBS, Kellogg, Sloan, Stern, University of Chicago, Wharton, Yale, Haas, and Anderson.

Quick and to the point


Most candidates for analyst and associate posts endure two interviews, with some meeting as many as 15 to 20 people throughout the process. First-round interviews are conducted either on-campus, office visit, or via the telephone. The final round is normally a Super Day that takes place on site at Jefferies office. At that stage, candidates can expect to participate in a dinner, and then six rounds of interviews where you meet with one-two people at a time. These interviews are with various members of the bank, from analysts through the head of investment banking. Some candidates have very little senior banker interaction during the process, while others have short interviews with managing directors. (According to Jefferies, though, the offer process is geared toward candidates meeting senior bankers before offers are extended.) Super Days can be very quick and intense, with back-to-back meetings that cover everything from valuation and finance questions to basic behavioral questions. A contact says, Depending on your background, we are looking for people who demonstrate leadership and initiative skills, as well as a strong understanding of the basic finance and accounting skills. So expect to field technical questions as well as ones concerning personality and fit. Sample questions include What does an investment bank do? and How does a change in depreciation flow through each of the financial statements? You might also be asked name and describe three ways to value a company. Sources say the firms senior bankers tend to side towards the qualitative when interviewing, as they want to get a sense of how you would interact with clients.

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Helpful, but not critical


Jefferies gives out several full-time offers to interns, assuming they perform well. However, insiders say, Its not critical for securing a job. A contact notes, More than half of my class did not do an internship. In other classes, about 80 percent did internships. Although not a necessity, performing an internship is fairly important because it can make the full-time employment process easier. Former interns say the firms summer program is excellent and designed to give a broad generalist experience. Interns also enjoy many great events to get to know people across the firm and are treated on par with full-time, first-year analysts and associates, giving them full exposure to investment banking. Some interns also experience client exposure.

OUR SURVEY SAYS

Lots of responsibility, lots of fun


The crew at Jefferies is a happy one. Insiders say their firm offers the best investment banking experience. The deals are fascinating, ranging from combined high-yield financings and M&A sell-side advisory assignments to combined equity and private debt assignments. And the interesting stuff isnt hogged by senior bankers. Because of Jefferies small deal teams, junior bankers are given greater responsibility than they might get at a bigger, bulge bracket firm. A source recalls his early days at the bank: The third day after training, I was calling the CFO of a $350 million market cap company to get materials ready for a deal. This kind of early exposure makes Jefferies a great place to start a banking career, especially since those who excel are rewarded and recognized for their hard work.

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The firms culture also gets high marks for being collegial and fun. The work environment in terms of co-workers and office quality are all outstanding. The firm is filled with great people without the banker attitudes, and everyone has a very team-oriented approach to accomplishing goals. Because its a small firm, people get to know each other very well and get along very well. Sources say that compared to other investment banks, Jefferies is more collegiate, a place where people choose to hang out outside of the office. And theres lots of different types of people to pick from. According to one source, Weve got Russian majors, guys that have traveled around the world and lived in foreign countries, fraternity men, a former master yoga instructor and even a kid that used to be a performing magician while he was at Wharton. Card trickster or not, people are very supportive at this relaxed and entrepreneurial firm. The firm has experienced some growing pains lately, as it is searching for the optimal size to operate at in order to keep its competitive advantage. Some say the strong culture of bonding and friendship has eroded as the firm has grown in size Jefferies is certainly no boutique. But overall, the culture is still much more amiable than that of a bulge bracket firm.

No complaints about comp


Jefferies bankers are quite pleased with their compensation packages. In addition to fantastic pay, the perks are nice. Insiders say the financial upside for the individual banker is great here. Employees enjoy free lunches everyday and $30 meal allowances for dinners when working late. On weekends, there is a $15 lunch allowance and $30 allowance after 3 p.m. Theres also a fully-stocked beverage refrigerator and snack drawers. The firm covers 90 percent of cell phone bills, and provides car services at night and on weekends. When on the road, Jefferies bankers travel in style, taking advantage of business class tickets and five-star hotels. There is no on-site gym, but the firm offers discounted gym memberships at all the major gyms. The firm also has an employee stock purchase plan through which all employees can purchase equity in the company at a discount to the current stock price.
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Better get comfy


Hours at Jefferies can be brutal. Most bankers log between 90 and 100 hours per week, with some putting in over 110 hours when busy. The good news is, there is no face time. Everyone works hard and is often multitasking, working on a number of live engagements at one time. The unspoken rule is that you must work hard, but you do not need to be seen at the office. Hours can fluctuate and dip, depending on what deals you are working on, but for the most part, when work needs to be done, theres no such thing as time off. Lately, hours have been very intense because Jefferies has been successfully engaged in numerous deals across every industry. And because junior bankers at Jefferies get a lot of responsibility, theres often a lot of pressure to perform. This translates into late nights on a regular basis. Once you hit associate, its OK to work from home on weekends or in the late evenings. But for newbies looking to prove themselves, the job requires sacrifices. A contact says, You can not do your job adequately without devoting the majority of your day to the office. Fortunately, Jefferies does a good job to make sure you are as comfortable as possible while working.

High standards
Jefferies managers have open-door policies and are happy to discuss anything that arises for a junior banker, work-related or personal in nature. They also tend to be understanding about life outside of the office. Most senior bankers have great respect for everyone and treat all people equally. They constantly seek feedback and make an effort to develop junior investment bankers. Some say the firms senior bankers can be very demanding with an intense focus on getting the job done. Certain managers have unrealistic expectations, which can be stressful. Generally speaking, though, managers try to be aware of the big picture to ensure that junior bankers are not overloaded. They also make an effort to make sure you are in the loop, and often ask for opinions from analysts on up the food chain. Junior employees are held to high standards, but treated very well.

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Continuing ed could use a boost


New associates are indoctrinated with a very extensive and intensive, five-week training program, in which they learn about the process of public and private equity deals, convertible deals, high-yield deals, M&A deals and restructurings. In addition, case studies are done by Training the Street, and presentations are given by each first-year associate and analyst to senior bankers, role-playing as directors on a board of a mock client company. Analysts and associates are also schooled on basic principles and models. Though sources say this initial training is great, the firm could improve in the area of continued training. The majority of follow-up training is informal. The good news is that associates and senior analysts take the time to teach junior bankers, instead of just dumping work on them.

Nice, in a modest way


Jefferies New York headquarters is much more open compared to other investment banks. The office is furnished with low cube walls with partial glass walls. Although cubicles are spacious, the office is hardly luxurious, and nothing compared to law firms or buy-side shops. Jefferies doesnt waste money on art or anything particularly stylish but the offices are clean, functional, and comfortablejust not grand in any way. The lobby at 520 Madison Avenue was recently completely renovated with exquisite wall-to-wall cielis granite. In Los Angeles, offices are functional, clean and professional without being ostentatious. And go to Jefferies San Francisco outpost if you want an amazing view. In D.C., insiders say the firm needs more space. In all offices, associates and above are given an HP laptop with a large screen as well as an extra-large flat screen desktop monitor. Dress code at Jefferies is business attire. We are not business casual on Friday. Client meetings are generally always suit and tie unless otherwise stipulated by the client. On weekends, anything goes.
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The diversity programs


Jefferies is highly receptive to hiring, mentoring and promoting women. The firm adds multiple new female analysts and associates every year, and there are numerous female junior bankers, both in the investment banking division and capital markets. There are female managing directors, as well as many other senior female bankers, in health care, clean tech, and aerospace and defense. A contact says, One of the female MDs in the financial and business services group is widely known within the firm and as well as in the industry as the foremost banker in the specialty finance sector. Although there are fewer women than men overall, women are not treated any differently. And the current analyst class is about 50 percent female. As for ethnic diversity, it is an environment where everyone respects each others cultures, and insiders say the firm is friendly to ethnic minorities. A source notes, Many groups have more than one Asian, African-American or Latin American.

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VAULT TOP 50

25
PRESTIGE RANKING

Evercore Partners
RANKING RECAP
Quality of Life #1 Selectivity #2 Compensation #3 Treatment by Managers #4 Offices #6 Overall Satisfaction #12 Best Employers to Work For Diversity #12 Diversity with Respect to Minorities #14 Overall Diversity #20 Diversity with Respect to Women

55 East 52nd Street, 43rd Floor New York, NY 10055 Phone: (212) 857-3100 Fax: (212) 857-3101 www.evercore.com

DEPARTMENTS
Advisory Services Investment Management

THE STATS
Employer Type: Public Company Ticker Symbol: EVR (NYSE) CEO: Roger C. Altman Revenue: $340.05 million (FYE 12/07) Net Income: $51.4 million* No. of Employees: 294 No. of Offices: 5 *Adjusted Pro Forma Net Income

KEY COMPETITORS
Goldman Sachs Greenhill & Co. Morgan Stanley Perella Weinberg Partners

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UPPERS
Higher compensation than peers Exposure to senior-level bankers Low level of bureaucracy

DOWNERS
Lack of brand recognition Hours can be brutal No formal diversity programs

EMPLOYEMENT CONTACT
See careers under contact us section of www.evercore.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong M&A practice Fine Great name, superior team Not well known

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THE SCOOP

Public debut
Created in 1996 by former Blackstone veterans Roger Altman and Austin Beutner, Evercore Partners is an investment banking boutique that limits itself to two lines of business: advisory services and investment management. After 10 years as a private firm, Evercore went public in August 2006 with an $82.9 million initial public offering. In its first year in the public eye, the firm produced solid results: revenue increased 47 percent in 2006, to $216.4 million from $146.3 million in 2005. Net income rose an astonishing 80 percent, from $22.4 million in 2005 to $40.5 million in 2006. In 2007, given a vesting event related to the firms secondary offering, the firm booked a net loss $34.5 million despite record annual revenue of $340 million. Adjusting for the accounting loss resulting from the vesting event, though, net income totaled $51.4 million for the year. Evercore operates from offices in New York, San Francisco, London, Mexico City and Monterrey.

Two core businesses


Evercores advisory services include corporate advisory and restructuring advisory. The former serves public and private companies, with emphasis on large multinationals. Corporate advisory services include mergers and acquisitions, divestitures and sale transactions, special committee and fairness opinion assignments and corporate finance advisor. The restructuring advisory business works with debtors and creditors both in and out of court; its services include restructuring, raising and structuring DIP (debtor-in-possession) and exit financing, M&A advice, raising debt and equity financing, expert testimony and fairness opinions, and general financial analysis.
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Evercores investing business manages over $1.2 billion funded by U.S. and international investors, including corporate and public pension funds, foundations, trusts, banks, endowments, insurance companies and families. This business is divided between two private equity funds (Evercore Capital Partners I and Evercore Partners II), the Evercore Ventures venture capital fund, Evercore Asset Management and Protego Asesores, a Mexican private equity joint venture with Discovery Capital Partners. Cornerstones of Evercores private equity portfolios include American Media, Inc. (publisher of Shape, Fitness, and the National Enquirer), Balkrishna Industries (a Mumbai-based tire manufacturer) and Sedgwick CMS, a Tennessee claims management outsourcer.

Brave acquisition
At the end of 2006, Evercore celebrated the completion of its acquisition of Braveheart Financial Services, a U.K. boutique financial advisory and investment management firm. Under the terms of the deal, Braveheart partners Bernard Taylor and Julian Oakley will operate a London office under the Evercore name. They also became Evercore managing directors, and Taylor (a former JP Morgan vice chairman) became a co-vice chairman at Evercore. Evercores chairman, Roger Altman, said in a statement that he had a long term goal to achieve the same market leading position in Europe, among boutique advisory and investing firms, which we have achieved in the United States. He added, We are optimistic on achieving this. His optimism may be well founded: From 2004 to 2006, Evercore advised on four of Europes biggest M&A deals. These include advising VNU on its $11.6 billion sale to a private equity consortium; Credit Suisse on the $9.9 billion sale of its Winterthur insurance arm to AXA; Swiss Re on its $7.8 billion acquisition of General Electrics Insurance Solutions business; and NTL on its $8.8 billion acquisition of Telewest Global.

Proving itself
In 2007, Evercores first full year as a public firm, the advisory practice continued to keep busy, closing or announcing several large M&A transactions. The firm advised Novelis on its $5.7 billion sale to Hindalco, Aquila on its $2.7 billion sale to Great Plains Energy, CVS on its $28.1 billion all-stock acquisition of Caremark, Realogy on its $6.9 billion leveraged buyout by Apollo

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Management, First Data Corp. in its $29 billion buyout by KKR, and Apax in its $7.8 billion acquisition of Thomson Learning. In September, Evercore advised BlueLithium on its $300 million sale to Yahoo! and Network General Corporation on its $205 million sale to NetScout Systems. In November, Evercore advised Gedeon Ricther Plc on its whopping $1.3 billion acquisition of Polpharma. Still, some analysts have sounded a note of caution about Evercores successes, noting that the bulk of the firms advisory revenue comes from a relatively small number of clients, which could threaten earnings if those clients dont do enough business. Evercore finished strong in 2007, however, and came up with a respectable position on the M&A league tables. According to Thomson Financial (now Thomson Reuters), the firm ranked No. 12 in U.S.-announced M&A, advising on 40 deals worth a total of $111.3 billion. Evercore also was No. 12 in U.S. completed M&A, with 35 deals worth $131 billion. The firm came in at No. 12 in both categories in 2006 as well.

New CFO for a new era


Another important milestone early in Evercores public life was the appointment of a new CFO. In June 2007, the firm named Robert Walsh, a senior partner at Deloitte & Touche, to replace David Wezdenko as chief financial officer. According to a company statement, Wezdenko left the firm on good terms and agreed to stay on for several months to help Walsh transition into his new role. Walsh served in a number of executive management roles at Deloitte since he joined the firm in 1979. As the lead partner for his clients, he oversaw Deloittes services around the globe. Among his most recent responsibilities, Walsh managed Deloittes relationships with The Blackstone Group and Cantor Fitzgerald. He also previously oversaw the firms relationship with Morgan Stanley.
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Other major U.S. hires in 2007 included three senior managing directors: Stephen Schaible, a former Citigroup managing director who will work out of Evercores New York ofice; Francois Maisonrouge, who worked most recently as an MD at Credit Suisse and also joined Evercores New York office; and Mark Vander Ploeg, who joined the San Francisco outpost and most recently was vice chairman of investment banking at Merrill Lynch.

London office continues to grow


The firm also recentlly scored some big names overseas. In September 2007, Evercore added two bankers to its London outpost, hiring former JPMorgan Cazeonove Managing Director Edward Banks and former Merrill Lynch Managing Director Ian Ferguson. Both joined Evercore as senior managing directors in the firms advisory unit. A few months later, in December 2007, Evercore made a senior appointment in its rapidly expanding London office, according to The New York Times. Anthony Fry, who was named senior managing director, was most recently with Lehman Brothers, where he was head of U.K. investment banking and chairman of the firms media group. Before that, he was head of media banking at Credit Suisse. During his three years at Lehman Brothers, Fry established the firm as a significant force in both investment banking, leading the successful defenses of The London Stock Exchange, and corporate broking, notably on behalf of Lloyds TSB. Commenting on Evercores latest hiring spree, the Times said, Evercore Partners doesnt seem to be letting the credit crunch get in the way of its hiring plans Evercore, which went public about a year ago, has been aggressively adding to its staff this year.

What credit crunch?


In September 2007, the same month that Banks and Ferguson were hired in Evercores London office, CEO Roger Altman said at the Lehman Brothers Financial Services conference that recent troubles in the credit market were a cleansing and fundamentally cathartic development. This was a surprising comment from the chief of a boutique firm, the type of bank that tends to be largely dependent on M&A fees (opposed to bigger firms with more revenue streams). But Altman appeared

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unphased, noting that many of Evercores clients are companies rather than private equity firms. At the Lehman conference, Altman said 35 of Evercores top 40 clients in 2006, as ranked by fees, were corporations, opposed to financial firms. However, Altmans seeming lack of concern may be because he has a trick up his sleeve: restructuring. Reporting on the conference, The New York Times noted, During the last bankruptcy boom, Evercore earned big fees advising bankrupt companies and their creditors Altman seems to be bracing for more such work, telling attendees at the Lehman conference that he expects Evercores restructuring group to jump from eight professionals now to 16 in the next year.

Restructuring new hire


In June 2008, Evercore hired former head of Bear Stearns restructuring unit Daniel A. Celentano as a senior managing director. At Bear, which was acquired by JPMorgan Chase for $10 a share in May 2008, Celentano worked on restructuring projects for General Motors, Time Warner, Zale Corporation and Andersen Worldwide. In his new role, Celentano will work with William Repko and David Ying, the current heads of Evercores restructuring group.

GETTING HIRED

In search of those who check the fit box


Evercore is highly selective and closely scrutinizes for both competence and fit. There are a very limited number of spots per year and only a few analysts get hired from schools other than Wharton. Bulge bracket experience is also looked upon favorably. Its pretty difficult to get a full time offer without summer experience from a bulge bracket firm. The firm does have its own small summer intern class of four or five analysts, but most worked in other banks before coming to work here. Participating in Evercores program will give a leg up in the recruiting process, because the firm has used the 10 weeks as an extended job interview allowing it to choose the very best from the preselected pool, but it is not essential. Regardless of when you intern, Evercore wants people with a strong background in accounting and analysis, which makes finance and accounting coursework a must. The firm focuses on pedigreed undergrad and MBA programs, and assesses candidates with bias toward those with client-interaction experience. Although the firm recruits only at a small set of schools, it will consider any resumes that are submitted. Last but definitely not least, candidates must be a good fit for the firm. A contact says, Fit is usually where people get cut. It is imperative to have solid technical skills and a good work ethic, but if you dont check the fit box, you will not be hired.

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Time to get technical


Evercores interview process is short and transparent. Most candidates interview on-campus, followed by a full day of interviews in the firms New York City office. The number of on-site interviews can range from four to as many as 10, and include associates, VPs and partners. These 30-minute interviews tend to be technically rigorous to assess quantitative abilities. Interviewers are also looking to gauge fit by asking questions about interest in investment banking and the boutique environment. Sources say the question ratio breaks down to about 50 percent technical and 50 percent fit interview. But one source recalls, The questions I got asked here were much more technical than the ones from other investment banks. Evercore recruits at top undergraduate business schools only. Historically, target schools have included Harvard Business School, Wharton, Columbia, Kellogg and University of Chicago at the graduate level, and UPenn, NYU, Western Ontario, UVA, and University of Michigan at the undergraduate level.

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OUR SURVEY SAYS

An edge on bulge brackets


Insiders at Evercore think their firm has an edge over bulge bracket competition. At this smaller firm, there is less distance between junior and senior people, which creates a second-to-none experience for analysts. In addition to great exposure to some of the most talented and highly regarded senior bankers on the Street, Evercore offers analysts significant responsibility and the chance to work on different deal types. The firm also offers a more manageable social life than most bulge brackets, and for the times when long hours are required, you wont mind pulling all-nighters with the people here. Evercores culture is comprised of a tight-knit group of extremely bright, talented and motivated individuals who have uncanny goal congruence about how to build and run a business. In this fun, laid back, non-bureaucratic working environment, bankers do not fit into the arrogant banker stereotype. Everyone is nice and willing to explain complex concepts to you, and people hang out on weekends and after work. Evercore is also results and responsibility driven. A contact says, There is a David vs. Goliath mentality when we think of our firm compared to its counterparts on Wall Street. This contributes to a more collegial, helpful working environment, but also substantially longer hours and more responsibility shouldered by the analysts. Indeed, a lot is expected out of all employees, and everyone is expected to be a quick learner and to push for responsibility beyond what may be expected elsewhere. Expectations are set extremely high and A+ performance is demanded every day, including those days that begin with S. Fortunately, people are recognized for all their hard work, because Evercore is very much a meritocracy.

Saying thanks with perks


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Evercore bankers enjoy higher compensation than peers. Almost unanimously, insiders give high marks to their pay packages, which in addition to salaries, include a number of perks. Bankers enjoy a generous meal allowance of $30 for dinner during the week and $50 on weekends. Theres also a stocked kitchen with fruit, drinks, bottled water, and other snacks. To top it off, free breakfast is provided every morning. Evercore also offers generous travel and expense policies, as well as discounts on gym memberships and car service to and from work after 9 p.m. and on the weekends.

The softer side of brutal hours


New bankers should expect to work hard, especially in the first year much more than second year. Although hours are generally better than bulge brackets, they can be brutal at times and normally average around 90 per week. Most work pretty much every weekend, with an average of one weekend off per month. Some say weekend work is sporadic, while others say Saturdays and Sundays are just like Mondays and Tuesdays. The good news is that the firm is fairly thoughtful about hours worked. When youre at the office, it is usually for good reasons. There is no face time and minimal wasteful, unnecessary work. Hours can be long and unexpected, but the firm does a good job with working around analysts schedules when they have plans. Theres also a strong emphasis on taking your vacations. The bottom line is you should expect very demanding hours, but with consideration for family time and vacation.

On-the-job learning
At Evercore, analysts and associates work closely with senior partners on a daily basis. This can be stressful, but also provides an opportunity to learn more and get the proper recognition for your hard work. Analysts and associates are treated with a great deal of respect, especially from the partners. Many subordinates build real, in-depth relationships with their managers. At times, this collegial environment can lead to inefficiencies. But generally speaking, managers recognize that banking can be difficult for junior employees and are willing to help. Its a good thing Evercores managers are so willing to help, because training is pretty much 100 percent on the job. New employees are expected to come to Evercore already knowing your accounting and finance. The firm requires self-starters

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who will be content with two weeks of DealMaven training. Fortunately, people understand there is a learning curve and are extremely helpful when you first start. But regardless, incomers should be prepared for a learn-as-you-go environment.

New office in midtown


Evercore analysts work from pretty big cube areas, but they offer little privacy. Associates and above have nice, windowed offices with nice views. Everyone works from the firms newly renovated floor of a prime Midtown Manhattan building. Plus, the kitchen is stocked with drinks, and theres free breakfast of fresh fruit and bagels every morning. There sometimes can be a lack of basic resources like stationery, as well as technology issues, because the firm lacks the expensive resources that bigger banks have. But most give high overall marks to Evercores facilities, and one source says the firms office is a 1,000 percent improvement over my previous employer, Goldman Sachs.

No Herms required
The dress code at Evercore is somewhere between business casual and business formal, unless youre meeting with a client, in which case its always formal. On regular days, some people wear ties everyday, some dont. Although some people like coming in suits and ties, insiders say Evercore is not like Lazard, where everyone wears identical Herms ties and silver monogrammed belt buckles. A contact says, People here really dress differently and however they want to. In fact, one of the partners doesnt even own a tie.

Time to get formal about diversity


Evercore has very few female analysts and senior people. More specifically, among analysts and associates, there is approximately one woman out of six hires per year. Although hiring is done on a sex-blind basis, there is no formal mentor or hiring initiative for women. Shedding light on why few women are attracted to the firm, one insider says Evercore has no formal programs because its not necessary. The few women who are in senior roles are highly respected and treated pretty much the same as everyone else. And some say the ratio will improve with the new analyst class. New associate classes are currently running about 30 to 50 percent female. Evercore is without a formal program for hiring or retaining ethnic minorities as well. Despite that, sources say the firm is surprisingly diversified for its size. For a small firm, Evercore hires a lot of foreigners, and several senior execs are minorities. All are highly respected and treated well like everyone else. Similarly, there are multiple gay people in senior roles, and they receive total respect.

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PRESTIGE RANKING

Deloitte & Touche Corporate Finance LLC


UPPER
Culture is congenial, cooperative, respectful and fun

600 Renaissance Center, Suite 900 Detroit, MI 48243-1704 Phone: (313) 396-3000 Fax: (313) 396-3618 www.investmentbanking.deloitte.com

BUSINESSES
Acquisitions, Joint Ventures & Alliances Capital Raising Corporate Development Advisory Sales and Divestitures

DOWNER
Most people do not have time to take the full three weeks [of vacation] off

EMPLOYMENT CONTACT THE STATS


Employer Type: Subsidiary of Deloitte Financial Advisory Services DTCF National Managing Director: Bob Coury Revenue: $1.9 billion (Deloitte Financial Advisory Services total) (FYE 5/07) No. of Employees: 1,200 (Worldwide) No. of Offices: 4 (US)
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www.careers.deloitte.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong, great place to start off, competitive Not the same experience as pure play investment bank Addresses niche part of the market I-bank wannabes

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THE SCOOP

Well connected
Heres a roadmap to locating Deloitte & Touche Corporate Finance (DTCF) within its sprawling parents structure. DTCF is a wholly owned subsidiary of Deloitte Financial Advisory Services (Deloitte FAS), which is in turn a subsidiary of Deloitte & Touche USA. Thats the American member firm of Deloitte Touche Tohmatsu (DTT), a global accounting and consulting network with operations in over 140 countries. The U.S. member firm has offices in 80 cities nationwide. Other units of Deloitte FAS are Valuation Services, Reorganization Services and Forensic and Dispute Services. Although Deloitte is a giantits not called the Big Four for nothingDTCF operates as a boutique within the conglomerate. At the same time, DTCF can draw on Deloittes extensive resources, including Deloitte Tax, Deloitte Consulting, Deloitte FAS and the Chinese Services Group of Deloitte & Touche USA (which assists on China-related cross-border deals). DTCF national managing director Bob Coury also holds the position of principal at Deloitte & Touche, and sits on the Deloitte FAS executive committee. There are four DTCF offices in the U.S. (Detroit headquarters, plus New York, Chicago and Los Angeles). In addition, DTCF is connected to the corporate finance practices of Deloitte member firms worldwide.

Small but busy


Year after year, Deloitte Financial Advisory Services (which includes DTCF) contributes approximately four percent of Deloittes overall revenue. That leaves FAS far behind Deloittes audit, tax and consulting businesses, but DTCF has carved out its own niches. The corporate finance units specialty is the middle market, focusing on deals worth $25 million to $500 million. Its services include M&A advisory, transaction origination, execution assistance, divestitures and capital raising services. DTCF also provides integrated business solutions, global execution capabilities and strategic consulting. Business at DTCF falls into a handful of sector groups, including aerospace and defense, automotive, business services, consumer business, financial services, food and beverage, general industrials, life sciences and health care, manufacturing, metals and plastic, paper and packaging.

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A long history
The Deloitte behemoth was born in 1849, when Great Western Railway, a British joint stock firm, hired local accountant William Welch Deloitte to conduct an audit of its business. This was a novel idea at the time, but soon other public companies followed Great Westerns lead. George A. Touche opened his own audit and accounting firm in London in 1898, moving his office to New York two years later. There, Touche and partner John Niven built up their business, taking advantage of Americas new business regulations and income tax laws. By the end of the 1960s, Touche, Niven became Touche Ross, and William Deloittes eponymous firm was operating as Deloitte Haskins Sells. The two firms merged in 1989, creating Deloitte & Touche, a full-service firm that offered consulting and advisory as well as accounting services. In 1993, Deloitte & Touche realigned itself as a Swiss verein, a membership organization in which each member firm operates as a separate, independent legal entity. Deloitte Touche Tohmatsu (DTT) became the international umbrella name for Deloitte member firms around the worlda nod to Tohmatsu & Company, which had become part of Touche Ross in 1975.

Middle market strength


In August 2007, DTCF served as exclusive advisor to Joyce/Dayton Corp., a privately owned manufacturing company, in its sale to Fulham & Company. Terms of the deal were not disclosed. Earlier in the summer DTCF had a hand in a cross-border transaction, advising Japans Hayashi Telempu Company Ltd. on its acquisition of 50 percent of Amtex, Inc. Headquartered in

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Ohio, Amtex was formed in 1983 as a joint venture between Hayashi and Masland Corporation; Masland was subsequently acquired by Lear Corporation in 1996. After the 2007 deal closed, Amtex became a wholly owned subsidiary of Hayashi. DTCF worked on more deals in fall 2007, advising JJ Haines and Company, one of Americas oldest and largest floor covering distributors, on its acquisition of fellow flooring wholesaler Wheeler, Inc. in September. In the same month, DTCF served as exclusive financial advisor to VECO in its sale to global engineering corporation CH2M Hill. VECO, an Alaskan oil pipeline service and construction company, was valued at $463 million. Finally, in the last weeks of 2007, DTCF advised Kraft Foods on the sale of its Fruit20 water and Veryfine juice brands to Sunny Delight Beverage Company, a subsidiary of J.W. Childs Associates. For the six months ended December 31, 2007, DTCF ranked No. 3 in global middle-market investment banking services in terms of deal volume, just behind KPMG Corporate Finance and PricewaterhouseCoopers. According to Thomson Financial (now Thomson Reuters), in the second half of the year, DTCF worked on 238 deals worth a total of $6.12 billion.

Workplace kudos
Deloittes U.S. member firm picked up some awards in 2007, ranking No. 1 on BusinessWeeks annual Best Place to Launch a Career list (a two-place improvement on Deloittes 2006 ranking at No. 3). Working Mother magazine also named Deloitte one of 2007s Best Companies for Multicultural Women, recognizing the firm for its leadership training programs and for increasing multicultural hiring by 16 percent since 2003. Speaking of leadership, Deloitte Touche Tohmatsu tapped a new CEO in June 2007. The global firms longtime leader, William G. Parrett, stepped down and was replaced by James Quigley, head of the U.S. member firm. Parrett remains with Deloitte as a senior partner, but will retire from the firm in May 2008.
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On top of the issues


Like other Deloitte businesses, DTCF promotes its in-house analysis by issuing several publications. Divestiture M&A News tracks divestitures from large corporations, examines private equitys interest in these transactions and suggests factors for companies to consider when developing a carve-out operation. As its name suggests, Middle-Market M&A News follows the U.S. middle-market mergers and acquisitions market, studies private equitys role and considers management strategies that can make or break a deal. Theres also Deloitte Insights, a weekly business podcast created by experts from across the Deloitte Touche Tohmatsu network. Insights covers every business issue under the sun, from risk management to globalization to corporate governance challenges.

GETTING HIRED

Top of your game


If youre interested in applying for a position with Deloitte & Touche Corporate Finance, be prepared to wow em. Candidates applying for positions at the firm normally have a high GPA, and have demonstrated leadership and academic skills within their college or at their previous work experiences. The firm recruits from top universities throughout the nation as well as experienced hires with relevant skill sets. Expect several rounds of interviews, which tend to be composed of at least two or three rounds, although this varies by function and team. You may end up interviewing with everyone from peers and human resources to partner representatives. Expect to represent your qualifications in addition to facing general interview questions that depend on the team and position youre applying for. Sometimes there are case studies involved or specific exercises that are relevant to the position. You can also expect fairly general interview questions about background and behavior, which might range from the simple tell me about your background to slightly more complicated ones such as why should we hire you?

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And the firm offers internship opportunities, too. Getting into the firm that way definitely gives you an opportunity to make a favorable impression and increase your chances of getting hired, although the same rigorous criteria applies to our intern candidates as does our regular full-time recruits.

OUR SURVEY SAYS

Support network
Insider report that the firms culture has many high achievers but is also congenial, cooperative, respectful and fun. I enjoy spending time with the people I work with both inside and outside of work. Managers get high marks from employees as well. I have a great team that includes great, supportive and respectful management. One contact says we work hard, but we are always willing to assist each other. Hours, which tend to run about 50 to 60 per week, are very flexible, although its not uncommon to make a weekend office visit. But one respondent says its not bad overallI often only go to the office and/or to visit clients two or three days a week and work from home other times. (When youre in the office, business casual is typically the code of the land.) And despite the fact that weekend work takes place, its out of choice and its not a requirement. One contact admits that the more you work and the less of an outside life you have, the more likely you are to advance, adding that its a trade-off at the expense of your work/life balance. Though theres three weeks of vacation offered to help maintain that balance, insiders say that most people do not have time to take the full three weeks off. Then again, the holiday parties are great, so if you can stomach dealing with little time off for the rest of the year, maybe its worth it to suck it up and stick it out if youre hankering for a big shebang.
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PRESTIGE RANKING

Piper Jaffray Companies


KEY COMPETITORS
Deutsche Bank FBR Capital Markets Jefferies & Company

800 Nicollet Mall, Suite 800 Minneapolis, MN 55402-7020 Phone: (612) 303-6000 Fax: (612) 303-8199 www.piperjaffray.com

DEPARTMENTS
Asset Management Institutional Investing and Research Investment Banking

UPPERS
Entrepreneurial and lean, with a flat organizational structure Prefers organic growth rather than hiring from the outside, so advancement can be quick

THE STATS
Employer Type: Public Company Stock Symbol: PJC (NYSE) Chairman and CEO: Andrew S. Duff Revenue: $498.9 million (FYE 12/07) Net Income: $45 million No. of Employees: 1,225 No. of Offices: 29

DOWNERS
Very long hours in investment banking Not everyone will be feeling Minnesota

EMPLOYMENT CONTACT
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See career opportunities under our company section of www.piperjaffray.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Best in class for its size Lost in Minnesota Very strong in health care banking Third-tier type bank

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THE SCOOP

Midwest firm with worldwide capabilities


A middle-market investment bank and institutional securities firm, Minneapolis-based Piper Jaffray serves middle-market corporations, private equity groups, public entities, institutional investors and nonprofit clients. Its 1,225 employees offer equity and debt capital markets products, public finance services, mergers and acquisitions advisory services, high-yield and structured products, institutional equity and fixed income sales and trading, and equity and high-yield research from 29 offices around the world. Piper Jaffrays equity investment bankers focus on growth sectors, particularly alternative energy, business services, consumer, financial institutions, health care, industrial growth and technology. In addition to arranging public equity offerings and aftermarket services, Piper Jaffrays equity and debt capital markets teams provide private investment in public entity (PIPE) and registered direct (RD) services. The firm also provides cash management and venture capital support, as well as block trading of restricted stock and illiquid securities services and strategies. The institutional equity sales and trading team is active in more than 1,600 stocks, and provides a variety of taxable and taxexempt products. It also originates, places and trades loans, and offers customized portfolio analytics and cash management. Piper Jaffray research analysts provide fundamental research on over 400 companies in several sectors.

Better off on its own


In 1895, Minneapolis businessman George Lane opened a commercial paper brokerage to offer promissory notes to the areas burgeoning grain elevator and milling businesses. In 1913, H.C. Piper Sr. and C.P. Jaffray established a rival paper brokerage called Piper, Jaffray & Co.; the two firms merged in 1917. The stock market crash of 1929 nearly destroyed a nearby investment firm, Hopwood & Co., making it a cheap buy for Piper Jaffray. The newly diversified firm gained a seat on the New York Stock Exchange and began expanding, opening offices throughout the Midwest and across the country. In 1986, it offered common stock shares on Nasdaq under the symbol PIPR, and in 1992, the Hopwood was dropped from the firms name, creating Piper Jaffray, Inc. U.S. Bancorp bought Piper Jaffray in 1997 for $730 million, but U.S. Bancorp Piper Jaffray was short-lived. In 2003, it was spun off from its parent and became an independent, publicly held company, trading on the New York exchange as PJC. U.S. Bancorp itself had been bought in 2000, by Firstar, and the ensuing culture clashes between the big conglomerates and the historicallysmall Piper caused friction that seemed best resolved by divestiture. The resale of Piper also freed the risk-averse U.S. Bancorp from the inherent economic risks of its investment banking business. The independent Piper Jaffray made a sale of its own in August 2006, when it sold its private client services business to UBS Financial Services for $510 million. Piper Jaffray & Co. is the principal operating subsidiary of Piper Jaffray Companies.

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Asset management gets a boost


About one year after offloading its private client biz, Piper Jaffray invested in bolstering its asset management capabilities. In September 2007, the firm completed its acquisition of Fiduciary Asset Management, LLC (FAMCO), which serves clients through separately managed accounts and closed end funds, and offers an array of investment products including traditional core equity, quantitative and hedged equity, master limited partnerships and fixed income. At the time the deal closed, FAMCO had approximately $8.2 billion of assets under management. Piper paid approximately $51.3 million in cash at the time of closing, with the possibility of an additional cash payment of up to $15.1 million contingent on new assets under management through mid-December 2007. Piper also may pay additional future cash consideration based on financial performance through 2010. Under the terms of the deal, FAMCOs current management

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team will continue to manage the business under the leadership of CEO Charles Walbrandt, who will report to Duff. FAMCO has approximately 50 employees and its headquarters will remain in St. Louis, Mo.

Asia, here we come


Piper Jaffray beat many of its bigger rivals to China, becoming the first U.S. bank to receive a license from the Chinese government to open an office in Shanghai. Its office there opened in September 2006, and as of March 2007, it had nine employees. In March 2007, Piper Jaffray CEO Andrew Duff announced plans to open an office in Hong Kong. Our intention is to be a global leader in the middle markets, Duff told Reuters. We have to be market agnostic, and be able to raise capital in whatever are the most attractive markets available. Duff added that in 2006, Piper Jaffray earned 7 percent of its revenue outside the U.S, and said he aims to increase that figure to as much as 25 percent over the next few years. Thats a realistic goal, especially as of October 2007, when Piper completed its acquisition of Goldbond Capital Holdings Limited, a Hong Kong-based investment bank, for approximately $50 million. Founded in 2003 by chairman and CEO Alex Ko, Goldbond focuses primarily on raising capital for and providing financial advisory services to companies listed or to be listed on the Hong Kong Stock Exchange. It has corporate finance, sales and trading, equity capital markets, and research capabilities. By combining these capabilities with Piper Jaffrays existing operations in China, the company creates a strong Asian growth platform. Hong Kong is a major center of institutional capital raising and securities trading internationally, said CEO Andrew Duff, in a statement announcing the deal. In order to serve as the primary financial advisor to middle market companies in Greater China, we need to provide access to capital in Hong Kong as well as in the U.S. and Europe.

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Investing in I-banking
Part of Piper Jaffrays rationale for selling its private client business was to put the proceeds toward strengthening its investment banking business. In 2006, the firm increased its investment banking staff by 41 percent, bringing the headcount to 137. In January 2007, it began its investment bank expansion by hiring a new co-head of the health care IB team. Stuart Duty, a former partner and COO of Oracle Investment Management, is now leading Piper Jaffrays biotechnology sector work from its New York office. And in February 2007, Piper promoted from within, naming Murray Huneke, a five-year firm veteran, as co-head of investment banking. Huneke had been co-head of consumer investment banking. He is still in that role, but now is also charged with growing the firms West Coast investment banking business, which includes technology and alternative energy. Based in Palo Alto, Huneke reports to Jon Salveson, the other co-head of investment banking. Later in 2007, in May, Piper Jaffray hired David Castagna as a managing director and co-head of the technology investment banking team. Castagnawho joined from Cowen and Company, where he was head of the technology, media and telecom investment banking groupworks in Pipers Palo Alto office with Chris McCabe, the other co-head of technology investment banking. Before Cowen, Castagna was head of technology investment banking at Thomas Weisel Partners. The hiring continued into early 2008, when Piper poached Michael Brinkman from CIBC World Markets, where he was head of biotechnology investment banking. Brinkman was hired as a managing director in the health care group, focusing on biopharmaceutical companies. He will be based in the Palo Alto office and joins a team that has helped Piper Jaffray become one of the most active underwriters for growth companies in the health care industry globally.

U.S. Bancorp flashbacks


Following Wachovias May 2007 announcement that it would buy A.G. Edwards for $6.8 billion, rumors started flying that further consolidation in the brokerage industry was on the horizon. The New York Times reported, U.S. brokerages are enjoying robust times with the stock markets rally. But that business could turn as bigger competitors cut prices and squeeze the investment banking side of the business, analysts say. And retail brokerages, with their strong penetration in markets where it may be too costly for big players to encroach, offer the bigger rivals a quick entry.

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Other big firms such as Merrill Lynch, Citigroup, Bank of America and HSBC Holdings had expressed interest in buying a brokerage, but there was a big problemthere arent that many left to buy. Piper Jaffray, along with Raymond James Financial and Jeffries, is one of the few remaining midsized targets. Since, Piper has given no indication of losing its independence, and the big brokerages have all taken quite a dive due to the credit crisis, so Piper selling out is a highly unlikely scenario anytime soon.

Still smiling
Despite a 27 percent dip in profit for the fourth quarter of 2007, Piper Jaffray was still smiling, thanks to impressive advisory sales that beat analyst expectations. The firm reported net income of $15.1 million, down from $26.7 million for the same period in 2006. CEO Andrew Duff had his head up, however. Our equity financing, equity sales and trading, and advisory services reported very strong results, said Duff in an earnings statement. Although challenging capital markets conditions drove weaker results in high yield and structured products, our other businesses more than offset these lower revenues. For the full year 2007, Piper Jaffray earned $45 million, down from $62.9 million in profit in 2006. Net revenue was down as well, to $498.9 million, from $502.9 million in 2006. Despite challenging market conditions in the last half of 2007, Pipers investment banking revenue rose 2 percent from the previous year. Equity financing revenue also topped 2006, by 14 percent, and more than offset lower advisory services revenue and slightly lower debt financing revenue. Equity sales and trading revenue were essentially flat compared to 2006, while fixed income sales and trading revenue, which were impacted by the turmoil in the financial markets during the last half of the year, declined compared to 2006. Advisory services revenue for 2007 was $36.7 million, a 6 percent increase over 2006, thanks to an increase in merger and acquisitions activity in the U.S., and strong advisory services in Europe and Asia. Piper worked on 117 equity financings in 2007, raising a total of $17.5 billion in capital. The firm was bookrunner on 28 of those financings, of which 82 were U.S. public offerings, giving Piper a No. 15 ranking based on number of completed U.S. transactions, according to Dealogic. Piper Jaffray advised on 53 merger and acquisition transactions in 2007, with an aggregate enterprise value of $15.7 billion. It worked on 420 tax-exempt issues during the year, with a total par value of $6.8 billion. According to Thomson Financial (now Thomson Reuters), that gave Piper a No. 7 ranking in the U.S. for completed transactions. Commenting on Pipers year-end results, a Sandler ONeill & Partners analyst told Forbes, While advisory revenue [is] extremely lumpy from quarter to quarter, and the timing of a couple of large transactions can move the needle, it is hard to take away from such a strong number, especially since the last few quarters have been tough from a mergers and acquisitions perspective at Piper Jaffray.

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GETTING HIRED

Look down the road


If youre in need of investigating your career path options, look no further than the careers section of www.piperjaffray.com, where candidates can view current opportunities, apply online and build a profile to be considered for future openings. Job postings are sorted by and include a brief list of essential functions and job requirements. Piper Jaffray typically wants candidates who are detail-oriented, possess strong PC/technical skills and strong data mining skills, are able to work independently, are self-starters, and have strong written and oral communication skills. The firm recruits from approximately 20 undergraduate institutions and 10 business schools. But you can also check out online postings. The career opportunities page has links for three different job functions: investment bankers, financial advisors and research analysts. The investment banking and equity research sections have information on analyst and associate positionsboth full time and summer for investment bankingand include a day-in-the-life look at what these positions really entail as well as a campus recruiting schedule. The financial advisor link provides a more detailed description of experienced advisor and developing advisor career opportunities.
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When it comes to the interview process, remember that patience is a virtue (if you want a shot at getting hired, that is). Some insiders report that most people interview with at least 10 people before receiving an offer. Expect a first-round campus interview, a second round of Super Day interviews and a third team-specific interview. Questions tend to be behavioralbased. Internships are also offered by the firm and are very important to get your foot in the doorbut beware, competition from the outside is fierce. Over half of the people we hire in any given year did not intern with us previously.

OUR SURVEY SAYS

Lean and not mean


The firm is very inclusive, entrepreneurial, lean and client-focused with a flat organizational structure. Piper has been great to me, says one contact. There are also very strong opportunities for advancement given the expectation of faster growth after the spin-off from U.S. Bancorp. Also, the firm typically prefers organic growth rather than hiring from the outside, so advancement can be quick. Another insider reports, There have been opportunities for advancement that I have passed up because I like what I do. And while management at Piper has been called fairly intense, relations in that area seem to be doing just fine. One insider says he has more of a team effort than a boss/subordinate relationship with his boss. Also, team dynamics vary across the board. One contact doesnt offer as positive a spin on the firm, believing that employees are viewed more as commodities than assets and cost cutting is the mantra at Piper. The culture is also not necessarily a social one. A source reports spending very little
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time with colleagues outside of the office. You will rarely be recognized for your work, grumbles another, even while saying that you can expect to receive a good experience if you can make a lot out of your time. Weekend work tends to happen often, insiders say. Investment banking at Piper can be a grueling experience, reports one insider, citing very long hours as one of the most strenuous aspects of the experience. However, hours at Piper are reportedly typical across the board, with average workweeks of 50 hours for traders, 60 to 80 hours for those in research, and 80 to 100 hours for investment bankers. As for the actual work, Piper Jaffray is unique because associates dont do any modeling; analysts do all the modeling, reports one insider. Its great for an analyst, because you do all the models, including the complex ones. The dress code depends on the group. One insider says, The dress code is business, except on Fridays, when it changes to business casual. A financial analyst wears business casual clothing all through the week. The analyst also reveals a failed attempt to get particularly casual on Fridays: When a midlevel manager mentioned that some employees had inquired about reinstituting a jeans day on Fridays, he was told, If they want to wear jeans, tell them to work at a factory. And with regards to diversity, insiders comment that Piper, like Minnesota itself, is homogenous, with few minorities, though it is an open environment and the only criteria for advancement is hard work. However, says that I-banking contact, I think theyre very good with the male/female ratio. Theyre not 50/50 at the top, but they definitely have some strong women there.

Some of the best


Compensation tends to receive high marks from employees. The firm offers healthy salaries that tend to vary with the performance of the stock market and some of the best employee benefits in the industry, including an unbeatable employee stock ownership program. When it comes to starting pay, the firm isnt all that different from the big boys back East. According to the firm, first-year associates get paid the same as what theyd make in New York. Where it gets skewed is after four or five years, says an insider. But here, people can buy a huge house for $250,000 10 minutes out of town. Still, some respondents think compensation could be better. One contact says that compensation is decent, but given the hours you will work, it becomes inadequate compared to what the rest of the Street pays, and another reports that his managing directors believe in paying market and nothing over. Unfortunately, this means you will wait longer than everyone else to

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receive your bonus check, while Piper makes calls and figures out what they are willing to pay [based on information from other firms]. In addition to decent monetary compensation, Piper Jaffray offers its employees a host of benefits, including health insurance, life insurance, tuition reimbursement, a 401(k) plan with a dollar-for-dollar company match up to 6 percent of salary, a profitsharing plan, an employee matching gift program for charitable contributions and employee discounts on Piper Jaffray financial services. As for the outlook of the company, insiders have high confidence that the future looks pretty bright. Piper is strategically positioned very well as a leading, middle-market investment bank, says one insider. We are exceptionally strong in municipal finance, being one of the largest underwriters of municipal bonds in the country, and sources generally feel very confident in the firms future.

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PRESTIGE RANKING

Wells Fargo
RANKING RECAP
Quality of Life #1 Hours #9 Best Employers to Work For #11 Training #14 Offices #14 Overall Satisfaction #14 Compensation #17 Treatment by Managers #20 Selectivity Diversity #2 Diversity with Respect to GLBT #2 Overall Diversity #4 Diversity with Respect to Women #5 Diversity with Respect to Minorities

420 Montgomery Street San Francisco, CA 94163 Phone: (866) 249-3302 www.wellsfargo.com

BUSINESSES
Community Banking Home & Consumer Finance Wholesale Banking

THE STATS
Employer Type: Public Company Ticker Symbol: WFC (NYSE) Chairman: Richard M. Kovacevich CEO & President: John Stumpf Revenue: $34.45 billion (FYE 12/07) Net Income: $8.1 billion No. of Employees: 160,000 No. of Offices: 6,000 (branches)

KEY COMPETITORS
Bank of America U.S. Bancorp Washington Mutual

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UPPERS
Reasonable hours Fantastic training Diversity is a priority

DOWNERS
Bureaucracy No frills offices Conservative culture

EMPLOYMENT CONTACT
www.wellsfargo.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

The model bank for all others: their branches look great, and they have excellent leadership and good market coverage Conservative Up-and-coming; have been gaining some ground and opening up offices everywhere Good regional bank

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Vault Guide to the Top 50 Banking Employers 2009 Edition Wells Fargo

THE SCOOP

The Wells Fargo empire


Wells Fargo & Company is a financial holding company and a bank holding company, providing retail, commercial and corporate banking services through its stores in 23 states. Through subsidiary arms, Wells Fargo offers securities brokerage and investment banking, wholesale banking, consumer finance, mortgage banking, leasing, agricultural finance, commercial finance, data processing, trust services, advisory, mortgage-backed securities and venture capital investment. It has over 80 lines of business, some of the largest being community banking, wholesale banking, home and consumer finance, and investments and insurance. As of June 2008, Wells Fargo had $609 billion in assets. One of the 40-largest private employers in the U.S., Wells Fargo has approximately 160,000 employees. Services provided by the community banking business include products for individuals and small businesses, including investment, insurance and trust services. This division operates mostly in the Midwest and West; its mortgage and home equity business spans all 50 states. Wholesale banking includes corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, trade services, specialized lending, equipment finance, capital markets and institutional investments. Finally, Wells Fargo Financial, with $69 billion in assets, provides real estate secured lending, auto financing, consumer and private label credit cards and commercial services. It operates in 48 states, 10 Canadian provinces, Puerto Rico and recently expanded to the Pacific Rim. Wells Fargo Financial is headquartered in Des Moines, Iowa.
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In 2007in a decision no doubt fueled by the subprime mortgage crisisWells Fargo Home Mortgage decided to close its nonprime wholesale lending business that processes loans for third-party mortgage brokers. In a statement, Wells Fargo said that in 2006, the wholesale lending business accounted for 1.6 percent of its total residential mortgage loan volume of $397.6 billion. The closure led to 170 layoffs in Baton Rouge, La., and 67 employees in Des Moines, Iowa. The company said it was doing its best to place those affected into other positions at the company. Wells Fargo also noted that it will continue to offer nonprime loans in channels where it has direct relationships with consumers, including Wells Fargo Home Mortgages retail channel and Wells Fargo Financial.

Wagons west
Henry Wells and William Fargo founded Wells, Fargo & Co. in 1852 during the Wests gold rush. Their firm offered banking services (buying gold assets and selling paper bank notes in exchange for gold) and secure express delivery of gold, notes and other valuable assets. From its office in San Francisco, Wells Fargo grew to include offices in other Western mining towns. In the 1860s, it sealed its reputation for trustworthiness by opening its famous stagecoach line, which made trips through the thenWild West to ensure delivery across the country. In 1861, it took over the routes of the short-lived Pony Express. In 1918, Wells Fargos network was commandeered by the American government as part of its World War I efforts, leaving the bank with just one location in San Francisco. Wells Fargo rebuilt in the 20th century, becoming a regional bank in northern California and operating in San Francisco as a bankers bank for the region. By the 1980s, Wells Fargo was a major presence in California and the seventh-largest bank in the nation. In the 1990s it returned to the rest of the country, opening locations throughout the West, Midwest and some Eastern states.

Buy side
Known for its rapid acquisitions, the bank made several big buys in 2006 and 2007. These included the Los Angeles-based private investment bank Barrington Associates, which provides mid-market sell-side M&A advisory and corporate finance

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Vault Guide to the Top 50 Banking Employers 2009 Edition Wells Fargo

services. Barrington will continue to operate under its own name as a division of Wells Fargo Securities, a Wells Fargo non-bank subsidiary under the wholesale banking umbrella. Other additions to the Wells Fargo family in 2006 were commercial real estate investment advisor Secured Capital Corp., multifamily real estate finance firm Reilly Mortgage, accounts receivable purchaser Commerce Funding and middle-market factoring firm Evergreen Funding. In January 2007, Wells Fargo announced that it would acquire Placer Sierra Bancshares in a stock-for-stock merger. Placer Sierra Bancshares is the Northern California-based holding company for Placer Sierra Bank, which serves individuals and small- and midsized businesses. It has $2.6 billion in assets, plus 32 branches in Northern California and 18 in Southern California. Also in Northern California, the Greater Bay Bancorp was snatched up by Wells Fargo in May 2007 in another stock-for-stock merger. Greater Bay Bancorp, which owns several banks in the San Francisco area, has more than 1,800 employees and $7.4 billion in assets.

Small business, good business


Wells Fargo is a big bank, but it pays close attention to small businesses. In November 2007, the bank announced that it was the No. 1 bank for small business loans, for the fifth year in a row, with $126 billion. In 2007, Wells Fargo extended over 680,000 small business loans; it is also the No. 1 lender to small businesses in low and moderate income neighborhoods. Support for small business isnt the only way the bank does good workWells Fargo has created several financial literacy programs, including Hands on Banking (available in English and Spanish) and a mobile classroom called the WellsFargo.com Bus. Business Ethics has named it one of the nations top-10 Best Corporate Citizens, and in 2007, the Human Rights Campaign gave it a perfect 100 on its Corporate Equality Index for the fourth year in a row.
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New leader
Leadership changed at Wells Fargo in 2007 when John Stumpf, former COO, took over as CEO of the company. Former CEO Richard Kovacevich had planned to relinquish his chief duties sometime in 2008, but in June 2007, the board decided that the time was right for Stumpf to take over the company. Kovacevich remains as chairman of the board of directors, but plans to retire by the end of 2008. Stumpf joined the Norwest Corporation in 1982, before it merged with Wells Fargo. Prior to becoming the chairman and CEO of Norwest Bank Arizona in 1989, he held management positions at Norwest Bank Minnesota. Norwest merged with Wells Fargo in 1998, and it was then that Stumpf took over the Southwestern Banking Group, followed by the newly formed Western Banking Group. He was instrumental in Wells Fargos acquisition of First Security Corporationa $23 billion dealand eventually took charge of the community banking division under Kovacevich. He had been president and COO of the company since 2005. Another well-known exec said good bye recently; Tom Pizzo, chairman of Wells Fargo Century, grew that sector into one of the nations largest banks engaged in accounts receivable financing. Pizzo retired in January 2008.

Buffetts choice
Investment legend Warren Buffett, the man behind Berkshire Hathaway, disclosed the contents of his stock portfolios in March 2007 (regulators allow him to disclose trades months after they occur, in order to prevent massive copycat trades that could shake the market). Buffetts report revealed that he had bought 13.4 million shares of Wells Fargo in 2006, bringing his total holding in the bank to six percent last year. Having performed better than many of its competitors latelyeven with its disappointing 2007 fourth quarterthe bank has once again attracted the attention of Buffett. A recent SEC filing shows that Buffett increased his shares of Wells Fargo stock to 331.4 million shares. Thats a value of $9 billion, and as of February 2008, it means that Buffetts Berkshire holds 9.4 percent of Wells Fargo.

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No. 1 in Wyoming
In January 2008, Wells Fargo announced that it would acquire United Bancorporation of Wyoming Inc., making it the largest bank in the state, based on both deposits and assets. The Jackson-based bank has $1.7 billion in assets, 300 employees, and five banks with 13 locations. Terms of the deal were not disclosed, but it is expected to close within the second quarter of 2008.

Laying blame
The subprime crisis has left a lot of cities and customers unhappyBaltimore is one of the angriest. In January 2008, its mayor and city council announced a civil suit against Wells Fargo, claiming that the financial institution and its lending practices discriminated against black customers, thereby causing a large number of foreclosures that have costs the city tax revenue and other monies. Buffalo and Cleveland have filed similar lawsuits; Cleveland, for example, is suing nearly two dozen banks, alleging that they knew they were giving out subprime loans to customers who could never pay them back. In Baltimore, Wells Fargo is the sole defendant in the case. The citys mayor, Sheila Dixon, is asking the court to keep the bank from placing higher fees on loans given to black borrowers, according to The New York Times. We do not tolerate illegal discrimination against or unfair treatment of any consumer, a spokesman for Wells Fargo told the Times in January 2008. Our loan pricing is based on credit risk. We are committed to serving all customers fairlyour continued growth depends on it.

Subpar earnings
Profits for the fourth quarter of 2007 were Wells Fargos lowest in six years. The bank earned $1.36 billion, a nearly 40 percent drop from the net income of $2.18 billion from the same period a year before. The news wasnt exactly a surprise; in November 2007, the bank had announced a $1.4 billion write-down and had attributed it to losses it expected from the subprime mortgage crisis. Luckily for Wells, its revenue grew in the fourth quarter by 8 percent to $10.21 billion. By mid-year 2008, the numbers were looking a little better, as the firm booked record revenue for the second quarter of the year its $11.5 million in revenue was a 16 percent increase versus the second quarter of 2007. Net income, though, came in at $1.8 billion, a 22 percent slide as compared to the 2007 second quarter.

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Go Canada
Wells Fargo Foothill, a division of Wells Fargo & Company, announced its expansion into Canada. The unit will offer secured financing solutions to middle-market companies up north, beginning in May 2007. Wells Fargo has been offering a similar service in the United States for more than 30 years.

GETTING HIRED

Get serious about banking


Selectivity at Wells depends on what office you are applying to, but generally speaking, the firm is very competitive. According to one Minneapolis-based source, There were four of us picked out of an applicant pool of 800. Wells has high standards when it comes to ethics, grades, experiences and leadership abilities, as there are only a few spots every year for entry-level analysts. Because of this, many good candidates are turned away, especially since the economic down turn and cost-cutting measures have resulted in fewer full-time hires. Applicants for the firms commercial banking team must have a good foundation in business and accounting. Candidates must exhibit strong knowledge of finance, especially with regard to cash flow. And prior understanding of risk a plus. Wells wants people with serious interest in banking, and the company constantly has its eye out for future leaders. The recruiting process is tough, but those who demonstrate determination and interpersonal skills will go far in the interview process.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Wells Fargo

Process of elimination
Step one in Wells recruiting process is differentiating yourself in meeting with recruiters at the career fair. Recruiters are looking for candidates whose resumes stands out and qualify you for a first-round interview. During first-round interviews, candidates must show not only personality but also financial ability by answering various questions. The final step in the process is the in-office interview, during which applicants have to stand out from the other 10 candidates. This process can vary depending on what office you are applying to and for what position. Some experience one of these three steps as a formal phone interview instead. Others have extensive on-campus interviews with two interviewers followed by one in-office interview that involves up to eight separate meetings. Some candidates may be asked to participate in more than one on-site interview day. At minimum, applicants coming out of college are required to participate in at least two-to-three interviews. Candidates should expect to be on their toes during the interview process, as many interviewers throw out rapid-fire questions and expect answers just as quickly. Some typical questions include the following: Name three things I should know about you. Name the four financial statements. What are the three parts to the cash flow statement? Walk me through the operating section of the cash flow statement. What does a COO worry about at night? What does Wal-Mart worry about at night? Tell me everything you know about our company. Another thing that might come up is how a candidate will fit into the geographical area of the office they are applying to. Interviewers might also want to know if you are OK with traveling. For certain, candidates should be prepared to discuss various finance and accounting concepts as well as questions about personal drive. Wells recruiters search for qualified candidates at career fairs, through professional associations and its own internal recruiting programs, and, of course, on college campuses. Big schools for Wells include the University of Illinois, Marquette and DePaul University, as well as business schools such as Berkeley, USC and UCLA. The firm hits both public and private universities, nationally and abroad.
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Helpful, but not a must


Insiders say Wells Fargos internship program, while very important because the firm looks first to its summer interns for fulltime hiring, is not mandatory. It is definitely not imperative to have an internship here to get an offer. While it does get your foot in the door, its not a necessity. The summer internship is designed to be an introduction into the firms full-time rotation program. If an intern has performed well, they are looked favorably upon for a full-time position. And its a great learning experience. Most former interns say the internships are a preview of a full-time analysts job. It is an opportunity to see if Wells Fargo is a good fit for you. Even if you cant score an internship at Wellsthe firm normally hires about three interns from a pool of 40insiders say prior internships outside of the company are looked upon favorably as well. Whether its Wells or someplace else, those with hiring power at the firm believe it is very important to have internship experience with some financial institution.

OUR SURVEY SAYS

One Wells Fargo


This firm is very big on the Wells Fargo culture. The One Wells Fargo slogan emphasizes working together company-wide. This in-it-together attitude fosters a cooperative, noncompetitive environment in which people work hard but enjoy an office atmosphere that is social and enjoyable. A contact says, From the heads of departments to the administrative assistants, people at Wells are down-to-earth and awesome. Employees are smart and know their stuff, but dont have the Master of the Universe attitude that you find at Wall Street banks. At Wells, there is the sense that people really like the company they are working for. Many people have been with the bank for over 20 years. Those who stick around enjoy the laid-back attitudes and good hours at Wells. People are friendly and helpful, yet still results-driven and professional. A contact says, The atmosphere is serious, but managers work hard to make things fun and interesting on a daily basis. They want people to be happy, as Wells is a firm thats very focused on retention.

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The bank is more conservative than other banks, which results in very structured job roles. But the upside there is that incoming employees have a defined career path that provides transparency about where they will be in one year or five years. In addition, because of this conservatism, job stability is pretty much assured. Another complaint insiders have about Wells is bureaucracy. There can be lots of red tape, which makes it hard to get things done fast. The firm is very old-fashioned about working remotely, causing things to sometimes take longer than they need to. There can also be some big-company corporate politics. The bright side of working for a firm this big, however, is that there is lots of room for advancement. Insiders say the sky is the limit at Wells Fargo. As long as you know what you want, you can get there. Sources say Wells Fargo is a great place to launch a career because advancement opportunities are huge.

No complaints about hours


The Minneapolis office is very laid-back about taking personal time and the type of hours you work, as long as you get your work done and make it to meetings. Most in that location work between 40 to 60 hours per week, and rarely or never work weekends. It is rare to need to work weekends. Sometimes employee will stay late during the week to work on pressing projects, but even thats not so bad, because you can make up the time by leaving early when it is slower. The firm fosters a very good work/life balance and most insiders say hours are reasonable. The rule of thumb is that you are expected to finish the work you are given, so if you need to stay later, you do. The normal working hours are 9 a.m. to 4 p.m., but many junior analysts get in relatively early, before 7 a.m., and finish work around 4:30. Some opt to stay an additional one-to-two hours beyond that to study for the CFA exam. Hours tend to be in line with the compensation, but some say that extra hours are not compensated, as the analyst program sets a ceiling on bonuses. This has a tendency to minimize the incentive to work beyond what is required.

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Decent, all things considered


Although most are content with the number of hours required, many Wells insiders believe compensation could be improved. Sources say salaries do not always line up with the job hours. And compared to other banks, compensation is not adequate. A contact says people at Wells are not as highly compensated as those from other financial services firms. And salary increases are relatively low for non-bonus positions. Still, those in the optimistic camp point out that although compensation may be higher at other firms, the work/life balance and job security are arguably better at Wells Fargo. Plus, employees enjoy great health care benefits and paid time off. The firm grants 25 days of vacation a year. The amazing health benefits even include reimbursement for Weight Watchers. Wells also matches 401(k) contributions up to 6 percent and offers stock purchase options and other investment tools. Sources also speak of huge discounts on activities, stores and services, including cell phones and gym memberships. Some offices even provide free lunch everyday and free soft drinks. The firm also has a tuition reimbursement program, and in New York City, there is a commuter discount plan.

Location, location, location


Office conditions vary by location. In Minneapolis, some first-year analysts have their own offices, which are very nicely decorated, clean and airy. Others work from basic cubes. The firms Minneapolis crew recently moved to a new office and is now enjoying the accompanying perks. In Los Angeles, employees enjoy great views of the west side of Los Angeles from anywhere in the office. Phoenix-based respondents are less enthusiastic about their working condition. There, even some senior vice presidents have cubicles versus closed-door offices. Wells Fargo is not frivolous when it comes to office dcor, which some consider a bit inferior to competing employers. In Dallas, break rooms are not pleasant to look at. In Denver, cubicles are a decent size, but carpet needs to be replaced and dcor is drab and dry. The New York City office is comfortable but very bare with minimal windows, and lighting is poor. In the Big Apple, there is no cafeteria, outdoor space or lounge, but insiders report that the office is clean and in a good location. According to one, Some of the Wells Fargo buildings are newer and very nice in terms of layout and amenities, while some of the older buildings are not quite as nice.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Wells Fargo

Wont see too many ties


Wells Fargos dress code falls somewhere between business casual and formal. One contact explains, They say its business casual, but all the directors have their own ideas of what is appropriate. Usually people dress up a little more than business casual, but not business formal in terms of a suit and tie every day. Regardless of who your director is, employees always need to dress as if we could meet a client that day. In some offices, youll never have to wear a tie, and there might even be jeans on Fridays. Some places, jeans are not as common on Fridays, but they are generally acceptable. Usually, business casual or suits are the norm. Most say jackets are not necessary. In the firms Los Angeles office, employees enjoy casual summers, and even throughout the rest of the year, everyone is dressed in a collared shirt and slacks. There are no ties and no suits except when meeting with clients.

Managers have your back


At Wells Fargo, the majority of upper management is very accessible and helpful. Superiors at the firm are competent and very willing to help subordinates create career paths. No question is too dumb, as Wells managers dont look down on subordinates, and they trust and value everyones opinion. Managers and analysts work side-by-side and complement each other very well. Management is always willing to hear feedback from employees. For the most part, managers are hands off in that they allow subordinates to direct the workflow. But, if something is brought to a managers attention, they will take care of it ASAP. The firms managers have significant experience and industry knowledge, and they have a desire to pass that on to those who want to learn and advance.

Among the best in training


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Wells Fargo spends a great deal of time and money on training their employees. One insider began work at Wells Fargo with two-and-a-half weeks of training in Houston, with 30 other analysts, then will head to San Francisco for six months of extended training, all paid for by Wells. This is a typical routine for an incoming banking employee. Upon being hired, training is very formal. The initial weeks of training are normally followed by a period of reading and testing. Then going forward, most training is done online. Theres also a great deal of on-the-job training. Sources say both on-the-job and the structured classroom-based trainings are very valuable to development. Overall, the firm provides endless training opportunities around the country. Simply put, Wells Fargo is among the best of the big banks for training. The firms best-of-breed programs far exceed what competitors do.

Big on diversity
Wells Fargo places significant emphasis on diversity. In addition to its existing recruiting and support efforts, the firms diversity council is taking significant steps to further diversity to ensure that our employee base reflects the customers and communities we serve. When it comes to women, Wells Fargo consistently ranks as one of the best companies for women to work for. No wonder, there are plenty of successful women working here. According to a contact, All of the new analysts hired last year were female. In most locations, insiders say the ratio is about 50/50, with women always treated equally. Some say the ratio is as high as 65 percent women. (According to the firm, about 60 percent of the firms employees are female.) Wells Fargo offers very reasonable to maternity leave, and its a place where females are treated with the utmost respect. Women do not receive any preferential treatment and are not discriminated against. One source points out that the firms head of commercial banking is an Asian female. Generally speaking, women are extremely powerful and influential at the company. At Wells Fargo, youll find people from multiethnic backgrounds such as Korean, Chinese, Guatemalan, Fiji, Armenian, white, Mexican, Italian, Jewish and German. One source says, If you walk through just about any department in Wells Fargo, you will easily see a diverse workforce in terms of ethnic minorities. The firm encourages ethnic diversity in the recruiting process and recently, has begun focusing on it more and more. According to one Denver-based insider, The office puts a lot of emphasis on ethnic diversity in the hiring process, but there is not as much diversity in the actual numbers. Most agree,

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however, that diversity is a priority. It is a scorecard metric on which all managers are graded. Diversity is held in high regard and is considered a big issue at Wells Fargo. Gay and lesbian employees receive the same treatment as all others. The firm offers benefits for domestic partners and does not put any pressure one way or the other on gay and lesbian individuals. A contact says, Our company is completely inclusive to GLBT community members.

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VAULT TOP 50

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PRESTIGE RANKING

Dresdner Kleinwort
UPPER
Very open and international corporate culture

1301 Avenue of the Americas New York, NY 10019 Phone: (212) 969-2700 www.dresdnerkleinwort.com

BUSINESSES
Capital Markets Equity & Credit Derivatives Financing & Securities Management Fixed Income, Currencies & Commodities Global Banking Global Distribution Global Equities Global Finance Global Loans & Transaction Services Hedge Fund Solutions Research Strategic Advisory

DOWNER
Not a household name in the US

EMPLOYMENT CONTACT
www.dresdnerkleinwort.com/eng/careers

THE STATS
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Employer Type: Subsidiary of Dresdner Bank AG, a subsidiary of Allianz CEO: Stefan Jentzsch No. of Employees: 5,500 No. of Offices: 35

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Great name Lost luster post-Wasserstein European-focused boutique Weak in the US

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Vault Guide to the Top 50 Banking Employers 2009 Edition Dresdner Kleinwort

THE SCOOP

Allianz in charge
The corporate and investment banking division of Frankfurt-based Dresdner Bank, Dresdner Kleinwort operates through two main business groups: global banking and capital markets. It offers services such as advisory, financing and cash management to corporations, as well as trading and research to institutional investors. Dresdner Kleinwort has European headquarters in London and Frankfurt, and American offices in Boston and New York City. Parent Dresdner Bank is one of the largest banking groups in Europe, with 950 branch offices and nearly 28,000 employees in 50 countries.

Recent history
In 2001, Dresdner Bank acquired U.S. boutique Wasserstein Perella. At the time, Dresdner already operated a European investment bank called Dresdner Kleinwort Benson. The two investment banks were merged to form Dresdner Kleinwort Wasserstein. Shortly after that deal closed, German insurance conglomerate Allianz bought Dresdnerand its subsidiariesfor a whopping $22 billion. Bruce Wasserstein subsequently left the bank, but it was only in 2006 that the investment bank dropped the Wasserstein part of its name and rebranded itself as Dresdner Kleinwort; this coincided with the integration of Dresdners corporate banking operations. (Bruce Wasserstein is now the head of Lazard but his name remains associated with the private equity firm Wasserstein & Company, which he originally helped found).

Better parent-bank relations


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In July 2007, Dresdner Kleinwort talked of plans to work more closely with Dresdner Banks owner Allianz. The plans, which were designed to take advantage of synergies between Allianzs core insurance business and global capital markets, involve the investment bank offering risk management, securitization, structuring and distribution for certain segments of Allianzs $1.8 trillion portfolio. In return, Allianz agreed to route more of its investment business through Dresdner Kleinwort. (For example, Allianz does approximately 100 million of daily business in the capital markets, but most of this was not at that time executed by Dresdner Kleinwort.) This cooperative plan was seen as a response to analysts and shareholder groups who had been calling for Allianz to spin off Dresdner Kleinwort. Naysayers pointed out that Dresdner Kleinworts 77 percent cost-income ratio is one of bankings highest, and suggested that perhaps an investment bank didnt fit within the insurers portfolio. Dresdner Kleinwort CEO Stefan Jentzsch sounded an optimistic note at a Munich conference in July 2007. Investment banks are risk takers and risk managers, he said. The first hints of the intermediation of insurance and the capital markets are already in the market. We can help Allianz pass on that risk through the combination of our structuring and placing expertise. The argument was that the distribution power of Dresdners retail banking platform was not the only benefit underpinning Allianzs ownership of Dresdner Bank

SEPA-ready
In August 2007, Dresdner Kleinwort became the first European bank to complete the certification process for Single European Payment Area (SEPA) transfers with the European Banking Association (EBA). The SEPA project, launching in early 2008, will allow Europeans to make non-cash Euro payments anywhere in the Eurozone using a single bank account and a single set of payment instruments. In other words, SEPA will eliminate any differences between national and international payments within the Euro area. The initiative was launchedand is overseenby the European banking community. Dresdner Kleinwort CEO Stefan Jentzsch said his bank plans to be at the forefront of this new way of doing business, and thats why Dresdner Kleinwort agreed to act as the EBAs SEPA pilot bank. We intend to make active use of various opportunities that present themselves over the next few years in order to further increase our market share in payment services, he said.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Dresdner Kleinwort

Home court advantage?


Dresdner Kleinwort describes itself as Europe-focused, so its no surprise that its presence on the 2007 banking league tables was driven by Europeannot Americansuccesses. According to Thomson Financial (now Thomson Reuters), Dresdner Kleinwort ranked No. 21 in both European and U.K. completed M&A. It also placed in the top 20 in announced M&A in Spain, Germany and Italy, coming in No. 12, No. 16 and No. 14, respectively. However, Dresdner Kleinwort didnt place in the top 20 on the announced U.S. M&A tables for the year. It was a similar story on the middle market league tables, but Dresdner Kleinwort did come in at No. 24 for European announced deals with values up to $500 million and No. 21 for European announced deals valued up to $200 million. The bank also cracked the top 25 for mid-market announced deals in the U.K., France, Germany, Italy, Spain, the Nordic countries, Benelux and Eastern Europe. Dresdner Kleinworts big deals in 2007 included advising Enel on its 28.2 billion merger with Endesa and advising DaimlerChrysler on the sale of an 80 percent stake in Chrysler Holding to Cerberus for $18.7 billion. The bank also advised Ontario Teachers Pension Plan on its first infrastructure investments in South America, helping it acquire a 51 percent stake in ESSBIO (Empresa de Servicios Sanitarios del Bio-Bio SA of Chile) and 100 percent of ANSM (Aguas Nuevo Sur Maule SA). In the U.S., the bank served as joint MLA and underwriter for $3.575 billion of financing to support the acquisition by a Macquarie led consortium of Puget Sound Energy (Washington States largest regulated utility). Dresdner Kleinwort also recently advised Wal-Mart on its acquisition of the outstanding shares of Japanese retailer Seiyu for approximately $860 million.

Recovery mode
Headcount fell at Dresdner Kleinworts U.S. offices at the end of 2006, as its American workforce of 800 was cut by about 10 percent. The bank rebounded, but in the last weeks of 2007, German financial magazine Focus reported that Allianz planned to eliminate hundreds of Dresdner Kleinwort employees worldwide. Dresdner Kleinwort admitted that its credit department would lay off about 60 people in its credit department in 2008victims of the debt market crisis. Other sources put the estimated number of pink slips much higher, guessing as many as 350 to 500 people globally could lose their jobs. Although Allianz investors worried that the insurance company would suffer as a result of credit crunch related excesses of its investment bank, its total 2007 subprime-related losses, driven by Dresdner Kleinwort, were only 1.385 billion (other big banks reported much deeper losses. Meanwhile, Dresdner Kleinwort recorded an overall operating loss of 659 million for 2007. Allianz said the losses in credit trading undermined a good performance in the rest of the investment bank, and also clouded the whole of Dresdner Banks numbers.

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Working hard internationally


Dresdner Kleinwort has been a major player in the European emissions trading market since it began in 2001. In 2006, it was named Emissions Trading Bank of the Year by The Banker, and in January 2007, it formed a groundbreaking emissions-trading joint venture with Russian bank Gazprombank to finance joint implementation projects in the Russian and CIS region. In January 2008, Dresdner Kleinwort further capitalized on its emissions expertise when it announced the launch of a new note that will allow Japanese investors to invest in yen-denominated Carbon Emissions Linked Notes. These are Japans first publicly-offered notes to be linked to ECX Carbon Emissions future trading. In the same month, the bank also held its 10th German Investment Seminar in New York. Now an established calendar event with some 500 U.S.-based institutional investors, Dresdner annually hosts this investor relations gathering, offering investors the opportunity to meet over 50 of the largest Dax and M-Dax listed German companies. It is said to be the largest single country event on Wall Street, and offers access to top level presentations by CEOs and CFOsand their business strategy and outlook. The event underscores the banks boast of being the largest seller of German equities to the U.S. institutional investor community. As well as publishing research on German companies, the bank also covers pan-European stocks, economics, strategy, credit and emerging markets/FX research. In the latest Thomson Reuters Extel survey, published in 2008, Dresdner Kleinwort ranked No. 10 in the category of Leading Pan-European Brokerage Firm for Equity and Equity-Linked Research and 15 of its research teams scored top five positions. Additionally, in the latest Euromoney Credit & Fixed Income research poll, it ranked No. 5 overall.

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Dresdner Kleinworts emerging markets strategy is focused on Russia and Brazil. Many of the banks Brazil experts sit in the New York office, working closely with staff on the ground to support local and international clients. Through its Dresdner Bank heritage, Dresdner Kleinwort has been active in Brazil for more than a century and has built strong relationships with Brazils leading mid-market corporations and financial. It has a strong track record in Brazilian bond issuance, and utility M&A deals in particular, as well as local trading capabilities there.

GETTING HIRED

Casting a wide net


Divided into sections for recent graduates and workers who have industry experience, the careers segment of www.dresdnerkleinwort.com offers listings for job seekers in several stages of their professional lives. Like many of its investment banking brethren, DKIB looks for candidates primarily from top-tier business programs and universities, including all the Ivy League schools, Chicago, Northwestern, NYU and Stanford, as well as Oxford, Cambridge and several other schools in the U.K. The firm posts its full schedule of recruitment events on its web site, which also allows all interested candidates to submit analyst and associate applications online. DKIB also offers current undergraduates a way to get their foot in the door with summer internships. The companys New York office has positions available in its corporate finance and advisory division. The 12-week internships are open to students completing their junior year. Internships are also offered in the Frankfurt and London offices. In addition to the U.S., DKIB also offers opportunities for experienced hires in Spain, Germany and select countries in Asia.

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Conjure up your expertise


The first rule is that anything on your resume is fair game, cautions one insider. If you were an economics major, be prepared to sound like an expert in the area. Also, understand basic valuation and accounting questions. Fit is the most important thing here, say current insiders about the interviewing process. Prospective new hires should expect DKIBs interview process to last two or three rounds, with the final round held Super Saturday style (multiple back-to-back interviews) at the firms offices. Meetings may be two-on-one, where two DKIB professionals will ask a candidate a variety of finance, accounting and fit questions (such as Why banking?). Interviews were fairly in-depth and difficult, says a current source, with questions ranging from the personal to the technical, [but] I was impressed with the people I met. DKIB offers candidates its own advice when it comes to the interview process. Have a sense of confidence during the interview, says an associate, but if you dont sound genuine, no one will take a chance on you. Also, the firm says, It pays to be informed. According to DKIB, interviewees should do their research for two reasons: First, its obviously in your own interests to find out as much as possible about the place where you may be spending most of your waking hours. Secondly, employers will expect you to show an awareness of the company and the industry in the interview. DKIBs web site (check out useful information) provides detailed information on the best places to look to get the lowdown on companies. It also gives a brief rundown of equity markets and money markets.

OUR SURVEY SAYS

Commendable culture
By and large, sources enjoy the company culture, which they refer to as friendly and team- and goal-oriented. Culture among junior bankers is great, confirms another insider, who also praises the business casual dress code. People are nice. Its a very open and international corporate culture. One contact says that at night, people will typically eat together or watch TV in a conference room. Everyone knows everyone.

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Salaries could definitely stand to be bumped up, insiders report. DKIB pays at or slightly below the Street, which is a big difference from the days of Wasserstein Perella, which compensated well above. Meanwhile, the workdays for junior people can be long, but employees dont have to work unnecessary hours. As for the actual work, junior personnel tend to assume relatively high levels of responsibility. DKIB is definitely looking for people who can work hard, people who understand the differences between the small firm and a large firm, says a source. Its not a firm where you can sort of hide in the corner and do one small part of a deal.

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VAULT TOP 50

30
PRESTIGE RANKING

RBC Capital Markets


RANKING RECAP
Quality of Life #6 Treatment by Managers #9 Selectivity #10 Hours #15 Offices #15 Overall Satisfaction #15 Compensation #17 Best Employers to Work For Diversity #9 Diversity with Respect to GLBT #10 Overall Diversity #11 Diversity with Respect to Minorities #16 Diversity with Respect to Women

3 World Financial Center 200 Vesey Street New York, NY 10281 Phone: (212) 428-6200 Royal Bank Plaza 200 Bay Street Toronto, Ontario M5J 2W7 Canada Phone: (416) 842-2000 Fax: (416) 842-8033 www.rbccm.com

DEPARTMENTS
Global Credit Global Investment Banking & Equity Global Markets Global Research National Clients Group

KEY COMPETITORS
Bank of America CIBC World Markets Cowen and Company Jeffries & Company J.P. Morgan Lehman Brothers Thomas Weisel Partners UBS Investment Bank Wachovia

THE STATS
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Employer Type: Subsidiary of Royal Bank of Canada Chairman & CEO: Charles Winograd Co-Presidents: Doug McGregor & Mark Standish No. of Employees: 3,300 No. of Offices: 76

UPPERS
Deal experience is extremely good Very competitive pay package No title hierarchy

DOWNERS
Some office red tape Lack of brand recognition in US Late nights and all-nighters are frequent

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Top Canadian investment bank; best Canadian deals to date Not a big player Growing US investment bank Building franchise but high turnover

EMPLOYMENT CONTACT
www.rbccm.com/careers

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Vault Guide to the Top 50 Banking Employers 2009 Edition RBC Capital Markets

THE SCOOP

Royalty in its blood


RBC Capital Markets is part of the Royal Bank of Canada, which has two other business segments: RBC Canadian Personal and Business, and RBC U.S. and International Personal and Business. RBC Capital Markets is an international corporate and investment bank, serving corporations, governments and high-net-worth clients around the world. Its 3,300 employees work from 76 offices in 15 countries. Project Finance International magazine recently named RBC Capital Markets the 2008 Global Bond House of the Year, while Bloomberg said RBC was Canadas No. 1 firm in corporate debt financing, equity underwriting and M&A for 2007, and ranked RBC Capital Markets as the 12th-largest global investment bank. The Royal Bank of Canada began operation in 1869, and today, it has over $665billion in assets and one of the highest credit ratings of any financial institution. Until 2001, RBC Capital Markets was known as RBC Dominion Securities. The former Dominion Securities was created in 1901 and purchased by the Royal Bank of Canada in 1988. In 2000 and 2001, RBC added several boutique acquisitions to its investment banking arm, including American firms Dain Rauscher Wessels and Tucker Anthony Sutro. These last two acquisitions resulted in the formation of RBC Capital Markets in November 2001. RBC Capital Markets investment banking business is segmented into equity capital markets, corporate finance, high-yield, equity private placements, investment services, income trust group, leveraged finance, syndicated finance, and mergers and acquisitions.

Bundling in a broadcast boutique


In January 2007, RBC Capital Markets acquired Denver-based Daniels & Associates, a leading boutique in advising the cable, telecom and broadcast industries. Peter de Vos, head of RBC Capital Markets U.S. investment banking, said the purchase served dual purposes: It increased RBC Capital Markets American presence, and simultaneously strengthened its industry capabilities. This deal creates one of the strongest communications, media and entertainment investment banking teams on Wall Street, de Vos said, noting that Daniels has completed more cable, telecom and broadcast M&A deals than any other U.S. investment bank in the past six years. In June 2008, RBC acquired Washington D.C.-based Ferris, Baker Watts, Inc., a privately held, employee-owned full-service broker-dealer and investment banking firm. At the time of the deal, Ferris, Baker Watts had 42 branch offices and 15 capital markets offices in 10 states and Washington, D.C., and more than 900 employees. Also in June 2008, RBC signed an agreement to acquire Richardson Barr & Co., a Houston-based energy advisory firm specializing in acquisitions and divestitures in the exploration and production sector. According to RBC, the acquisition will bring Richardson Barrs private company relationships, advisory services, additional specialized market intelligence and valuation capability, transaction pipeline, and proprietary ideas and insights in the acquisitions and divestitures sector.

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Armed with another trading platform


Acquisition-happy RBC Capital Markets made another U.S. purchase in January 2007, acquiring the New York-based Carlin Financial Group, a broker-dealer known for its popular proprietary trade execution platform. The new RBC Carlin gave its parent nearly 3.5 billion shares in monthly trading volume, ranking it in the top 10 in the U.S. In the wake of the deal, RBC Carlin also launched a new customizable options trading module called Options Pro.

The race is on
In a separate February 2007 announcement, the firm named Doug McGregor and Mark Standish as new co-presidents of the firm, reporting to CEO Chuck Winograd. Interestingly, in his statement congratulating McGregor (based in Toronto) and Standish (based in New York), Winograd called their promotions part of RBC Capital Markets long-term succession planning, hinting at a potential two-way race for the top job.

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Committed to realignment
RBC Capital Markets vow to bring its U.S. business into alignment with its other operations entered a new phase in March 2007. The bank announced that as part of its plan to realign its bond trading, mortgage trading and government-sponsored enterprises (GSE) derivatives trading platforms, it had hired two senior fixed income executives. Ryan Fennelly was poached from Credit Suisse, and Devin Dangler was brought in from a six-year stint at HSBC. At the same time, RBC Capital Markets promoted Aaron Kennon to senior relationship manager for U.S. agencies and charged him with developing synergies between bond, mortgage and GSE trading activities. The bank also relocated top trader Paul Klinger from Memphis to New York.

Good season for municipal investment banking


RBC Capital Markets completed another U.S. acquisition in June 2007, this time of Seasongood & Mayer, Ohios top-ranked public finance firm and leading underwriter of municipal debt. As part of the deal, RBC also acquired Seasongood Asset Management, a wholly owned subsidiary and investment advisor to public funds clients. The merger bolsters RBC Capital Markets position in the U.S. municipal investment banking market while enhancing its overall presence in Ohio and in K-12 education finance nationally. In addition to being the top negotiated underwriter in Ohio, the combined RBC entity, based on 2006 rankings, is the No. 1 ranked municipal finance firm nationally in both U.S. middle market issues and the K-12 school finance sector. Seasongood Asset Management currently manages $1.5 billion in assets for public fund clients in the Ohio region. The asset management portion of the Seasongood business will operate under the name RBC Public Fund Services as a joint venture between RBC Capital Markets and RBCs Voyageur Asset Management.

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More new faces


RBC Capital Markets continued bringing in new blood throughout the remainder of 2007, and into 2008. In May 2007, the firm appointed Tim Chapman as managing director, global investment banking. Based in London, he will be responsible for leading the banks international energy business across Europe, the Middle East, Africa and the FSU. Chapman came from CIBC World Markets, where he headed the European oil and gas team. Prior to that, he spent 11 years with JP Morgan Chase in its European energy group. That same month, RBC announced two additional hires to its global investment banking energy team: Louise Mooney and Robert Gair, associates who report to Chapman. A few months later, in October 2007, RBC Capital Markets hired Mike MacBain, former president of TD Securities, as co-head of its global debt markets business. MacBain also was made a member of RBC Capital Markets operating committee, and has joint responsibility with for the firms C$2 billion global debt markets business. In January 2008, RBC Capital Markets made David Pichler its new head of U.S. fixed income and currencies credit trading. In this role, Pichler will be responsible for investment grade trading, high-yield trading and secondary loan trading in the U.S. He will be based in New York. Prior to joining RBC, Pichler spent his entire 15-year career at Citigroup/Salomon Brothers, where he was most recently co-head of global credit trading. Previously, he was the firms head of U.S. investment grade trading. More recently, in July 2008, the firm appointment of Jim Wolfe as managing director and head of U.S. leveraged finance. According to RBC, Wolfe will partner with RBCs U.S. head of global syndicated finance and head of high-yield capital markets to continue to drive growth in the origination and distribution of leveraged finance transactions in the U.S. market. Prior to joining RBC, Wolfe spent 15 years with Bear Stearns, most recently as senior managing director in the famously defunct firms leveraged finance group.

Winograd catches who Fell


In October 2007, RBC Capital Markets said goodbye to its chairman, Tony Fell, who announced his retirement after a 48-year career with the firm. With this announcement, Capital Markets CEO Chuck Winograd added the role of chairman.

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Fell began his career with RBC in 1959 when he joined the research department of Dominion Securities at the age of 20, after graduating from St. Andrews College in Aurora, Ontario. By 1965, he had become manager of the department and, in 1967, decided to transfer into to the investment banking business development group. Fell was appointed a director of the firm in 1969 and in 1972 became an executive vice president. In September 1973, Dominion Securities merged with the investment banking firm of Harris & Partners Limited, and Fell was appointed president of the combined company at age 34. In 1980, Fell was appointed CEO, a position he held for 19 years. Fell was appointed a vice chairman of RBC in 1996 and a deputy chairman in 1998, before taking on the role of chairman of RBC Capital Markets in 1999, a position he held for eight years.

Hometown favorite
According to the Thomson Financial (now Thomson Reuters) 2007 investment banking league tables, RBC Capital Markets was the pride of its home country, ranking No. 1 in Canadian-announced M&A, up from No, 3 in 2006. The firm announced 67 deals worth a total of $157 billion. RBC Capital Markets made significant strides in U.S. M&A, jumping 16 places in U.S. announced deals to No. 20 (from No. 36 in 2006). RBC was impressive on a global scale in 2007 as well, coming in at No. 20 in worldwide announced M&A, up from No. 31 in 2006.

GETTING HIRED

Limited availability means high selectivity


RBC has limited spots per year, which makes personality fit and hustle two critical requirements for new hires. Small analyst and associate classes combined with a high yield among those offered positions makes it difficult to get hired at junior levels. The firm typically hires 15 analysts per year in the U.S. making the selection process very competitive due to limited space. With lateral hires, the firm looks for solid quantitative skills and is highly selective. RBC prefers candidates who can hit the ground running. It can be tough for lateral hires. A contact says, There is a blend of intellectual capability, experience and personality that can be hard to isolate in looking for new experienced hires. As a result, not all bankers looking to move laterally from a bulge bracket firm to this more middle market oriented shop will find an offer. In San Francisco, the bar is set higher than can get the job done. Maintaining culture is a key recruiting focus. Sources say you need to be a graduate of a top tier university to have a shot at a job. In California, RBC recruits at Stanford, Berkeley, and UCLA. Other schools frequented by RBC recruiters include UPenn, University of Michigan, NYU, Emory, University of Texas, and a handful of Ivies. Recent analysts were also hired from the following nontarget schools: Cornell University, UC San Diego, University of Maryland, and UC Santa Cruz. At the MBA level, RBC looks for graduates of top schools like Berkeley Haas, University of Chicago, Columbia,, NYU Stern, UCLA Anderson and Wharton.

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30 minutes to charm
Incoming analysts and associates are recruited based on a two-step process, including a first round on campus followed by an on-site Super Day. To be included in on-campus interviews, candidates from target schools can drop their resumes. Typically, on-campus interviews are either one-on-one or two-on-one with a senior banker and a more junior banker, and last about 30 minutes. This round covers the whole spectrum of technical, behavioral, case and brainteaser questions. Beyond assessing intelligence, leadership and achievement, interviewers also focus on attitude. Super Day normally consists of four to five interviews with mix of associates, VPs, directors and managing directors. Some candidates meet as many as eight people on the first round. Most Super Day interviews are around 30 minutes each as well. While the first set of interviews is primarily quant, the second rounds tend to be primarily fit interviews. But dont leave your quant hat at home. Second-round topics can range from detailed quantitative and modeling questions to ones about team management. Candidates usually find out within one week of Super Day whether they received an offer.

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Not many interns around


RBCs internship is for associates only. The program accepts a limited number, only about two-to-three summer associates per year. Full-time positions are filled largely through full time recruiting, however, 20 to 30 percent of new hires do come from the internship program. So those who get one of the limited spots enjoy a great head start on the full time on-campus process. A contact says, We like to offer full time employment to intern superstars.

OUR SURVEY SAYS

If you want cutthroat, look elsewhere


RBC is the best investment bank to work for overall. Insiders say the deal experience is extremely good, and people are friendly, respectful and always willing to help. The firms culture is second to none, fostered by a staff thats patient and hardworking. We pride ourselves on not having a cutthroat culture. This entrepreneurial firm is in growth mode, creating lots of opportunity. RBCs small size means that junior bankers get a lot of responsibility early on, permitted to work on deals from start to finish. First-year analysts have the opportunity to travel and pitch to clients. The firm is a meritocracy, and if you show affinity and passion to the job, you will be given responsibilities early on. But one insider warns, There is no hand holding here. You have to really run with it. Sources say this atmosphere allows analysts to thrive. The culture is down-to-earth and not bound by title hierarchy. Insiders describe RBC as one big family. Colleagues have tons of fun, making the bank a rare place where people wake up every day excited to go to work. Analysts and associates often socialize quite a bit outside of the office in addition to company events. With all this positive energy, one source says, Sometimes I wonder if I really work in an investment bank. Some say the vibe can differ depending on the group. The health care group, for example, is most intense and one of the fastest growing at the firm. Other industry groups are a bit more relaxed. And the San Fran office is more laid back than New York. Overall, the firm is a bit mellower than the U.S. or European bulge banks.

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Pretty standard pay package


Insiders say their compensation is very competitive and in line with most investment banks. Some say bankers are paid like peer middle-market firms and not bulge bracket. Associates and up receive a portion of their bonus in deferred comp in the form of RBC stock. A contact notes, Since stock has done well, that has made people pretty happy. The firm provides a meal allowance, ranging from $20 to $24 depending on geography, which employees can use when working late nights and weekends. This health conscious firm began a recent initiative that maintains a constant supply of free fruit and healthy drinks in the kitchen. After 9 p.m., New York bankers can take home standard black car services; the San Francisco crew can pick up a cab voucher for work after 7 p.m.. Employees also enjoy discounted gym memberships, and in New York, there will be an on-site gym at the firms new World Financial Center office. RBC offers 401(k) matching up to 6 percent of your salary, but it takes five years to vest. A contact says, On good years, the company will distribute stock to all its employees at 1 percent of salary, capped at $500, subject to five-year vesting. RBC considers itself a boutique, but the firm enjoys resources of a large bank, with tremendous support from the Canadian parent company. Although some point out that the bank should spend more on certain resources, like better printing and technology.

Lots of time, but no time wasting


First-year bankers should expect to work an average of 90 hours per week. That number can depend on the group you work in, but most bankers log anywhere between 70 and 110 hours per week. Some definitely work like dogs, while others seem to get it a little easy. RBC requires less face time than some competitors. If you finish your work, you go home. A contact says, My hours have been 80 to 90 on average, but Ive had some wild swings ranging from weeks that Ive only put in 50 to 60 hours (around the holidays) to 110 to 120 hours (middle of a live deal) where I would go home at 4 a.m. every night.

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Relatively speaking, RBC is very cognizant and respectful to the individual when it comes to hourly demands. Long hours are usually associated with high quality deal work rather than endless pitch books and analysis. Compared to the industry norm, the average RBC analyst works very reasonable hours. For junior bankers, hours are more volatile, as with senior bankers, the focus on hours is less important than revenue productivity. Sometimes, first year analysts can get away with taking a weekend day off, but late nights are frequent and so are all-nighters.

No subordinates here
Senior bankers do not treat junior bankers as subordinates. Respect among all employees is very high. When it comes time for reviews, comments are thoughtful and constructive criticism is offered. The firm has great senior bankers who get the job done, are fair, and care about personal development. Of course, there are exceptions, but generally, the firms leadership is top notch. Many have bulge bracket experience, so youre dealing with seasoned veterans with great industry knowledge. Some say analysts are treated well but associates are not, but the consensus is that managers respect all junior bankers for their time, their talents and them as people. Managers at the firm are friendly, patient, and willingeven enthusiasticto teach. Analysts at RBC get a lot of one-on-one time with managing directors and group heads, which most consider a very unique luxury. RBC tends to be a no nonsense type of firm, and mostly everyone has this attitude. There are some egos, but they do not get in the way of doing business. RBCs senior bankers set the tone for a team-oriented, respectful work environment and it flows through the whole office.

Training is mostly on the job


RBCs new bankers go through two weeks of training at the firms Toronto headquarters. In San Francisco, analysts and associates also run additional training throughout the first month of work for the new class. Although helpful, the initial formal training is short and may leave many holes. One source says, I wish the training was a bit longer, perhaps by a week or two, as it did feel like everything was crammed and fast. Fortunately, the firms on-the-job training gets good reviews. Informal on-the-job training is more complete than the incoming analysts or associate programs. Most newbies learn everything you need to know from other analysts over the first couple of months. RBC occasionally hires outside people to teach on financial modeling or investment banking issues. But the general attitude here is that you learn by doing and from people youre going to work with day in day out.

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New offices
RBCs New York crew recently moved to 3 World Financial Center. According to the firm, the move underscores its expansion of in the U.S., and will allow it to consolidate most of its trading, front office and associated support functions in lower Manhattan. In San Francisco, there is plenty of space and the conditions are comfortable, but there is not much to look at. Its not luxurious, but certainly clean and has a nice kitchen. A contact in that location says, The office feels more like a retail office. Perhaps because the infrastructure is lacking, and carpets and furniture are run down. And the office could use some more conference rooms. The cubicles are nice and high, which provides some privacy. But overall, the office is just so so.

Ties are a personal choice


The basic look at RBC is no ties but otherwise formal. There are no ties or jackets required, but most bankers keep them available in case you have to interact with clients. Although business casual is the official policy in the investment bank, virtually all senior investment bankers wear suits and ties. As a result many analysts and associates wear a shirt and tie or suit, too. The equity research, sales and trading groups actually tend to follow the business casual policy. The San Francisco office is pretty relaxed on dress code. A contact says, Formal for a west coast tech investment bank is a collar shirt, no tie and slacks. Out west, ties are only worn on special occasions or for pitches. The exception to this is the San Francisco M&A group, whose bankers wear business formal with ties and suits during the week.

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Diversity is improving with time


Women are treated as equals at RBC, but you wont see many of them. There are relatively few women working for the firm. According to a contact, that is improving: Before 2006, there were no female analysts. Now, about one-third of each entering class of analysts and associates is female. For the women who are onboard, receptiveness and treatment is average to above average. In the San Francisco office, specific senior bankers are in charge of looking out for the interest of female bankers. When it comes to ethnic minorities, mentoring could be better. Although almost all senior management are white males, recent classes of analysts are extremely ethnically diverse. Overall, its a very diverse bank where ethnic minorities are very well represented. With respect to gays and lesbians, RBC does not have a problem at all and is receptive.

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VAULT TOP 50

31
PRESTIGE RANKING

Thomas Weisel Partners


KEY COMPETITORS
Cowen and Company Jefferies & Company Lehman Brothers Piper Jaffray Companies UBS Investment Bank

One Montgomery Street San Francisco, CA 94104 Phone: (415) 364-2500 Fax: (415) 364-2695 www.tweisel.com

BUSINESSES
Asset Management Brokerage Equity Research Investment Banking Private Client Services

UPPER
Very team-oriented and friendlya lot of direct interaction with vice presidents, directors and managing directors

THE STATS
Employer Type: Public Company Ticker Symbol: TWPG (NASD), TWP (TSX) Founder, Chairman & CEO: Thomas W. Weisel Revenue: $289 million (FYE 12/07) Net Income: $20,000 No. of Employees: 600 No. of Offices: 14
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DOWNER
Training program is not six to eight weeks long, so employees need to have an appetite for learning on the job

EMPLOYMENT CONTACT
Follow the careers link at www.tweisel.com.

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Growing boutique with more scale than many other boutiques Lost lots of talent Smart and strong niche player Never lead bank on deals

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THE SCOOP

A public affair
Thomas Weisel Partners (TWP) went public in 2006, launching a self-underwritten IPO. The stock debuted strong and rose 30 percent above its $15 per share offering price on its first day of trading. This strong performance shocked Wall Street insiders who had predicted a less rosy future for the IPO after Goldman Sachs backed out as the underwriter just one month before the firm went public. However, after its successful debut, the firms stock has been volatile, and as of July 2008 lingered well below its debut price at approximately $5.50 per share. The firm was founded in 1998 by Thomas W. Weisel (Wize-ul), who had founded Montgomery Securities 37 years earlier. In 1997, Weisel sold Montgomery to NationsBank for $1.3 billion. When NationsBank merged with BankAmerica to form Bank of America, he left his first firm behind to start another. In his spare time, Weisel serves as the chairman of the USA Cycling Development Foundation Board and sits on the boards of the New York and San Francisco Museums of Modern Art. He also supports his alma mater by serving on the board of the Stanford Endowment Management Committee. Today, Weisels eponymous firm offers asset management, equity research and brokerage services in addition to investment banking; it is headquartered in San Francisco, with offices in Baltimore, Boston, Chicago, Cleveland, Denver, New York, Portland, Silicon Valley, Calgary, Toronto, London, Mumbai and Zurich.

A busy bank
TWP focuses on growth sectors of the economy, particularly the technology, health care, consumer, Internet, media, telecom, energy, metals and mining sectors. The investment bank offers corporate finance and strategic advisory services, including mergers and acquisitions, divestitures, spin-offs, takeover defenses, private placements and other transactions. It is run by Bill McLeod and Brad Raymond, co-heads of the investment banking group. Through March 2008, the bank had completed 734 transactions, including 475 public equity deals, 88 private placements and 171 M&A transactions. Approximately 40 percent of TWPs M&A deals have been between $100 million to $1 billion, but it has handled a wide variety of deals ranging from smaller deals to massive $40 billion transactions. Recent advisory transactions include the $215 million sale of Iomega to EMC Corporation, $72 million sale of WJ Communications to TriQuint Semiconductor, $400 million acquisition of eScription by Nuance Communications and $205 million sale of PlateSpin to Novell. On the equity front, TWP recently led transactions for Constant Contact, Nuance Communications and Whitemud Resources. It also co-managed the IPOs of Cardionet, Memsic, Entropic Communications and Global Consumer Acquisition Corp. in 2007, and was the sole book manager on the IPOs of Orion Energy and Internet Brands.

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Tech talk
With its emphasis on growth sectors, TWP is a natural host for an annual Tech Conference which examines the future of the technology sector. The event showcases new research and puts venture capitalists and institutional investors in touch with CEOs from hundreds of technology, communications, electronics, IT, semiconductor, software, telecommunications and wireless companies. It also gives TWP a chance to scout future IPO or M&A clients.

Where the Westwind blows


In January 2008, Thomas Weisel completed its acquisition of the Toronto-based investment bank Westwind Partners, expanding the companys reach into Canada. Westwind is an independent firm that specializes in the energy and mining sectors and has offices in Toronto, Calgary, and London. Since it was launched in 2002, Westwind has completed 140 investment banking transactions and raised about $17 billion in capital. Thomas Weisel paid $147 million for the Canadian firm. Lionel F. Conacher, former CEO of Westwind Partners was appointed to the position of President of Thomas Weisel Partners as part of the deal.

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There will be a few changes to TWP as a result of the merger. In an effort to more closely align the compensation practices of the two firms with one another and industry practice, TWP will be eliminating its practice of paying out midyear retention bonuses. The company has accelerated these bonuses to be paid earlier in the year.

Oh, Canada
With the acquisition of Westwind under its belt, it was full steam ahead for Thomas Weisel Partners expansion into the Canadian market. The firms common stock was approved for listing on the Toronto Stock Exchange on January 9, 2008, trading under the symbol TWP. The firms new President Lionel F. Conacher said, Many of Westwinds clients have listed on the TSX, as it is the premier exchange for energy and mining companies, and the Thomas Weisel Partners listing demonstrates our combined firms commitment to the Canadian capital markets. The firm will also continue to be traded in the U.S. on Nasdaq exchange under the symbol TWPG.

Down year
For full-year 2007, TWP pulled in $289 million in total revenue, an increase from the $276.3 million it earned in 2006. Net income, meanwhile, came in at only about $20,000 for the year, a serious drop from the $33.3 million the firm reported in 2006. Because of the hits to the overall industry, the firm postponed some of its M&A transactions that it had planned for the fourth quarter. But the first quarter of 2008 wasnt looking much better for the firm (and the financial services industry as a whole). With difficult market conditions as the backdrop, revenue for the quarter came in at $48.9 million, down from the $76.7 million it earned in the first quarter of 2007. Net income for the quarter translated to a loss of $17.8 million. Capital market conditions led to a 78 percent plunge in its investment banking revenue. As a result of the poor market conditions, Thomas Weisel cut 9 percent of its staff during the quarter, and said it would cut a further 13 percent in April of 2008. However, according to the the firm, it has continued to add talent at the senior levels in order to bolster our ability to generate revenue in better market conditions.

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GETTING HIRED

Be a rare breed
Thomas Weisel is a firm where pedigree is important. Because of that, its very selective in its recruiting process and careful to ensure that all hires have the requisite level of experience. Nevertheless, one insider remarks seeing some positions remain open for a long time as many candidates are reviewed while other positions that require typically less responsibility or are less teamwork-intensive, are filled quickly. Regardless, if youre intelligent, have a good personality and are willing to work hard, the firm is a great place to work. For current openings, check out the careers link at www.tweisel.com.

Brace yourself
Once youre asked in, expect about two rounds of interviews that could entail meeting up to 20 people. Candidates will typically interview with all or most members of the teams hiring, as well as management. And be prepared to be quizzedwriting and skills tests are often required for associates. There are also technical questions to gauge your ability to grasp financial concepts along with questions focused on fit, familiarity with the firm personality and work ethic. But the course of action does tend to vary. One insider says that the process consisted of two phone interviews and one Super Day, adding, The interview questions were not atypical for investment banking, with a balance of fit and technical questions. Your experience may depend on when you apply, however. There is rapid, active hiring when there is a need, while it tends to be slower at other times.

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Though the firm recruits from top undergrad and business schools such as Brown, Dartmouth, Penn, Harvard, Stanford, Columbia, and Wharton, it also finds candidates through recruiters, Monster and [recruiting firm] Glocap. And never fear if your school isnt visited in the usual roundsthe firm does hire from other places if the fit is right.

OUR SURVEY SAYS

Great people, but competitive


Entrepreneurial is a word that comes up frequently when insiders describe the firms culture. Additionally, the firm has great people all around, and is very team-oriented, friendly, encouraging and helpful. People are positive from top to bottom, and the firm has small, collaborative teams with high levels of responsibility. The culture is hardworking and has a classy, white shoe feel about it without being too pretentious. And the atmosphere is not as intense as some banks are known to be. Still, it is a competitive culture thats simultaneously an aggressive one. Salaries and perks mostly receive the same degree of praise from insiders. TWPs base salary is in line with the Street, and employee bonuses dont look too shabby, either15 to 20 percent of the bonus is paid in stock with a four year vesting schedule. Other perks include meals after 8 p.m. and taxis after 9 p.m. and on weekends, a subsidized gym membership, and pre-tax health and commuter benefits.

Good balance
The hours spent at the office can vary depending on who you work with, though they are usually typical investment banking hours and average around the neighborhood of 70 to 80 per week. Making an appearance at the office on weekends is an occurrence that tends to happen more than once a month. And while your work load is ebb and flow, its also often dependent on the efficiency of the managing director. But theres good news: Bankers tend to be reasonable about not overworking analystsTWP has a reputation as more of a lifestyle firm. One analyst even calls it the best balance of life that I know of.

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Class act
Complaints are tough to findif not downright impossiblewhen it comes to sources opinions on management. I have great relationships with both my managers and my subordinates. Generally, there is a lot of direct interaction with vice presidents, directors and managing directors, which is [the] great part of working at Thomas Weisel. One insider even goes so far as to say, The attitude of the senior bankers is probably the most compelling reason to work at TWP. They are highly intelligent, respectful and genuinely appreciate a thoughtful work product and good effort.

Its an art
Office space in both the San Francisco and New York offices receive high marks. Both have amazing artwork, and the San Francisco offices, outfitted during the peak of the boom in 2000, boast the best offices in the Bay area. In addition to featuring lots of good art, the New York offices are comfortable offices and housed in a good location.

Your call
Although most people still wear suits or at least dress on the high end of business casual, business attire is optional. One insider calls the option a little strange, but says a lot of people wear suits unless its Friday or they have been working too much. Even though theres the option of casual dress within the office, client contact is still important. Slacks and a dress shirt with a jacket is typically what employees will wear for client engagements. And the higher-ups seem to stick with the formalvice presidents and above typically wear suits daily.
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Its not the length that counts


In terms of training, our program is not six to eight weeks long, so employees need to have an appetite for learning on the job. In reality, the analyst program is about half of thatthree weeksand a substantial amount of learning is done in a trial-byfire manner. If you are looking for a two-month training program to start your career, dont come to TWP. But if you are looking to nail the basics and value learning by doing, TWP is a great place to work. The firms push for diversity also generally receives high marks, though theres room for improvement. I dont feel like the finance industry is unwilling to recruit or retain women or minorities, though I can see how there could be a potential culture issue, says one insider. But overall, respondents have admiration for TWPs ideals. I have been given responsibilities and opportunities here that I do not feel I would have received at the other banks. Thomas Weisel is really a unique place.

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VAULT TOP 50

32
PRESTIGE RANKING

Bank of New York Mellon


KEY COMPETITORS
Citi Chase State Street

One Wall Street New York, NY 10286 Phone: (212) 495-1784 Fax: (212) 809-9528 www.bnymellon.com

BUSINESSES
Asset Management Asset Servicing Broker-Dealer and Advisory Services Issuer Services Treasury Management Wealth Management

UPPERS
Good job security Diverse workforce

DOWNERS
Limited upward mobility Diversity hiring practices could use work

THE STATS
Employer Type: Public Company Ticker Symbol: BK (NYSE) Chairman: Thomas A. Renyi CEO: Robert P. Kelly Revenue: $11.3 billion (FYE 12/07) Net Income: $2 billion No. of Employees: 42,000 No. of Offices: Offices on six continents in 42 countries

EMPLOYMENT CONTACT
www.bankofny.com/careers

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong and sophisticated and venerable Merger with Mellon has hurt their reputation Good securities dealings, large custody business Competitor of top banks but not ever at the top

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THE SCOOP

Number One on Wall Street


Established in July 2007 from the $17.6 billion merger of Mellon Financial Corporation and The Bank of New York Company, The Bank of New York Mellon is securities services and asset management company with over 42,000 employees operating across 34 countries. Headquartered in New York City, at the enviable address of One Wall Street, The Bank of New York Mellon has about $21 trillion in assets under custody or administration and more than $1 trillion under management. The firm services some of the worlds leading corporations, governments, unions, foundations, endowments, mutual funds and high net worth individuals through six main business units asset management, asset servicing, wealth management, issuer services, treasury services, and broker-dealer and advisory services. The Bank of New York Mellon offers asset management services through 15 wholly owned and three partially owned subsidiaries. BNY Mellon operates six main business lines. Its asset management division offers boutique investment managers who handle more than $1 trillion in assets. Featuring 17 asset-management subsidiaries, BNY Mellon racked up a slew of awards in 2007, including being named a top-10 U.S. asset manager by Institutional Investor. According to Pensions & Investments, its the third largest manager of U.S endowment and foundation assets. Pershing LLC and Pershing Advisor Solutions are the banks broker-dealer and advisor service businesses, and they perform an average of 119,000 trades on a daily basis. Brian Shea, Pershings COO, was named one of the Forward-Thinking Five by Boomer Market Advisor in 2007. Pershing serves more than 1,150 clients in 18 offices around the globe. The banks issuer services is the worlds leading provider of corporate trust and agency services. In 2007, J.D. Power and Associates recognized this division for outstanding customer service for the second consecutive year.
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The banks treasury management services is the third-largest payment processor in the U.S. with more than 170,000 wire transfers daily. In 2007, it was named the No. 1 choice in customer satisfaction by Bank Leader Survey, as well as the No. 1 provider of accounts payable outsourcing by the Brown Wilson Black Book of Outsourcing.

From New York and Pennsylvania to the world


Founded in 1784, BNY can honestly claim to be the oldest bank in the United States. Chartered by a group of New Yorkers (including Alexander Hamilton), it was the first corporate stock to be traded on the New York Stock Exchange, which opened in 1792. The bank played a major role in financing industrial and economic growth in New York City, building its assets through the 1800s and into the 1900s. In 1922 BNY gained a trust business by acquiring the New York Life Insurance and Trust Company; it survived the stock market crash of 1929 and went on to acquire the Fifth Avenue Bank and the Empire Trust Company. In the 1960s BNY went where it had never gone beforeoutside New York, by opening a London office and purchasing National Community Banks in New Jersey and the Putnam Trust Company in Connecticut. The 1988 acquisition of the Irving Bank Corporation created what was then the 10th-largest bank in the United States. Mellon, on the other hand, was founded in 1869 by Thomas Mellon and his two sons. One of those sons, Andrew Mellon, eventually became the U.S. Treasury Secretary. Many industrial giantsfrom an oil company to a steel empirewere backed by Mellon, and it was known for taking investment risks as well as allowing the burgeoning industrial community in southwestern Pennsylvania to thrive. Throughout the 1980s and 1990s, it bought up a number of banks in its native state of Pennsylvania, and eventually nabbed such firms as the Boston Company, the Dreyfus Corporation, United Bankshares and insurance company Safeco Corporation.

Cool as a cucumber
The Bank of New York Mellons CEO, Robert Kelly, is the former CEO of Mellon Financial. Kelly was appointed to that post in February 2006, as the result of an extensive search process launched to find a successor to Martin McGuinn, who previously

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announced plans to retire. Kelly, 51 at the time of his appointment, joined Mellon from Wachovia Corporation, where he was CFO and senior executive vice president since 2000. Voted best large capitalization bank CFO in America by Institutional Investor in both 2004 and 2005, Kelly hit the ground running, taking over for McGuinn immediately after his appointment. And he was again deemed the man for the job when Mellon joined forces with The Bank of New York in July 2007. Bank of New York chairman and CEO Thomas Renyi became The Bank of New York Mellons executive chairman. But within two years, Renyi will step aside to let Kelly fill his shoes. Perhaps it was his cool-and-collected demeanor that kept him in the top role. Kelly was under pressure from the get go since stepping foot in his new office at Mellon, as he took over for McGuinn at a time when the former CEO was getting hammered for Mellons flailing stock price. But upon taking the helm, Kelly remained calm, declining to announce changes of direction, strategic reviews or management purges, reported Financial News. Instead, he listened to clients, analysts and, perhaps most importantly, staff, all of whom had their own ideas about what was right and wrong with the firm. As far as his plans for the combined company, Kelly told reporters in December 2006 that lose no customers is going to be our rallying cry, and we are going to hate it if we lose customers.

Up to its old tricks


Shortly into its marriage, The Bank of New York Mellon was acquiring companies as a combined entity. In December 2007, the firm bought ABN AMRO Mellon Global Securities Services B.V., a 50/50 joint venture company established by Mellon Bank N.A. and ABN AMRO in 2003 to provide global custody and related services to institutions outside North America. The firm will now be known as BNY Mellon Asset Servicing B.V. and becomes a part of the asset servicing division of The Bank of New York Mellon. The bank continues to be headquartered in Amsterdam and regulated by De Nederlandsche Bank. Existing ABN AMRO Mellon clients will remain contracted to BNY Mellon Asset Servicing B.V., as will ABN AMRO Mellon staff at the companys operational centers around the world. In conjunction with the deal, ABN AMRO Mellon CEO Nadine Chakar took up a new position as chair of the supervisory board of BNY Mellon Asset Servicing B.V., and Pim Nederpel, ABN AMRO Mellons CFO, was appointed CEO. The Bank of New York Mellon made another international purchase in January 2008 when it completed the acquisition of ARX Capital Management, an independent asset management business headquartered in Rio de Janeiro, Brazil. ARX specializes in Brazilian multi-strategy, long/short and long only investment strategies, and has more than $2.8 billion in assets under management.

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Happy New Year, from Barrons


Bank of New York Mellon closed out 2007 with a word of encouragement from Barrons, which, in a year-end article, called the firm an elegantly assembled financial company. The publication noted Bank of New York Mellons limited exposure to the subprime markets, and said, With unrivaled technological scale, significant cost-saving opportunities and energized management, BNY Mellon is an attractive play on expanding global wealth and the development of securities markets around the world. Barrons also believed investors were undervaluing Bank of New York Mellon in comparison to its competitors, but were likely to come around as they begin to appreciate the virtues of BNY Mellons scale and efficiency initiatives. CEO Robert Kelly agreed, telling Barrons that the rapid growth of the companys asset management and non-U.S. profits didnt seem to be reflected in the stock price. In five years we could be closer to 50 percent asset management and close to 50 percent international, Kelly said. There is $140 trillion of fixed-income and equity assets on the planet, and we have $21 trillion of it. The bottom line, according to Barrons, was this: BNY Mellons privileged place in the center of a fast-expanding pie of global institutional-investment assets should deliver sweet returns for its shareholders.

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Mixed bag
The bank reported mixed results for full year 2007. Net income came in at $2.04 billion for 2007, down from $2.85 billion in 2006. Total revenue, however, increased to $11.33 billion, up from $6.84 billion in 2006. BP Mellon Asset Management, which controls all of the banks investment management units, brought in $1.58 billion in total revenue in 2007, up from $310 million in 2006. The firm pointed to the Mellon merger, net new business and improved equity markets as reasons for the mostly encouraging results (subprime mortgage exposure accounted for much of the dip in the firms net income).

Winning together
Even though its a new company, BNY Mellon has racked up some awards already. Fortune listed it as the No. 1 most admired company in a March 2008 issue. In February 2008, Thompson Reuters called the firm the No. 1 trustee in the U.S. for the past year (BNY Mellon served as trustee on 40 percent more issues than its closest competitor). The new powerhouse also grabbed the trustee of the year award from the International Securitisation Reportan honor bestowed for its commitment to client support and global development in new asset classes.

GETTING HIRED

Cradle robbers
For potential candidates, especially those just beginning their careers, the career section of the firms web site indicates that you just might be in luck. Individuals with undergraduate degrees seeking entry-level positions can apply for positions such as branch banking, corporate trust, investment accounting, stock transfer, unit investment trust and American Depositary Receipts. For MBAs, BNY Mellon regularly hires newly minted business grads to serve as corporate banking associates, investment management associates, and media and telecommunications banking associates. The bank also offers an MBA summer associate program where business students work for 12 weeks in one of the following divisions: asset management, private client services, capital markets, corporate banking, international banking, product management, marketing or operations management. BNY Mellon summer internships for undergraduate students are typically in the firm's branch banking group. The company generally likes to hire new college grads, says a current insider. It is an excellent opportunity right out of college. Another adds that it is a good first-time job. The firms web site makes the application process easy, allowing you to submit your resume online.

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Just relax
The interview process, insiders say, is relaxed, relatively informal and nothing fancy. One insider, who says he interviewed with three different managers and supervisors, reports being asked basic questionsmany of them behavioral. Expect at least three rounds, but dont expect bells and whistlesits a fairly straightforward process, insiders say.

OUR SURVEY SAYS

Old school
The corporate culture at the firm is traditional, but with a very good work environment for everybody. Maybe thats because where teamwork is the core of business. Although people need to work hard, its likely an offshoot of the fact that the company has grown up very quickly in recent years. But theres a flip side, toothe bank also has people who are dead set on leaving the office by 4:59 p.m. Then again, if you are ambitious, there is no limit to the amount of exposure you can receive here. So, for the brightest, this is an open field in terms of experience and learning.

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Hours spent in office tend to be reasonableyour basic 8:30 to 5 and 10 to 7, says one insider. Still, there is overtime which pays you time and a half for nonexempt employees. But be warnedonce you get to be an analyst and above, you do not get paid overtime, so many become more reluctant to stay late and take on extra work or work that has yet to be finished.

Pretty poor perks


But the reluctance may also stem from the paltry salary and benefits. Actual bonuses were small, one insider confides, and not even close to compensating for overtime. Plus, bonuses are paid four months after theyre earned to force staff to stay longer. There are four weeks vacation and medical/dental benefits offered but only for the employee, so any dependents or spouses must pay their own medical/dental premiums. Insiders report being offered stock options, but no sick days. One source reports that the only other benefits are free coffee and teabut staff must supply their own milk and sugar and adds the milk is frequently stolen from the company fridge by other staff. One aspect of firm life that does receive high marks from insiders is a business casual dress code that allows jeans and sneakers on Fridays and specific manager-permitted weekdays. However, use common sense when dressing for the office. There are no cargo pants and no T-shirts with words, phrases or logos allowed for women and men. Meanwhile, there are no city shorts, low-cut blouses or revealing camisoles allowed for women.

A long way to go
On the diversity front, there appears to be more women than men, and the majority of the administrators were very young. But there are a low number of African-Americans and an even smaller number of Hispanics. There is, however, notable diversity in management, insiders report, but when it comes to advancing, it seems as though its important to say the right thing and impress the right person to get ahead. One contact says there was political correctness in name onlyactions and tone spoke louder than words. But it seems like the bank is on the right track for the future. Due to the recent merger of Bank of New York and Mellon, the company is now the biggest custodian in the world and still has much room for growth, especially in Asia. It seems that on the whole, Bank of New York Mellon is in very strong standing and should be for the long term.

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PRESTIGE RANKING

BNP Paribas
KEY COMPETITORS
Crdit Agricole HSBC Holdings Socit Gnrale

16, boulevard des Italiens 75009 Paris France Phone: +33-1-40-14-45-46 Fax: +33-1-40-14-69-73 www.bnpparibas.com

DEPARTMENTS
Asset Management & Services Corporate & Investment Banking Retail Banking

UPPER
Close-knit team of very friendly and helpful people

THE STATS
Employer Type: Public Company Ticker Symbol: BNP (Euronext) President, CEO & Director: Baudouin Prot Revenue: $116.16 billion (12/07) Net Income: $10.71 billion No. of Employees: 141,911 No. of offices: 2,200
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DOWNER
Big name overseas, but not well known in the US

EMPLOYMENT CONTACT
See careers section of www.bnpparibas.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Smart and strong Good in Europe; weak in the US Incredibly strong in exotic products French

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THE SCOOP

Truly European
With a history that includes a laundry list of French banks dating back to the 1860s, BNP Paribas is Frances largest financial firm, boasting operations in 85 countries and over 161,000 employees worldwide. By market capitalization, BNP Paribas ranks among the worlds top-15 banks. Its three core businesses are retail banking, asset management and services, and corporate and investment banking. The retail banking division includes French retail banking and international retail banking and financial services. The asset management division offers insurance, securities services and wealth and asset management. Finally, the corporate and investment bank provides financing and advisory and capital markets services. BNP Paribas also has three standalone subsidiaries: BNP Paribas Capital, which contains the firms private equity activities; Klepierre, continental Europes No. 2 listed property group that specializes in shopping centers; and BNL, a 2006 acquisition and Italys sixth-largest banking group. In the U.S., BNP Paribas primary offices are located in New York, Dallas, Chicago, Houston, Los Angeles, Miami and San Francisco. It also has branch outlets under the Bank of the West and First Hawaiian Bank brand names. In the U.S, BNP Paribas headcount is approximately 15,000a mere fraction of its French and European staff numbers.

The latest financials


In 2007, the firms corporate and investment bank (CIB) reported 8.29 billion in revenue, a 2.5 percent increase versus 2006. Though CIB was profitable in every quarter of 2007, its fourth quarter pre-tax net income of 343 million was 65 percent less than the same period in the previous year. Overall, CIB brought in 28 percent of BNP Paribas total revenue in 2007 and 35 percent of its pre-tax net income. The credit crisis continued to worsen finances for the firm in 2008, as CIBs first quarter revenue was 1.3 billion, a 45 percent drop from the first quarter of 2007. Pre-tax income, meanwhile, came in at 318 million, down considerably from 1.17 billion the unit produced in the previous years first quarter.

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M&A machine
On the 2007 Thomson Financial (now Thomson Reuters) banking league tables, BNP Paribas ranked No. 12 in worldwide announced M&A deals, a one-place jump from its 2006 position at No. 13. The firm worked on 199 deals in 2007 worth a total of $384.6 billion. In European announced M&A for 2007, BNP Paribas held on to its No. 10 ranking, working on 167 transactions worth $376 billion. Also according to Thomson, BNP was the No. 1

Growing headcount
In March 2007, BNP Paribas said it would bolster its corporate and investment banking business by opening a new support functions headquarters in Jersey City, N.J. North America Territory head Everett Schenk said the new digs were a critical step for our development in the U.S., as we are forecasting significant organic growth in the coming years. He added that staff levels in the New York area should reach 3,000 by 2012, up from current headcount of 2,400. Looking abroad, the firm also announced in March 2007 that it planned to increase staff in China by 50 percent over the next two years. Although no specific numbers were given, at the time BNP Paribas had four branches in China and approximately 5,200 employees in its three business divisions throughout Asia. Later, in May 2007, BNP Paribas announced plans to add nearly 400 hundred jobs in Scotland over the next three to five years, expanding its Dundee and Glasgow offices.

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Swift and decisive move into Italy


Despite lots of announcements about increasing its workforce, by far the biggest news for BNP Paribas in 2006 and early 2007 was its acquisition of Italian rival Banca Nazionale del Lavoro (BNL). The takeover began in February 2006 when BNP Paribas purchased a 48 percent stake in BNL for approximately $11 billion. It was certainly a lot of cash, but analysts noted that the deal was a welcome resurgence of cross-border bank consolidation in Europe and would be a boon to BNP Paribas retail growth. By July 2006, BNP Paribas had increased its stake to 99 percent, and in November 2006, the Retail Banker International Global Awards gave BNP its Bank Deal of the Year award for the purchase. BNP Paribas was applauded for its swift and decisive action in seizing control of BNL, which had been approached by other suitors before BNP made its move. As a result of the takeover, BNP Paribas controls Italys sixth-largest bank by deposits and loans. BNL also has a national network of 900 branches and three million retail customerswhich means BNP Paribas has become the largest foreign bank presence in Italy, and makes Italy its second-biggest market after France.

Good branding
In the summer 2007, BNP Paribas found itself among Paris fashion elite when it came in second to Louis Vuitton on Interbrands annual ranking of top French brands. The ranking calculates the value of a brand based on four criteria: market segmentation, financial analysis, role of the brand and its strength. B NP Paribas value was determined to be 5.85 billion, just overcoming the third top brand, AXA, worth an estimated 5.83 billion. Both financial firms have a long way to go before impressing the fashion crowd, however: No. 1 Louis Vuitton was determined to be worth 16.17 billion.

French history
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In late 2007, BNP Paribas was part of a record-breaking IPO. Bureau Veritas, a company that focuses on certification services in the fields of quality, health and safety, environment and social responsibility, came through with an IPO of 1.24 billion. The offeringfor which BNP Paribas acted as joint bookrunner along with Goldman Sachs, Deutsche Bank, HSBC and Socit Gnralewas Frances largest in 2007. Despite poor market conditions, the offering was a success with institutional investors and individual French investors. The IPO involved private equity firm Wendel Group, which bought a majority stake in Bureau Veritas in 2004, selling over 32 million shares. The firm still holds over 60 percent of Bureau Veritas.

Overflowing trophy case


Its no surprise that BNP Paribas was involved in Frances biggest IPO of 2007, as the firm has been a leading light in French banking for years. In April 2008, the firm placed No. 13 on Forbes annual Global 2000, a ranking of the largest companies in the world based on sales, profits, assets and market value, and BNP Paribas came in at No. 14 in all categories combined, marking a three-place improvement versus 2006. The bank was ranked No. 1 among the French companies, ahead of competitors Total, AXA, Socit Gnrale and Crdit Agricole. In the banking category, BNP Paribas came in at No. 6, behind Citi, Bank of America, JPMorgan Chase, HSBC and Royal Bank of Scotland. The firm was the leading bank in the Euro zone, ahead of Socit Gnrale, Banco Santander and ABN AMRO. Also in 2007, Global Finance named BNP Paribas Best Trade Finance Bank in Europe and Best Trade Finance Bank in France. The firm also was named Bank of the Year 2007 for Europe, Middle East and Africa in Project Finance by Project Finance International. BNP Paribas kept flying in transportation banking in 2007 as well, as it was named Aircraft Finance Innovator of the Year for the third consecutive year by Janes Transport Finance. The publication also named BNP Paribas the Aircraft Leasing Innovator of the Year. Asia was another hot area for BNP Paribas in 2007. The firm was given top honors in AsiaRisks 2007 awards, winning three categories: Derivatives House of the Year, Credit Derivatives House of the Year and Deal of the Year.

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GETTING HIRED

Take responsibility
The firm calls its positions highly demanding ones that involve lots of autonomy and responsibility, but encourages applicants with strong work ethics to step up to the plate. BNP Paribas encourages potential applicants to search for available positions online. The firm recruits candidates into corporate and investment banking, retail banking, asset management and various support areas. The careers section of the firm's web site (www.bnpparibas.com) notes the types of background and skills required for each area. The firm also provides several case studies highlighting individuals who work at the firm. The postings include descriptions of what employees do at their jobs and the type of skills, education and background needed to help land a job with BNP Paribas. Internship programs are offered in all industry segments and are highly recommended by current BNP Paribas insiders. Specifically, for graduates looking for a position within the investment banking division, a previous internship in finance is a real advantage," the firm notes. A former intern says that his experience involved learning by doing, provided good integration and led to an employment proposal. Another contact calls his internship an incredible experience for those avid to learn about the financial markets in all its aspects. And yet another insider who had interned at multiple financial firms in the past calls BNPs internship the most organized of all. International prospects abound on the site, offering potential employees choices from Bahrain to Switzerland. There are also more than 300 possible positions to choose from, spanning every core business in which BNP Paribas operates. To apply for a position, candidates must send a cover letter and resume to the respective regional office in which they want to work; BNP Paribas provides a full list of the appropriate contacts online. The hiring process can be three-tiered: telephone interview, first meeting and second meeting. A current insider describes the process: Generally, human resources will organize meetings with groups of 20 to 30 people, then an individual interview with an HR manager takes place. Then there is another round of three to five interviews with operational managers. The interviews focus on motivation, capacity to evolve in the group and professional behavior.

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OUR SURVEY SAYS

Communication is key
The work culture at BNP revolves around friendly communication. True, theres also a high volume of workload in a timebound fashion. But dont get nervous about if youll be able to deal with it allhandling the high volume is possible because of the close-knit teamwork that fosters free and smooth workflow across desks. It also encourages close cooperation between different people. The firm also promotes a very high standard of ethics in its business dealings with clients and other financial institutions. BNP Paribas employs generally nice people who are very friendly and helpful. But candidates who are offered a position with BNP can also expect to enter a firm characterized by prudence. Employees work around 50 to 60 hours per week, with weekend work about once a month, but hours depend on what department you are in, varying from clock watchers who bolt at 5 p.m. sharp to those who pull all-nighters and work on weekends." Although the dress code is business casual, insiders say the firm does have casual Fridays. And the burden of dress code enforcement tends to fall on managementeach manager is responsible for enforcing the corporate casual dress code, although there seems to be a wide range of what is acceptable as office attire. Some departments feel a polo shirt and khakis are appropriate, while others think that pedal-pushers, sandals and tight tank tops make the grade. Meanwhile, benefits include stock options for key employees and annual employee-share schemes, as well as complimentary health and pension insurance. Dont count on instant promotions, though. Opportunities for advancement are only available

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at high levels, reports one insider. You do not often see entry-level people moving up, and new jobs are not posted for lateral moves. You must know people in other departments if you have a chance of making a move. Nevertheless, the firms diversity efforts get high marks. Within the company, theres a diverse group of Americans, Europeans and South Americans. Plus, there are many high-level officers who come from different ethnicities and those with multilingual backgrounds are appreciated.

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PRESTIGE RANKING

Allen & Company


KEY COMPETITORS
Goldman Sachs Lazard Morgan Stanley

711 Fifth Avenue, 9th Floor New York, NY 10022 Phone: (212) 832-8000 Fax: (212) 832-8023

DEPARTMENTS
M&A Advisory Money Management Services Private Equity Underwriting Venture Capital

EMPLOYMENT CONTACT
Human Resources Allen & Company 711 Fifth Avenue New York, NY 10022

THE STATS
Employer Type: Private Company President & CEO: Herbert A. Allen No. of offices: 1 No. of Employees: 200

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Elite media boutique Pretentious Very prestigious; tough to get an offer Quiet

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THE SCOOP

Secret to its success


Heres an irony: if you search Google for Allen & Company, one of the investment banks that participated in the search engine's legendary 2004 IPO, you wont find much information. Allen & Company has no web site of its own, does not issue press releases about its deals and generally keeps its business to itself. Founded in 1922 by brothers Charles and Herbert Allen, Allen & Co. has become a boutique investor, underwriter and broker to some of the most powerful names in entertainment, media, technology and information. It has been a silent force in deals like Seagram/Vivendis merger with Universal Studios, Disney and ABC's deal, and Adelphias sale to Time Warner/Comcast. Herbert Allens son, Herbert Herb Allen Jr., has been at the helm since 1966. It was he who built the firm's reputation in the entertainment industry; he bought a controlling stake in Columbia Pictures in the 1970s, then sold it to Coca-Cola in 1982 for 18 times what he paid. The firm hires only experienced bankers, has no diversified services or research arms, and requires its principals to invest personal funds in any deal they recommend. Its list of managing directors reads like a Whos Who of American business, and includes former U.S. Senator Bill Bradley and former Major League Baseball Deputy Commissioner Steve Greenberg. In 2006, Allen & Co. ranked No. 25 in U.S. completed mergers and acquisitions, working on six deals worth a total of $18.5 billion. This was a drop from its 2005 spot at No. 22 in completed M&A. And in 2007, then firm dropped out of the top 25.

Networking at its finest


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The old saying its who you know has proven true at Allen & Co., where the Rolodexes are worth their weight in gold. In addition to a prestigious client roster, Allens people often make connections of their own. In 2006, Allen Vice President Andreas Lazar left the firm to become a senior vice president of business development at Sirius Satellite Radio, a move that could prove useful for both Sirius and Allen in future deals. Other Allen executives hold important positions in powerful companies. Stanley Shuman, an Allen managing director, is also a director at Rupert Murdochs News Corporation (the company that owns The Wall Street Journal, FOX, The New York Post and MySpace, among hundreds of other holdings). Allens nonexecutive chairman Donald Keough, a former Coca-Cola president, sits on the board of Warren Buffetts Berkshire Hathaway group. In February 2007, Allens managing director, Jack Schneider, took an assignment far from the firms usual realm of entertainment and media. He was invited to join a select group of retired defense experts, attorneys and CEOs in the Missile Defense Advocacy Alliances Team MDAA. This nonprofit group works to develop, test and deploy missile defense systems. Team MDAA will meet annually and serve as on-call consultants.

The place to be
Allen & Companys annual media conference in Sun Valley, Ida., is watched closely by Vanity Fair as well as by business publications. Thats because its a star-studded event, drawing the likes of Bill Gates, Oprah Winfrey, Warren Buffett, Barry Diller, Michael Eisner and Sumner Redstone. Since its beginning in 1982, Allens executive retreat has become a crucible for some of the biggest mergers in American mediathe Time Warner/AOL deal and the Disney/ABC deal both got their start in Sun Valley.

Maxim for sale


In September 2006, Dennis Publishing retained Allen & Co. as an exclusive financial advisor to explore a possible sale, but tried to keep the matter out of the public eye. Mogul Felix Denniss publishing empire is responsible for mens magazines Blender, Stuff and Maxim, and includes 25 international titles, cable television programs, several branded web sites and a Maxim Radio

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station on Sirius Satellite Radio. Dennis insiders hinted that the company hoped to sell its flagship magazines as a bundle, but might consider offering them separately if the prices were right. Media analysts learned in the fall of 2006 that Allen and Dennis were talking to several potential buyers, including Girls Gone Wild creator Joe Francis and former Wenner Media executive Kent Brownridge. At one point, a $250 million deal with an undisclosed buyer was said to be in the works, but this fell through before it could be finalized. In February 2007, Dennis president Steve Colvin finally went public, issuing a press release to confirm the hiring of Allen & Co. and the companys collaborative search for a likely buyer. A few months later, Dennis sold its American titles to buyout firm Quadrangle Group for about $250 million.

Digging up business
In December 2007, Allen & Companys name popped up in yet another high-profile, secretive deal. Digg, a user-driven social content web site, has long made its way around rumor mills, as industry watchers buzzed about a possible sale. Rumors were solidified in 2008 when Venture Beat reported that Digg had hired Allen & Company, a tiny but influential private investment firm, to shop the site for $300 million. Valleywag reported that the Digg-Allen & Company connection was made at the investment banks annual event in Sun Valley, which Digg CEO Jay Adelson attended in 2007. Valleywag also reported in March 2008 that Google and Microsoft were preparing to bid on Digg, but Diggs CEO denied the report. As of June 2008, Digg had not been sold.

Taking time for smaller fish, too


Allen & Company, despite being known for its big-time clients, also here and there picks up business from lesser-known companies. In January 2008, the bank was retained by Voyager Learning Company, a publisher of education materials and provider of education solutions in the K-12 market. Allen & Company will assist Voyager in evaluating strategic alternatives, including a possible sale of the company. But in a statement announcing its relationship with Allen & Company, Voyager noted that there is no guarantee that the evaluation will lead to a transaction. In November 2007, Allen & Company formed a relationship with another small company, this time as an investor. The bank invested an undisclosed amount of first-round funding in GPShopper, a tech company that aggregates and organizes real-time product inventory feeds from leading national and local retailers into a single database; consumers can search from their mobile devices to locate products available for purchase near their actual location. In a statement announcing Allen & Companys backing, GPShopper CEO and founder Alex Muller said, We are very excited about this investment as it reaffirms our strategy of using our mobile search marketing solutions to drive consumers into real-world stores.

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GETTING HIRED

Are you very experienced?


Be sure youre up to the formidable task of applying before you decide you want to work for the firm. Getting hired at Allen & Company isnt easy. The firm doesnt publicize job openings, and the companys human resources department doesnt accept outside phone calls. The company will, though, accept resumes mailed to its headquarters. Experience is necessary, as the company generally hires only MBAs with at least a few years of work experience under their belt. Allen & Company Chairman Don Keough has said that those interested in landing a job at the firm should develop a broad range of interests, get some international experience and learn a foreign language. Naturally, media industry experience is a prerequisite. Intensive networking would seem to help as well.

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OUR SURVEY SAYS

Nothing but winners


If you manage to join the ranks of the elite at Allen & Company, take heartits a wonderful firm with management who are kind and considerate of their employees, insiders say. In turn, staffers are very loyal. And although it's still largely a boys club, some women occupy high positions within the company.

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Oppenheimer & Co.


KEY COMPETITORS
Perella Weinberg Partners Peter J. Solomon Company Putnam Lovell

125 Broad Street New York, NY 10004 Phone: (212) 668-8000 www.opco.com

DEPARTMENTS
Asset Management Estate Planning Investment Banking Trust Services Wealth Management

EMPLOYMENT CONTACT
See careers under about Oppenheimer section of www.opco.com

THE STATS
Employer Type: Subsidiary of Oppenheimer Holdings Chairman: Albert Lowenthal Revenue: $914.4 million (FYE 12/07) Net Income: $75.4 million No. of Employees: 3,500 No. of Offices: 80

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Muni bond masters Everyone's quitting from CIBC purchase Great reputation A mess right now

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THE SCOOP

I-banking gets a boost


Oppenheimer & Co. is a New York City-based investment bank that provides financial services and advice to high-net-worth investors, individuals, businesses and institutions. Oppenheimers business is organized into four divisions: capital markets, wealth management services, Oppenheimer Asset Management and Oppenheimer Trust Company. The firm is a wholly owned subsidiary of Oppenheimer Holdings, a Canadian financial services holdings company. Neither Oppenheimer nor its parent is related to well-known OppenheimerFunds, the mutual fund management subsidiary of Massachusetts Mutual Life Insurance. Oppenheimers capital markets group (encompassing its investment banking, research and trading operations) received a big boost in January 2008 when the firm acquired CIBCs U.S. capital markets business, including its U.S. investment banking, equity capital markets and debt capital markets groups. The deal also included CIBCs Israeli investment banking and equities business, and parts of its U.S. capital markets-related businesses in the U.K. and Asia. The businesses acquired by Oppenheimer employ over 600 people, and annualized revenue based on CIBCs most recently published results for the year ended October 31, 2007, exceeds $400 million. The acquisition does not expose Oppenheimer to the sub-prime mortgage business, an area in which the firm has advantageously been uninvolved. For the calendar years 2008 through 2012, CIBC will receive payment of at least $5 million a year, based on the performance of Oppenheimers capital markets businessbut Oppenheimer doesnt have to start paying until the first quarter of 2013. In addition, Oppenheimer will borrow $100 million from CIBC, and CIBC will provide a warehouse credit line, initially as much as $1.5 billion, with which a new Oppenheimer U.S. entity will finance and hold syndicated loans for U.S. middle-market companies. Our firm is now positioned to service clients with a complete offering of capital markets services, including M&A advisory, equity underwriting, highyield fixed income origination and loan syndication, said Oppenheimer Holdings chairman, Albert Lowenthal, in a statement.

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Back to Fahnestock
The U.S. broker-dealer is backed by over 125 years of history. The firms roots go back to 1881, when William Fahnestock founded Fahnestock & Co. Through over a century of expansion and merger activity, Fahnestock & Co. eventually became Fahnestock Viner Holdings, which acquired Oppenheimers U.S. private client and asset management divisions in 2003, and changed its name to Oppenheimer Holdings. When that happened, the companys principal operating subsidiary, Fahnestock & Co., was renamed Oppenheimer & Co. In the years that followed, Oppenheimer made two big acquisitionsMcDonald Investments and UBSs Fishkill, NY, officefurther solidifying itself as a leading financial services company.

Four pillars
Oppenheimers capital markets group offers investment banking, research and trading solutions to growing companies, thriving communities and institutional investors. Oppenheimers bankers work across a variety of industries, including consumer, energy, finance, health care, industrials, media, telecom and technology. The firms public finance department works closely with cities, states and public authorities to develop efficient financing plans. The capital markets group has an experienced equity research team made up of over 60 senior analysts. Wealth management services is comprised of over 1,300 financial advisors located in more than 90 offices across the U.S. The division provides advice on a broad range of products and services to individuals, families, corporate executives, businesses and institutions. The firms asset management arm was founded in 1985 to help individual and institutional investors build customized investment plans based on strategic asset allocation. Today, over 150 professionals work for Oppenheimer Asset Management, which provides customized professional money management through the consulting group, Oppenheimer Investment Advisers and the alternative investments group of Oppenheimer Asset Management. Oppenheimer Trust Company was established as a service to longstanding, high-net-worth clients and their families. The division provides clients with access to fiduciary services.

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Paying its dues


Oppenheimer was handed a hefty fine in July 2007, when the firm was ordered to pay in excess of $2 million after one of its former brokers reportedly stole $350,000 from an elderly couple. An elderly Massachusetts couple, the Piteras, had an account with Oppenheimer once valued at as much as $2.9 million. According to a complaint filed in August 2006, Doris Pitera told her Oppenheimer broker, Stephan Toussaint, that she did not want the securities bought with their money actively traded. But Toussaint nonetheless made frequent trades on the account, racking up hundreds of thousands of dollars in commissions for Oppenheimer. Despite mounting evidence, Oppenheimer maintained its innocence, telling The Boston Globe, We continue to believe that our firms supervision in this matter was compliant with state and industry requirements. Unconvincing, considering Oppenheimer recently won a $162,000 judgment against Toussaint in a separate arbitration case it brought against him for nonpayment of a personal loan, according to the Globe. In the end, the judge believed Doris Pitera, awarding her $1.1 million in restitution. (Oppenheimer also had to cough up a $1 million fine levied by Massachusetts Secretary of State Bill Galvin.) Following the announcement of the fines, TheStreet.com reported, The real scandal is how Oppenheimer management behaved when it learned of the wrongdoing in its Boston office. You might have expected management to fire the adviser, cooperate fully with investigators and repay Mrs. Pitera her money. Instead it tried to ignore the problem, which included both account manipulation and $350,000 in forged checks. It even employed Toussaint for another year before letting him quietly resign.

Kicking off the year with a bang


The firms full-year 2007 results must have made the firm giddy. Revenue for 2007 came in at $914.4 million, a 14 percent jump from the $800.8 million it booked in 2006. Net profit, meanwhile, increased a whopping 69 percent to $75.4 million from $44.6 million. Robust equity markets, a rise in hedge fund performance fees and solid investment banking performance all contributed to the firms great year.
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Rough times
In April 2008, the firm released its results for the years first quarterwhich were nowhere near its full-year levels. Revenue came in at $231.9 million, a respectable 8 percent increase from the $214.1 million the firm brought in within the first quarter of 2007. Net income, however, didnt look so hopeful. Oppenheimer had a net loss for the quarter of $16.1 million, a serious tumble from the $16.8 million in net profit the firm recorded for 2007s first quarter. Unstable credit markets were mostly to blame for the loss, though expenses related to the CIBC acquisition also contributed to the negative income.

New faces to the board


Oppenheimer welcomed two new appointments to its board of directors in May 2008. William Ehrhardt was brought in to serve as chair of Oppenheimers audit committee, and Michael Keehner will chair the firms compensation committee while also serving on the audit committee. Previously, Ehrhardt served as audit partner for Deloitte & Touche. Keehner worked for the brokerage firm Kidder, Peabody Group for 20 years.

GETTING HIRED

Find your niche


Financial advisors and experienced hires alike get their own respective sections under the careers area at www.opco.com. If youre interested in a position as a financial adviser, you can fill out a short online form detailing your work experience and background. Unfortunately, there arent any job listings for those with a little more experience under their belts to peruseyou are, however, encouraged to send in your resume and a cover letter to human resources at humanresources@opco.com.

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Macquarie Group (USA)


UPPER
Office is full of friendly people

Rockefeller Center 600 Fifth Avenue, 21 Floor New York, NY 10020 Phone: (212) 548 6555 Fax: (212) 399 8930 www.macquarie.com/us

DOWNER
Bankers "often work Sundays or Saturdays"

BUSINESSES
Banking & Securitization Equity Markets Financial Services Funds Management Macquarie Capital (f/k/a Investment Banking) Real Estate Treasury & Commodities

EMPLOYMENT CONTACT
www.macquarie.com/us/about_macquarie/index2.htm

THE STATS
Employer Type: Public Company Ticker Symbol: MQG (ASX) CEO: Nicholas Moore Revenue: A$8.2 billion (FYE 3/08) Net Income: A$1,803 million No. of Employees: 1,000 (US) No. of Offices: 17 (US)

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Solid Better known internationally than within the USnot strong in the US Great infrastructure group Research firm

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THE SCOOP

Free to grow
For Macquarie, late 2007 brought some significant structural changes, including a new ticker symbol. Australias top investment bank had been listed on the Australian Stock Exchange for years as Macquarie Bank Limited (MBL). MBL served as the parent company for Macquaries global operations, including a complete roster of investment, advisory, trading and financial services. In recent years, Macquarie has developed a voracious appetite for acquisitions: the bank has spent billions on investments ranging from boutique advisory firms to telecom utilities. (Most of the money has been spent far from Macquaries native Australia, proof that its serious about pushing its way onto the world banking stage.) In October 2007, Macquarie requested and received a syndicated bank facility of $8 billion AUD ($6.4 billion) and an approval from the Australian Prudential Regulation Authority to set up a nonoperating holding company. The result was a formal corporate restructuring in November 2007. Under the new structure, Macquarie Group became the organizations holding company, using that $6.4 billion loan to acquire Macquarie Banks investment banking operations, institutional brokerage activities, specialist funds businesses and all other nonbanking divisions. Macquarie Bank then became a wholly owned subsidiary of Macquarie Group. The new organization began trading on the Australian exchange under the ticker symbol MQG, and Macquarie Bank CEO Allan Moss simply ordered new business cards: he became CEO of Macquarie Group. Why restructure? Macquarie wanted to separate its banking operations from its nonbanking operations in order to free the latter from Australias regulations on capital ratios, so those businesses could grow even faster than they already have. Although some investors worried that the banks aggressive approach is too much, too fast, Chairman David Clarke disagreed. In a statement to shareholders, he explained that Macquaries diverse international businesses are now growing faster than our Australian banking business, and a significant portion of Macquaries businesses, whilst financial services in nature, are not strictly banking. We have effectively outgrown the conventional banking regulatory model.

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Of Holeys and Dumps


Macquarie was founded in Sydney in 1969 and is named after Lachlan Macquarie, an early governor of Australia who came up with a creative solution for the young nations shaky money supply in 1813. Faced with a currency shortage, Macquarie purchased Spanish silver dollars (then worth five shillings apiece), punched holes in the center, and announced the creation of two new Australian coins. The doughnut-shaped Holey Dollar was valued at five shillings, and its center (called The Dump), was valued at one shilling and three pence. Today, the Macquarie Group has evolved well beyond its native Australia, with 11,000 employees working in 25 countries. That figure includes approximately 1,000 professionals in Macquaries 17 U.S. office locations.

Working in America
Most of Macquaries business in the U.S. is carried out through its subsidiary, Macquarie Securities (USA) Inc. Its business lines include commodity and energy markets, debt markets, electricity trading, emerging markets, energy capital, institutional stockbroking and research, natural gas trading, private equity funds management, real estate capital, real estate structured finance, residential community development and residential mortgages. Theres also Macquarie Capital Advisors, which handles mergers and acquisitions and restructuring advisory services in nine industry groups: infrastructure and utilities, natural resources, health care, security and defense, transportation, financial services, retail and consumer products, oil and gas and telecommunications, media, entertainment and technology (TMET). In April 2007, Macquaries restructuring and special services advisory arm got a boost from the acquisition of Giuliani Capital Advisors (yes, New York City mayor-turned-presidential hopeful Rudy Giulianis firm). GCAs specialty was advising distressed companies, and the deal added 100 investment banking professionals to Macquaries North American headcount.

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Finally, Macquarie Capital Funds manages listed and unlisted investment vehicles; Macquarie Electronics (USA) provides lease financing, used equipment sourcing and remarketing services to the electronics manufacturing industry; and Macquarie Equipment Finance provides IT finance, services and logistics.

Up, up, up
For the six months ending September 30, 2007, Macquarie Group reported earnings of $4.06 billion, a 38 percent increase over the same period in the prior year. International (that is, non-Australian) revenue totaled $2.1 billion, and international headcount rose 22 percent to just over 4,200. Profits were up 45 percent to $929 million, or just over $1 billion Australian dollars. In an upbeat statement to shareholders, CEO Allan Moss said the banks businesses were almost entirely unaffected by credit woes in the U.S. He added that Macquarie was in the midst of considering several bite-size acquisitions to its investment banking and trading divisions.

Macquarie goes shopping


Macquaries strategic shopping trips didnt slow down in the second half of 2007. In July, a consortium led by Macquarie Infrastructure Partners (MIP) and Macquarie Communications Infrastructure Group (MCG) announced the acquisition of Global Tower Partners, an American wireless tower operator owned by the Blackstone Group. Global Tower, which holds coveted longterm contracts with Verizon, Sprint-Nextel, T-Mobile and AT&T, was valued at $1,425 million. As is often the case in the groups infrastructure investment transactions, Macquarie Securities (USA) acted as financial advisor on its siblings deal. In November 2007, Macquarie entered into an agreement to purchase Michigan-based CIT Systems Leasing, one of North Americas largest equipment leasing companies, with assets of $700 million. When the deal wrapped in January 2008, Macquarie merged CIT into its existing equipment leasing business, which spans Europe, North America and the Asia-Pacific. Again, Macquarie Securities (USA) stepped in to advise the Macquarie Group on the transaction.

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On the tables
Worldwide M&A volume hit a record high in 2007, with announced deals totaling $4.5 trillion. Macquaries piece of the pie included 107 transactions worth $264.2 billion, according to Thomson Financial (now Thomson Reuters), placing the bank at No. 15 in worldwide announced M&A. However, Macquarie didnt make the top 25 in U.S. league tablesits worldwide ranking was the result of increased business in Europe, Asia, Australia and New Zealand.

Latest digits look good


For its fiscal year 2008 (ending in March), Macquarie booked A$1.8 billion in net income and total revenue of A$8.2 billion, representing increases of 23 and 15 percent, respectively, versus its fiscal 2007. It was the firms 16th consecutive year of reporting record profits. International revenue, which represents all business outside of Australia, increased by 14 percent during the fiscal year to A$4.3 billion.

GETTING HIRED

Back in the U.S.A.


As far as the firms U.S. presence goes, Macquarie has an extensive career section on its web site (www.macquarie.com/us) where undergraduates, graduate students and experienced professionals can search for job openings and learn more about positions at the firm as well as the interview process. Theres also a meet our people section of employee profiles that gives job hunters insights as to day-to-day life at the firm. Applications are taken beginning each year in August.

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Be up for anything
What youll encounter during the interview process could vary pretty wildly. One insider describes interviewing with a manager who just wanted to know if I could do the job. But expect at least two rounds of interviews, in which candidates meet both HR and executive staff. While some banking firms give their potential hires mathematical aptitude tests, Macquarie administers a psychometric assessment to their new hires. And expect to undergo a reference and credit check, tooalong with original documents such as your certificate, training certificates, driving license and bank statements.

OUR SURVEY SAYS

Team up
At Macquarie, everyone is part of the team, and the office is full of friendly people. The corporate culture has an Australian feel in the sense that its very different from a typical Wall Street bank. Workers are very intense and intelligent, but theyre also more laid-back and tend to feel less constrained by hierarchy. But its not too laid-backworkers abide by a formal always dress code. Respondents report little trouble with the hours, which they call better than those at bulge bracket firms. But there may be a catch-22 when it comes to working overtime at the firm. Theres little pressure to stay late when youre not working on a live deal, but youre usually working on at least one live deal. More often than not, 60 hours is a good week, and 80 hours is on the heavy side. Weekend work seems to be a fact of life, but despite having to often work Sundays or Saturdays, employees very rarely [have to work] both days on a weekend.
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Rising through the ranks


As far as management goes, theres a variety of management styles and abilities. But thankfully, most are good. Most managers have come up through the ranks and understand the business very well. Moreover, they have a significant consideration for my personal development and dont care about face time. For the most part, theyre communicative and helpful, though if they need your help, they wont hesitate to keep you longer. Macquaries diversity efforts receive mostly high marks. But when it comes to women in the workplace, the firm may be very receptive and consideratebut women are still outnumbered. Another insider even says that it can be a very maledominated Caucasian environment.

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KPMG Corporate Finance


KEY COMPETITORS
Goldman Sachs J.P. Morgan Morgan Stanley

120 Broadway, 23rd Floor New York, NY 10271 Phone: (888) 957-5764 www.kpmgcorporatefinance.com

DEPARTMENTS
Advisory Services & Financial Opinions Global Infrastructure & Projects Investment Banking Private Equity Special Solutions

EMPLOYMENT CONTACT
See www.kpmgcorporatefinance.com/careers or e-mail your resume to uscorpfinrecruit@kpmg.com

THE STATS
Employer Type: Subsidiary of KPMG LLP Managing Director, New York: Bruce Altman No. of Employees: 1,800 No. of Offices: 10

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong Big Four in accountinghave not heard much about their finance area Lots of room to grow and try other opportunities Not much public market experience

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THE SCOOP

Masters of M&A
Working on public and private deals, KPMG Corporate Finance, a subsidiary of KPMG LLP, employs about 1,800 professionals who offer advice regarding mergers and acquisitions, public company takeovers, flotations and initial public offerings, among other areas. In 2007, according to Thomson Financial (now Thomson Reuters), KPMG ranked No. 1 in total number of M&A deals worldwide with undisclosed values and values up to $500 million, working on 442 transactions totaling $15.1 billion. Some of the deals KPMG Corporate Finance oversaw were the sale of Borders Groups sale of its New Zealand and Australian assets, the sale of Unilevers Foodsolutions Customer Frozen Products business to Simeus and the sale of online advertising group Neverblue Media Incorporated to Vertrue Incorporated. The group also worked with AMS Global, Griffith Enterprises and OBMedia, among other companies.

Divide and conquer


KPMG Corporate Finance is divided into five departments: investment banking, private equity, advisory services and financial opinions, special situations and global infrastructure and projects. Investment banking focuses on acquisitions and advising, and private equity concentrates on relationship management with firms. Advisory services and financial opinions provides transaction-related services, while special situations centers on companies approaching a liquidity crisis and diminishing value. Finally, global infrastructure and projects provides advice primarily for public private partnerships.

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The Real (estate) deal


In October 2007, KPMG Corporate Finance added the assets of Keen Consultants, LLC and Keen Realty to its growing firm. Keen is a Long Island based realty advisory corporation that was founded in 1982. Its resume since then includes $3 billion worth of transactions encompassing over two billion square feet of space for a variety of different retail clients. This new entity of KPMG Corporate Finance will be responsible for the disposition of owned property, leased property, lease renegotiation, real estate financing and sale leaseback services. On the financing side, the Keen division will assist both distressed and healthy companies in generating cash. Keens principal and president Harold Bordwin took the helm the new KPMG group in October, saying that he hopes the partnership with the firm will give them the opportunities to seize the moment in the market. Many real estate opportunities are emerging as a result of the subprime market turmoil, and we expect to see increased activity, especially in the homebuilding, retail and consumer services industries, Bordwin said.

The new group


While expanding on some fronts, KPMG Corporate Finance has consolidated on others in recent times. The group merged its hedge fund, real estate and infrastructure businesses in March 2007, naming it the alternative investment group. The newly merged staff consists of KPMG Corporate Finance employees as well as members of the companys tax, transaction services, audit and advisory practices groups. Tony Rocker, formerly head of the UKs business and support services group, leads the new unit.

Winning personnel
KPMG added a valuable member to its team in 2007, when Lorie Beers joined as managing director for the special situations advisory group. Shortly after Beers joined the company, she earned notable plaudits for her work developing a bankruptcy education program known as the Complex Financial Restructuring Program (CFRP). The American Bankruptcy Institute considered Beers work on the CFRP worthy enough to be awarded the Annual Service Award, which is the highest membership

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award the institute gives out. The CFRP is innovative because of its incorporation of complex hypothetical situations as teaching tools for investment banking professionals.

Sights set on Canada


In early 2008, KPMG Corporate Finance released an illuminating study that found the U.S.s neighbor to the North have been busy when it comes to mergers and acquisitions. According to a joint study conducted by KPMG and Thomson Financial, Canadian M&A activity reached more than 2,000 for the first time ever in 2007. Al Kanji, a corporate finance partner in KPMG Vancouvers office said of the uptick, The trend we see is continued growth in the Canadian private company M&A market, as private equity and strategic purchasers continue to absorb private and family owned enterprises, even in the wake of the credit crunch and the contraction of leveraged financing. Accordingly, we expect the demand for well managed and profitable Canadian private companies will remain strong.

GETTING HIRED

Fitting the ideal


The career section of the firms web site (www.kpmgcorporatefinance.com/careers) gives information on available opportunities within its U.S. offices. The firm describes itself as having enlightened leadership, shared values, and a diversity of talent, saying it strives to recruit employees whose aim is to maintain an environment in which each individual achieves their personal goals. Employees who demonstrate these qualities are given opportunities for advancement, according to the firm. The ideal candidate for most positions should also possess a bachelors degree in finance, economics or accounting, as well as strong research and financial analysis skills, a willingness to learn, Microsoft Office skills, high attention to detail, strong written and verbal communication skills, the ability to work independently and with a team, and one to three years of experience for entrylevel positions and more than seven for managing and upper-level positions. KPMG is always looking for new analysts, associates and managing directors within its investment banking division. If you are interested, send your resume to uscorpfinrecruit@kpmg.com.

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VAULT TOP 50

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PRESTIGE RANKING

CIBC World Markets8KP


KEY COMPETITORS
BMO Capital Markets RBC Capital Markets TD Securities

MG Corporate Finance 300 Madison Avenue New York, NY 10017 Phone: (212) 856-4000 www.cibcwm.com

BUSINESSES
Commodity Structured Products Equities Fixed Income & Currencies Investment, Corporate & Merchant Banking Real Estate Finance

UPPER
Teamwork is the normpeople on the whole are good to work with and personable

DOWNER THE STATS


Employer Type: Subsidiary of Canadian Imperial Bank of Commerce Chairman & CEO, CIBC World Markets: Richard Nesbitt Chairman & CEO, CIBC World Markets (US): Gary W. Brown Revenue: $2.5 billion (FYE 10/07) Net Income: $601 million No. of Employees: 1,160 No. of Offices: 21 Not as well known in the US as in Canada

EMPLOYMENT CONTACT
www.cibcwm.com/careers

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong in Canada; excellent middle-market M&A practice Limited relevance outside of Canada Smart, good equity research Was strong, but suffering huge losses after selling US business to Oppenheimer

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THE SCOOP

Canadian powerhouse
CIBC World Markets is the wholesale and corporate banking arm of CIBC (Canadian Imperial Bank of Commerce). Headquartered in Toronto, it provides credit and capital markets products, investment banking and merchant banking to clients around the world. In Canada, CIBC World Markets has led on more equity offerings and has advised on a greater volume of M&A transactions than any other Canadian firm. In addition, it is a top underwriter of Canadian investment-grade corporate debt. In the U.S., it focuses on investment, corporate and merchant banking services, real estate finance, and equity, commodity, fixed income and currencies products. Its U.S. operations are headquartered in New York with offices in cities across the country. The origins of CIBC World Markets stretch back to 1988, when the Canadian Imperial Bank of Commerce acquired a majority interest in Wood Gundy Inc, one of Canadas leading securities dealers and the foremost Canadian dealer internationally. The combination of CIBC capital and Wood Gundys underwriting reputation created one of the leading investing institutions in Canada. CIBC Wood Gundy formed the core of CIBC World Markets, which was created in 1997. CIBC World Markets offloaded a significant portion of its U.S. business in the last few months of 2007, selling its investment banking, equities, leveraged finance and portions of its debt capital markets businesses to Oppenheimer Holdings. In return for the sale of these divisions, CIBC received a stake in Oppenheimer, with warrants to buy one million exercisable shares at the price of $48.63 a share. In five years, CIBC will also receive a payment of at least $5 million a year based on the performance of the combined businesses. On Oppenheimers end of the deal, a warehouse credit line was provided for them by CIBC with as much as $1.5 billion for financing syndicated loans for U.S. middle-market companies.
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Though CIBC World Markets U.S. operations was diminished due to the collaboration with Oppenheimer, the company still has U.S. capablities in real estate finance, equity and commodity structured products, merchant banking, fixed income and currencies, oil and gas advisory, and lending.

Tough year
CIBC World Markets started 2007 off strongly, with the firms U.S. real estate finance business completing its largest commercial mortgage-backed securities (CMBS) offering to date, valued at $3.9 billion. CIBC World Markets acted as co-lead manager with JPMorgan on the offering and contributed U.S. $1.7 billion collateral to the deal, the largest collateral contribution in the groups history. CIBC World Markets was also the lead advisor, credit provider and underwriter to Fortis Inc. on its purchase of Terasen Inc.s gas distribution business from Kinder Morgan of Houston. The deal, valued at C$3.7 billion, was the largest domestic utility distribution acquisition on record. The companys fortunes quickly took an abrupt turn, though, as the unreliability of the subprime mortgage market started to rise to the surface. CIBC was forced to take write-downs of approximately C$750 million as a result of CDOs in the U.S. market. CIBC World Markets finished the year with a whimper, with its net income coming in at a disappointing C$601 million, a 7 percent decrease from the year before.

Subprime sweep
CIBC started off 2008 with a clean sweep, removing top executives and replacing them due to poor performance. In January, the Canadian bank announced that Brian Shaw would no longer be chief executive at CIBC World Markets and that Ken Kilgour, the chief risk officer who only spent a short eight months at the job, would also be replaced. The change was largely due to the banks disastrous $11 billion exposure in the failed U.S. subprime market, which has seriously hurt the credibility of the Canadian institution. (CIBC had the largest exposure of any Canadian bank to subprime mortgages.) In addition to taking write-downs in 2007, the firm is expected to announce more charges in 2008.

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Shaw was replaced in February 2008 by Richard Nesbitt, who formerly served as CEO of the Toronto Stock Exchange Group. Nesbitt is a former company insider, with 10 years of experience at CIBC Wood Gundy under his belt, and also a veteran banking executive due to his experience as president and CEO of HSBC Securities Canada. Chief Financial Officer Tom Woods became chief risk officer. Woods is a career CIBC man, with 30 years of loyalty and experience with the company under his belt. Woods job as CFO was filled by David Williamson, who previous served as president and CEO of Atlas Cold Storage. Although Nesbitt can do little to stop the inevitable charges that will result as a consequence of the firms involvement with the U.S. subprime market, he is expected to try to whip the companys expenses and workforce into shape. At TSX, he improved efficiency by making essential cuts in both personnel and costs. Many have expectations that he will make similar improvements with CIBC World Markets.

GETTING HIRED

Solid learners
Qualifications required for specific positions vary, but in general, the firm says it looks for self-starters with a solid work ethic, the ability to work in a team, a basic understanding of the financial services industry and the ability to learn quickly. Like its competitors, CIBC World Markets runs a very competitive hiring process, focusing its recruiting efforts on undergraduates at top schools in the U.S. and Canada (think Universities of Michigan and Virginia, Cornell, Columbia and other Ivies), and MBA candidates at select programs such as Wharton and Columbia. Interested candidates should check in with their career services centers for postings.
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Confident and smooth


Interviews are conducted by professionals of all levels and normally span two rounds, with a preliminary on-campus interview followed by four to five, back-to-back meetings at the CIBC World Markets offices. One insider who went through two rounds of interviews says he first went through meetings with human resources, and then a hiring manager and director. One contact who attended a non-core school was more closely scrutinized, sitting through an additional four to five interviews. In interviews, expect some behavioral and technical questions as well as questions probing for awareness of economy and basic accounting questions regarding how the different financial statements flow and balance. You might also get a question or two out of left field. One insider was asked Who would you pick to be Time magazines Person of the Year? Another says it pays be suave, saying an ideal candidate is good-looking, confident and smooth. The source adds, Make sure you look glamorous but businesslike during your interview. Indeed, CIBC World Markets looks more for a personality fit than someone with the best corporate finance skills, says one source. Fit questions, which seek to determine a candidate's strengths and weaknesses, may include Why banking? and Why us? One analyst applicant adds that his interviewers wanted to know that I could handle the hours and looked for passion about the markets. Technical questions, which are customary for banking interviews, may test a candidates basic understanding of accounting, valuation and financial statements. One current insider advises, If you have experience in this field, you wont have much to prepare, and another says, Confidence and well-rounded abilities go very far in this organization. Experienced hires can search the CIBC World Markets web site for listings according to location, type, category and keyword. Postings are also listed by date (most recent first), provide detailed application instructions, and include information on the business units and specific job requirements.

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OUR SURVEY SAYS

You got personality


CIBC is a very receptive and friendly place to work for on the whole, although each group has their own personality. True, its friendly at the lower levels, but it becomes more dysfunctional the higher one goes in the company, reports one insider. Still, CIBC World Markets can be an intense meritocracy where good teamwork is the normpeople on the whole are good to work with and personable. One source who works in a satellite office calls the atmosphere very frat-like, and says his co-workers all get along very well. Another confirms, There are quite a few running gags, inside jokes and workplace legends that are quickly passed on from one employee to another. Everyone gets along with everyone, even managers. Perhaps a reason the fraternity analogy is fitting is that the firms male-to-female ratio is extremely male-heavy. However, another says that while balancing the ratio is on the firms to-do list, CIBC World Markets is no worse than the rest of the industry.

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PRESTIGE RANKING

William Blair & Company


RANKING RECAP
Quality of Life #1 Offices #4 Compensation #6 Selectivity #7 Best Employers to Work For #7 Treatment by Managers #9 Overall Satisfaction #16 Training #20 Hours Diversity #19 Diversity with Respect to Women #23 Overall Diversity

222 West Adams Street Chicago, IL 60606 Phone: (312) 236-1600 Fax: (312) 368-9418 www.williamblair.com

BUSINESSES
Asset Management Equity Research Institutional & Private Brokerage Investment Banking Private Capital

THE STATS
Employer Type: Private Company President & CEO: John R. Ettelson No. of Employees: 1,000 No. of Offices: 10

KEY COMPETITORS
FBR Capital Markets Keefe, Bruyette & Woods Piper Jaffray Companies Thomas Weisel Partners

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UPPERS
Being exposed to many deals Extremely high compensation

DOWNERS
Deal size is limited Training overall is less than at bulge bracket banks

EMPLOYMENT CONTACT
www.williamblair.com/careers

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong regional player Small deals Midwest bank, OK in M&A Stiff

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THE SCOOP

Chicago pride
In addition to investment banking, William Blair & Company provides a range of services that include asset management, equity research, wealth management, institutional and private brokerage, and private capital services. William Blair has 11 offices around the world, but 95 percent of its employees remain based in the Chicago office. The firm says this unusual structure means a high degree of internal communication between employees, and the ability for different groups to share knowledge and expertise. Heavily employee-owned, William Blair has 1000 employees (of whom about 175 are principals) and more than $182 million of equity capital. Headquartered in Chicago, the firms additional offices are in Boston, Indianapolis, Hartford, New York, San Francisco, London, Shanghai, Tokyo, and Zurich. The firms roots go back to 1935 when Chicagoan William McCormick Blair opened a firm with his partner Francis Bonner; from the start, Blair Bonner & Companys mission was to finance the expansion of local Chicago companies during that citys boom. In 1941, Bonner decided to relocate to Washington, but Blair, a loyal Midwesterner, had no intention of leaving his home. Blair renamed the firm after himself and soon became a leader in local business finance and investment advice for many of Chicagos wealthiest families. Chicago profited from William Blair & Companys services, and as the citys local businesses grew into major companies, the firm profited from them.

Investment banking with William Blair


William Blairs investment banking division is broken into two groups: corporate finance and debt capital markets. Corporate finance, which operates from the Chicago, Dallas, Hartford, San Francisco and London offices, and a representative office in Shanghai, serves industries such as business services, commercial and industrial, consumer and retail, financial services, health care and technology. In 2007, William Blair completed 76 M&A transactions, which represented nearly $11 billion in volume an increase of more than 30 percent over the year before. This amount was also a record for the firm, and William Blair noted that the figure does not include the companys involvement in the $11.9 billion merger of the Chicago Mercantile Exchange and the Chicago Board of Trade or the $7.3 billion deal to take CDW private. The debt capital markets department provides investment banking and advisory services to both public finance issuers and public and private corporations. The corporate debt team works on debt restructurings, recapitalizations, and other debt products; the public finance team offers tax-exempt financing services. The debt capital markets department completed 116 transactions in 2007, a slight decrease from the year before, but still impressive considering that they raised $2.3 billion in capital for their clients.

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Backed by research
Research has been a cornerstone of William Blairs business since its inception. Because the firm was founded in the wake of the Great Depression and six years after the 1929 stock market crash, its early investors were understandably anxious. William McCormick Blair sought to reassure them by instituting in-house standards that were even tougher than those of the Securities and Exchange Commission, and by creating a research department that would study each investment before making a recommendation. Today, the firms research department, based in Chicago, tracks over 350 companies. Its sector analysis aligns with the investment banking departments industry groups, and research teams work closely with other areas of the firm.

Change of plan
In 2007, William Blair announced that it had decided to reorganize its private client business in order to concentrate on the highnet-worth and ultra-affluent client base. The private investor division, corporate and executive services, and the openarchitecture investment platform known as William Blair Select were folded into the firms investment management effort and from here on out are under the leadership of Michelle Seitz, the head of the IM team. In a statement, President and CEO Ettelson

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noted that Seitz had been in charge of the investment management division for six years, during which she took assets under management from $11 billion to more than $47 billion. In a separate statement, Seitz said that William Blair was better equipped to serve this sophisticated and important client base. She added: There are few firms that can rival our longevity, commitment, and global intellectual investment capital in this market segment.

Small firm, busy calendar


Certainly 2007s most talked about deal was the merger of the Chicago Mercantile Exchange with the Chicago Board of Trade, and William Blair was there to advise on the $11.9 billion transaction. But the firm assisted with many deals in 2007, on both the buy and sell sides, such as the sale of MarketRX to Cognizant Technology Solutions Corporation, the sale of American Laser Centers to Code Hennessy & Simmons, Coleman Cables acquisition of Woods Industries and FLA Orthopedics sale to BSN Medical. If that sounds like a lot, keep in mind that all of those closed in the last two weeks of 2007. Within the first six weeks of 2008, the firm was equally busy. It advised A.M. Castle & Co. on its acquisition of Metals UK Group; and John B. Sanfilippo & Sons in its arrangement of a new $117.5 million senior asset-based credit facility and $45 million mortgage facility.

New blood
In September 2007, Patrick Sheppard became the COO of William Blairs investment management division. An industry vet with more than two decades of experience, he had previously been president and COO of The Boston Company Asset Management, a Mellon firm. He also held management positions at Scudder Kemper Investments and Scudder, Stevens & Clark.
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Also new to William Blair is John Brennan, a former president at Bank of Americas Illinois division. Brennanwho began heading the private wealth management division at William Blair in February 2008also has more than two decades of experience in the biz and was responsible for a portfolio of $52 billion as well as 700 staffers in his BofA position. BofA had replaced Brennan in late 2007; while he could have stayed on with the company in another capacity, the Chicago Tribune reports that he likely would have had to leave Chicago. I have nothing but positive things to say about Bank of America, he told the newspaper. But this allows me to do something I really want to do and allows our family to stay in Chicago. William Blairs investment management division has $58 billion in assets under management or supervision, $17 billion of which is in the affluent-investor effort headed by Brennan, according to the Tribune.

What an honor
Crains Chicago Business named William Blair one of the top-20 best places to work in the Windy City; the firm placed No. 7 on the list, which is featured in a March 2008 issue. The rankings are based on information about benefits, workplace life and environment, employee feedback and other data. Any Chicago company with more than 100 employees was eligible. But the honor from Crains wasnt the only recent William Blair accolade. Barrons ranked the company No. 31 on its list of the 2007 top wealth managers in the U.S. And, in Institutional Investors annual ranking of the 300-largest money management firms in the U.S., William Blair placed No. 93, moving up seven spots from the previous year.

New home?
In August 2007, William Blair signed a letter of intent to lease space in a new 1.1 million-square-foot office tower on the west bank of the Chicago River. And by February 2008, papers were speculating that the bank had formally committed to the deal, agreeing to rent out 340,000 square feet in a 50-story tower on Lake Street, meaning that its Adams Street headquarters could soon be a thing of the past. Not ready to pack yet, thoughthe Lake Street building isnt expected to be complete until June 2011, according to Chicago Real Estate Daily.

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William Blairs commitment as the first tenant is simply enough for Hines, the developer, to begin construction on the new tower. William Blair currently leases about 300,000 square feet at their Adams Street location.

GETTING HIRED

Dont expect an easy ride


William Blair is a very selective firm that only hires one-to-two people each year from [each of] its several core schools. Sources say a typical analyst class has about 12 analysts per year. But regardless of who you talk to, most say applicants credentials must go beyond the typical investment banking standards like competitive GPA, leadership experience and work experience. Hiring is very fit-focused, and the firm has very few available spots, which means competition is very high. According to one source, Blair isnt looking for bulge bracket rejects. The firm wants bright, enthusiastic employees. To find those people, William Blair has a large push to hire from Ivy League schools. This can make it difficult for applicants coming from other schools, especially those outside of the Midwest. In recent years, the firm has become very focused on recruiting candidates with Ivy League educations and also hits up a select number of Midwest schools, including Notre Dame, Michigan, Illinois, the University of Chicago and Northwestern, to find its incoming class even the cream of the crop should polish their resumes. One insider says, The firm has become more and more selective as it has recorded back-to-back record years and has increased compensation accordingly.

Well-balanced Super Saturday


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The hiring process at William Blair is much more personable than at other investment banks. Most candidates have one or two on-campus interviews followed by a Super Saturday at the firms Chicago headquarters. This Super Day involves eight interviews, and candidates are invited to dinner the night before with other analysts and candidates. On-campus interviews are normally with the analyst manager and a senior banker, and on-site meetings are with a mix of associates, VPs and principals. Super Saturday interviews are normally about 30 minutes each. Luckily, very few technical questions are asked to interviewees from liberal arts schools. Insiders say the difficulty of questions varies depending on the style of the interviewer. Some are asked to comment on the general environment of the M&A market or to walk them through financial statements. Other interviewers simply want to know about you as a person. Questions also vary depending on your background, specifically, job experience or major in school. Generally, questions tend to be very fit-focused. Some believe not enough questions are asked to explore someones willingness to be a great analyst. Overall, insiders say William Blair interviewers come up with a good mix between technical and situational questions.

To be required
Insiders say participation in an internship, although an excellent way to receive an offer for full-time employment, currently is not essential. But as William Blair continues to move its way up the ranks of prestigious investment banks, internship positions may become more and more coveted. One source says, Going forward, it will be nearly required to do an internship prior to be hired full-time. The firm has recently expanded its internship program, which has placed an added level of importance on those candidates who come through the intern ranks. Historically it was not too important, says one insider of William Blairs internship program. But it is becoming very important. In the near future, the firm will hire most of its class from its summer intern pool. Insiders expect the revived program to be an excellent training program and feeder into the full-time analyst program.

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OUR SURVEY SAYS

Old-school Midwest firm


The atmosphere at William Blair is conservative, old fashioned and very white shoe, yet very entrepreneurial. People are collegial and friendly with laidback attitudes, but everyone maintains a formal, professional environment. Some say its difficult to pinpoint a firmwide culture, because cultures range significantly depending on the industry group. The firm is an old-school investment bank with deep Midwest roots, say insiders. At this traditional firm, just about everyone from the associate level up is married with children. Conservatism can sometimes get in the way. A contact says, Certain principles and rules that should be more flexible to allow the firm to be more nimble are not adopted for irrational reasons. Some also say there are very rigid promotion schedules. At William Blair, there is no opportunity for direct promotion to associate without an MBA. Another complaint about the firms structure is that analysts start as generalists, which means they can be staffed on any project by any group. While this can be good for exposure, you dont develop any sort of usable historical knowledge or deep understanding of any one particular industry. There can also be some small-firm office politics.

Sundays are not days of rest


Most analysts and associates at William Blair log 80 to 90 hours per week, including more-than-once-a-month weekends. Many work every Sunday and most Saturdays. Sundays are an informally required workday. Most say face time is not important, but it is rare to get out of the office before 9 p.m. Sometimes, Friday nights end early. One insider says, The work is fairly intense and there is less downtime than at most investment banks. However, some say bankers at this Chicago firm work fewer late nights than those at the bulge brackets. Hours can be variable, but 80 hours per week is about average. One contact says, Ive worked as few as 70 hours in a week and as many as 110. And although hours can be pretty brutal for first-year analysts, the load lightens considerably by year two.

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Worth it on pay day


William Blair bankers may log long hours, but the firm makes it worth their while. Insiders speak of very good compensation, particularly for Chicago. Many list pay as one of the top benefits of working for the firm. In addition to extremely high compensation, bankers at William Blair enjoy $25 meal allowances, and taxi rides, after 7 p.m. during the week and anytime on weekends. The firm also offers discounts at local gyms, profit sharing after two full years of employment and free beverages at anytime of the day or night. There are also discounts at restaurants, museums, retailers, and the firm picks up the tab for all meals while traveling. Traveling bankers are also granted $145 per month for cell phone and BlackBerry service.

On equal footing
Despite some old school guys who arent as collegial, most managers at William Blair treat analysts more like colleagues than resources. Partners communicate directly with analysts, and junior analysts are given a great deal of responsibility. A contact says, First-year analysts are entrusted with the great responsibility of interacting with clients, chaperoning facility visits and other significant responsibilities only VPs at bulge brackets experience. In this fairly open atmosphere, managers are very hands on but give you a lot of responsibility and direction, making William Blair a great learning environment. Insiders say there are some abrasive personalities, but for the most part, managers are friendly and fun, and promote a fraternity-like atmosphere.

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Trailing the bulge brackets in training


Insiders say training may be the one area in which William Blair lags behind other banks. Employees receive less formal training and less exposure to financial modeling. Training overall is less than at bulge bracket banks. Sources feel the training really should be a lot better, especially since many of the analysts do not come from a traditional business background. Incomers are expected to hit the ground running. Although analysts do receive some formal trainingthey spend their first month preparing for the Series 7 and Series 63 tests, and participating in a Training the Street programbut the general sentiment is that William Blair lacks an institutionalized training environment. One insider says, The most helpful training comes from the advice of your second year office mate.

Cubicle-free environment
William Blair insiders are happy to report that the firms offices have no cubicles! Analysts are given offices to share with one other person. There are two analysts to one officeone first-year and one-second year. And third-year analysts get their own offices. Most consider the office perk an extremely beneficial luxury, especially during conference calls and private equity interview season. In addition, there are plenty of conference rooms available for dinners, and there is even a room for napping for those pulling all-nighters. The firms Chicago headquarters is decorated in rich wood tones and marble, and offices contain very nice furniture and settings. Some complain of old computer and subpar furniture, but most are living happily ever after in this cube-free land. The dress code at William Blair is on the formal end of business casual. There are no suits and ties required, but polos and khakis are not allowed, either. For women, there are no sleeveless tops or open-toed shoes. Bankers typically sport a notie look, but otherwise are always dressed in suit attire. The goal is not to stand out. When meeting with clients, the look is more business professional and many wear suits. Casual attire is allowed on weekends.
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The diversity front


Insiders give the firm average to slightly above average marks for its diversity practices but say it could do better in this area. Although sources say women are a minority, one insider points out that there are about five female principals and several female associates and analysts. Still, others say there are hardly any women in the investment banking unit, and even fewer ethnic minorities. One contact says the firm does not discriminate in any way but points out that William Blair is not very diverse with respect to ethnic minorities.

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PRESTIGE RANKING

Robert W. Baird & Co. (Baird)


KEY COMPETITORS
Harris Williams & Co. Houlihan Lokey Jefferies & Company Piper Jaffray Companies Raymond James Financial William Blair

777 East Wisconsin Avenue Milwaukee, WI 53202 Phone: (414) 765-3500 Fax: (414) 765-3633 www.rwbaird.com

BUSINESSES
Asset Management Equity Capital Markets (Investment Banking, Research, Institutional Equity Services) Fixed Income Capital Markets Private Equity Private Wealth Management

UPPERS
Tremendous interaction with senior bankers Strong work ethic

THE STATS
Employer Type: Private Company Chairman, President & CEO: Paul E. Purcell Revenue: $729 million (FYE 12/07) No. of Employees: 2,300 No. of Offices: 85

DOWNERS
Inefficient management You will work a lot

RANKING RECAP
Quality of Life #10 Selectivity #15 Training #16 Treatment by Managers #17 Overall Satisfaction #18 Best Employers to Work For #18 Compensation #19 Hours #19 Offices Diversity #16 Diversity with Respect to GLBT #18 Diversity with Respect to Women #19 Overall Diversity #19 Diversity with Respect to Minorities

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EMPLOYMENT CONTACT
See careers at www.rwbaird.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Strong niche player Third-tier bank Good regional bank Never lead bank on deals

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THE SCOOP

Five units, going strong


In 2007, Milwaukee, Wis.-based Baird reported revenue of $729 million, up 17 percent from 2006. Despite troubled world markets, the firm also saw a 12 percent spike in operating income, which climbed to a record-setting $105 million. Baird is divided into five business units: asset management, which includes Baird Advisors and Baird Investment Management; equity capital markets, which consist of investment banking, institutional equity services and research; fixed income capital markets, which is divided between fixed income sales and trading and public finance; private equity and private wealth management. Thanks to strong asset growth in Baird Advisors and the private wealth management divisions, the firms assets under management rose to $77 billion by the close of 2007. Bairds Investment banking group includes approximately 175 professionals worldwide, and is exclusively focused on the middle market. Over the past decade, Baird has advised on over 615 M&A and financing transactions, for a total value of more than $94 billion. Buyouts magazines year-end awards publication, issued in early 2008, sums up the Baird philosophy: Content to be neither a wannabe bulge bracket bank nor a boutique firm, Baird will continue to stake out its own territory in the middle market.

Kudos to you
Baird picked up its fair share of awards in late 2007 and the first half of 2008. For the fifth consecutive year, the firm was recognized as one of Fortunes 100 Best Companies to Work For. In the 2008 edition of the list, Fortune ranked Baird No. 39. In addition, Buyouts magazine named Baird the Middle Market Investment Bank of the Year for its performance in 2007, and The M&A Advisor handed Baird two Manufacturing Deal of the Year recognitions: one for its work advising LKQ Corporation a Chicago-based company that supplies recycled original equipment manufactured parts to the vehicle aftermarketon its acquisition of Keystone Automotive Industries; and another for its role as advisor to Wilton Industriesthe Chicago-based food crafting and housewares companyon its sale to EK Success, a portfolio company of private equity firm GTCR. The deal, which closed in August 2007 despite the volatile economy, ranked as one of the largest transactions in the crafts and housewares industries.

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Declaration of independence
Since 2004, Baird has been a wholly independent, employee owned company. The firm was founded in 1919 as the securities arm of the First Wisconsin National Bank, led by partner Robert Wilson Baird. A few years later, he took over as president of First Wisconsin. In 1934, when regulatory changes prompted banks to divide their securities businesses from their core banking operations, Baird oversaw the reorganization of First Wisconsinand the spin-off of its securities division, which became The Wisconsin Company. In 1948, The Wisconsin Company became the first Wisconsin brokerage to obtain a seat on the New York Stock Exchange; that same year, William Brand replaced Robert W. Baird as its president, and the firm took its outgoing founders name. A period of growth followed, as Baird added asset management and public finance services to its roster. As Wisconsins top investment bank, the firm proved a tempting target for Northwestern Mutual, which purchased a majority stake in Baird in 1982. Five years later, Baird expanded again, establishing its private equity business. Current chief executive Paul Purcell became president in 1998, and promptly bought London-based investment boutique Granville plc, ushering in an era of new international opportunities. He took the reins as CEO in 2000, when previous leader Fred Kasten stepped down. Since taking the top spot Purcell has pushed for continued growth and total independence, forming Baird Advisors and Baird Venture Partners and leading the firms 2004 repurchase of majority interest from Northwestern Mutual. Hes widely credited with transforming Kastens regional business model into a nationaland internationalmiddle-market player.

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Focus on tech
Paul Purcells thirst for expansion was evident in the first half of 2008, as Baird boosted its presence in several regions and industries. In January, Baird opened its second San Francisco Bay area office, smack in the center of Silicon Valley, and declared it a hub for its growing technology investment banking team. The new office, in Palo Alto, Calif., will serve key high-tech clients as well as private equity and venture capital firms on the West Coast. Managing Director John Moriarty, a 20-year investment banking veteran who has advised on more than 185 transactions during his career, was named head of the location. Baird has been funneling resources into its technology sector capabilitiescurrently, the firm has seven equity research analysts covering over 100 tech companies, and has advised on more than $5.7 billion of capital raising and M&A transactions in the tech sector since 2003. Steve Booth, director of Bairds investment banking group, said the firm will widen its network of contacts and deepen relationships with current and prospective clients in Silicon Valley. Then in April 2008, Baird added a new managing director to its financial sponsor investment banking team, which is based in the firms Atlanta, Boston, Chicago and London offices. Jeffrey M. Seaman joined the Chicago office, and was charged with building the firms financial sponsor client list and generating more private equity dealswhich currently make up half the firms M&A activity. Since 2004, the Baird financial sponsor investment banking group has worked on over $5 billion in equity and M&A transactions.

Middle-market pros
With its firm focus on the middle market, in 2007 Bairds investment banking teams played a role in 57 deals worth a total of $12.4 billion, up from 44 deals worth $4.6 billion in 2006. According to Thomson Financial (now Thomson Reuters), in 2007, Baird ranked No. 14 in announced U.S. middle-market M&A deals with undisclosed values and values up to $100 million in 2007. For deals up to $50 million, the firm ranked No. 25.
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The firms recent transactions include advising Chicago Partners LLC on its $73 million sale to Navigant Consulting, assisting Technical Concepts Holdings $445 million sale to a division of Newell Rubbermaid, advising on the sale of Primrose Holdings to the Roark Capital Group, helping Meade Instruments Corporation carry out the sale of its Simmons division to Bushnell and advising TopWorx on its sale to Emerson Electric Company.

A lasting legacy
Besides founding the firm that now bears his name, Robert Wilson Baird left his mark on the entire securities industry. He was a founding member of the National Association of Securities Dealers (NASD), created in 1939 as the regulatory agency for all securities, equities, options and corporate bond trading in the U.S. Baird also served as the NASDs third national chairman.

GETTING HIRED

Mostly Midwest
Baird recruiters screen a large number of candidates to locate those that fit best with the firm, with an eye toward the cream of the crop. Like any investment bank, Baird subjects you to the standard, rigorous interview process, a second-year analyst says. While the emphasis is placed on fit, solid technical skills are still important. The firm recruits at top campuses, primarily in the Midwest and on the East Coast for both analyst and associate positions, but each Baird office will typically recruit out of schools within a fairly close proximity to its location. For MBAs, we target the top 20 programs across the country, a source says, adding that given our Midwest presence we have many Kellogg and University of Chicago alumni. The Big 10 schools and Notre Dame are represented as well. Candidates who dont attend a target school arent out of luck, however. Baird also actively evaluates in-bound applications from the web site, explains an insider.

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Skip the brainteasers


Two or three rounds of interviews is standard for most potential Baird hires. The typical process for MBA candidates is to start with a phone interview or initial campus meeting followed by two to three trips into our offices for about 10 interviews total, a source says. We dont host super interview days for MBAs. Undergrad candidates, on the other hand, are interviewed on campus and then invited to attend a super interview day. (Candidates from nontarget schools may have multiple phone interviews before receiving an invitation to the super day.) Those who arrive on site for Super Day will participate in several interviews, meeting with many professionals from analyst to managing director. An insider in Milwaukee recalls that there were no really tough analytical questionsreally only questions to get a sense of your personality, work ethic and past experience. Candidates should expect questions concerning general interest in finance, but one source says there were no typical I-banking trick questions or puzzles.

Hands-on experience
Baird has both undergraduate and MBA level interns, a vice president says, though there are fewer internship opportunities than full-time positions annually. Internships often lead to full-time offers, but sources agree that interning at Baird is absolutely not a prerequisite to getting a job. One former intern says, I had three interviews for a summer internship with an analyst, associate and a vice president. After the summer, I was offered a full-time position. Another source notes, Interns participate in a truncated orientation and training program and then begin work on live deals and opportunities. They should expect to participate on all types of transactions including sell side and buy side advisory work and equity underwritings. The goal is for interns to gradually learn the tasks and responsibilities of a full-time employeeand for one recent hire, it was a chance to prove I could work hard and perform well.

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OUR SURVEY SAYS

Part of the team


Teamwork is a huge part of the investment banking culture at Baird, insiders say. The bank is diverse, and has a unique and enviable environment that promotes and rewards collaboration. Everyone is willing to take a part in completing the task at hand, explains one source. The casual but high energy environment is a result of smaller deal teams that mean greater responsibility for junior bankers, who develop extensive transaction experience quickly. Baird is not as straight-laced as the bulge brackets, sources agree. Hard work and long hours are an inherent part of the business, but senior bankers definitely have greater respect for their junior resources. However, one analyst says that the laidback sensibility can, at times, lead to inefficiencies. Sometimes 40 hours of work takes 80 just because managers cannot manage. But Baird likes to take the long view: a second-year associate says that the firm cares more about long-term client relationships than short-term profits.

Striving for balance


Many Baird employees report putting in 70 to 80 hours each week, with overtime as necessary. Weekend work is not uncommon, either. I work at least one full day each weekend, sometimes both, a first-year analyst says. While all bankers work long hours, Baird does its best to provide some balance, says another source. However, you will work a lot. Of course, like other firms, we work when the conditions are right, so some weeks may be busier than others depending on deal flow and deadlines. The firm receives middling marks when it comes to compensation; sources say their pay is market rate for the areas where Baird is located, but not above-market. Those ranked vice president and above are able to purchase equity in the firm. For everyone else, perks include the standard meal allowance and evening transportation that is offered at all firms.

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Not fancy, but not bad


Baird offices maintain a business casual dress policy, except for client contact when more formal wear is required. Office space gets mixed reviews: one source in Washington, D.C., says the office itself is very nice, but Baird could do a better job of stocking the kitchen, given that we work odd hours and there are no after-hours options here to grab a soda, a glass of ice or a snack. A Chicago-based analyst says that citys location is undergoing a renovation over the next few years, and adds that its about time. The dcor is becoming dated, though youll at least have a banker-issue Aeron chair to keep you comfortable. Initial training is based on the popular Training the Street program, which provides standard accounting and modeling training. This initial round of formal training is good and offers a unique opportunity to complete a standard assignment in a controlled environment early on, but one source notes that there is not much additional training offered once the people are on the job.

Ready to help out


In keeping with Bairds emphasis on teamwork, respondents say theyand their managerstend to look out for each other. I have a great working relationship with the analysts I work with, says an associate. I believe they are comfortable coming to me with any issues they have. I am respectful of their time and try to provide lots of positive reinforcement. An analyst agrees that Baird really excels in this area, pointing to the great interaction and exposure with senior managers, all of whom are very helpful and encouraging. Still, like many investment banks, Baird has some work to do in the diversity department. Though sources feel the firms intentions are good, an associate points out that there are very few women within the investment banking department, and most are at the associate or analyst level.

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PRESTIGE RANKING

Gleacher Partners
KEY COMPETITORS
Dresdner Kleinwort Evercore Partners Greenhill & Co.

660 Madison Avenue, 19th Floor New York, NY 10021 Phone: (212) 418-4200 Fax: (212) 752-2711 www.gleacher.com

BUSINESSES
Asset Management Fund Advisory M&A Restructuring

UPPER
Pays well

DOWNER THE STATS


Employer Type: Private Company Chairman: Eric Gleacher Revenue: $4.4 million (FYE 12/07) No. of Employees: 50 No. of Offices: 4 Youll likely work hard for your money

EMPLOYMENT CONTACT
See careers under contact us section of www.gleacher.com

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THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Superstar boutique, provides great connections; for people who could have gone to Goldman but wanted a boutique culture Not as good as they used to be Solid Very aggressive, tough place to work

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THE SCOOP

M&A legend goes out on his own


Eric J. Gleacher, who founded Gleacher Partners with some former colleagues from Morgan Stanley, made his mark on the financial world in 1978 when he founded the mergers and acquisitions practice at Lehman Brothers. He defected to Morgan Stanley in 1985 but only stayed there until 1990, when he set out on his own. Gleachers eponymous bank offers investment banking and asset management services, advising companies on mergers and acquisitions, restructurings and capital raising. Since its founding, the firm has advised clients on over $200 billion of M&A transactions, representing such big-name clients as Apollo Management, AT&T, BAE Systems, Bank of Scotland, British Airways, ConAgra, Telewest, WebMD and Wyeth. The firms asset management unit includes a fund of hedge funds business with over $700 million of assets under management, as well as a $479 million mezzanine fund that provides financing for middlemarket buyouts and recapitalizations.

Taking back ownership


Gleacher Partners was bought by London-based National Westminster Bank (NatWest) in 1995, as part of the British banks effort to gain a foothold in the U.S. market. Four years later, however, Gleacher employees managed a buyout of their firm with some financing assistance from the Bank of Scotland, which now owns just under 10 percent of Gleacher. In 2004, Gleacher Investment Corp. was launched to invest in mid-market companies; a Gleacher subsidiary, Gleacher Shacklock, conducts the firms business in Europe. Gleachers U.S. offices are located in New York, Atlanta and Greenwich, Conn.
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Sister company Gleacher Shacklock operates an international office in London. Gleacher used to own Gleacher Shacklock, but in July 2005 the London firm formed an independent company owned by its U.K. staff. Reporting on the split, Financial News explained, As an independent, Gleacher Shacklock will no longer have to share fees derived from exclusively European work with its U.S. parent. One reason behind the separation is to enable the two to receive fees that are more closely aligned with the work they do, enabling them to provide better incentives for staff. The business pub supplies some back story: This is the second time the issue of ownership has led to changes at Gleacher Partners European arm. Justin Dowley, former head of European investment banking at Merrill Lynch, and Michael Pescod, former head of corporate finance at law firm Slaughter & May, were forced out of what was then Gleacher Partners in 2003, following a dispute with Eric Gleacher over who should own and manage the London business.

Winners on the green


Gleachers top brass are well known for their golf gameas a freshman, founder Eric Gleacher played on Western Illinois Universitys National Association of Intercollegiate Athletics championship team. As a sophomore, he transferred to Northwestern on a golf scholarship, leading his varsity team to the NCAA Championships. Gleacher has donated $1 million to Western Illinois Universitys golf program, allowing the school to grow its campus course from nine to 18 holes. In 1999, he gave $6.1 million to Northwestern for the Gleacher Golf Center, which provides year-round practice and training facilities. Gleachers own skills have stayed sharp, too. According to 2006 statistics from the U.S. Golf Association, he hits a 2.2 handicap. Perhaps he keeps in shape by playing with Gleacher partner William Billy Payne, who in May 2006 was named chairman of the prestigious Augusta National Golf Club, home of the famed Masters Tournament.

Building two giants


In the second half of 2006, Gleacher signed on to some significant advisory roles. In September, its Gleacher Shacklock subsidiary was hired by Scottish & Southern Energy to co-advise (with Credit Suisse) on a potential $37 billion merger with Scottish Power. If completed, the deal would create Britains biggest utility.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Gleacher Partners

One month later, Gleacher and Merrill Lynch were retained by Atlanta-based poultry producer Gold Kist to help defend the company against a $1.03 billion hostile takeover bid from rival Pilgrims Pride. Gold Kist and its team alleged that Pilgrims Prides effort to add nine of its own officers to the Gold Kist board would violate a section of the Clayton Act, which forbids directors of companies of a certain size to sit on competitors boards. By not disclosing this fact to stockholders, Gold Kist argued, Pilgrims Pride broke Securities and Exchange Commission rules. After two months of wrangling, in December 2006, Gold Kist directors unanimously accepted a $1.1 billion acquisition offer from Pilgrims Pride, making the new entity the worlds leading chicken company in terms of production.

On the restructuringbut not IPObandwagon


Gleacher, like many boutiques, relies on its restructuring practice for revenue when mergers and acquisitions advisory work slows with the economic cycle. To that end, in August 2007, Gleacher poached Robert S. Kost, a Lazard managing director, to head its restructuring advisory group. Before joining Lazard in 1999, Kost worked at Deutsche Bank Alex. Brown and Chase Manhattan. (Previously, in November 2006, Gleacher Managing Director Mark Davis had told reporters at the Reuters Investment Banking Summit that his firm was contemplating hires in its restructuring practice, to take advantage of an increase in junk bond issuers, which have been known to wind up in bankruptcy court.)

Cut short on severance


Emil Henry Jr., a former Gleacher executive, left his post in 2005 to become assistant secretary for financial institutions at the U.S. Treasury Department. There, his job was to regulate hedge fundswhich became a problem when Treasury officials realized that Henry was receiving large severance payouts from his former firm, which invests in hedge funds. (And in fact, Henrys position at Gleacher had been director of investment activities, which included hedge fund pools.) Before taking his Treasury job, Henry had signed an agreement promising not to take part in any particular matter that would have a direct and predictable effect on my financial services until he had received his last severance check. Despite this, he made several speeches and convened several meetings about hedge fund regulation. By the time the conflict arose, Henry had already been paid nearly $1 million of his $2.5 million Gleacher severance package, and regulators insisted that he forgo the last $1.5 million he was owed. In March 2007, Henry resigned from his Treasury position, saying only that he wanted to spend more time with his family in New York. In July 2007, Henry accepted a job with Lehman Brothers, as a managing director in the firms private equity group.

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GETTING HIRED

Extremely selective
According to Gleacher, it recruits on a limited basis and looks for a highly select group of individuals with outstanding analytical abilities, strong communication and interpersonal skills, high personal integrity and an ability to thrive in a fast-paced and entrepreneurial work environment. Insiders agree, ranking Gleacher among the most selective firms in terms of hiring. According to an associate, individuals from Ivy League schools, top undergraduate programs and selected top-20 MBA programs often get the most consideration. Perhaps because of the firms relatively small size and high selectivity, the interview process is very comprehensive. Their combination of quality and focus creates a tremendous opportunity for junior professionals to make an impact in addressing the most complex and challenging situations, according to the firm. Gleacher participates in recruiting for analysts and associates for its New York and London offices, offering positions in mergers and acquisitions, divestitures, takeover defense, special committee assignments, leveraged buyouts, corporate restructurings and bankruptcies, execution and oversight of the firms principal investments and joint ventures or partnerships. Candidates interested in working for Gleacher should contact the firms New York offices directly.

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OUR SURVEY SAYS

Happy on payday
The companys culture is changing in the U.S., according to one associate in the Atlanta office, who adds that Gleacher is morphing substantially into a much more aggressive middle-market type of organization. Working at Gleacher yields employees standard fare in terms of lifestyle perks, according to one source who praises the summer program for new hires, which takes place in Toronto over several weeks time. Offices are generally well liked by employees, and respondents report that the firm has a casual dress code, except when meeting with clients. Although insiders are split with respect to treatment by management, an associate relays that manager treatment at Gleacher tends to be situation-specific. That contact, whos very happy with the way his superiors treat him, praises the diversity of his U.S.-based group, saying, Our U.S. platform is a mix of professionals from many different backgrounds. Other respondents, though, say that Gleacher needs improvement in the areas of diversity with respect to women and minorities. Insiders do quite well in the money department, with sources reporting annual bonuses significantly exceeding their annual salaries. An associate notes that Gleacher realizes it needs to pay competitive bonuses to retain top performers, and praises the firms wealth accumulation plan, which allows associates to defer pre-tax bonus dollars into various investment vehicles. But they work hard for their money. An analyst notes that he works between 60 and 70 hours per week, and he works weekends often. Another contact, who reports working between 90 and 100 hours per week, complains that its difficult to make a blanket statement on hours, but conditions are difficult today. He adds that generally the market conditions dictate the hours worked, noting that the long hours also include travel related to transaction processing and marketing.

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PRESTIGE RANKING

Moelis & Company


RANKING RECAP
Quality of Life #1 Overall Satisfaction #1 Compensation #2 Best Employers to Work For #2 Selectivity #2 Treatment by Managers #4 Offices #7 Training #17 Hours Diversity #1 Diversity with Respect to GLBT #3 Overall Diversity #3 Diversity with Respect to Minorities #5 Diversity with Respect to Women

245 Park Avenue, 32nd Floor New York, NY 10167 Phone: (212) 880-7300 Fax: (212) 880-4260 www.moelis.com

BUSINESSES
Corporate Finance Mergers & Acquisitions Advisory Moelis Capital Partners Restructuring Advisory

THE STATS
Employer Type: Private Company CEO: Ken Moelis No. of Employees: 125 No. of Offices: 4

UPPERS
Bonuses are at a premium to the Street Challenging and interesting work
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DOWNERS
Nights and weekends necessary No formal diversity programs

EMPLOYMENT CONTACT
E-mail: recruiting@moelis.com

THE BUZZ
WHAT INSIDERS AT OTHER FIRMS ARE SAYING ABOUT THIS FIRM

Up-and-coming, hiring like crazy Sweatshop, lots of egos Moelis is the man Never heard of them

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THE SCOOP

New kid on the block


Moelis and Company just opened its doors in July 2007, but it already has four offices, numerous deals in the pipeline and a catchy nickname (MoCo). Based in New York, Moelis has additional locations in Los Angeles, Boston and Chicago. The firm calls itself a relationship-based investment bank, and provides advisory services for mergers, acquisitions, restructurings and other corporate finance matters. Through Moelis Capital Partners, Moelis operates a private equity business. As of July 2008, Moelis employed 125 staff, including 20 managing directors.

Kens next step


Theres a joke that MoCo should be called KenCo, because the firm is so closely associated with its founderKen Moelis, long known as a leading dealmaker on Wall Street. He began his career in 1981 at Drexel Burnam Lambert, where he helped develop the then-unusual practice of using high-yield debt to finance high-growth companies, mergers and acquisitions. In the 1990s, Moelis jumped to the Los Angeles office of Donaldson Lufkin & Jenrette Securities (DLJ), where he became known as the firms top dealmaker. Swiss banking giant UBS wooed Moelis to its investment banking division in 2000, and after Credit Suisse bought DLJ in 2001, Moelis persuaded many of his former colleagues to join him at UBS. At UBS, Moelis was credited with raising the banks share of global M&A from 12 percent to 18 percent, and by 2005 he was president of investment banking. However, he often clashed with UBS management in Switzerland over the issue of leveraged buyouts and private equity. While other major banks were willing to make loans in order to nab big advisory roles, UBS was
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not. Moelis ultimately tendered his resignation to UBS on June 30, 2007; he announced the launch of Moelis & Company the very next day. UBS would not comment on his departure, saying only that he would not be replaced at the investment bank. Meanwhile, Moelis put his legendary Rolodex to work, recruiting former DLJ and Drexel bankers to join his new firm. He also poached from UBS, hiring Navid Mahmoodzadegan (global head of the media group) and Jeff Raich (joint global head of M&A) as managing directors.

Equity-friendly
In September 2007, just two months after the firm was born, it was rumored that Moelis had raised $1.8 billion for its first fund. Moelis does not call itself a private equity firm per se (the phrase it prefers is an investment bank with the ability to invest alongside its clients), but its fundraising prowess exceeded analysts expectations. A final close for Moelis Capital Partners Opportunity Fund I, LP has been set for fall 2008. Moelis has also kept silent about which sectors it will target and how much equity it will invest in typical transactions. Other questions remain: Moelis has revealed that institutional investors are involved in the fund, but has not provided any more detail about other investors.

Filling the ranks


Ken Moelis made some noteworthy hires for his firms private equity arm in late 2007 and early 2008. In October 2007, Kurt Larsen became private equity managing partner, leaving his position as a managing director at Cerberus Capital Management. There, he worked on middle-market private equity and subordinated debt investments in several industries. Then in January 2008, Stephan Oppenheimer joined Moelis as a partner in the private equity group, bringing 11 years of experience in large-cap and middle-market leveraged buyouts and growth equity deals. Oppenheimer came to the firm from CCMP Capital Advisors, where he specialized in the media and telecom, industrial and service sectors.

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Vault Guide to the Top 50 Banking Employers 2009 Edition Moelis & Company

Advisory heats up
Operating under the supervision of a registered broker dealer, the Moelis advisory groups were able to start working on several assignments in the second half of 2007. Within a day of commencing operations, the Moelis team acted as Hiltons advisor on its $26.5 billion sale to private equity giant Blackstone. Moelis was also tapped to co-advise mall retail giant The Finish Line Inc. on its acquisition of shoe retailer Genesco. (The Finish Lines other advisor? Moelis former employer, UBS.) In October, Moelis teamed with UBS once more, providing strategic advisory services for the renegotiation of a multiyear programming contract between CBS Radio and station operator Westwood One. In another media assignment, Moelis and Citi were hired in November 2007 as co-advisors to Spanish-language media company Entravision Communications. Entravision was exploring possible sale options for its outdoor advertising unit, Vista Media, which includes over 10,000 billboards in New York City and Los Angeles. In December 2007, Moelis and Deutsche Bank advised Las Vegas-based Cannery Casino Resorts on its announced $1.8 billion sale to Australias largest casino operator, Crown Ltd.

Continued expansion
Moelis opened its second office on the East Coast in October 2007 with the hire of managing director Robert Crowley, another UBS steal who served as the Swiss banks global head of high-yield capital markets. The beginning of 2008 brought further growth, as Moelis hired 10 managing directors within the first half of the year from a variety of firms. These MDs brought expertise from several industries, including aerospace and defense, automotives, chemicals, industrials, and consumer and retail. In addition, Moelis rolled out its restructuring practice, led by Thane Carlston and Bill Derrough, former co-heads of the recapitalization and restructuring group at Jefferies & Company. Most recently, Moelis opened a Midwest franchise in Chicago, hiring Ken Viellieu, the former head of Midwest investment banking at Bear Stearns.

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Deals and more deals


In February 2008, Moelis announced its role as a financial advisor to Yahoo! on its $44.6 billion unsolicited proposal from Microsoft. Other transactions announced in the first half of 2008 included Allied Wastes pending $12.7 billion sale to Republic Services and Invitrogens pending $6.7 billion acquisition of Applied Biosystems. In July 2008, Moelis advised on its largest transaction yet: Anheuser-Buschs $61.2 billion sale to InBev. Other assignments in the first half of 2008 included advising WCI Steel on its $389 million sale to SeverStal and advising NBTY on its $371 million acquisition of Leiner Health Products. In addition, Moelis has been mandated on a number of other transactions, including advising Muzak and DMX on a sale process, assessing strategic alternatives for Pappas Telecasting Companies, advising New York-based Young Broadcasting to help sell its San Francisco station KRON-TV and advising on the sale of the Tropicana Casino and Resort.

GETTING HIRED

Financial whizzes from top schools


Since Moelis & Company is new, the firm currently is very actively hiring. Still, its a highly selective firm that only seeks the best. Recruiters are looking for the best and the brightest that will fit in with the culture. Candidates with finance and accounting backgrounds are preferred. For those coming from alternative backgrounds, be prepared to explain why [you have this background] and show us how youve made up for it with independent study or course work. The ability to demonstrate excitement about the company and understanding of investment banking history is definitely a plus. As things are now, it is unlikely that a liberal arts major will get hired hereunless you can prove you have great analytical skills, drive and enthusiasm, which are considered fundamental requirements for the job.

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CAREER LIBRARY

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Vault Guide to the Top 50 Banking Employers 2009 Edition Moelis & Company

To find its future financial wizards, Moelis looks to all major undergraduate colleges and major MBA schools. These include University of Pennsylvania, University of Michigan, Stanford, UCLA, Harvard, University of Chicago, Claremont McKenna, Yale and Cornell. For slots in the New York office, Moelis formally recruits at the undergrad level from Penn and Michigan but is open to other candidates as well. In addition, contacts say that the Boston office has spoken to people from Harvard, but nothing formal has been set up. Although the firm has separate recruitment efforts for each offer, every candidate we talk to is given the opportunity to tell us which office they would prefer.

Small-firm process
Moelis interview process tends to be more flexible than most of the major banks, because its still a small organization, which means it can move quickly. Incoming analysts typically meet at least four people, including an analyst, associate, vice president and a more senior member of the firm over the course of two interviews. Candidates for more senior positions may meet up to 20 different bankers. Others may have closer to 10 interviews. In terms of questioning, candidates should be prepared for both behavioral and technical topics. A contact says, Being a new and smaller firm, we are very concerned with personality and fit as well as a strong understanding of finance. It is important for us to know that the candidate has put in the time to understand finance and accounting and that they are genuinely interested in a career in finance. Questions about past experience and client relationships may also come up.

Get a leg up
A summer internship with Moelis & Co. certainly provides a leg up for the next year. Participation in these programs for those seeking full time employment is highly encouraged. Although most sources agree that it is not impossible to get hired full time without performing an internship, it sure helps you get ahead of the competition. As it is with any investment bank, a summer internship is the best way to get an offer here. The internship program provides both the firm and intern the opportunity to determine suitability or fit. Its also a great opportunity [for the intern] to see what the work environment is like and better understand the culture. If you dont go the Moelis summer route, note that some investment banking experience is preferred for all full-time positions. In other words, a banking internship somewhere is highly recommended if you want to be a full-timer.

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OUR SURVEY SAYS

Ground-level opportunity
Moelis insiders wake up each morning excited about coming into the office, likely due to their firms first-rate culture and belief that theyre part of the fastest growing firm on Wall Street. A career at Moelis is a great opportunity to see a new firm being built from the ground up. Not surprisingly, theres tons of momentum at this firm, which prides itself on having no politics and lots of fun. In fact, a contact says that this is the most fun Ive had in my 15 year career on Wall Street. There is huge upside potential to working at Moelis such as the chance to interact with senior bankers and clients, and the opportunity to be involved in the best deals and to do banking