Sociology

If you are seeking a job in an investment banking firm, you surely will need to know when these firms recruit so you know when to send in your resumes. From research, recruitment normally takes place in the spring period (January to February). But if after February, you are not yet hired, another opportune time is the summer period (March to July). Why Because around this time, many people change jobs or prepare for their MBAs with no plans of returning to same company or industry.

Just knowing when companies recruit is not enough. Most times, majority of the people who get hired Schmooze or socialize with the right contacts. A more effective way to schmooze is to move close to a friend, colleague or contact that has their ears.

Investment banking like most industries is currently going through a financial crisis. This means, more retrenchments and less recruitments. This negative trend has been in effect from June 2008 up until March 2009. During this period, Lehman Brothers, a top notch investment bank filed for Chapter 11 bankruptcy protection in September 15, 2008 with thousands losing their jobs

There has been a bulge bracket (A common term used to refer to the top investment banks) re-shuffle. The top 3 in the bulge bracket which used to be Goldman Sachs, JP Morgan, and Morgan Stanley in that order are now JP Morgan, Goldman Sachs, and Citigroup with Morgan Stanley pushed down to 4th.  

Despite all the gloom and doom though, Investment banking and investment banks are far too integral and valuable to the economy to be phased out. Their primary functions which is to help companies and governments issue securities (raise capital), manage financial assets (manage portfolio), and provide financial advice (manage risk) will always be consulted irrespective of the present financial debacle.

Currently, instead of going under, investment banks are merging or getting acquired (Meryl Lynch has been bought over by Bank of America, Lehman Brothers has been taken over by Barclays and Nomura and other similar mergers and acquisition are in the pipeline).

Investment banks are finding innovative ways to get out of the vicious circle of this recession. For instance, most hires for analyst and associate are now outsourced to India, China, and even Vietnam where they are assured of very affordable yet highly skilled labor.

 Investment banking will look different than it did some few years ago. Particularly, there will be fewer big banks and more boutiques (small and specialized investment banks). Bonuses and compensation will return, but it may take a few years to bounce back to the 2006-2007 levels. Also, trading will be more regulated. And more star investment bankers will go on to start their own boutique banks. The keen job seeker will still get a job in this industry.