Citi has reportedly started asking junior bankers whether they already have lucrative job offers lined up elsewhere in a bid to crack down on aggressive recruitment by private equity firms.
The new policy at the banking giant led by CEO Jane Fraser was revealed in a memo sent to analysts’ managers on Monday that aims to “foster a fair and transparent environment,” according to a report by Bloomberg News.
The bank’s attestation process will be a one-time form, though it may be repeated annually, the financial news agency added, and each situation will be evaluated on a case-by-case basis.
The Post has approached a Citi spokesperson for comment.
The updated policy comes as the bank strengthens its investment banking division under new leadership.
Vis Raghavan, who joined as head of banking from JPMorgan last year, has been recruiting senior bankers from his former firm.
It also mirrors similar actions by other Wall Street giants such as Goldman Sachs and JPMorgan to retain talent amid fierce competition from private equity firms.
Investment giants often lure young bankers with promises of higher pay after banks have spent heavily to invest in their training.
JPMorgan CEO Jamie Dimon last month warned job-hopping juniors that they would face the boot if they accepted another position within their first 18 months at the bank, although insiders conceded at the time that it would be very difficult to police.
“I know a lot of you work at JPMorgan, you take a job at a private equity shop before you even start with us,” Dimon told a crowd of undergraduate business school students in September, branding it “unethical.”
“It puts us in a bad position, and it puts us in a conflicted position,” he said at a talk at Georgetown University’s Psaros Center for Financial Markets and Policy.
David Solomon-led Goldman Sachs is also demanding that its fresh-faced hires pledge their loyalty to the firm every three months.
Morgan Stanley implemented a similar policy in May, with non-compliance potentially leading to dismissal, according to a person familiar with the matter.
Private equity firms such as Apollo Global Management have signaled they will scale back early-stage recruitment after a barrage of criticism from top bankers.
The intensified competition for junior bankers highlights the rising appeal of private equity firms, which attract young talent with higher pay and diverse deal exposure.
In 2024, private equity firms raised over $1 trillion globally, according to the investment data company Preqin, amplifying their financial clout and hiring power.
The clampdown comes amid a surge in post-pandemic deal-making and remote working options, intensifying talent competition across regions as M&A activity heats up.
Last year, private equity-backed deals accounted for nearly 30% of global M&A volume, according to Dealogic, further complicating banks’ retention strategies.
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