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Is JPMorgan the new Goldman Sachs?

If you want to work for the preeminent investment bank in the world, JPMorgan is looking rather like the place to be.

JPMorgan has arranged twice as many rights issues as Goldman Sachs this year.

According to Dealogic (via the FT) its investment banking revenues in the first quarter were 20% higher than its nearest rival (Bank of America/Merrill Lynch) and 51% higher than those at Goldman Sachs.

It also ranked number one for global M&A, number one for global DCM, number one for global ECM, and number two for global loans.

Dick Bove, the peripatetic banking analyst now residing at Rochdale Securities, says it’s certainly the case that JPMorgan has emerged as the new “golden firm” in the financial services industry. “It’s widely respected and it’s believed to have done a better job than others in handling its balance sheet.”

However, Bove says JP will not supplant Goldman as the most desirable place to work because, “it’s totally unlikely that JPMorgan will every pay what Goldman Sachs pays.”

In the event that you still want to work there, you will need to approach JPMorgan directly. In a possible indication of both its popularity and its parsimony, the bank is said to be doing all its recruiting itself.

“They have put a complete ban on using any kind of consultancy firm for a year,” says one search consultant. “There is no spend on that recruiting at all.”

In its recent investor day presentation JPMorgan said it plans to expand in prime broking, commodities and emerging markets. It also expects to cut another 2,000 investment banking jobs in 2009.

Comments (25)

  1. So how many new GS’s do we have this year then? I am starting to lose count…

  2. Sarah…you keep on mentioning “un named search consultants”..and they are invariably wrong….JPM may well have quietened down on recruitment..but for key hires they certainly are still using searches consultants (retained and contingent)
    I am currently woking hard on 2 and 1 of them is out with a number of agencies
    Please do not keep listening to talking head fools !

  3. Henry’s comment is needed here

  4. JPM the new GS….One word NEVER. Having worked at JPM and being delighted to have left to work at GS i have a unique perspective on the culture and people of both firms. Can say that JPM will never have the entrpeneurial spirit or culture that makes GS the place to be. At a HF now, but sorely miss the halcyon days of 2005-7 at GS.

  5. WHen will you people get it?? No other institution is like GS!!! GS has the same people, same culture and same regime to maintain its spot!! Having one or two institution ‘overtaking’ it in any one year doesnt mean much! Just an in having Imperial above Oxford, or Yale above Harvard. Doesnt mean they are the new Harvard!! Dear Lord …

  6. GS, like most firms, has lost its grip – simple as that. However, to be honest I don’ care who the ‘next GS’ is. In this envionment people are best placed working for smaller firms who reward loyalty. If I had the choice between a smaller firm with no mountain of debt and one of the big debt ridden houses I know which one I’d take!!!!!!!!!!!!! Times are changing – nobody cares whether you work for GS or JP these days – so just work somewhere that values you and treats you well – and these places are inevitably the smaller firms.

  7. I’m afraid I disagree with you Guy – I think league tables do matter, they start the virtuous / vicious circle that leads to the rise and fall of companies in the long run. Look at the history books. GS has not been #1 forever and, in my opinion, will not be there forever in the future. Look at the components of the FTSE 100 in early 1900s. Try to spot how many still exist. I’m sure lots of people in the early 1900s confidently, even arrogantly, predicted that those companies could “never fail”. They did, and they will continue to do so. Because it is the hubris of people like you who will seal their fate.

  8. JPMC tries very hard to be a great place to work but fails miserably. It is in fact a dreadful place full stop. I have the misfortune of working for them on the Rates trading floor and it’s the worst place to be. This is a monster organisation with monster teams, you won’t find any entrepeneurial spirit here, only arrogance and complacency. Fresh blood in middle/senior management roles is well overdue. It’s not surprising why this article came about, JP tries everything to emulate GS regardless of whether it is actually suitable for them. Sure they may be fairing better than the other banks but that doesn’t necessarily make it a great place to work at!

  9. Deutsche is the new GS

  10. Shawda, as I said, the regime and mentality is still strong at GS, and one that surpass any other bank. As long as this is still here, GS retains the No.1 spot. You wont see this team at GS leaving for any other bank ..

  11. May be YES but and only but in Investment Banking world.
    If we look at the most desirable and stable place of business is the Private Banking. I have to be honest and having worked at JPMorgan Private Bank and now at UBS Wealth Management, UBS is still the unique champion. The real difference is the higher quality of service and advice. Also UBS wider variety of global products . When it come to Private Banking, UBS still rules.

    Jean Paul Lucas Reply
  12. Ha ha ha!!! You’re all so sad it’s actually funny. You know, I’ve heard that there’s a new brand in the market, it’s called “Having-a-life” – you wanna join them.

  13. @ JP Lucas:
    Remember the great products/HFs UBS offered to its private bank clients? SRM, Luxalpha, Dillon Read capital….
    Absolutely great products…..

  14. 95% of the ladies at the supermarket cash register have a better grip and balanced life AND handle more money these days than any GS-JPMC-DB-XXX bah-humbug banker can dream of these days.
    These ladies even get fired in case they steal, believe it or not.
    Unfortunately, there is no hope for a cultural revolution here: Unlike Mao Zedong who could send his cadres to the fields for punishment, supermarkets won’t hire any bah-humbug GS-JPMC-DB-UBS types for retraining as decent and responsible human beings.

    So here’s the real question: Is there any hope to get the bah-humbug out of financial types?

  15. I used to think that JPM would be a great place to work until I got to work there! Unfortunately JPM is full of sycophants, zero entrepreneurship spirit and zero new ideas. They dont even have codes or values anymore. I am working at GS now. It is not exceptional but they are better than JPM.

    Having said that, everyone says tha Credit Suisse is a great place to work. Please advise.

  16. I hear CCB is the new Goldman Sachs!!

  17. why JP? why not the reborn Lehman? A phoenix from the ashes may beat everything!

  18. Agree with Cobra81, Ratesman & JP Lucas.
    Though I’ve never worked for GS, I can fully testify how bad JPM is.
    No entrepreneurship (in fact having some is probably a sackable offence), and zero culture. Working there feels more of a job than a career – it is Dilbert incarnate.
    I’m actually quite surprised how well they’ve weathered this financial storm, though as the famous saying goes – “Don’t be fooled by randomness”.

  19. Sarah, try this: “GS is new GS”

  20. Thanks for the suggestion. I’m saving that one.

    Sarah, Editor, eFinancialCareers Reply
  21. i concur with all the jp comments

  22. I would be surprised if there is as much entrepreneurship curlture in a big old and successfull firm like jpm, gs and other inv banks. I am in the 400 person trading house of a former regulated electricity utility. We are so busy with organic growth, that almost every job here contains entrepreneurial spirit. If we don`t get caught by the rest of the “old company” (30000 people), its just matter of time till we have bond, FX or mortage portfolios…

  23. JPM will always strive to be something better. But all the accomplish is to be one of the worst places to work. Every employee is just a number and a cost center. No real loyalty. Always what have you done for me today. As a former employee, I can say that I will never go back to that company. GS will always be a superior place than JPM as long as Jamie D. is still running the place.

    Former JPM Banker. Reply
  24. who cares? both firms did wonderful things to the world economy. now that wall streeet is a mess, all the ivy league graduates have one less place to work (gs).
    maybe had all the banks been smart about their businesses, many of us would still have jobs.

  25. I am currently workin in JP and have an offer from GS ..Im in a fix to decide … need some serious advise here

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