What is Bank of America's (BofA) policy on junior bankers accepting private equity (PE) jobs?

BofA will allow its junior bankers to disclose future PE job offers without terminating their employment, instead reassigning them to other areas within the bank.

Why are banks struggling with this issue?

The practice of PE firms recruiting junior investment bankers well in advance has become a major challenge, as it can lead to potential conflicts of interest for the banks.

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BofA Lets Bankers Take Private Equity Jobs, Bucking Industry Trend

Q: How does BofA's policy differ from other major Wall Street banks?

Banks like JPMorgan, Goldman Sachs, Citi, and Morgan Stanley have stricter policies, telling their junior bankers that their "employment with the firm will end" if they accept future-dated PE offers, or that they could face disciplinary action.

6 Aug

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Summary

BofA allows junior bankers to disclose future PE job offers without termination
Other banks like JPMorgan have stricter policies, ending employment for such bankers
Banks struggle to balance staffing needs and career ambitions of young analysts

BofA Lets Bankers Take Private Equity Jobs, Bucking Industry Trend

In August 2025, Bank of America (BofA) has taken a unique approach in addressing the issue of junior bankers accepting private equity (PE) jobs while still employed at the bank. Unlike other major Wall Street firms, BofA will not terminate these bankers but rather reassign them to other areas within the bank.

This policy differs from the stricter stances adopted by banks like JPMorgan, Goldman Sachs, Citi, and Morgan Stanley in recent weeks. These competitors have told their junior bankers that their "employment with the firm will end" if they accept future-dated PE offers, or that they could face disciplinary action.

The banks are struggling to balance their staffing needs with the career ambitions of young analysts, who often seek to jump to the buy-side after their two-year investment banking stints. The PE industry's practice of recruiting these junior bankers well in advance has become a major challenge for many investment banks, as it can lead to potential conflicts of interest.

BofA's more lenient approach aims to address this issue while still allowing its junior talent to pursue their career goals. However, the bank's peers have taken a firmer stance, with JPMorgan CEO Jamie Dimon previously criticizing the practice as "unethical" and potentially leading to conflicts of interest.

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