Vault Guide

TOP 50 BANKING EMPLOYERS, 2010 EDITION
2010 EDITION
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®
VAULT GUIDE TO THE
TOP 50 BANKING
EMPLOYERS
DEREK LOOSVELT
AND THE STAFF AT VAULT
®
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v
Table of Contents
INTRODUCTION 1
A Guide to this Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
OVERVIEW OF THE BANKING INDUSTRY 3

What’s What? Industry Overviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Investment Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Commercial Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
The State of the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
THE VAULT PRESTIGE RANKINGS 11

The Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
The Vault 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
THE VAULT QUALITY OF LIFE RANKINGS 17

Quality of Life Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Best 15 Firms to Work For . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Overall Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Selectivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Treatment by Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Business Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Green Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
DIVERSITY RANKINGS 31
Best 15 Firms For Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Diversity with Respect to Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Diversity With Respect To Ethnic Minorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Diversity with Respect to Gays & Lesbians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
THE VAULT 50 37
1. Goldman Sachs Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
2. The Blackstone Group L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
3. Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
4. J.P. Morgan Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
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The Vault Guide to the Top 50 Banking Employers, 2010 Edition
Table of Contents
5. Lazard Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
6. Greenhill & Co., Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
7. Credit Suisse's Investment Banking Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
8. Evercore Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
9. Deutsche Bank AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
10. Rothschild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
11. Barclays Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
12. Perella Weinberg Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96
13. Moelis & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
14. UBS Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
15. Houlihan Lokey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113
16. Jefferies & Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118
17. Citi Institutional Clients Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
18. HSBC North America Holdings Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130
19. Wells Fargo & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135
20. Allen & Company LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
21. Bank of America Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
22. Macquarie Group (U.S.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
23. Piper Jaffray Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
24. Oppenhiemer & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
25. RBC Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
26. Nomura Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
27. Royal Bank of Scotland Group plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173
28. Chase Commercial Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178
29. Dresdner Kleinwort* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182
30. BNP Paribas SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186
31. Thomas Weisel Partners Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190
32. Deloitte Corporate Finance LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195
33. Canadian Imperial Bank of Commerce (Wholesale Banking Division) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198
34. Centerview Partners LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203
35. Keefe, Bruyette & Woods, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209
36. Robert W. Baird & Co. (Baird) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
37. Broadpoint Gleacher Securities Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
38. William Blair & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222
39. The Bank of New York Mellon Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228
40. Cowen and Company, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .233
41. Citi Consumer Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238
*Folded into Commerzbank AG's corporates and markets division on September 1, 2009; the Dresdner Kleinwort name was dropped
viii © 2009 Vault.com Inc.

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42. Brown Brothers Harriman & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244
43. Raymond James Financial, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248
44. Sandler O'Neill + Partners, L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
45. Peter J. Solomon Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .258
46. KPMG Corporate Finance LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
47. U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .266
48. BMO Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270
49. Morgan Keegan & Co., Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .275
50. BB&T Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .279
THE BEST OF THE REST 285

Bank Leumi USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286
The Bank of Nova Scotia (Scotiabank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289
Calyon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .294
Canaccord Adams Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .298
Caris & Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301
Cascadia Capital LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .304
Comerica Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .307
Duff & Phelps Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .311
FBR Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .316
Fifth Third Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .321
First Horizon National Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .325
FOCUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329
Fox-Pitt Kelton Cochran Caronia Waller (USA) LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .332
JMP Securities LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .335
KeyCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .338
Leerink Swann LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342
Lloyds Banking Group PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345
M&T Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .349
McGladrey Capital Markets LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .354
PNC Financial Services Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .360
Stephens Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .366
Stifel Financial Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .370
SunTrust Banks, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .373
Susquehanna International Group, LLP (SIG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .380
TD Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .384
ThinkEquity LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389
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career message boards, expert resume reviews, the Vault Job Board and more. ix
Table of Contents
Union Bank, N.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392
Webster Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .395
WR Hambrecht + Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .399
ABOUT THE EDITOR 404
x © 2009 Vault.com Inc.

A Guide to this Guide
All of our profiles follow the same basic format. Here’s a guide to each entry.
FIRM FACTS
Departments: The firm’s major divisions.
The Stats: Basic information about the firm, usually information that’s available to the general public. This includes the firm’s 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), 2008 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 firm’s 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. We’ve supplied
as much information as possible, including names, titles, mailing addresses, phone or fax numbers, email addresses and websites. 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 website.
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.
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 company’s history, a description of the business, recent clients or deals and other significant developments.
Getting Hired: An overview of the company’s 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.
1
OVERVIEW OF THE BANKING
INDUSTRY The Vault Guide to the Top 50 Banking Employers, 2010 Edition
4 © 2009 Vault.com Inc.
What’s What Industry Overviews
What’s 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 investors—either public or private—to 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 investors—those 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.
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 market—often 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.
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 folks—buyers of stocks and bonds—to 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 don’t command the eye-popping salaries and prestige that investment bankers receive.

career message boards, expert resume reviews, the Vault Job Board and more. 5
What’s What Industry Overviews
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 borrower’s subsequent
business decline can damage a commercial bank’s bottom line, a stock that plummets after an offering has no effect on the investment bank that
managed its IPO.
We’ll 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).
Deregulation—especially the Financial Services Modernization Act of 1999—and 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 bank’s
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 forms—standard 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.
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 percent—if anything—on 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).

The State of the Industry
THE STATE OF THE INDUSTRY

The age of the bailout
When the world of finance was rocked by billion-dollar write-downs, mass layoffs, declarations of bankruptcy, rumors of nationalization of the world’s
biggest banks and grim-faced government officials unveiling plans to bail out financial institutions, experts from New York to Tokyo turned to each
another and asked, “What just happened?”
We’ll be parsing the events of 2007, 2008 and 2009 for decades to come; the scope of the crisis fallout—and blame—is still being assessed. For now,
we know that the banking landscape has been permanently changed. In a nutshell, here’s what happened.
The U.S. housing market, which had risen steadily through 1990s, finally began to slow down. At the same time, mortgage lenders were making
increasingly risky loans—approving mortgages for “subprime” customers who were at high risk of defaulting. (Later, the world heard horror stories
about unemployed people being approved for expensive home loans, despite having no real proof of income.) Meanwhile, banks had figured out ways
to securitize home loans and the risks involved with them, packaging and slicing these new securities into arcane derivatives. These derivatives wound
their way through the world’s financial system, piling up in banks’ balance sheets. This created a ticking time bomb: as people began defaulting on
their mortgage payments, these assets’ values evaporated, leading to massive write-downs and losses.
In fall 2008, the world’s investment banks were in a state of panic, fearing for their own—and others’—safety. Things that looked like assets on paper
proved worthless. Because of the way credit risk was spread through the system, banks began freezing lines of credit to other banks and consumers:
no one knew for sure who was liquid and who was on the verge of collapse. The credit crunch slammed the brakes on an already-slowing economy,
and banks, mortgage lenders, insurers and public companies scrambled to avoid bankruptcy. Some were successful; some were not.
It’s unsurprising, then, that banking revenue has been less than stellar lately. Banks’ earnings soared through 2005, 2006 and the first half of 2007.
Then came the downswing. According to Dealogic, in the first quarter of 2009, global investment banking revenue was $9.2 billion, down from $15.4
billion in first quarter 2008, and far from the peak of $26 billion in the second quarter of 2007.
Because the U.S. and Europe were hardest-hit by the global recession, Asia (and, to an extent, the Middle East and Africa) has risen in relative
importance and fee income. Some banks have begun shifting resources to the East, where private equity and a reasonably stable financial system
have relatively kept deals flowing.
Giants fall
Perhaps the most lasting legacy of the financial crisis will be its impact on banking’s biggest players. Bear Stearns was the first to collapse, and the
U.S. government helped engineer a sale of Bear to JPMorgan Chase in March 2008. Lehman Brothers toppled into bankruptcy in September 2008
and was sold in pieces to Nomura Securities, which now owns its European and Asia Pacific businesses, and to Barclays, which owns its North
American operations. (The U.S. government’s refusal to step in for Lehman, as it had for Bear, remains a source of anger and bewilderment for its
former employees.) Also during September 2008, after 94 years in business as an independent investment bank, Merrill Lynch (part of the so-called
bulge bracket) admitted defeat and agreed to be sold to Bank of America.
That left Goldman Sachs and Morgan Stanley as the last independent bulge bracket banks on Wall Street. But even they succumbed. In late
September 2008, both banks received permission from U.S. regulators to convert themselves into bank holding companies, a restructuring move that
allowed them to receive government assistance—but also left them bound by strict regulations and rules regarding leverage and risk-taking.
This raised an important point: in the U.S. (and in the U.K.), banks that took government assistance (“bailout funds”) faced the imposition of new
operating requirements. In other words, the government poured billions into its banks and thus wanted a say in how they’re run, especially in light of
the fact that many industry observers blamed loosely regulated derivatives trading for fueling the crisis.
Will banks—or the banks that acquired them—ever go back to their unfettered ways? Perhaps. In some cases, banks will be able to win back some
freedom if they can repay their bailout allotments (many of them have already repaid). But the bottom line is the days of high-flying, overleveraged
risk-taking are over, at least in the near term. International and local regulators, politicians and taxpayers are watching banks like hawks, keeping an
eye on everything from executive compensation to the state of their balance sheets.
Commercial consolidation
In the wake of subprime crisis, two huge commercial banking firms were swallowed by even larger firms. In September 2008, not long after the fall
and purchase of Bear Stearns, another bank’s failure resulted in a major acquisition for JPMorgan Chase. When Washington Mutual Bank, the
country’s biggest savings and loan, collapsed in spectacular fashion—it was shut down by the Office of Thrift Supervision, placed into FDIC receivership
and awarded the dubious title of “largest American bank failure”—JPMorgan Chase was there to pick up the debris, acquiring WaMu’s 2,200 branches
and its $135 billion in deposits for $1.836 billion. Of course, an acquisition of that size meant there would be significant job cuts due to overlap. In

total, JPMorgan said it would slash 12,000 positions as part of its integration of Washington Mutual. WaMu branches, which reopened for business
upon completion of the acquisition, are undergoing a rebranding process slated to be complete by the end of 2009.
Also in the third quarter 2008, Wells Fargo agreed to acquire North Carolina-based Wachovia Corporation for about $15 billion, creating the fourth-
largest bank in assets in the U.S. and the largest retail branch banking network in the country. The marriage didn’t exactly take place with everyone
holding their peace.
Originally, Citigroup had won Wachovia’s hand, striking a deal to acquire Wachovia’s banking operations—but not its brokerage and asset management
units. The Wells Fargo deal, however, covered all of Wachovia and thus was considered to be the better one for Wachovia’s shareholders (the per-
share price of that deal was much higher). Unsurprisingly, Citi wasn’t pleased and contested the Wells Fargo transaction, filing a lawsuit seeking $20
billion in compensation and $40 billion in punitive damages for interfering in its deal. A session of legal wrangling followed, including a bid by Citigroup
to prevent the merger. Though Citigroup soon dropped the legal challenge that would have prohibited Wells Fargo from acquiring Wachovia, it still
plans on seeking nearly $60 billion worth in damages. Meanwhile, the Wells Fargo-Wachovia merger became official on December 31, 2008.
The old-fashioned merger

In June 2009, Morgan Stanley combined its global wealth management group with three Citigroup businesses: U.K.-based Quilter, Smith Barney
Australia and Citi Smith Barney. Operating under the name Morgan Stanley Smith Barney, the joint venture is comprised of 18,500 financial advisors
in 1,000 offices worldwide, with more than $1.3 trillion in client assets. In effect, Citi sold a 51 percent majority stake in the joint venture to Morgan
Stanley for $2.7 billion. Upon the closing of the deal, it was reported that Morgan Stanley was expected to acquire full control in various phases over
the next five years. Currently, Morgan Stanley Co-President James Gorman serves as chairman of the new company.
Enjoy the TARP

In October 2008, several of the largest banking firms in the country were given capital to strengthen their balance sheets under the U.S. government’s
highly publicized (and highly scrutinized) Troubled Asset Relief Program, commonly referred to as TARP. Recipients of TARP funds included Citigroup
($45 billion), Bank of America ($45 billion), Goldman Sachs ($10 billion), Morgan Stanley ($10 billion), JPMorgan Chase ($25 billion), Wells Fargo
($25 billion), SunTrust ($3.5 billion) and the Bank of New York Mellon ($3 billion), among many others. In all, about 70 firms took TARP funds (in
addition to banking firms, insurance giant American International group, automakers Chrysler and GM, and auto finance companies Chrysler Financial
and GMAC received significant funds under the program).
In April 2009, four banks (Signature Bank, Old National Bancorp, Iberiabank and Bank of Marin Bancorp) became the first wave to begin repaying
money borrowed under TARP. In June 2009, Goldman Sachs, Morgan Stanley, JPMorgan Chase and seven other lucky firms were also given the green
light to repay a collective $68.3 billion borrowed under the U.S. government’s Troubled Asset Relief Program. Two months later, Bank of America said
it would soon begin paying back some of its TARP money. And in September 2009, Wells Fargo indicated it wouldn’t be long until it repaid its TARP
funds, adding that since it was in such solid financial shape, it wouldn’t have to issue additional equity to do so (like a few other banks were forced to
do).
Failure to repay bailout money could have serious consequences for U.S. banks such as Citi and Bank of America, which both don’t have any plans
to fully pay off their Uncle Sam debt any time soon. President Barack Obama has called for a $500,000 cap on salaries and bonuses for bailed-out
banks’ executives, and suggested that firm “excesses” (like private jets and corporate sponsorships) should be posted online for taxpayers to see.
Losses, layoffs, clawbacks and pay czars

Losses and write-offs led to layoffs, bonus cuts and pay freezes at many top banks in 2008 and 2009. For the full-year 2008, the financial services
sector cut over 225,000 jobs worldwide. Banks took severe hits to headcount, with cuts coming from virtually all of the biggest firms, including
Goldman Sachs, Morgan Stanley, UBS, Credit Suisse and Bank of America Merrill Lynch, among others.
Jobs will likely recover before salaries do, and it may be some time before bankers can count on receiving the colossal paychecks and bonuses to
which they were accustomed. Most bankers in finished 2008 with a wary “wait and see” approach about their compensation. Uncertainty about base
salary raises and bonus payouts made it difficult for many people to predict what they’d be making in a year, let alone in a few years (unlike the old
days, when promotions and raises were fairly locked in). And at the uppermost levels of the boardroom, CEOs have come under increased pressure
from lawmakers to cut compensation for the highest-paid executives, and to bring bonuses in line with profits.
Many CEOs have already responded to the pressure. Citi’s Vikram Pandit famously announced in February 2009 that he would forego a bonus and
only make a $1 annual salary until his firm starts making money again (the announcement came after Pandit took home a total of $10.8 million in
2008). Morgan Stanley CEO John Mack also decided not to take home a bonus (for 2008) and implemented a firmwide bonus “clawback” provision—
starting in 2009, all Morgan Stanley senior executives became subject to a performance-linked compensation plan tying their payouts to the firm’s
return on equity, total shareholder return and the firm’s return on equity relative to other banks. Citi, Morgan Stanley and other firms, including UBS
and Credit Suisse, also increased salaries while decreasing bonuses, giving appearances, at least, that they were decreasing incentive compensation,
which had come under fire for increasing risk-taking.

In June 2009, a few months after President Obama announced his salary cap, he appointed a “pay czar” to oversee executive compensation for firms
that took money from the U.S. Obama gave Washington, D.C., lawyer Kenneth Feinberg the power to establish pay for 175 executives working at
seven of the country’s biggest companies—AIG, Citi, Chrysler, Chrysler Financial, GM, GMAC and Bank of America—which all received billions of TARP
dollars. In his role as pay czar, Feinberg will determine both base pay and bonuses for top executives at the companies. Feinberg, who reports to
Treasury Secretary Timothy Geithner but is said to have nearly complete autonomy, also has the power to activate clawback provisions, meaning he
can reclaim compensation that’s already been given to executives (this extends to all TARP firms, even those that have repaid their funds.) Feinberg
is expected to rule on executive compensation proposals and guidelines by the end of October 2009.
Before becoming pay czar for the Obama administration, Feinberg worked as a lawyer, founding his own firm, The Feinberg Group, in 1993. He has
been involved in a number of high-profile cases over the years, including asbestos-damage lawsuits and the Virginia Tech massacre lawsuit in 2007.
Perhaps his most well-known case, however, was working pro bono as the head of the September 11th Victim Compensation Fund, where he decided
benefits and assigned financial values to the lives of victims of the attack. He consequently wrote the book What Is Life Worth? as a narration of his
work in the case.
While Feinberg began to review executives’ paychecks, there were signs that the mass banking firings had turned into hiring, at least at a few firms.
In May 2009, Barclays Capital announced that it would hire hundreds of new bankers by the end of the year (as BarCap reshuffled people to
accommodate its purchase of Lehman in North America, positions opened up). And in August 2009, Morgan Stanley announced it would hire about
400 traders and bankers, on the heels of its main competitor, Goldman Sachs, having an extraordinary quarter. (Goldman booked $3.44 billion in net
income for second quarter 2009, up from $2.09 billion in the same period of the previous year. The rise was largely due to the bank’s fixed income,
currency and commodities trading division, which increased net revenue by more than 50 percent to $6.8 billion.)
Big banks, small banks

In recent years, several “boutique” investment banks—small, independent firms—have been on the rise, in some cases challenging their larger
competitors for deals and, more recently, for talent. Among the preeminent boutiques today are Greenhill & Co., Evercore Partners, Moelis & Company,
Perella Weinburg Partners and Centerview Partners; each have between 125 and 300 employees—and none have been around for that long.
In 1996, former Morgan Stanley President Bob Greenhill started his eponymous firm; in the same year, two former Blackstone insiders partnered to
create a bank called Evercore. Ten years later, in 2006, an ex-Goldman insider and former Morgan Stanley banker got together to hatch Perella
Weinberg; Centerview was born the same year when veterans of Morgan, Wasserstein Perella and UBS joined forces. Moelis & Company, the infant
in the advisory game at 14 months old, takes its name from another former UBS dealmaker, Ken Moelis, whose resume contains some of the highest-
profile firms of investment banking’s yesteryear: Drexel Burnham Lambert and DLJ (Donaldson Lufkin & Jenrette). More recently, Moelis transformed
a second-rate UBS into a global M&A player.
For most boutiques, the selling point is simple: world-class service (their founders and top executives are often refugees from bigger banks) with a
personal touch. Clients who worry about getting lost in the shuffle at, say, J.P. Morgan may turn to a boutique for personalized advisory and a guarantee
of independence—boutiques that focus solely on advisory services are less likely to run into conflicts of interest with research and sales departments.
Since they lack the trading floors and vast securities portfolios of their mega-rivals, boutiques have been largely untouched in the financial crisis. If
anything, they’ve been able to pick up business, presenting themselves as a safer alternative to banks that are being kept alive by taxpayer funds. And
for experienced bankers, they’ve been desirable places to land to avoid the prospect of increased government regulation—specifically, salary capping.
In the first half of 2009, Moelis & Company, which now ranks among the top 15 M&A advisors in the U.S., mined senior bankers from Merrill, Citi,
UBS, Morgan Stanley and the firm formerly known as Bear Stearns. Evercore Partners, another top M&A advisor, recently picked up senior-level
personnel from Bank of America as well as UBS. And Centerview Partners—which ranked No. 13 worldwide in M&A advisory work in 2008,
pummeling Evercore and Moelis in total deal volume—picked up three high-ranking ex-Merrill bankers in one month in early 2009.
In 2008, Greenhill hired bankers away from Morgan Stanley, J.P. Morgan and UBS Investment Bank, bringing in a total of 14 bankers, each with more
than 20 years of experience. Greenhill’s co-CEO Scott Bok ended a recent press releases announcing the hiring of two ex-UBS executive by bragging
that the “flow of talented bankers from the historic bulge bracket investment banks to Greenhill continues.” The flow Bok speaks of also continued to
several other firms, including Perella Weinberg Partners, Houlihan Lokey, Jefferies, Piper Jaffray and Sander O’Neill—as well as to brand new firms.
In one of the most significant ground breakings of 2009, Robert Morse, the ex-chief executive of Citigroup’s Asia investment banking business, raised
$1 billion to start to his own Hong Kong-headquartered bank called Primus Financial Holdings. Morse, who’s partnering with two other ex-Citi bankers,
plans to focus on the Asia market but will also do business in Europe and the U.S., likely making acquisitions of divisions of established firms along
the way.
In an interview with Reuters, Morse cited the trend of executives moving from big firms to smaller ones as a reason for Primus’ founding, saying that
“a lot” of bankers have become “unsatisfied with where their institutions are or where their jobs are going … so the availability of talent is very high.”
Morse also pointed out that the big Citi and other large banks aren’t exactly afraid of small firms like Primus making too large of a dent in its business.

Bankers vs. traders

Investment banks have long contained two cultures: traders and corporate finance advisers. It was the latter who traditionally became firms’ chief
executives and chairmen. The lines have blurred, however, as former traders have risen in prominence at their respective firms. (Some corporate
financiers have responded by heading out on their own to start boutique advisory firms.) Among the traders who worked their way to the top: Goldman
Sachs CEO Lloyd Blankfein, a former commodities trader; Huw Jenkins, who led UBS until stepping down in 2007 after massive losses at the
investment bank; and Oswald Grubel, a former floor trader who served as CEO of Credit Suisse until taking over for Jenkins at UBS.
Speaking of losses, traditional trading at investment banks consisted of dealing in equities, bonds and basic financial derivatives for currency and
interest rate products. That changed when banks began inventing new kinds of derivatives, an effort to wring more return from, well, just about
anything. New types of derivatives allow banks to trade contracts based on future energy prices, complicated bundles of currency prices, even the
odds of another company defaulting on its debt.
What’s more, investment banks and brokerage firms used to act only as agents: they bought and sold securities on behalf of their clients. Now they’re
just as likely to be principals in trades, using firm assets to make their own bets. When they get it right, traders have reaped big rewards for their
employers. When they get it wrong, as the world discovered in 2007 and 2008, the losses can be devastating.
Compounding these issues is the fact that trading activity has increased as a proportion of investment banking revenue, and brokerage services have
expanded at many banks. The growth of hedge funds drove banks to build prime brokerage units, which offer dedicated financing, securities lending,
clearing, custody and advisory services to major investors and hedge funds (though the hedge fund industry took a sever hit in 2008, it was back on
track by mid-2009 as many of the major hedge funds showed solid earnings for the first six months of the year).
M&A boom and bust

Mergers and acquisitions advisory was, for most of the late 1990s and early 2000s, a leading source of revenue for the global investment banking
industry. In 2000, the world’s volume of M&A activity totaled almost $3.5 trillion; business dipped in 2001, and in 2002, deal volume was down to
$1.2 trillion worldwide.
Things picked up in 2004 as a strong global economy, low interest rates and thriving stock prices raised confidence and spurred dealmaking. Global
M&A activity was up to $2.7 trillion by 2005, and deals kept going through 2006, peaking in mid-2007.
A notable feature of the mid-2000s M&A boom was the major part played by financial purchasers, including some multibillion-dollar deals. Private
equity groups, which were raising ever-larger funds, were buyers on an unprecedented scale. Some of the major investment banks played a significant
role in this development. Management buyouts were also a thriving contributor.
The global recession that nearly destroyed banks in 2008 took a big toll on mergers and acquisitions. Without access to cheap, plentiful credit, potential
buyers were less likely to buy. Embattled companies made less-attractive targets. And in a climate of no confidence, few CEOs wanted to take on any
unnecessary risk. As a result, banks’ M&A revenue dwindled. The top of the league tables, though, looked much the same as they did in years past.
According to Thomson Reuters, Goldman Sachs was the top worldwide merger and acquisition advisory for 2008, working on announced deals worth
$831.5 billion (down nearly 30 percent versus 2007), while J.P. Morgan and Citi took the second and third spots on the table, respectively. Goldman
also snagged the No. 1 spot for U.S. announced M&A deals, working on announced deals worth a total of $572.7 billion (down 38 percent versus
2007), while Citi took the No. 2 spot on the table and J.P. Morgan placed third.
The New Year didn’t bring much luck when it came to increasing combinations and purchases. For the first six months of 2009, M&A deal volume
fell by 35 percent versus the same period a year earlier to $1.14 trillion, the lowest six-month output in five years. Goldman stayed atop Thomson
Reuters’ worldwide announced M&A table halfway through the year, but Morgan Stanley ranked No. 1 in announced U.S. M&A for the six months
ending June 2009, with Goldman placing second.
Mergers and acquisitions groups weren’t the only ones to feel the pinch of the recession in early 2009. Equity capital markets units also had a slow
six months as global equity underwriting volume fell 17.4 percent in the first six months of 2009 versus the same period a year earlier. Only 117 IPOs
worth a total of $13 billion were underwritten worldwide in the first two quarters of 2009, versus 129 worth $70 billion in the same period in 2008.
According to Thomson Reuters, J.P. Morgan worked on more equity deals (by volume) than any other bank, underwriting 175 deals worth a total of
$53.5 billion. Goldman Sachs and Morgan Stanley were the second and third most active equity underwriters, respectively.
Global debt issuance fared a lot better than M&A and equity deals, as worldwide fixed-income underwriting volume increased 11 percent in the first
six months of 2009 versus the same period in 2008. J.P. Morgan was the most active debt underwriter, working on 695 deals worth a total of $318
billion. Barclays Capital and Bank of American Merrill Lynch were the second and third most active underwriters, respectively.

PRESTIGE
RANKINGS The Vault Guide to the Top 50 Banking Employers, 2010 Edition
The Vault Prestige Rankings
THE RANKING METHODOLOGY

The Vault Guide to the Top 50 Banking Employers rates 79 firms with significant commercial banking or investment banking operations in North
America. We chose these 79 firms based on previous Vault surveys that gauged opinions of industry insiders, as well as on various factual data,
including annual revenue and number of employees.
The firms we identified were all asked to distribute Vault’s 2009 Banking Survey to their banking professionals. The online survey consisted of questions
about life at the professionals’ firm or former firm, along with a prestige rating. Survey participants were asked to comment on qualifications the firm
looks for in new employees, specific tips on getting hired, questions asked during the interview process, firm culture, hours worked, relations with
managers, compensation, diversity, training and more.
Participants were also asked to rate companies with which they were familiar on a scale of 1 to 10, with 10 being the most prestigious. Participants
were not allowed to rate their own employer. Vault averaged the prestige scores for each firm and ranked them in order.
Seventeen companies—Centerview Partners, Citi Consumer Banking, Citi Institutional Clients Group, Cowen and Company, Credit Suisse, Duff &
Phelps, Goldman Sachs, Houlihan Lokey, J.P. Morgan Investment Bank, Jefferies, Moelis & Company, RBC Capital Markets, Robert W. Baird & Co.
(Baird), SunTrust Banks, TD Securities, UBS Investment Bank and William Blair—agreed to distribute the survey. All surveys were completely
anonymous. For those companies that opted not to distribute the survey, Vault sought contacts at the firm to take the survey through other proprietary
sources. Those professionals took the same survey as the employees at firms that participated.
A total of 624 banking professionals filled out Vault's 2009 Banking from February 2009 through April 2009. Vault averaged the prestige scores for
each firm and ranked them in order, with the highest average score belonging to our No. 1 firm, Goldman Sachs. With a score of 8.519, the New York-
based firm retained the top spot, beating out The Blackstone Group, which retained the No. 2 spot, scoring 8.158. Morgan Stanley again ranked No.
3, with a score of 7.696, while J.P. Morgan Investment Bank jumped a spot to No. 4 (7.613) and Lazard moved up two places to No. 5 (7.382).
Beyond the top five, many firms took big leaps in the rankings. Moelis & Company soared 29 places from No. 42 last year to No. 13 this year, Nomura
went from not cracking the top 50 a year ago to landing at No. 26 and Evercore Partners leaped 17 places to No. 8. In addition, two other firms made
double-digit jumps: Perella Weinberg Partners and Oppenheimer & Co. both rose 11 notches; Perella Weinberg took the No. 12 spot, and Oppenheimer
ranked No. 24.

TOP 50
BANKING
EMPLOYERS
THE VAULT 50
[MOST PRESTIGIOUS BANKING EMPLOYERS] • 2010
RANK FIRM SCORE 2009 RANK HQ/LARGEST OFFICE
1 Goldman Sachs Group, Inc. 8.5190 1 New York, NY
2 The Blackstone Group L.P. 8.1579 2 New York, NY
3 Morgan Stanley 7.6960 3 New York, NY
4 J.P. Morgan Investment Bank 7.6134 5 New York, NY
5 Lazard Ltd. 7.3816 7 New York, NY
6 Greenhill & Co., Inc. 7.1833 13 New York, NY
7 Credit Suisse* 6.8684 8 New York, NY
8 Evercore Partners 6.7515 25 New York, NY
9 Deutsche Bank AG 6.5134 9 New York, NY
10 Rothschild 6.2617 15 New York, NY
11 Barclays Capital 6.1165 14 New York, NY
12 Perella Weinberg Partners 5.9014 23 New York, NY
13 Moelis & Company 5.8947 42 New York, NY
14 UBS Investment Bank 5.8036 10 New York, NY
15 Houlihan Lokey 5.6166 21 New York, NY
16 Jefferies & Company, Inc. 5.5749 24 New York, NY
17 Citi Institutional Clients Group 5.3992 11 New York, NY
18 HSBC North America Holdings Inc. 5.3642 20 New York, NY
19 Wells Fargo & Company 5.2768 28 San Francisco, CA
20 Allen & Company LLC 5.2563 34 New York, NY
21 Bank of America Corporation 5.0395 17 Charlotte, NC
22 Macquarie Group (U.S.) 4.8952 36 New York, NY
23 Piper Jaffray Companies 4.7764 27 Minneapolis, MN
24 Oppenhiemer & Co. 4.7442 35 New York, NY
25 RBC Capital Markets 4.6319 30 New York, NY
*Credit Suisse's Investment Banking Business

RANK FIRM SCORE 2009 RANK HQ/LARGEST OFFICE
26 Nomura Holdings, Inc. 4.6311 BofR New York, NY
27 Royal Bank of Scotland Group plc 4.5986 22 New York, NY
28 Chase Commercial Bank 4.5484 12 New York, NY
29 Dresdner Kleinwort† 4.5403 29 New York, NY
30 BNP Paribas SA 4.4667 33 New York, NY
31 Thomas Weisel Partners Group, Inc. 4.4184 31 San Francisco, CA
32 Deloitte Corporate Finance LLC 4.4138 26 New York, NY
33 Canadian Imperial Bank of Commerce** 4.4124 38 Toronto, Ontario
34 Centerview Partners LLC 4.4123 NR New York, NY
35 Keefe, Bruyette & Woods, Inc. 4.3475 43 New York, NY
36 Robert W. Baird & Co. (Baird) 4.3158 40 Milwaukee,
37 Broadpoint Gleacher Securities 4.2936 41 New York, NY
38 William Blair & Company 4.2462 39 Chicago, IL
39 The Bank of New York Mellon Corp. 4.1983 32 New York, NY
40 Cowen and Company, LLC 4.1473 48 New York, NY
41 Citi Consumer Banking 4.1188 19 New York, NY
42 Brown Brothers Harriman & Co. 4.0145 50 New York, NY
43 Raymond James Financial, Inc. 4.0141 46 St. Petersburg, FL
44 Sandler O'Neill + Partners, L.P. 3.9808 BofR New York, NY
45 Peter J. Solomon Company 3.9541 BofR New York, NY
46 KPMG Corporate Finance LLC 3.9500 37 New York, NY
47 U.S. Bancorp 3.9279 45 Minneapolis, MN
48 BMO Capital Markets 3.7811 BofR Toronto, Ontario
49 Morgan Keegan & Co., Inc. 3.7805 BofR Memphis, TN
50 BB&T Corporation 3.7159 BofR Winston-Salem, NC

†Folded into Commerzbank AG's corporates and markets division on September 1, 2009; the Dresdner Kleinwort name was dropped
**Canadian Imperial Bank of Commerce (Wholesale Banking Division)
15
QUALITY OF LIFE
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 1 being the lowest and 10 the highest, respondents evaluated their firms in the following “quality of life” and “diversity” categories: overall
satisfaction, selectivity, compensation, hours, treatment by managers, training, offices, culture, business outlook, green initiatives, diversity with respect
to women, diversity with respect to ethnic minorities, and diversity with respect to gays and lesbians.
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.

THE BEST 15 FIRMS 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 15 Firms to Work For,
we used a formula that weighed the most relevant categories for an overall quality of life ranking. Each firm's overall score was calculated using the
following formula:
*50 percent overall satisfaction

*10 percent hours
*10 percent compensation
*10 percent treatment by managers
*10 percent diversity (women, minorities and GLBT)
*10 percent training
Like our Top 50 prestige rankings, our Best 15 Firms to Work For is meant to reflect the subjective opinion of insiders. By its nature, the list is based
on the perceptions of insiders, some of whom may be biased in favor (or against) their firm.
RANK FIRM SCORE

1 Centerview Partners 9.100
2 Goldman Sachs 8.893
3 Houlihan Lokey 8.750
4 J.P. Morgan Investment Bank 8.463
5 Robert W. Baird & Co. (Baird) 7.925
6 Credit Suisse 7.905
7 RBC Capital Markets 7.878
8 Cowen and Company 7.825
9 Citi Institutional Clients Group 7.794
10 Jefferies 7.722
11 William Blair 7.544
12 Moelis & Company 7.441
13 SunTrust Banks 7.395
14 TD Securities 7.289
15 Citi Consumer Banking 7.230

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

10 Jefferies 8.200
15 Duff & Phelps 7.625

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 FIRM SCORE

13 UBS Investment Bank 8.029
14 Jefferies 7.958

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 FIRM SCORE

11 Jefferies 6.583

Hours
On a scale of 1 to 10, where 1 is not at all satisfied and 10 is extremely satisfied, please rank your satisfaction with the number of hours you work:
RANK FIRM SCORE

13 Jefferies 6.225

Treatment by 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 FIRM SCORE

9 Jefferies 8.280

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

13 Jefferies 6.620

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 FIRM SCORE

9 Jefferies 7.956

Business Outlook
On a scale of 1 to 10, where 1 means extremely poor and 10 means excellent, how would you rank your firm's overall business outlook?
RANK FIRM SCORE

7 Jefferies 7.469

Culture
On a scale of 1 to 10, where 1 is extremely poor and 10 is excellent, how would you rate your firm's culture?
RANK FIRM SCORE

6 Jefferies 8.620

Green Initiatives
On a scale of 1 to 10, where 1 is not at all committed and 10 is extremely committed, how dedicated is your firm to pursuing environmentally
sustainable ("green") business practices?
RANK FIRM SCORE

8 Jefferies 6.818

DIVERSITY
The Vault Diversity Rankings
Best 15 For Diversity

Insiders were asked to rate their firm’s commitment to diversity with respect to women, with respect to minorities, and with respect to gays and lesbians.
To determine our Best 15 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 FIRM SCORE

13 Jefferies 7.177

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 FIRM SCORE

13 Jefferies 7.477

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 FIRM SCORE

12 Jefferies 7.178

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 FIRM SCORE

11(TIE) Jefferies 6.875
11(TIE) Cowen and Company 6.875

THE VAULT 50
FIRMS The Vault Guide to the Top 50 Banking Employers, 2010 Edition
PRESTIGE
RANKING
1 GOLDMAN SACHS GROUP, INC.
85 Broad Street RANKING RECAP

New York, NY 10004
Phone: (212) 902-1000 Quality of Life
Fax: (212) 902-3000 #1 – Culture
www.gs.com #1 – Training
#1 – Treatment by Managers
#2 – Best to Work For
BUSINESSES #2 – Green Initiatives
#2 – Overall Satisfaction
Asset Management & Securities Services • Investment
#3 – Selectivity
Banking • Trading & Principal Investments
#4 – Business Outlook
#4 – Compensation
THE STATS #7 – Hours
#14 – Offices
Employer Type: Public Company Diversity
Ticker Symbol: GS (NYSE) #1 – Best for Diversity
Chief Executive: Lloyd C. Blankfein #1 – Diversity with Respect to Gays and Lesbians
2008 Revenue: $53.58 billion #1 – Diversity with Respect to Minorities
2008 Net Income: $2.32 billion #1 – Diversity with Respect to Women
No. of Employees: 27,898
No. of Offices: 62
UPPERS
KEY COMPETITORS • “Commitment to being No. 1”
• “Opportunities to be seen and heard by senior leaders”
Barclays Capital • “The people”
J.P. Morgan
Morgan Stanley
DOWNERS
• “Fast-paced and stressful environment—”pressure to be a
top performer”
• “Long hours”
• “Layoffs, cuts in compensation, attacks from the press and
government”
EMPLOYMENT CONTACT
“Careers” at www.gs.com
THE BUZZ
What insiders at other firms are saying
• “Still the best”
• “Snobby; insane hours”
• “The gold standard of investment banking, but a dented
gold standard”
• “Remains the most prestigious, but be careful about being
a small fish in a big pond”

Goldman Sachs Group, Inc.
THE SCOOP
First among many
Goldman Sachs provides investment banking, securities and investment management services to a substantial and diversified client base that includes
corporations, financial institutions, governments and high-net-worth individuals. Widely considered the most prestigious name in investment banking
activities, Goldman is headquartered in New York, and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers
around the world. It employs nearly 28,000 people worldwide.
Business at Goldman Sachs is divided into three departments: asset management and securities, investment banking, and trading and principal
investments (encompassing the equities, principal investments and fixed income, currency and commodities businesses).
Founded in 1869, the venerable Goldman Sachs has a slew of “firsts” to its credit. Goldman played a major role in establishing the IPO markets in
the early 1900s; five decades later, it was the first firm to focus on the institutional sales market. It was also the first investment bank to create a
dedicated mergers and acquisitions group, negotiate a trade on the New York Stock Exchange and use emerging computer technology to distribute its
research reports electronically.
The firm opened its first international office in London in 1970. In 1986, it became the first American bank to rank in the top-10 in M&A volume in
the U.K. In 1994, Goldman opened an office in Beijing, and in 1996, it was the lead underwriter of the Yahoo! initial public offering.
Goldman entered a new era when it went public in 1999. A second major change came in 2006 when Lloyd C. Blankfein replaced Henry Paulson at
the firm’s top post. Paulson, a longtime Goldman leader, left the bank to become Secretary of the U.S. Treasury.
Another big shift occurred in fall 2008. After witnessing the sudden bankruptcy of Lehman Brothers and Merrill Lynch’s acquisition by Bank of
America, Goldman Sachs and Morgan Stanley—the last two large independent investment banks still standing—decided to take matters into their own
hands. In the midst of Congress endeavoring to pass a $700 billion rescue package for big Wall Street players, Goldman and Morgan both requested
to become bank holding companies. The requests were granted by the Federal Reserve on September 21, 2008, and since, the firms could operate
with the backing of bank deposits instead of having to rely on high-risk forms of financing (as of August 31, 2008, Goldman Sachs already had $20
billion in retail deposits).
As bank holding companies—like commercial banking behemoths Citi, BofA and JPMorgan Chase—Goldman and Morgan Stanley will now be closely
regulated by several federal supervising organizations, and not only overseen by the Securities and Exchange Commission. The holding company status
also means Goldman and Morgan will have to lower the amount they borrow versus their capital, resulting in financially safer institutions with limited
upside potential with respect to profits.
Goldman sacks
Like many of its competitors, Goldman Sachs made headlines throughout 2008—in January, March, June and October—when it announced significant
staff cuts from its global workforce, further succumbing to the worst financial crisis in decades. The first round of major cuts occurred in January 2008,
when the firm let go the “underperforming” 5 percent of its 31,500-strong workforce (globally). In October, Goldman moved to cut 10 percent of its
global workforce, representing about 3,260 jobs. Then in December 2008, a further 250 Europe-based staff cuts were announced. The firm said
most (about 220) would occur in London, representing 4 percent of what was then the firm’s European staff of 5,500. In February 2009, Goldman
announced it would cut a further 10 percent of its staff, in addition to the 10 percent it cut at the end of 2008.
IN THE NEWS
July 2009: A golden sign?

Far surpassing analysts’ predictions, Goldman Sachs posted income of $3.44 billion for the second quarter, up from $2.09 billion in the same period
of the previous year. The firm’s net revenue also rose significantly, growing 46 percent to $13.76 billion. Goldman’s fixed income, currency and
commodities trading division was largely to thank for the boost—the unit’s revenue increased more than 50 percent to $6.8 billion.
July 2009: Ex-insider accused of stealing secrets

Goldman Sachs’ ex-programmer Sergey Aleynikov was arrested by the FBI and accused with “theft of trade secrets.” Aleynikov—who worked for
Goldman from 2007 until June 2009, helping the firm improve its computer platform—was charged with misuse of Goldman’s proprietary computer
codes. During a court appearance held on July 4th, Assistant U.S. Attorney Joseph Facciponti said that Aleynikov’s alleged thievery of secrets creates
a threat for U.S. markets. However, Aleynikov’s lawyer Sabrina Shroff said Aleynikov didn’t attempt to sell the secrets or utilize it “contrary to my
employment agreement with Goldman Sachs.” Aleynikov was released after posting a $750,000 bail.

June 2009: Payback time

Goldman Sachs received permission to repurchase 10 million shares the U.S. Treasury bought from the company under its Troubled Asset Relief
Program, and repaid the $10 billion it received from the program. Along with Goldman, nine other firms were given the go ahead to return a collective
$68.3 billion to the U.S. Treasury, more than the original estimate of $25 billion in funds expected to be returned in 2009.
April 2009: Hitting above the mark

Goldman Sachs posted a bit of (pleasantly) shocking news—the firm’s profits for the first quarter of 2009 came in at $1.8 billion, up from $1.5 billion
in the same period in 2008. Analysts, predicting the firm to post about $1.60 a share, were surprised with the $3.23-per-share earnings
announcement. Revenue for the quarter also increased, rising to $9.43 billion from $8.34 billion in the first quarter 2008. The firm’s results were
bolstered by record quarterly net revenue in its fixed income, currency and commodities division, which was helped by strong activity in interest rate
products and commodities.
Separately, but on the same day it revealed its earnings, Goldman announced it would be offering $5 billion worth of its common stock to the public.
The firm says it plans to use the money from the sale to help pay back its borrowed TARP funds.
March 2009: Hedge fund heads step down

Goldman Sachs announced the retirement of the firm’s heads of Global Alpha (Goldman’s biggest hedge fund) and its computer-based investment
group. Global Alpha’s Mark Carhart and Raymond Iwanowski took leave of Goldman, as did Giorgio De Santis, the research co-head. Filling Carhart
and Iwanowski’s shoes was Katinka Domotorffy, who served as strategy head for the firm’s quantitative division, insiders told Reuters. Global Alpha
has faced harsh times recently, with its assets dropping to $2.5 billion in 2008 from $12 billion in the previous year.
March 2009: Covering their assets

Goldman Sachs offered to loan funds to more than 1,000 of its employees. The loans, which may reach up to hundreds of thousands of dollars, are
being given as an option for employees who are finding their personal investments (which include Goldman’s investment funds) deflated by market
conditions. Goldman’s investment funds mandate that investors continue to add capital to them, a condition that the firm realized some employees
may have trouble meeting after receiving smaller bonuses than usual. An insider told The New York Times that if employees do not make the fund
payments, they could lose their jobs. The firm, which accepted a taxpayer-funded bailout package, is not yet certain how many workers will decide to
opt in on the loan offer.
March 2009: Personal bailouts

While federal bailouts became a fairly common occurrence in the finance industry in 2008, they weren’t the only rescue acts happening. In a proxy
statement, Goldman Sachs revealed that it had bailed out two of its own senior executives, repurchasing shares of internal investment funds owned by
Jon Winkelried, its co-chief operating officer who recently retired, and Gregory Palm, the firm’s general counsel. Bank directors became worried that
if the executives had sold the shares to outside purchasers, investors may have become spooked, insiders told The New York Times. Instead, Goldman
chose to buy about $19.7 million in Winkelried’s internal hedge funds (about 10 percent) and paid Palm $38.3 million for about 25 percent of his
assets.
February 2009: President steps down

Goldman Sachs announced that Jon Winkelried, the firm’s co-president and co-chief operating officer, would be retiring from the firm at the end of
March 2009. Winkelried, who won’t accept severance after stepping down, first joined Goldman in 1982 and helped conduct much of the firm’s recent
wave of job cuts. Taking over Winkelried’s duties was co-COO Gary Cohn (who will continue to assume his current duties as well). According to a Dow
Jones report citing insiders, Winkelried’s retirement was tied to his understanding that he was “not in the pole position” to ultimately become CEO of
the company. Insiders said Cohn had the inside track to become CEO, if the post were to become available.
December 2008: M&A is down, but Goldman still on top

Goldman Sachs was sitting pretty atop the worldwide announced merger and acquisition tables for 2008, coming in at No. 1 with 342 deals worth
$831.5 billion, according to Thomson Reuters. (However, thanks to a very dry deal market, Goldman’s M&A deal volume was down nearly 30 percent
versus 2007.) Goldman also snagged the No. 1 spot for U.S. announced M&A deals, advising on 198 deals worth $572.7 billion (down a whopping
38 percent versus 2007). And the firm took the No. 2 spot in European announced deals. As usual, Goldman has worked on some big-name deals
recently, advising on Genentech’s $41.3 billion bid for pharmaceutical company Roche in July 2008 as well as Belgian beer brewer InBev’s $60 billion
purchase of Anheuser-Busch, the largest M&A transaction of the year.

Goldman also worked on the largest IPO of the year, underwriting (along with J.P. Morgan) Visa’s US$17.9 billion initial public offering in March 2008.
(Like the M&A market, the IPO market was down in 2008, as U.S. IPO issues fell 85.6 percent versus 2007, hitting a 31-year low.) The Visa deal
certainly helped Goldman jump from No. 8 to No. 6 in global debt, equity and equity-related issues (Goldman worked on 584 deals worth $228.1
billion). On the global equity tables, Goldman also moved up to two spots to rank No. 2 in equity and equity-related issues, underwriting US$45.1
billion in deals. The firm leaped four spots to No. 3 in EMEA equity and equity-related deals, and moved up two spots in U.S. IPOs. However, it
dropped two spots to No. 7 in global initial public offerings and six spots in EMEA IPOs.
December 2008: Goldman’s first public loss

Goldman suffered its first loss ever as a public company in December 2008, when it reported a $2.1 billion loss, or $4.97 a share, for its fiscal fourth
quarter, a big dip from the $7.01 per share the firm earned during the same period a year earlier. Wall Street analysts had predicted an average of a
$3.73-per-share loss for the firm (although some had forecast a loss of $6 per share). Though the loss was not Goldman’s first quarterly loss (in 1998,
a year before going public, the firm sustained its first loss), its first as a public company was nevertheless devastating across almost all of its business
lines. Goldman’s fixed income, currency and commodities trading unit posted negative revenue of $3.4 billion, principal investments posted a $3.6
billion loss, investment banking revenue tumbled nearly 50 percent to $1.03 billion and asset management revenue dropped 19 percent to $945
million.
Full-year results for Goldman didn’t look much better. Goldman reported fiscal 2008 earnings of $2.32 billion, its lowest annual earnings since 2002
and an 80 percent plunge versus 2007. Revenue, meanwhile, decreased 52 percent to $22.2 billion from $46 billion in 2007. The firm’s largest dip
came from its trading and principal investments division, whose revenue fell 71 percent from 2007 to $9 billion.
December 2008: New rules for riding off into the sunset
Goldman changed its retirement rules in order to push some employees to leave the firm by the end of 2008. According to the new rules, which went into
effect in 2009, Goldman employees have to wait until their age plus their years of service add up to 60 in order to retire (the former figure was 55).
November 2008: Setting an example

Executives from Goldman Sachs requested that they not receive bonuses for 2008. The step, quickly approved by the company’s directors, was
expected to influence Goldman’s rivals to decide to make a comparable move (and indeed, other firms followed).
October 2008: Still gold

Goldman Sachs asked 94 employees to become partners—down from the 115 asked in 2006 (partners are inducted every other year) but still
respectable given the financial crisis. Although partners receive a larger share of the firm’s bonus pool, 2008 was likely to be different; at the time of
the announcement, Goldman’s share price had dropped 56 percent in 2008, and bonuses were expected to dwindle further now that Goldman had
become a bank holding company.
October 2008: Mining for a merger?

It was also reported that soon after Goldman received approval to convert its status to holding company, Goldman CEO Lloyd Blankfein approached
Citigroup CEO Vikram Pandit regarding the possibility of a merger. According to the Financial Times, Citi roundly rejected the proposal, which was
structured as a Citi takeover that would likely have led to thousands of job cuts in both companies’ investment banking departments.
October 2008: A gift from Hank (and Uncle Sam)

Goldman Sachs found out that it would receive $10 billion from the U.S. Treasury in an effort to recapitalize the markets. U.S. Treasury Secretary Henry
Paulson (the former Goldman head honcho) announced that the Treasury would inject billions of dollars into U.S. banks in order to help restore
confidence to the markets. Paulson said, “The needs of our economy require that our financial institutions not take this new capital to hoard it, but to
deploy it.” With the injection, the U.S. followed in the footsteps of some European countries, which had already announced similar moves designed
to help thaw their credit markets.
September 2008: Buffett wants in on the action

On September 23, 2008, Goldman had a bit of a reversal of fortune when investing guru Warren Buffett said his firm, Berkshire Hathaway, would buy
$5 billion in preferred shares in Goldman. Analysts applauded the move, as did investors, which immediately pushed Goldman’s stock up 16 percent
in after-hours trading. The day after the news broke, Goldman raised another $5 billion in a stock offering—twice what it was hoping to raise via sales
of its shares. Meanwhile, analysts said Buffett’s confidence in the struggling Goldman—especially since he had previously abstained from investing in
the financial industry—might mean that other investors will follow in his footsteps. Under the terms of his deal with Goldman, Buffet received an interest
rate of 10 percent on his $5 billion and the right to buy $5 billion in the bank’s common stock at $115 a share during the next five years.

May 2008: Eastward bound

As a result of a slow investment banking deal market in the West caused by the credit crisis, Goldman announced that it will send two of its top bankers
East. Ravi Sinha will move from New York to Hong Kong to co-manage the firm’s Asian investment banking unit, and Richard Campbell-Breeden will
move from London to Hong Kong to co-manage mergers and acquisitions. Goldman is just one of several banks moving talent to Asia. According to
the International Herald Tribune, “With several Asian economies growing at more than three times the pace of major Western countries, investment
banks are moving managers to Hong Kong and Mumbai to capitalize.”
GETTING HIRED
Be the best
The prestigious teams at Goldman Sachs are populated by “the best and the brightest from top universities,” and as a result, “the firm runs an
extremely competitive recruiting process.” “Goldman spends a great deal of time and resources to hire the right type of person, both in terms of
business fit, as well as personality and culture fit with the firm,” an insider explains. Each candidate may expect to “meet with more than a dozen
different people in the division to which he or she is applying,” and as one analyst remarks, “Some applicants may view this as tedious or excessive,
but I found it to be an opportunity for me to confirm that this was the right place, with the right people who I wanted to share many late nights with.”
Ivy League schools, University of Chicago, Georgetown, Stanford, MIT, Duke, Berkeley and NYU are among Goldman’s regular feeders, but sources
say that “each division has its own target schools that they recruit from every year,” based largely on those schools’ “success in past years.” Other
students may find ways in via “on-target recruiting events that bring in pools of talented candidates from non-traditional schools or backgrounds.”
No cakewalk
The “grueling” interview process starts before a single question has been asked: “It required several months of networking to get onto the interview
list,” says an associate who landed a summer internship and then a full-time offer. Expect “at least two rounds of interviews” for either summer or
permanent positions. The first round “is typically a two-on-one interview geared towards determining whether the applicant is a fit for Goldman Sachs
in general.” An important note: while candidates may apply to specific divisions, during the interview process they may be “recommended to an entirely
different division than the one they applied for.”
“Super Day” second-round (“and third rounds, if necessary”) interviews involve “associates, VPs and even MDs.” According to an insider, “Questions
run the gamut from very technical accounting and valuation questions to penetrating, nontechnical questions designed to gain insight into the
applicant’s motivation and personality.” Other topics may include “dedication level, work ethic and market knowledge,” with some conversation about
each candidate’s “strengths and weaknesses.” That said, one source notes, “The interviewers were fair. If you did study finance, be prepared to talk
about it in detail. If you did not, they will focus on evaluating what other skills you do have that could be transferable.”
Nice work if you can get it

“Summer positions are the best, but not the only way to get a full-time offer from the firm.” Still, “a vast majority” of new hires come “out of our summer
program.” Once on board, interns commence “an amazing 10-week program consisting of two weeks [or less] of training,” and those in the securities
division will then go through “eight weeks of desk rotations .” “I assisted a project manager on the commissioning stage of a data center construction
project, and worked on a group project and presentation regarding opening an office in an emerging market,” says an ex-intern. Another “shadowed
traders, worked on projects for the desks and did mock stock pitches.” Interns are given so much responsibility, says a current associate, that “clients
did not realize we were summers, and by the end of the 10 weeks, we didn’t either.”
The real trick is in securing the internship, which means undergoing a process that’s just as tough as regular recruiting. “There are typically two rounds
of interviews for undergraduate summer analysts,” an insider explains. “The first round will be on campus, and the candidate can expect to interview
with two or four employees, though the first round interview may be conducted by phone. The second round is usually in New York, and the candidate
may go through four separate interviews.” Interview questions range “from personality and fit questions to specific finance questions,” including some
“technical questions that focused on equity valuation as well knowledge of the current market environment.” Sources say, “There were no brain teasers
or anything like that,” but one former intern remembers being asked “to pitch a stock or other equity investment idea with quantitative support to back
it up.”

OUR SURVEY SAYS
In it to win it
“Teamwork, consensus-building, corporate citizenship and meritocracy” are Goldman’s buzzwords, and insiders boast that “it’s a culture of integrity
and character, where people genuinely value the perception of the firm.” Others note that “cooperation” is a practice, not just a catchphrase, and say
the “flat hierarchy makes the more senior and experienced people very approachable, which further adds to our cohesive culture.” Because there
are so many “extremely motivated and intelligent people” around, Goldman presents “the kind of environment that really pushes you to perform your
best.”
But “clients come first,” so there’s “no backstabbing” and “no superstar mentality.” “While there clearly are superstars at the firm, if they ever acted
like stars, they wouldn’t last here,” declares one contact. “Everyone is given a role and a voice, which is nice,” agrees an associate. “And everyone
is expected to consistently perform at the highest level and add value, which is challenging.” The drive for excellence doesn’t translate to reckless risk-
taking, however. “We are not afraid to lose business in the short term if it doesn’t make long-term sense,” an insider explains.
Work to do
“I feel that my department, as well as many other departments that I work closely with, are understaffed,” admits a risk management contact. “We
need to make sure that the quality of work does not suffer as a result. Whether this means establishing more efficient processes or hiring more people,
I’m not sure.”
An operations source says his department is working hard to stay abreast of changing conditions. “I think my department has made great strides in
being at the forefront of what is going on with the firm and the environment, constantly aligning itself and its goals with that of the firm. I wouldn’t
consider doing this job anywhere else.” Over in corporate real estate, one contact cheers, “The people I work with are the best and brightest in the
industry, and the nature of the work is new and exciting every day. My department is also very supportive of external events and participation in industry
forums to keep up to date with the market.”
Comfortable compensation
Goldman Sachs insiders say they’re happy with their compensation—even if current events have meant some cutbacks. “Compensation is usually
paid in a combination of cash and restricted stock,” an insider explains. “The firm has a very generous vacation policy that starts at two weeks, and
increases with service and seniority. The firm also has a 401(k) contribution program.” Those at the analyst level “get about three weeks of vacation,”
and—honeymoon alert—Goldman throws in an extra week of vacation “the year you get married or register as a domestic partner.”
Perks include “stipends for dinner and free transportation by car if you work a late night at the office.” Employees also get some flexibility in being
“allowed to choose their benefits,” and there’s “a great reimbursement policy for health care.” Don’t forget the “great employee gym that we can join
at low rates” and a “relocation package for college graduates.” Overall, says an analyst, “I was happy with my 2008 base salary. I felt that I got a fair
raise from 2007; I’m sure analysts at other firms probably have a higher base salary, but I still felt that I was compensated fairly. Bonuses in 2008
heavily reflected the economic environment and the weaker firm performance from prior years. However, I still felt that it was fair given these
considerations.”
The better you get ...

“It is investment banking,” one source says, “so no one loves the hours.” Goldman employees (in certain divisions) are no strangers to the 12-hour
workday, and many report putting in time on weekends as well. “For entry level people, it is not uncommon to spend 70 hours a week in the office,”
a contact in the M&A department reveals. “You work hard when you need to, but are encouraged to take the down times to relax,” adds another
insider. “When we’re busy we’re extremely busy.” At least “we work on a lot of exciting projects and deals,” and many find their time can be “somewhat
flexible.” “Everyone pitches in, senior and junior,” says a contact. “When we all work together on a transaction, the hours become much more
bearable.”
While the flexibility (and “ability to log in from home”) helps, there’s also a certain amount of unpredictability built in to the workflow, thanks to overseas
clients, “morning conference calls and meetings.” “The ironic way that things work here is that good work is always rewarded with more work,” explains
an insider. “Once people trust you to get quality work done efficiently, requests will keep pouring in. It’s up to you to manage your own time, which
can be difficult because we often work for multiple teams and managers who do not know what else you have on your plate.”
When’s the moving crew coming?

Boston offices are “nothing extravagant, but they do have everything we need to do our job,” says a source in New England. Peers in New York like
to complain about the “below average” digs, which are infamous for their “low-key and not very fancy” décor. Luckily, “we are moving to new offices

by end of 2009 or early 2010” “We cannot wait to move,” one New Yorker says. Another adds, “The firm is moving toward bench-style seating in its
new headquarters—no cubicles and very few offices,” even for senior staffers, the better to promote “teamwork.”
As for attire worn at the office, absent client meetings, “analysts and associates generally don’t wear a tie.” And though the firm “does not have a
casual Friday policy,” some say “summer Fridays are usually more casual.”
Equal merit, if not experience

Managers and subordinates “work together,” says a source. “Each employee contributes to the greatest extent possible.” The only difference between
senior bankers and juniors “is experience and ability, with junior employees constantly learning from senior employees.” “My managers treat me and
my work with respect,” another contact reports. “They are quick to give credit where credit is due. My relationship with subordinates is friendly—
everyone is viewed as part of a team.” The “open office environment” means that “managers are accessible at all times,” and as a bonus, “everyone
has exposure to senior management.”
Training “has improved immensely since I joined five years ago,” one respondent raves, “both in terms of targeting certain audiences for specific skill
sets and concerns as well as overall content.” These days, “there is a wealth of firm-provided training,” including “all-day training sessions” for new
hires. These start out with “firmwide training and slowly get funnelled into more specific topics related to your position.” Through Goldman Sachs
University, the firm “offers online and classroom training on a variety of topics, ranging from Outlook inbox management to options hedging to
negotiation skills.”
Going gold
Despite the rollercoaster events of 2008 and early 2009, “Our commitment to our 2005 environmental policy has not changed,” a source says. “We
keep sustainability at the forefront of all business objectives. There is no instance where we make a business decision without looking at the
environmental impact.” There’s “a group internally that is focused on environmental initiatives,” and “Goldman Sachs has also invested in land in
Patagonia called Tierra del Fuego.” Perhaps most important of all, the new HQ is shaping up to be “the largest LEED Gold-certified office building in
the United States.”
Supportive system
Diversity gets strong marks from sources who applaud “specific minority recruiting events” and “annual diversity events where leaders of the firm talk
about their backgrounds and careers.” A plethora of in-house “diversity networks” are said to be “very welcoming” and busy providing a variety of
activities each year. Likewise, an active and visible “GLBT affinity network” sponsors yearly events, and employees say it’s “getting much more visible.”
“We have fantastic women’s initiatives,” says one woman. “I’m an active member of my division’s network, even though I’m fairly junior. I also had
the opportunity to participate in a leadership program designed specifically for women at my level, which has no doubt affected my career and how I
think about doing my day to day role.” Other respondents—men and women—say “absolute respect toward women” is standard,” with “fantastic
support” instead of “bad jokes.” Notes a senior analyst, “Though I’m often the only woman in a meeting, I have never felt out of place.”
On the same page

Yes, there has been belt-tightening at Goldman Sachs, from reduced office budgets to layoffs. But on the whole, Goldman insiders aren’t too worried
about their firm. Still, they do fear ongoing pressure from external events. As one contact says, “I believe Goldman’s approach to business
opportunities and risk management has been crucial to firm’s success, and will continue to guide the firm in the future. That said, the firm’s success
is very linked with the broader political and economic success of the world.”
But another insider adds, “We still have a presence in most businesses and products, and we continue to grow and develop the weaker areas. All-in-
all, I feel very good about the firm’s prospects.” “Now there is less competition in the market for GS, it is our chance to outshine the remaining
competitors,” an associate agrees. “I have a lot of faith in the leadership of the firm to do the right thing and make the right decisions about our market
position. Our CEO keeps everyone at the firm informed of his actions as well as the firm’s business stance.” Frequent communication at all levels has
helped keep employees in the loop “about the economy, the firm and news stories,” says a source, which “makes for a level of transparency that is
phenomenal and much appreciated. Plus, it’s cool to get a voicemail from your CEO.”

PRESTIGE
RANKING
2 THE BLACKSTONE GROUP L.P.
345 Park Avenue KEY COMPETITORS

New York, NY 10154
Phone: (212) 583-5000 Goldman Sachs
Fax: (212) 583-5712 Lazard
www.blackstone.com Morgan Stanley
DEPARTMENTS/DIVISIONS EMPLOYMENT CONTACT

Credit & Market Alternatives www.blackstone.com/careers
Closed-End Mutual Funds
Funds of Hedge Funds
GSO Capital
Financial Advisory Services
Corporate & Mergers & Acquisitions Advisory
Private Placement Advisory
Restructuring & Reorganization Advisory
Private Equity
Real Estate
THE STATS
Employer Type: Public Company
Ticker Symbol: BX (NYSE)
Chief Executive: Stephen A. Schwarzman
2008 Revenue: -$349.4 million
2008 Net Income: -$872.3 million
No. of Offices: 12
THE BUZZ
• “Exceptional—always on top”
• “IPO hurt their prestige”
• “Stock has been battered, but still among the elite”
• “Strong M&A practice, top restructuring shop”
45
The Blackstone Group L.P.
THE SCOOP
Going back to Lehman

The Blackstone Group was first founded as an M&A boutique investment banking back in 1985 by Stephen A. Schwarzman and Peter G. Peterson,
two former Lehman Brothers bankers. At Lehman, Schwarzman was the chairman of mergers and acquisitions, and Peterson was chief executive of
the firm. Despite their top-level clout, Blackstone’s early days were humble.
When the firm first opened in New York City, it had a startup-sized staff of four and a modest balance sheet of $400,000. However, the group of four
persevered, and Blackstone earned its place in private equity history, particularly in the United States, when it completed the first major initial public
offering of a private equity firm in June 2007, raising a $4 billion dollars from the float. At the time, it was also the largest U.S. IPO since 2002
(unfortunately, due to the worldwide recession, the firm’s market capitalization has slipped down to about $2 billion).
Today, two decades after its founding, the firm has offices across the U.S., in Atlanta, Boston, Chicago, Dallas, Los Angeles and San Francisco. It also
has international outposts in London, Paris, Mumbai, Hong Kong and Tokyo. The firm’s global headquarters remains in New York City, in prestigious
offices on Manhattan’s Park Avenue. As an investment group, Blackstone says it maintains a small firm in order to give senior-level attention to clients,
and invests only in friendly takeovers rather than in hostile bids.
The firm mainly operates in alternative asset investing, such as private equity, real estate, corporate debt and hedge funds, but also has a small but
strong corporate and restructuring advisory business. In addition, it invests significant amounts of its own money.
How they’re set up

The firm’s business segments include private equity, real estate, financial advisory, and credit and marketable alternative asset management. The firm
is a renowned market leader in private equity investing, and is big international player in the real estate business. Blackstone’s financial advisory
business is structured into three divisions: corporate and M&A advisory services, restructuring and reorganization advisory services, and private
placement advisory services. Credit and marketable alternative asset management includes funds of hedge funds, closed-end mutual funds and GSO
Capital (a $20 billion alternative asset fund founded by the men who built and ran the leveraged finance businesses at Donaldson, Lufkin & Jenrette
and Credit Suisse). Blackstone’s strength as a top global alternative asset manager is evident in its $93.5 billion in total assets under management as
of June 2009.
It’s a private (equity) matter

Recognized as one of the world’s largest and most respected private equity firms, Blackstone focuses mainly on leveraged buyouts of “more mature
companies” and “friendly investments in large capitalization companies.” In addition, the firm invests through minority investments, corporate
partnerships, industry consolidations and sometimes through startup investments.
Blackstone’s corporate private equity offices are mainly based in New York, London, Menlo Park, Mumbai and Beijing. Blackstone has traditionally
relied on private equity funds from a range of sources, including pension funds, insurance companies, high-net-worth individuals, sovereign wealth
funds and institutional investors. At the beginning of 2009, the firm said it was in the process of raising (more money) through Blackstone Capital
Partners VI, which has a target size of $15 billion. Blackstone completed its fund-raising at the end of 2008 for six funds, achieving investor
commitments of a whopping $36 billion dollars, a major feat considering the grim economic climate.
Stock slump
The debut of Blackstone’s IPO in June 2007 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 Blackstone’s foray into the public sphere proved to be ill fated. Since the stock’s debut at $31
a share (and then a quick rise to $38 a share), things have gone steadily downward. As of August 2009, the stock was hovering around $13 per share,
nearly one-third of its original value.
IN THE NEWS
August 2009: Growing by 25 percent

According to The Hedge Funds Journal, Blackstone’s fund of funds portfolio grew 25 percent to $25 billion from the beginning of 2009 through the
end of June 2009. In comparison, hedge funds competitors such as Man Investments, Union Bancaire Privée and HSBC have seen decreases across
their hedge funds divisions.

May 2009: Fewer losses than last year

Blackstone booked a first quarter 2009 loss of $231.6 million, slightly less than the $251 million loss it suffered in the same period in 2008. The firm
cited higher management and advisory fees as reasons for the poor results. Revenue, meanwhile, plummeted 31 percent to $47.1 million. Several
of the firm’s business lines managed to do well, however. Blackstone’s financial advisory division posted a 29 percent increase in revenue to $92 million,
while the company’s hedge fund unit brought in $99.5 million in revenue compared with $30 million in the previous year’s first quarter.
March 2009: Exec compensation takes a tumble

In an SEC filing, amid an industry-wide crackdown on executive pay, Blackstone acknowledged that founder Stephen A. Schwarzman’s compensation
fell 99.8 percent from 2008 to 2007—from $180 million to $350,000. CEO Hamilton E. James, meanwhile, received a $350,000 salary in 2008 but
also received a $15.4 million bonus. Still, James’ total compensation dropped 73 percent from the $58.2 million he earned in 2007. The way James
and Schwarzman may most be affected in their day-to-day lives is what costs they’re now responsible for—both must reimburse the company for
personal use of the chauffeured company car and airplane.
March 2009: Disclosure denied

The Blackstone Group chose to deny an appeal from the SEC to release records documenting the results of its buyout and hedge funds. The SEC,
Bloomberg reported, asked for “performance information” for the funds from Blackstone and its competitor Fortress Investment Group. While Fortress
agreed to release the information, Blackstone said that performance data didn’t need to be published under current regulations. In a letter to the SEC,
Blackstone Chief Financial Officer Laurence Tosi said of the funds that “the individual rates of return have no direct impact on our financials and
therefore we question the relevance to our investors.”
February 2009: Sinking deeper

Blackstone announced that it had sustained a net loss of $827.1 million in the fourth quarter of 2008, compared with net income of $128.2 million in
fourth quarter 2007. The firm also suffered negative fourth quarter revenue of $611.28 million (analysts expected negative revenue of $589.09 million)
compared with positive revenue of $344.97 million in the fourth quarter of 2007. A bright spot, or rather a not so dark spot, was that it booked $381.4
million in management advisory fees during the latest quarter, which was not that large of a drop compared with the $447.5 million in similar fees it
brought in during the same period a year earlier.
Meanwhile, revenue for full-year 2008 came to a negative $349.4 million compared with $3.05 billion in 2007. Blackstone also stated a net loss of
$872.3 million compared with $1.62 billion in profit the firm pulled in within the previous year. In a conference call with analysts, Blackstone President
and COO Tony James called the current economic conditions a “depression” but said it wasn’t as bad as the Great Depression. James also said that,
contrary to media speculation as of late, Blackstone would not try to become a private company again by buying up its stock on the open market.
January 2009: Shutdown in the East

Blackstone Group’s GSO Capital Partners hedge fund will close its Asia investment desk, Bloomberg reported in January 2009. The hedge fund, which
opened its doors in September 2008, has yet to purchase any Asian bonds or loans because it considers prices to be too high, insiders told Bloomberg.
In 2008, to increase its distressed asset investment presence, Blackstone acquired GSO for cash and stock worth $620 million as well as up to $310
million more, based on certain earnings targets.
December 2008: A big score

Blackstone was contracted by insurance giant AIG to help with its restructuring and sell off its businesses, including the insurance concern’s aircraft
leasing business. Blackstone’s relationship with AIG (which infamously nearly crumbled in 2008 and is now largely owned by the U.S. government)
goes back many years—AIG’s former chairman and chief executive, Maurice Greenberg, was a member of Blackstone’s first board of directors in 1989.
December 2008: Black December

Amid a souring global economic climate and decline profits, Blackstone cut 70 jobs, mostly in its New York-based units.
November 2008: Losses but no cuts

A month earlier, the firm had reported a quarterly loss of $502.5 million, its biggest loss since it went public in summer 2007. Despite revealing losses
in November 2008, Blackstone CEO Schwarzman didn’t allude to any job cuts, opting instead to optimistically state, “We are in an extremely strong
financial position.”

GETTING HIRED
Take your chances

Be prepared to gear up to show the firm that you’re 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 Wharton—”any 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.”
As far as the type of people Blackstone likes to put on salary, the firm says it’s looking for “energetic, self-motivated, team-oriented individuals with
fresh ideas and innovative solutions who thrive on challenge in a fast-paced, dynamic environment.” Although sources say analyst and associate
classes are small (an M&A banker says his group hires about five analysts each year), according to the firm, Blackstone is planning to double the size
of its M&A group over the next two to three years. The firm is currently focusing on adding solely to the New York office, but says it might soon begin
to hire for its London outpost. 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 it’s not uncommon to have to go through more than three interview rounds. A private equity contact went through
“many rounds of interviews—three to six,” and “met with between two and four people in every round,” adding, “Each interview lasted between 30
and 45 minutes. Questions were detailed, analytical and thought-provoking--minimal cookie-cutter type questions.” 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 bullshit and do
a personality interview, and some like to grill you. It’s 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—Goldman and McKinsey.”
A first-year analyst 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, “It’s 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, anything’s 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
question”--the one where you’re asked how many degrees there are between the minute and second hand at a certain time. And, says a source, “You
better understand accretion and dilution.” The contact adds that overall “the questions are more accounting than finance,” and Blackstone “puts a
large emphasis on cultural fit—and it’s 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 don’t 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, “They’re 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 it’s not uncommon for people to spend time outside of work together.” Indeed, numerous respondents admit there’s “a lot of
camaraderie,” and say Blackstone is made up of a “tight group of people who, on the whole, like each other.” But don’t 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: “You’re 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 unit’s junior bankers, and in particular, the unit’s associates: “They’re 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 shouldn’t 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.”
It isn’t easy
Expect the daily grind to be taxing, insiders report. It’s “intense, very challenging, and requires a lot of stamina and motivation,” admits an insider.
Another agrees the firm’s 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 don’t work hard or don’t 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 isn’t 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 aren’t uncommon, insiders say. One associate puts his hours
at about “70 to 80” on average per week, but admits, “There’s 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 he’s logging in about “80 to 90” weekly. “The first year was painful,” says a former M&A analyst, who adds, “It
could’ve been worse—but it couldn’t 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, that’s 96 hours a week. Although the contact’s “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 they’re on a live transaction, and senior analysts are someplace in between.”
Expect the firm to rule with a proverbial “formal always” fist when it comes to attire. It’s “formal all the time,” adds a Blackstone source. “And people
here dress up—cuff 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.”
Few compensation complaints

In general, compensation receives extremely high marks from insiders. Although one first-year associate won’t 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 don’t have to pay top dollar
to recruit and retain the best talent.’”
Although perks are good, or at least standard for investment banking, it’s a far cry from years past. A source says that free fancy dinners used to be
one of Blackstone’s big selling points: “When hiring analysts, the partners used to sell you on this perk.” While nights at Le Cirque are gone, “you still
get to fly first class if your flight is over a certain distance,” says a banker, “and you still get to stay at the Four Seasons and the Ritz—but who knows
how long all this will last.” Currently, 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.
Blackstone’s New York office receives high grades from insiders, and although the London outpost doesn’t (“offices are pretty dark”), one U.K. insider
says employees across the Atlantic will be “getting a new office soon that will be top notch.”
Better coaching needed

Training programs at the firm are below par, insiders report. Unlike the bulge bracket banks, Blackstone doesn’t have the typical several-weeklong
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 you’re not required to study
and take exams like at other places.” He adds that there’s “a lot of emphasis on improving the program—it’s good and getting better.” Another analyst
calls the training program “fast and dirty—you’re 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.”

Just average
For the most part, Blackstone receives middling marks on the diversity front, although one insider says there’s “a lot of diversity” at 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 it’s not easy. Every year we try, but either no one bites or we don’t 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,” there’s “less than a handful of any other minorities.”

PRESTIGE
RANKING
3 MORGAN STANLEY
1585 Broadway KEY COMPETITORS

New York, NY 10036
Phone: (212) 761-4000 Bank of America Merrill Lynch
Fax: (212) 762-0575 Citi
www.morganstanley.com Credit Suisse
Deutsche Bank
Goldman Sachs
DEPARTMENTS J.P. Morgan
UBS Investment Bank
Asset Management
Institutional Securities
Morgan Stanley Smith Barney UPPERS
• “Respectful” culture
THE STATS • “Good company to work for as it does provide a wide range
of benefits”
Ticker Symbol: MS (NYSE)
Chairman & CEO: John J. Mack DOWNERS
2008 Revenue: $24.74 billion
2008 Net Income: $1.7 billion • Work hours “tend to be long”
No. of Employees: 62,215 • Mixed reports on diversity—some insiders say it’s “well
No. of Offices: 1,200 diversified” but others say “a more diverse culture is
needed”
EMPLOYMENT CONTACT
See “careers” at www.morganstanley.com
THE BUZZ
• “Still on top”
• “Has fallen from grace”
• “Very reputable, intelligent and reliable”
• “Banged up through the credit crisis; not ‘white shoe’
anymore”
51
Morgan Stanley
THE SCOOP
Over 40 years in Europe
New York-headquartered investment banking giant Morgan Stanley is divided into three main businesses: institutional securities, which offers equity
and fixed income sales and trading, including prime brokerage; financial advisory services, which included M&A advisory, restructuring, real estate,
project finance and capital raising; asset management, which offers institutional investment products and mutual funds across a range of fixed income,
equity and alternative investments; and global wealth management, which provides financial planning and wealth management services, annuities and
insurance, and brokerage and investment advisory services that cover a wide range of investment alternatives.
J.S. and J.P.

In 1854, Junius S. Morgan, an American banker from Massachusetts, began working for a London banker named George Peabody. Morgan took over
the business after 10 years, changing the firm’s name to J.S. Morgan & Company. His son J. Pierpont Morgan learned the banking business at his
father’s side, but eventually returned to America to found the firm that would become J.P. Morgan & Company. J. Pierpont rose to fame as a hotshot
financier, backing the construction of the American rail system and helping establish General Electric and US Steel. In 1935, J. Pierpont’s grandson
Henry Morgan and fellow J.P. Morgan partner Harold Stanley left to start their own company: Morgan Stanley.
Responding to tough times

The global financial crisis began to take its toll on Morgan Stanley in early 2008, as the firm struggled to recover from $9.4 billion in write-downs.
Morgan Stanley sacked about 1,500 people—primarily from mortgage divisions—and the firm’s British home lending business was shuttered.
In September 2008, amid the crisis, Morgan Stanley requested and received permission from the United States Federal Reserve to convert itself into
a bank holding company, which means it now operates under tougher leverage ratios and capital reserve rules than it did as an independent investment
bank. On top of that, it’s subject to oversight from the Fed. (Its main competitor, Goldman Sachs, also became a holding company).
Shortly after the structure conversion, Morgan Stanley agreed to accept $9 billion from Japan’s Mitsubishi UFJ Financial Group in exchange for a 21
percent stake in itself. The move was intended to calm fears about Morgan Stanley’s capital reserves. At the same time, Mitsubishi and Morgan Stanley
agreed to establish a strategic partnership and look for opportunities to work together. (The first such opportunity was revealed in March 2009, as the
firms announced the planned combination of Mitsubishi UFJ Securities Co. Ltd. and Morgan Stanley Japan Securities Co. Ltd. The combined
business, of which Morgan Stanley owns 40 percent, will offer a full range of institutional services as well as a Japanese retail brokerage network. )
In October 2008, U.S. Treasury Secretary Henry Paulson announced that the Treasury would inject a total of $250 billion into U.S. banks in order to
help restore confidence to the markets. Morgan Stanley was among the first group of banks to receive U.S. Treasury money, with an investment of
$10 billion. The injection followed in the footsteps of some European countries, which announced similar moves earlier to help thaw their credit
markets. In June 2009, on the heels of the U.S. government’s highly publicized banking “stress tests,” Morgan Stanley, along with several other U.S.
firms, were granted permission to repay the government the funds they took under TARP.
IN THE NEWS
July 2009: A Mitsubishi partnership

Morgan Stanley said it would partner with Mitsubishi UFJ Financial Group in a corporate lending deal that will combine MUFJ’s $70 billion in U.S.
loans and Morgan’s $30 billion in loans. The partnership will allow the companies to compete with the likes of other big players in the industry such
as JPMorgan Chase and Citigroup. The union will also help increase Morgan Stanley’s odds of drumming up additional investment banking business.
June 2009: Teaming with Citi

Morgan Stanley and Citi announced plans for a wealth management joint venture. The deal, which closed in June 2009, combined Morgan Stanley’s
global wealth management group with three Citi businesses: U.K.-based Quilter, Smith Barney Australia and Citi Smith Barney. Operating under the
name Morgan Stanley Smith Barney, the joint venture will be comprised of 18,500 financial advisors in 1,000 offices worldwide, with more than $1.3
trillion in client assets. Morgan Stanley will hold a 51 percent stake in the venture, and firm Co-President James Gorman will serve as chairman of the
new company.
Soon after the deal was announced, The New York Post reported that Morgan Stanley and Citigroup may be considering paying its top-drawer brokers
between $2 billion and $3 billion in retention bonuses. The firms, who are considering a merger of their respective brokerage units, would parse out
the bonuses over a period of nine years. Most of the bonus cash would be given to brokers working at Smith Barney, according to the paper.

Morgan Stanley
June 2009: Paying back TARP

Soon after Morgan Stanley received permission from the U.S. Treasury to repay the $10 billion it borrowed in government Troubled Asset Relief funds,
the firm repaid the funds. In a statement, the company said it believed the development “reflects both Morgan Stanley’s strong capital position as well
as the important systemic role the TARP program played in helping stabilize the U.S. banking system since the height of the financial crisis.” Along
with Morgan Stanley, nine other firms were given the go ahead to return a collective $68.3 billion to the Treasury, more than the original estimate of
$25 billion in funds expected to be returned in 2009.
April 2009: A future study

What lies ahead for the troubled securities industry? That was the question Morgan Stanley tried to answer when it published the results of research
carried out in partnership with international management consultancy Oliver Wyman. According to “The Outlook for Global Wholesale & Investment
Banking,” the world’s 15-largest investment and wholesale banks will see their balance sheets contract by another $2 trillion by the end of 2009, though
corporate banking and retail businesses are expected to grow. For the investment banks that remain standing, businesses that rely on unsecured
funds—like prime brokerage, fixed income and warehousing—will be under heightened scrutiny by executives with a renewed focus on liquidity.
Furthermore, the report suggested that, at least in the short run, the investment banking industry will see a heightened focus on the U.S., at the expense
of Europe and emerging markets, as U.S.-headquartered banks reign in globalization models and cut down on non-domestic credit.
April 2009: Another loss, but tops in M&A

Morgan Stanley posted a larger-than-expected first quarter 2009 loss of $177 million, largely due to real-estate losses and debt-related write-downs.
The loss, compared with a profit of $1.4 billion in the first quarter 2008, came in at 57 cents per share—about six times the loss of 9 cents analysts
had predicted. Revenue also dropped, falling 62 percent from the previous year’s first quarter to $3 billion.
There was good news, though. According to Thomson Reuters, Morgan Stanley ranked No. 1 in worldwide announced M&A deal volume for the first
quarter 2009. The firm worked on 70 deals worth a total of $218.7 billion—or about 33 percent of all M&A deals worldwide during the three-month
period. (Morgan Stanley had ranked No. 10 in the first quarter of 2008.) The firm also placed No. 1 in U.S. announced M&A, and came in No. 6 in
European announced deals.
December 2008: Tough fourth

Morgan Stanley posted a $2.36 billion loss for its fourth quarter 2008, a financial thrashing that affected nearly every one of its businesses. Every
divisions’ revenue fell, an after effect that CEO John Mack attributed to the financial crisis and its resulting “exceptional market conditions.” For full-
year 2008, the firm reported $1.7 million in net income, down from $3.2 million in 2007. Net revenues in 2008, meanwhile, fell 12 percent from 2007,
coming in at $24.7 billion. Asset management was one sector in particular that took a beating, posting a pre-tax loss of $1.8 billion (mostly due to
markdowns in investments and reduced assets under management). Investment banking brought in net revenue of $3.6 billion, down from $5.5 billion
in the previous year. Equity sales and trading fared comparatively well, bringing in record net revenues of $10 billion, up 10 percent from 2007.
December 2008: Slipping on the tables

For many years, Morgan Stanley was a fixture at the top of the banking league tables, often (barely) ceding the No. 1 spot in M&A to Goldman Sachs.
But it was a different story in 2008, as the firm fell behind UBS, J.P. Morgan, Citigroup and Goldman on the M&A tables by deal volume. According
to Thomson Reuters, Morgan Stanley ranked No. 5 in worldwide announced M&A deals in 2008, dropping from its No. 2 spot in 2007; its total deal
volume also fell significantly, dropping by 51.2 percent. In Europe announced deals, the firm plummeted to No. 7 from No. 1, and in U.S. announced
M&A deals, it dropped to No. 7 from No. 2, as its deal volume in the U.S. plummeted by 58.4 percent.
Part of the problem was that two big transactions fell through. Morgan Stanley teams were hired by Swedish telecom TeliaSonera to advise on a $47
billion bid by France Telecom, but the French company backed out of the deal. The firm was also working with Microsoft on its ultimately-failed $44
billion offer for Yahoo! Still, during the year, Morgan Stanley did advise on several high-profile deals, including Verizon Wireless’s $28.1 billion
acquisition of Alltel. The firm also advised Cadbury plc on its $6.4 billion de-merger of its American beverage business, Dr Pepper Snapple Group
Inc.; Reed Elsevier Group plc on its $4.1 billion acquisition of ChoicePoint Inc.; electricity giant Enel on its €11.1 billion sale of assets in France, Italy
and Spain; and Altor Equity Partners and Bure Equity AB on their acquisitions of investment bank Carnegie and insurance adviser Max Matthiessen.
On the underwriting side, Morgan Stanley held on to its No. 7 ranking in global debt, equity and equity-related issues. And in total global debt
underwriting in 2008, during a year when fixed income deals across the industry dropped by nearly 40 percent, Morgan Stanley fell two spots in the
rankings to No. 9, advising on 533 debt issues worth $183 billion. A few of the firm’s higher profile deals included acting as joint bookrunner on
International Power’s 700 million convertible bond issue and serving as joint lead manager in a $1 billion two-year bond issue for ICO of Spain.

Morgan Stanley
December 2008: Say no to bonuses, but yes to clawbacks

Morgan Stanley CEO John Mack released a memo telling employees that the bank’s top executives would forgo their yearly bonuses and that a
permanent bonus clawback provision was being implemented. Starting in 2009, all Morgan Stanley senior executives will be subject to a performance-
linked compensation plan that ties their payouts to the firm’s return on equity, total shareholder return and the firm’s return on equity relative to other
banks.
GETTING HIRED
Try the back way

Getting a job offer with Morgan Stanley may begin with a typical job seeker’s move, such as answering an online job posting—but that’s 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 firm—and the pay’s not bad, either. “Interns are paid as first-year analysts, just with
no bonus,” explains one insider. Sources say if you’re lucky enough to land a summer internship, you’ve just about got it made. “A large percentage
of my summer class got offers to return full time,” reports one banker.
Best behavior
Interviews are largely based on “behavioral questions.” Use common sense and “just be truthful” and you should be fine. Expect at least two or three
rounds—maybe four—including 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.
OUR SURVEY SAYS
Down to business
The culture is “business friendly,” “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 Stanley’s 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 it’s standard to “start early—around 7:30—and leave around 6 or 7 p.m.” One insider admits that when it comes to hours
spent at the office, “Morgan is tough—even for an I-bank.”

Morgan Stanley
Melting pot?
Diversity, some insiders say, is “very good”—although others say “a more diverse culture is needed for this white shoe firm.” And while Morgan Stanley
may get a passing grade on the ethnic diversity front—one insider says the bank is “well diversified and includes international employees”—its
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 world—and I have no idea how to change it.” That said, four women sit on Morgan
Stanley’s 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 eight consecutive years, and one of the 50 Best Companies to Work for in the U.S. by
LATINA Style magazine. The firm offers several women-specific initiatives such as conferences, workshops, internships and a women’s employee
networking group with over 900 members.
As for the firm’s immediate outlook, one insider notes, “We just had a massive layoff across regions and divisions due to the subprime crisis,” adding,
“The company’s 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.”

PRESTIGE
RANKING
4 J.P. MORGAN’S INVESTMENT BANK
270 Park Avenue RANKING RECAP

New York, NY 10017
www.jpmorgan.com Quality of Life
BUSINESSES #4 – Hours
Investment Banking
Investment Banking Risk
#5 – Culture
Research
#5 – Green Initiatives
Sales & Trading
#7 – Training
#8 – Offices
THE STATS #8 – Selectivity
#10 – Compensation
Employer Type: Division of JPMorgan Chase & Co. Diversity
Chief Executive, JPMorgan Chase & Co.: Jamie Dimon #3 – Diversity With Respect To Gays and Lesbians
Chief Executive, J.P. Morgan’s Investment Bank: #3 – Diversity With Respect To Women
Jes Staley #4 – Best for Diversity
2008 Revenue: $12.2 billion #5 – Diversity With Respect To Ethnic Minorities
2008 Net Income: - $1.18 billion
No. of Employees: 24,000 (approx.)
No. of Offices: 60+ UPPERS
• “Challenging and financially rewarding business”
KEY COMPETITORS • “Opportunities to move within the firm”
Bank of America Merrill Lynch

Barclays Capital DOWNERS
Citigroup
• “Unpredictability of schedule”
Credit Suisse
• “Cost cutting measures”
Deutsche Bank
Goldman Sachs
Morgan Stanley EMPLOYMENT CONTACT
jpmorgan.com/careers
THE BUZZ
• “The new No. 1—a powerful brand”
• “Too arrogant”
• “Lots of talent, great management—Dimon is fantastic”
• “Just one of the pack”

J.P. Morgan’s Investment Bank
THE SCOOP
It was a Bear market back then

J.P. Morgan’s investment bank offers investment banking, sales and trading, research and IB risk services. The investment bank is a part of New York-
based JPMorgan Chase & Co., a financial services firm with $2 trillion in assets and nearly 220,000 employees. JPMorgan Chase provides investment
banking, asset management, treasury and securities services, private equity, retail financial services and card services to clients across the globe.
On the investment banking side, J.P Morgan offers M&A advisory, capital markets, prime brokerage, restructuring, risk and research. J.P. Morgan’s
investment bank is headquartered in New York, with major international offices in London, Tokyo, Hong Kong, Singapore, Sao Paolo and Mumbai.
Some of the world’s biggest firms are clients of the international J.P. Morgan, which offers products and services through what it calls “integrated global
delivery.”
A lot of J.P. Morgan’s prime brokerage capacity was gained from its spring 2008 integration of New York-based Bear Stearns. In early 2008, Bear
Stearns—a long-established investment bank and broker—skirted insolvency after reporting a 61 percent plunge in 2007 profits and $1.2 billion in
write-downs on mortgage-backed securities. The industry began to panic as fears of a market crash loomed on back of a potential Bear Stearns
collapse.
On March 14, 2008, JPMorgan Chase arranged emergency funding for its once competitor Bear Stearns, with the aid of the U.S. Federal Reserve as
the liquidity crisis deepened. Bear Stearns' shares dropped in value by 50 percent. Two days later, JPMorgan Chase agreed to buy Bear Stearns for
$236 million dollars, or $2 a share. Soon after this initial agreement, J.P. Morgan amended the merger terms. Under the new terms, each share of
Bear Stearns common stock was exchanged for 0.21753 shares of JPMorgan Chase & Co. common stock, or approximately $10 dollars a share. In
April 2008, the two firms' investment banking units were brought together.
Changing the course of history

J.P. Morgan’s history extends back to 1799 when the New York State Legislature chartered The Manhattan Company to supply “pure and wholesome”
water to the citizens of New York City. In the charter, the legislature made some provisions that permitted The Manhattan Company’s involvement in
banking. That marked what the firm describes its “earliest predecessor institution.”
J.P. Morgan also has some European roots. When J. Pierpont Morgan established J.P. Morgan & Co. in New York in 1861, the bank initially served as
a New York sales and distribution office for his father’s firm, J.S. Morgan & Co., which was an underwriter for European securities. However, it wasn’t
until 1871 that the ever-enterprising J. Pierpont Morgan and Philadelphia banker Anthony Drexel formed a private merchant banking partnership in
New York called Drexel, Morgan, and Co.—recognized as the earliest partnership that evolved into the modern J.P. Morgan firm.
The firm proudly quotes one of its founders as saying that J.P. Morgan has always been doing “only first-class business ... in a first-class way.” And
the facts of the firm’s history certainly support the claim. In 1895, the firm delivered the U.S. government from its then-economic crisis, and in 1901,
J.P. Morgan was the firm behind the creation of United States Steel, the world’s first billion-dollar corporation. In 1907, the firm bailed out both New
York City and the NYSE from insolvency. Arguably, J. Pierpont Morgan’s greatest talent was recognizing an opportunity—and taking risks when others
wouldn’t. A perfect example of this occurred in 1882 when he believed that Thomas Edison’s remarkable new invention—the light bulb— had been
adequately developed for him to take the plunge and have an entire system of “lights” installed at his Madison Avenue home in Manhattan. Morgan’s
became the first private premises in the city of New York to be entirely lit with Edison’s practical new invention.
On the morning of J. Pierpont Morgan’s funeral in 1913, the NYSE remained closed until noon, which is an honour that was then (generally) reserved
for the heads of state. Even after the death of the firm’s leader, J.P. Morgan continued its tradition of “first-class business.” In 1915, the firm arranged
the then-largest foreign loan in Wall Street’s history, a $500 million Anglo-French loan, and acted as a purchasing agent for the Allies in the U.S.
IN THE NEWS
June 2009: Buyback time

JPMorgan Chase received permission to repay its governmental TARP loan, and the bank repaid the government’s $25 billion preferred stock
investment. In addition to this principal amount, JPMorgan Chase paid the U.S. Treasury $795.1 million in preferred stock dividends, including
dividends that had accrued through the redemption date. The 10-year warrant issued to the Treasury in connection with the preferred investment will
be auctioned off to investors.

May 2009: Passing with flying colors

JPMorgan Chase & Co. passed the U.S. government's stress test, meaning the bank would not need to raise supplementary capital. The firm had a
strong financial showing in comparison with many of its competitors, some of which were told to shore up additional capital after their stress tests. The
results were hardly a surprise to the firm’s executives, who had already argued that the company had enough capital to deal with a crumbling economy.
April 2009: Surpassing expectations

JPMorgan Chase & Co. posted first-quarter 2009 earnings of $2.14 billion, a 10 percent drop from the $2.37 billion it brought in a year earlier but
higher than analysts had predicted. The bank was buoyed by record revenue of $8.3 billion in its investment banking division (largely due to its fixed
income trading business), nearly tripling the $3 billion it brought in for the first quarter of 2007. The positive results didn't come as much of a surprise,
since JPMorgan Chase & Co. CEO Jamie Dimon recently said the bank turned a profit in January and February.
February 2009: Drops across the board

Although JPMorgan Chase & Co. posted an overall $702 million profit for the fourth quarter of 2008, its investment banking business lost $2.4 billion
during the period. J.P. Morgan Investment Bank also booked a negative $302 million in net revenue, a big drop from the US$3.5 billion in 2007. The
decline was attributed to investment banking fees and advisory fees taking a tumble as well as an increase in credit loss provisions. For the year, the
investment bank suffered a $1.18 billion loss, quite a fall compared with the $3.14 billion in net income it recorded for 2007.
December 2008: Standing strong on the tables

On the Thomson Reuters investment banking industry league tables for 2008, J.P. Morgan was again standing tall, maintaining top rankings in several
categories. Most notably, the firm did extremely well in the global rankings, taking the No. 1 spot in three of the most important categories: global
investment banking fees, European announced M&A volume, and global debt, equity and equity-related underwriting.
J.P. Morgan also ranked No. 1 in global high-yield bond underwriting for the fourth year in a row, No. 2 in global announced M&A deal volume, No. 3
in U.S. announced M&A volume, No. 2 for EMEA equity and equity-related underwriting, No. 2 for French announced M&A, No. 9 in Spanish
announced M&A, No. 6 in German announced M&A, No. 1 in Nordic M&A and, through J.P. Morgan Cazenove, No. 5 in U.K. announced M&A.
November 2008: Reduced prop trading

J.P. Morgan reshuffled the unit's current workers into its five other groups. The firm has also bowed to demands from the U.S. government to limit
divisions that take heavy risks. The choice to break up the desk followed the government's recent decision to obtain large stakes in big U.S. banks, a
move presumably designed to cap risk-taking by large investment banks.
November 2008: Use those vacation days

J.P. Morgan will lay off approximately 3,000 employees or about 10 percent of its investment bank staff, company insiders said. In addition to the cuts,
the firm froze base salaries between $60,000 and $70,000.
October 2008: Taking billions from Uncle Sam

JPMorgan Chase & Co. was one of the many banks asked to accept $25 billion from the U.S. Treasury in an effort to recapitalize and stabilize the
markets. Then-U.S. Treasury Secretary Henry Paulson announced that the Treasury would inject billions of dollars into U.S. banks in order to help
restore confidence to the markets. Paulson said, "The needs of our economy require that our financial institutions not take this new capital to hoard
it, but to deploy it." With the injection, the U.S. followed in the footsteps of some European countries, which announced similar moves earlier in the
week designed to help thaw their credit markets.
GETTING HIRED
Tough competition
Insiders say J.P. Morgan's recruiting process is “highly selective and rigorous.” The company “looks for the best candidates with a combination of
qualitative and quantitative skills.” Summer internships are the best way to get a foot in the door, and one source stresses, “In investment banking, it
is very difficult to get a full-time offer without a summer internship.” Recent market circumstances have also affected the firm’s selectivity as “the
number of applications for the summer analyst program has increased dramatically and the number of spots has declined or remained constant.” “J.P.
Morgan is very selective but not over pretentious in our selection process. We look for talented, bright individuals with a strong work ethic, great
personal skills and the ability to work in groups on challenging projects,” says an insider.

An intelligent conversation
The interview process varies based on the position for which you are applying. At some levels, there are preliminary screens, followed by a Super Day
of interviews. An associate remembers that his second day of interviews included various “two-on-ones, with a managing director and associate in
each room.” He says, “This made the interviews interesting, as the interviewee had to know things from a high business level but also know and
understand the details that an associate would need to know on the job.” There are “not many extremely technical questions”; instead, expect “more
economic and business questions to ensure that general concepts are understood and that you can have an intelligent conversation with someone
about certain business topics.”
Interviews are “handled by senior bankers with a focus on not just corporate finance knowledge but also behavior, leadership background, etc.” One
source recalls that “questions during the second round tended to be more technical and almost case-oriented. The interviewers presented a situation
and then asked how I would proceed.” Recruiters can be found at Ivy League schools and a select group of core schools.
The path to full-time employment

Internships are “crucial” if you want a full-time slot. One employee warns, “If you don't have a summer internship, your opportunity to get into the
most competitive groups is almost impossible.” Intern pay is “the same as a full-time would get, pro-rated for the summer.” One current associate
says that during his internship, “I did some grunt work but also some work with real responsibility to it.” The “goal is not to have interns just make
copies and shadow others,” but “to see the interns develop over the course of the 9-week program so that, at the end, they are viewed as filling the
role of an actual first-year analyst.” Another current employee explains, “Overall, the summer program is very well structured and gives you a complete
experience. Upon concluding the internship, the firm tells you whether or not you will receive an offer for full-time employment.”
OUR SURVEY SAYS
Team players play to win

Sources say J.P. Morgan’s culture is “all about teamwork.” It’s “supportive, interactive, results-oriented, empowering and mentoring.” At J.P. Morgan,
“when teams succeed, everyone gets credit, and when teams struggle, they do so together.” A contact explains, “There’s no ‘culture of blame’ here
when things go wrong.”
That doesn’t mean that when you shine, you won’t receive props. “Though there’s definitely individual recognition for successes, there’s also the
acknowledgement that large, complex trades are done well because of the hard work and contributions of a group of talented individuals coming
together as a team.”
This “team-oriented” culture is “what sets [the firm] apart from other banks.” In addition to its collaborative aspect, “the culture is very collegial and
professional, and everyone is willing to help and teach, as well as learn along the way—even the leaders.”
In order to succeed, “just doing your job is definitely not enough,” notes one source. “You must go above and beyond.” To do that, you should
“demonstrate the ability to run with things and know when to ask for help.” If you do that, you’ll be “given more and more responsibility, regardless
of your title.”
“What I like best about J.P. Morgan,” according to another experienced insider, “is that I’m surrounded by a ton of incredibly smart people who don't
feel the need to remind me that they are smart. Senior bankers are especially approachable, and peers are extremely willing to help each other out in
the name of the firm. I feel genuinely excited to come into work each day.”
Ups and downs

J.P. Morgan’s compensation packages are “very much in line with the Street.” Incoming analysts “receive a signing bonus, and all analysts and
associates receive four weeks of vacation.” Other perks include “401(k) matching, an employee stock purchase plan, comprehensive benefits
package, meal allowances, car services, on-going training and discounts on gym memberships.” One analyst says that in his group it’s “mandatory to
take one full two-week vacation” out of the four weeks provided. J.P. Morgan employees also receive reduced or free admission at cultural institutions
as part of the firm’s arts and culture employee benefits program. This includes admission to major theaters, museums, galleries, gardens and other
cultural attractions.
In 2008, across the Street, pay packages suffered as a result of the downturn in the markets. One employee notes that, indeed, “2008 was not a
particularly great year for compensation. In 2007 and 2006, it was substantively more.” Another source adds, “I always feel that the firm tries to be
fair and thoughtful regarding compensation, and that is true in up markets and in down markets.”

Market driven
Hours are “market driven” and “depend on what group you are in.” One employee says that “there are the occasional late nights when working on
large complex transactions, but for the most part, hours are decent.” For senior members of the staff, working hours “continue to improve over the
years.” An executive director explains, “It's all about learning what you do, how to do it efficiently, who and where to reach out to get things done. I
find I can most definitely have both a personal and work life.” A vice president with the company says his “hours at the office have gone down
considerably from my days as an associate,” but he notes, “I’m on call for clients and senior professionals at home via my Blackberry and cell phone.”
J.P. Morgan “isn't about face time ... it's about getting the work done.” One source says that “seniors bankers are very thoughtful about personal
commitments, vacations and working remotely,” and “people are constructive and willing to find creative solutions so long as the work gets done.”
Employees are nearly unanimous in the sentiment that they would not give up a portion of their salary for working fewer hours.
Open and honest

The relationship between managers and their subordinates is “one of the best features of the firm.” Nearly all employees report that managers are
“always willing to help out and do a great job in walking you through their thoughts and why they do things a certain way.” One source says, “My
managers are very frank, open and honest with me through informal mid-year reviews, formal year-end review process and informal feedback
throughout the year.” Another adds, “The hierarchy at J.P. Morgan is very flat if you show that you are capable of learning and taking on
responsibilities.” One complaint is that “in these tough times, management isn't doing enough to keep employees up to date on the business
environment. There are frequent management changes and not a lot of clarity at times.”
Moving into Bear's space

J.P. Morgan's investment bank “is now housed at 383 Madison, the site of the former Bear Stearns & Co. Inc. headquarters.” Employees say, “It is a
functional building, with great architecture from the outside. The interior is a typical cubicle and office environment.” One source says that despite
the blandness of the office space he has “no complaints.” “The technology is generally kept very current,” another employee adds. “The firm spends
on the things that matter.”
The dress code is “business casual” for associates and analysts while “most vice presidents and above wear business formal every day, given their
frequent contact with clients.” One employee says that “typical dress is slacks and a dress shirt.”
Green efforts
The firm “is in the process of greening our corporate headquarters,” and is “involved in pursuing environmentally friendly business.” A current
employee says, “We have made a great commitment to the green concept and will continue to improve in this area.”
Tremendous training
Training is “top to bottom a tremendous part of the bank” and “not just an on-boarding piece of a career but rather an ongoing process.” Summer
employees and full-time analysts “have specific group training” that “last anywhere from four to nine weeks in addition to firm-wide training.” J.P.
Morgan runs a program called IB University, which “trains and cross-trains folks to help continue their development.” The curriculum offers advanced
technical skill building, product and business-specific modules, and professional skills training. One source says that “full-time hires come out of
training having a background in all activities and products traded within an investment bank.” Another points out that “as cost cuts have taken hold,
more follow-up training sessions have become e-learning (web-based), which just aren't as effective.”
Diversity is welcome
J.P. Morgan makes a strong effort to hire and support female and minority employees. One female managing director says, “We have a strong focus
on mentorship and sponsorship. And internal networking groups focus on improving the skill set of women, making them more aware of the
environment and offering seminars and one-on-one coaching to better prepare them for success and retention.” An associate says, “Two of my bosses
are female, and the respect for women here is very high.” The firm actively recruits the brightest women by sponsoring events “specifically aimed at
introducing women to investment banking.”
With regards to racial diversity, insiders give mixed reports. One employee says, “We still do not have much success in attracting and retaining
underrepresented minorities.” However, an associate disagrees, saying, “There is an outstanding effort on reaching out to minorities.” He explains
that “there is a senior professional who serves as the head of diversity efforts, and J.P. Morgan provides scholarships and summer analyst opportunities
to exceptional minority candidates.” Although there may not be much specific outreach to the LGBT community, one employee comments, “Diversity
is welcome here. I trained and have made friends with members of the LGBT community here.”

On the other side

Despite the financial crisis, J.P. Morgan employees express a very high level of satisfaction with the firm. One employee raves, “This is a great place
to work. We are financially sound, global in footprint and a leader in every business in which we participate.” Another says, “I have worked at J.P.
Morgan for nearly 10 years and have had a number of opportunities to leave. Simply said, I wouldn't still be here if I did not respect the firm I work for,
the people I work with and love what I do.”
Going forward, most sources believe that “J.P. Morgan is well-positioned within the financial services landscape.” Employees give their CEO, Jamie
Dimon, credit for the stability in crisis. One says, “Our firm and CEO have been looked to as thought leaders and that perception has extended down
to the investment bank.” A current employee predicts, “When we come out of the other side of this economic carnage, we will be one of a few truly
dominant firms in the business.”

PRESTIGE
RANKING
5 LAZARD LTD
30 Rockefeller Plaza KEY COMPETITORS

New York, NY 10020
www.lazard.com Morgan Stanley
Rothschild
DEPARTMENTS/DIVISIONS
UPPERS
Asset Management
Financial Advisory • “Very good” training
THE STATS DOWNERS

Employer Type: Public Company • “You will work your butt off”
Ticker Symbol: LAZ (NYSE)
Chief Executive: Bruce Wasserstein
2008 Net Revenue: $1.68 billion
EMPLOYMENT CONTACT
2008 Net Income: $205.9 million www.lazard.com/careers
No. of Offices: 39 offices in 24 countries worldwide
THE BUZZ
• “One of the better M&A advisors”
• “Just a name”
• “No one comes close to them in restructuring”
• “Willing to do anything for a dollar”

Lazard Ltd
THE SCOOP
M&A masters
Called the “Granddaddy of M&A,” Lazard has advised on some of the most significant mergers and acquisitions in Europe and the Americas since the
mid-19th century. The firm’s modern history can be traced to 2002, when dynamic dealmaker Bruce Wasserstein took over the helm of the firm,
becoming chief executive. Wasserstein had a plan when he took leadership of the company—to expand the firm’s business so that the Lazard name
would be known throughout the world. The firm went public in 2005, and today, Lazard’s influence indeed reaches almost every corner of the globe.
It has approximately 2,300 employees and offices in 39 cities across 24 countries on five major continents, and manages more than $100 billion in
assets for its clients. A couple of its latest high-profile M&A assignments include advising Barclays PLC on its $13.5 billion sale of Barclays Global
Investors to BlackRock, and advising InBev on its $52 billion acquisition of Anheuser-Busch, the largest cash deal in history. Lazard has also advised
the United Auto Workers in VEBA (Voluntary Employee Beneficiary Association) restructurings with General Motors, Ford and Chrysler.
At Lazard, there are two main business units: 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, industrials, power and energy,
infrastructure, real estate, and technology, media and telecommunications. Each industry group is managed by regional or global heads. Lazard also
offers advice to governments, sovereign funds and major corporations. In a financial environment where companies are crumbling and bankruptcies
are occurring on a daily basis, Lazard’s well-known restructuring business appears primed to be the firm’s blue ribbon business in 2009 and 2010).
Lazard’s asset management business is mainly comprised of equity products, but it also offers fixed income and alternative investments. Lazard’s
principal executive offices are in New York, London and Paris.
Gold rush roots

How much does it cost to start a financial services firm? For the Lazard brothers of New Orleans, Louisiana, 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. Michel David-Weill, a distant relative of the original Lazards, took over the company in
1977. After the merger, David-Weill became manager of the firm’s executive committee, naming William Loomis as CEO. Loomis resigned in 2001
(reportedly due to 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 firm’s international business and recruit top
investment bankers from around the world.
IN THE NEWS
August 2009: Getting Tuft

Lazard hired ex-Goldman Sachs banker Tom Tuft to be chairman of its global capital markets advisory unit and vice chairman of U.S. investment
banking. Tuft originally joined Goldman in 1976 and was a co-founder of the bank’s equity capital markets group. He most recently served as chairman
of Goldman’s equity capital markets group.
July 2009: Restructuring heats up

Amid a suffering mergers and acquisition market, Lazard’s second quarter 2009 profit fell 33 percent versus the same period a year earlier to $43.1
million. The firm’s merger and acquisition advisory revenue fell 40 percent to $134.9 million while its financial restructuring revenue nearly tripled to
$93.2 million during the quarter. Lazard has advised one nine of the top 10 bankruptcies during 2009. In conjunction with releasing its quarterly
results, Lazard also announced it will increase quarterly dividends by 25 percent to $0.125 cents per share.
July 2009: No. 1 in restructuring

Euromoney magazine named Lazard the Best Global Corporate Restructuring House for 2009, noting that the firm “boasts the industry’s largest and
most experienced team of restructuring professionals [and has] taken leading roles in the most significant restructurings in recent years.” These roles
included acting as “debtor-side financial adviser to Bear Stearns in its sale to JPMorgan; debt adviser to Fannie Mae and Lehman Brothers; adviser to
the United Auto Workers (UAW) in VEBA restructurings with the big three automakers; and adviser to the trustee for the liquidation of Bernard L. Madoff
Investment Securities in connection with the sale of the market-making business.”

Lazard Ltd
July 2009: On the Edgewater

Lazard acquired the management vehicles of private equity and growth investor The Edgewater Funds. The Chicago-based firm has two funds, which
together manage about $700 million in capital. The funds historically bought majority and minority stakes in North American companies with annual
sales of between $20 million and $500 million. The deal created a Chicago-based private equity business for Lazard.
June 2009: Lazard’s newest venture

Lazard announced that it would be developing a private wealth management subsidiary. The new venture will be based in New York and headed up
by Thaddeus Shelly, who came to Lazard from money manager Bessemer Trust. Prior to his stint at Bessemer, Shelley founded and led Legg Mason’s
private client services unit. Under the new unit, Lazard will offer services such as tax planning and investment management advice. However, since
Lazard isn’t a broker dealer, it won’t be actively trading client funds.
April 2009: An unforeseen loss

Lazard posted a $53.5 million loss for the first quarter of the year, a significant fall versus the $7.8 million in net income it booked for the first quarter
2008. The 26-cent-per-share loss—attributed to layoff costs, and a decrease in merger and acquisition activity—was much lower than analysts had
anticipated (analysts surveyed by Bloomberg expected Lazard to post a 31-cent-per-share gain). Revenue also decreased for the quarter, dropping 19
percent to $248.4 million.
March 2009: New M&A chief

Lazard appointed Antonio Weiss to its newly established post as global head of mergers and acquisitions. Weiss has advised a number of clients in
Europe, including InBev on its acquisition of Anheuser-Busch and KKR Private Equity Investors in its sale to Kohlberg Kravis Roberts. Lazard CEO
Bruce Wasserstein said Weiss “has proven to have a keen understanding of international cultures, has built a knowledge base across a wide swath of
industry sectors, and has led Lazard teams on many of our most complex, cross-border and multi-dimensional transactions.”
February 2009: Dealing well with the financial crisis

Though Lazard’s financial results were down considerably versus 2007, they weren’t too bad when compared to those posted by many of its
competitors. For 2008, Lazard booked $1.68 billion in operating revenue versus the $2.05 billion it reported for 2007. It booked $205.9 million in
net income in 2008, versus the $322.7 million it made the year before. One week prior to the announcement of its 2008 results, Lazard revealed that
it had cut approximately 10 percent of its staff, reducing headcount to 2,200.
February 2009: That’s fine, keep the bonus

On the heels of several announcements from industry executives turning down their annual bonuses amid public criticism during the financial crisis,
Lazard’s chief executive Bruce Wasserstein also requested that the board of directors not give him a bonus for 2008 on top of his base salary of
$900,000. In 2007, Wasserstein’s bonus was $36.2 million (in stock, redeemable in March 2011) and his salary was $4.8 million).
December 2008: Still in the game

According to Thomson Reuters, Lazard ranked No. 11 in worldwide announced M&A deals for 2008, moving up one spot from the previous year but
losing 19.9 percent in total deal volume (a drop that was better than that of the industry’s overall; worldwide M&A deals decreased 29.6 percent versus
2007). For U.S. announced M&A deals, Lazard dropped one spot to No. 12, and for European announced M&A deals, the firm ranked No. 10, a four-
place jump versus 2007.
A few of Lazard’s larger deals during the year included Mitsubishi UFJ Financial Group’s $6.05 billion bid for an interest in Morgan Stanley, Nationwide
Financial Services’ $2.41 billion sale to Nationwide Mutual Insurance and InBev’s monstrous $52 billion acquisition of Anheuser-Busch (on which
Lazard served as InBev’s lead financial advisor).
December 2008: From law to banking

Lazard hired Timothy R. Pohl, who co-headed prestigious law firm Skadden, Arps, Slate, Meagher & Flom’s restructuring unit. At Lazard, Pohl will help
advise on large restructuring deals, including the bankruptcy of Lehman Brothers, the largest in history. In his old role at Skadden, Pohl advised on a
number of bankruptcies, including VeraSun Energy, National Steel and Diamond Brands.

Lazard Ltd
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 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 colleges—Harvard,
Wharton, Columbia, Chicago, Stanford and Berkeley. Sources say that “there’s 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. It’s mainly a Northeast crowd.” A
recruiting schedule for investment banking and contact information for other departments are available at the firm’s web site.
Best foot forward

Be sure you have your GPA in top shape before applying to the firm. Lazard isn’t only looking for students from the best schools, it’s also interested
in those schools’ crème de la crème. In other words, students who don’t have top marks need not apply. Otherwise, Lazard’s 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
we’re 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 isn’t 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-based—no technical questions.” One Lazard source who has conducted several interviews agrees, saying, “Interviews are fair. I don’t
believe that undergrads should know all sorts of technical stuff. We’re not going to ask technical questions to a history major at Brown. We might,
though, ask where they think they’ve learned analytical skills, or to tell us about a group project.” A recent candidate says, “My interview was very
straightforward. I don’t 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 they’ve 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 you’d 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.”
OUR SURVEY SAYS
Smells like team spirit

Insiders describe Lazard as a “hardworking” bank with “team spirit.” However, it “doesn’t have as much of a frat guy culture as other firms,” says one
insider. “It has a more professional atmosphere—it’s really quiet.” Sources say this low-key vibe results not only from the mentality of the firm’s senior
bankers, but also from the physical layout of the place. Lazard “doesn’t 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 aren’t 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 don’t go out with co-workers as much as at other places,”
explains one former insider. “It’s 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, “It’s a little too touchy-feely and
very politically correct.”
Up from the Street—a 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

Lazard Ltd
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 100-hour 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 120-hour weeks—more
than anybody else I knew on the Street—and 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, don’t 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 don’t 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 they’ll likely care less about you as a person elsewhere.”
The personal touch

If you like feeling like a face and not a number, Lazard may be the firm for you. Something you won’t get everywhere else is “personal attention—the
admin person knows who you are,” says a Lazard contact. “The firm is good about handling all the little stuff. You don’t get nickel-and-dimed like
you might at big firms. And you don’t 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 firm’s 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, “on-the-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 doesn’t have massive overhead.”
That’s because Lazard is an advisory and asset management firm, absent of conflicts that other banks have: it doesn’t underwrite securities, and it
doesn’t 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 weren’t as flexible. Other banks
were cashing in.” In other words, “While Lazard didn’t soar the way some of its competitors did during the bull market, today its pure advisory model
is winning a ton of business.”

PRESTIGE
RANKING
6 GREENHILL & CO., INC.

New York, NY 10022
www.greenhill.com Houlihan Lokey
Morgan Stanley
DEPARTMENTS
UPPERS
Merchant Banking
Mergers & Acquisitions • “No face time”
Restructuring • Greenhill “provides cereal for breakfast, free sodas and
beverages, designer coffee and snacks”
THE STATS
DOWNERS
Ticker Symbol: GHL (NYSE) • “Earnings potential is very low in this firm”
Chairman: Robert H. Niehaus • “There are still not many women working here”
CEO: Scott L. Bok & Simon A. Borrows
2008 Revenue: $221.87 million
2008 Net Income: $48.98 million
EMPLOYMENT CONTACT
No. of Employees: 234 “Careers” at www.greenhill.com
No. of Offices: 8
THE BUZZ
• “Rising star”
• “Too dependent on Bob Greenhill”
• “Blue-chip boutique; intelligent, talented, growing”
• “Lost some of its luster”
67
Greenhill & Co., Inc.
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. He led the company for 11 years before stepping down from as CEO in October 2007. Greenhill handed the reins to new co-CEOs
Scott Bok and Simon Borrows, and has since remained chairman of the firm.
Greenhill calls itself “a unique investment firm,” and to be sure, it follows a model quite unlike the structure of its behemoth competitors. At Greenhill,
independence is the guiding philosophy—because it is not part of a larger financial institution, the firm seeks to avoid conflicts of interest. Greenhill’s
second rule is focus. It has no research, trading or lending divisions to distract from its advisory work. Thanks to the firm’s tiny size, it can also afford
more transparency than most on Wall Street. In January 2007, Greenhill President Scott Bok told the press that there’s no heated whispering about
year-end bonuses at Greenhill. Instead, the firm writes a detailed memo that explains each managing director’s bonus, and every MD receives a copy
of the memo. “It’s 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 offices in Dallas, Toronto, London, Frankfurt, San Francisco,
Tokyo and Chicago.
Expansion in ‘08
Although 2008 was a year in which most financial firms contracted, Greenhill & Co. did the opposite, expanding its global and national mandates. It
scooped up talent from ailing rival banks and even launched a new department, its fund placement advisory group, staffed entirely with former Lehman
Brothers employees. “We’ve interviewed more managing director candidates in the past eight weeks than at any other time in the firm’s history,” Scott
Book told the now-defunct New York Sun in May 2008. So it’s no surprise that, following the demise of Lehman and Merrill Lynch, CNBC’s Guy Adami
named Greenhill among the boutique investment banks that are the new “winners” of Wall Street.
Greenhill also opened three new offices in 2008, beginning in January with its San Francisco outpost directed by Andrew K. Woeber. Woeber joined
the firm from Morgan Stanley, where he was a managing director. In November, Greenhill hired three senior bankers from Lehman to open a Chicago
office; the managing directors, who focused on industrial clients at Lehman, were brought in with the intention of bolstering Greenhill’s business in the
Midwest.
Greenhill opened its Tokyo office in October 2008, in an effort to capture part of the still-bubbling Japanese acquisitions market. Japanese buyouts of
overseas firms rose to a record $75 billion in 2007, bolstered by the strengthening yen.
All told, in 2008, Greenhill added 14 managing directors to its roster, bringing its total number of MDs to 49. It also named Richard J. Lieb its new
CFO; Lieb has been with Greenhill since 2005. Prior to joining the firm, Lieb spent 20 years in the real estate investment banking group at Goldman
Sachs. He replaced John D. Liu, who left the join one of the firm’s (unspecified) clients.
IN THE NEWS
March 2009: New group and new faces

Greenhill & Co. announced that it planned to develop its presence in the restructuring sector by starting up a financing advisory and restructuring
group, along with appointing two new senior bankers. The bankers, Ken Goldsborough from GE Capital and Andrew Kramer from UBS’ restructuring
unit, will join Greenhill as managing directors.
April 2009: Earnings slide

Greenhill & Co. booked $61.8 million in revenue and $13.7 million in net income for the first quarter 2009. The numbers were down versus the same
period a year earlier when the firm reported revenue of $75.4 million and net income of $19.2 million.
January 2009: Tough year for everyone

Greenhill & Co. booked $221.9 million in revenue and $49 million in net income for 2008, down considerably from the $400.4 million and $178.5
million the firm reported for 2007. The decreases were due to dry deal markets as a result of the worldwide financial crisis.

December 2008: Decline in M&A, but still strong

The decline of M&A made a dent in Greenhill’s rankings for worldwide announced M&A deal volume, as the firm fell to No. 23 from No. 15 in 2007,
according to Thomson Reuters. Overall, the firm worked on 23 deals during 2008 worth a total of $70.7 billion (compared to the $194.3 billion worth
of deals it advised on in 2007). However, for U.S. announced M&A deal volume, Greenhill held steady at No. 17 in 2008, actually boosting its overall
deal volume to $61.5 billion from $45.6 billion.
Greenhill didn’t advise on as many deals in 2008 as it did in 2007, and certainly none came close to Fortis, The Royal Bank of Scotland Group and
Santander Central Hispano’s $99.1 billion acquisition of ABN Amro. Highlights from 2008 included working on health care company Roche Holding’s
$43.7 billion acquisition of the publicly held interest of biotechnology firm Genentech, the $17.7 billion merger of Northwest and Delta Air Lines Airlines,
and the $10.7 billion pre-conditional offer from Swiss-based Xsastra, a global diversified mining company, to purchase the U.K.-based Lonmin plc.
November 2008: To infinity and beyond

Greenhill closed out 2008 with a common stock offering. The firm issued 1,250,000 new shares of common stock and 2,250,000 shares owned by
its managing directors. In a press release, Greenhill stipulated that it will use the proceeds “to provide financial flexibility to pursue, where appropriate,
the further expansion of its advisory business by industry and location, for merchant banking investments and for general corporate purposes.”
May 2008: Ex-Lehman bankers join Greenhill

Greenhill launched a fund placement advisory group for raising capital for private equity funds. Christopher D. Kirsten, who had been global head of
private fund marketing group at Lehman Brothers, was named head of Greenhill’s new fund-raising department. The other members of the group—
Patrick S. Dunleavy, Neil Banta, Dave Brown, Meghan Kelly—also came from Lehman.
February 2008: $400 million blank check

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, Greenhill’s co-chief executive, is GHL’s 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-year analysts
may be offered an associate position. For analysts and associates, Greenhill offers a unique opportunity to work across the firm’s three groups—
mergers 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 office’s e-mail address (for New York: nylateralhire@greenhill.com).
OUR SURVEY SAYS
So-so salaries
If you’re 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 you’re 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-year period.” As far as perks, the firm seems to provide all the
basics, plus a little more. Explains one associate in New York, “There’s a gym at the office that’s stocked with workout clothes—all 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 there’s “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, it’s “banker blues and
grays only,” which means formal attire. Though, the firm does go casual on Fridays.
One insider is happy to report that there’s “no ‘face time.’ You only stay if you’re busy.” He adds, “Hours fluctuate widely due to the small size of the
firm—when you’re working on something important, you work very hard, but when you’re not, hours can be light.” Another contact notes that you

work “fewer hours than [those 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 there’s “not as much formal training [at Greenhill] as at bigger firms, it’s very adequate,” says one young banker. In addition, he notes that
“there’s lots of on-the-job training.” Others, though, aren’t as pleased with the firm’s 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 we’re very fair and
ready to hire more.”

PRESTIGE
RANKING
CREDIT SUISSE’S INVESTMENT BANKING

7 BUSINESS
11 Madison Avenue RANKING RECAP
New York, NY 10010-3629
Fax: (212) 325-6665 #5 – Compensation
www.credit-suisse.com/investment_banking #5 – Training
#7 – Culture
BUSINESSES* #8 – Overall Satisfaction
Asset Management
Information Technology
#9 – Offices
Investment Banking
#9 – Selectivity
Investment Banking Operations
Private Banking
#14 – Hours
Shared Services
Diversity
#4 – Diversity With Respect To Ethnic Minorities
THE STATS #6 – Best for Diversity
#6 – Diversity With Respect To Gays and Lesbians
Employer Type: Business Unit of Credit Suisse Group AG #12 – Diversity With Respect To Women
CEO, Credit Suisse Group: Brady Dougan
CEO, Investment Banking: Paul Calello
2008 Net Revenue: CHF 9.2 billion* KEY COMPETITORS
2008 Net Income: -CHF 8.2 billion*
Deutsche Bank
No. of Employees: 46,700*
Goldman Sachs
No. of Offices: 57*
J.P. Morgan
Morgan Stanley
*Credit Suisse Group AG
UBS Investment Bank
UPPERS
• “Great deal flow”
• “Treated with respect by superiors”
DOWNERS
• “Bureaucracy”
• “A little light on the bonuses”
THE BUZZ
What insiders at other firms are saying EMPLOYMENT CONTACT
• “Excellent all around; great name, strong bank”
www.credit-suisse.com/careers
• “Past its prime”
• “Strong performance in a tough market”
• “Future in North America remains unclear”
71
Credit Suisse’s Investment Banking Business
THE SCOOP
International player
The three core business divisions of the Zurich-based Credit Suisse Group are investment banking, private banking and asset management. Since the
group rebranded to create an “integrated bank” in 2006, all businesses under its umbrella have been collectively known as Credit Suisse. Credit
Suisse’s investment banking business—encompassing M&A advisory, equity and debt capital markets, private placements and leveraged finance
services—is one of the world’s leading investment banks. The group’s private banking business—investment counselling and asset management to
high-net-worth individuals—has a global footprint, and the firm is touted as being one of the world’s largest private banking organizations. Within its
global asset management business, the firm offers a wide range of products, including equities, fixed income, multiple-asset class products, and
alternative investments such as real estate, private equity and hedge funds.
Credit Suisse’s history dates back to the mid-19th century when Alfred Escher founded Schweizerische Kreditanstalt (that’s Swiss-German for Swiss
Credit Institution). The bank opened its first branch in Basel, Switzerland in 1905. As World War II raged in Europe, Credit Suisse opened its first
international branch outside its home country in New York City in 1942. For the next three decades, the bank grew within Switzerland, across Europe
and internationally. In 1978, Credit Suisse began its “cooperation” with The First Boston Corporation in the U.S., acquiring a controlling stake in the
firm 10 years later (after which the bank was renamed to Credit Suisse First Boston). A year after that, Credit Suisse Holding was established as the
parent company of the group. Various mergers, acquisitions and alliances continued through the 1990s, and merged banks ultimately became
assimilated into the Credit Suisse identity.
In 2002, the group famously restructured into two streamlined business units: Credit Suisse Financial Services and Credit Suisse First Boston. Two
years later, in 2004, the group restructured again, into three business units: Credit Suisse, Credit Suisse First Boston (CSFB) and Winterthur (a Swiss
insurance firm that it divested in 2006 to AXA). Also in 2004, CSFB was famously (along with Morgan Stanley) one of the principal underwriters of
Google’s $23 billion IPO. In 2006, Credit Suisse rebranded and shifted its structure (again) to an “integrated bank” model, dropping the First Boston
affiliation, becoming, once and for all, Credit Suisse.
As almost every big investment bank was forced to do in late 2007 and early 2008, Credit Suisse began handing out some pink slips due to the
subprime mortgage meltdown. In January 2008, after a rumour surfaced from inside Credit Suisse that approximately 20 percent of the firm’s 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. In addition, at the close of 2008,
the firm annoucned it would cut another 5,300 investment banking positinos, representing about 11 percent of its workforce. Despite the cuts, Credit
Suisse weathered the worldwide financial crisis very well and was relatively unscathed compared to many of its competitors.
IN THE NEWS
April 2009: Surpassing estimates

Credit Suisse posted first quarter 2009 net income of $1.7 billion, an increase of 8.2 percent from first quarter 2008. Revenue, meanwhile, came in
at $8.2 billion for the quarter, up from $2.5 billion. The bank was helped by a boom in fixed-income trading.
February 2009: An unenviable record

Credit Suisse posted a net loss for the fourth quarter 2008 of $5.2 billion and a record full-year loss of $7.1 billion. The firm cited weak trading and
restructuring charges as reasons for its deep loss, and said it would follow through on its promise to cut 5,300 positions—about 11 percent of its total
workers. Though its results were mostly dismal for 2008, the firm said all of its divisions had been profitable so far in 2009.
February 2009: Callan takes some time off

Lehman Brothers ex-CFO Erin Callan took a personal leave of absence from her new position at Credit Suisse, the firm confirmed. Callan’s time away
from her new job heading up a unit that advises hedge funds came approximately five months after she joined the company. Credit Suisse did not
confirm how long of a temporary leave Callan will take.
January 2009: Joining the restructuring game

On the heels of similar moves by competitors Goldman Sachs and Morgan Stanley, Credit Suisse formed a debt advisory and restructuring group to
provide advice for corporate clients seeking counsel regarding debt and liability-related issues. The new unit, created in response to the numerous
client requests for help with such issues, will be headed up by Marisa Drew and Craig Klaasmeyer. Drew is currently the co-head of Credit Suisse’s
European global markets solutions group, and Klaasmeyer serves as the co-head of the firm’s leveraged finance group in Europe.

January 2009: No trophy case big enough

Acquisitions Monthly named Credit Suisse M&A Advisor of the Year for both the U.K. and Nordic Region, and gave the firm the Domestic Deal of the
Year award for the recapitalization of U.K. banks. Also in early 2009, Euromoney ranked Credit Suisse as the Best Foreign Bank in the U.K. and having
the Best Private Banking Services Overall in Switzerland; the publication ranked the bank first in several other categories, including Range of
Investment Products, Structured Products, Real Estate Investment, Equity Portfolio Management and Fixed Income Portfolio Management. In addition,
Investment Dealers’ Digest gave Credit Suisse two big awards: the Private Equity Deal of the Year award for its work advising the bidders (Bain and
Thomas H. Lee) in the leveraged buyout of Clear Channel Communications, and the Industrial Deal of the Year award for advising Ingersoll Rand on
its merger with Trane.
December 2008: A bonus that’s no fruitcake

Credit Suisse hit upon a novel idea to lessen its loss risk: using $5 billion from extremely illiquid securities such as leveraged loans and mortgage-
backed debt (the type largely attributed for beginning the financial crisis) to pay its managing directors’ and directors’ annual bonuses. The securities
will be put into a partner asset facility and workers will be given shares in it. If the securities weaken in value, however, bonuses will be affected first.
December 2008: Decent year on the tables

According to Thomson Reuters, in worldwide announced M&A deals for 2008, Credit Suisse held on to its No. 7 ranking for the second consecutive
year, even though its total deal volume was down 28.3 percent. In U.S. announced M&A transactions, the firm placed No. 8, down two spots and
losing 30.3 percent in deal volume versus 2007. In European announced M&A deals, Credit Suisse jumped four spots to No. 6, working on 162 deals
worth a total of $340 billion.
In global initial public offerings, the firm dipped to No. 8 from No. 3 in the previous year, working on 20 deals worth $4 billion. In U.S. IPOs, Credit
Suisse also took a tumble, falling to No. 9 from No. 7, working on just eight deals worth $758.7 million.
In global debt underwriting, Credit Suisse rose three spots to No. 7, up from No. 10 the previous year, advising on 574 deals worth $183.5 billion. The
firm also had a good year in global mortgage-backed securities underwriting, rising four spots to No. 2, working on 47 deals worth $25.8 billion while
gaining 4.4 percent in market share. Additionally, Credit Suisse placed No. 3 in global high-yield debt underwriting.
December 2008: Asset management sale

Credit Suisse agreed to sell a part of its asset management unit to Aberdeen Asset Management for a $360 million stake (about 25 percent) in the
British company and a seat on its board. As part of the deal, Credit Suisse transferred about $71 billion in its managed assets to Aberdeen, the largest
independent investment management firm in Scotland. The deal included portions of Credit Suisse asset management divisions in the U.S., Europe
and Asia.
December 2008: Spinning the deep cuts

Credit Suisse announced that it would cut another 5,300 positions—or about 11 percent of its employees—mostly in its investment banking unit.
October 2008: Crunched

In the infamous third quarter 2008 (made infamous by the collapse of Lehman Brothers in September 2008), Credit Suisse Group was hit with a net
loss of CHF 1.26 billion. The group’s core net revenue for the quarter (CHF 3.1 billion) was 48 percent lower versus what the firm reported for the
third quarter 2007. The investment banking arm (like those of its peers) was hardest hit, taking a pre-tax loss of CHF 3.2 billion. However, the unit’s
global rates, foreign exchange, electronic trading and prime services divisions experienced strong results. Credit Suisse also reported strong results in
its other businesses, including wealth managemen, and Swiss corporate and retail banking businesses. The group’s private banking division had net
new assets of a whopping CHF 14.5 billion, and Credit Suisse was pleased with the results of its new “integrated bank” structure, through which the
group earned CHF 1.5 billion in revenue from cross-divisional business activities.
October 2008: A boost from Qatar and Scotland

Credit Suisse raised $8.7 billion in financial backing from a “group of major global investors” that included Qatar Holding LLC, a unit of the Qatar
Investment Authority.

October 2008: Additional reductions

Credit Suisse confirmed it would purge 500 jobs from its securities group and from some support roles. The new cuts added to the 1,565 positions
the bank had already eliminated in the past year. Analysts pointed to the difficulty banks have had downsizing their costs in light of the shaky market
as reason for the layoffs. A week earlier, Credit Suisse announced $1.5 billion in securities-related losses.
June 2008: Chinese connection

Credit Suisse partnered with another powerful nation after regulatory agencies approved a joint venture it had proposed with the Chinese brokerage
firm Founder Securities. Previously, in January 2008, the Swiss bank announced that it was seeking to partner with Founder Securities in order to get
a foothold on securities underwriting and wealth management, among other sectors, in China. The announcement followed on the heels of chief rival
UBS’s acquisition of Beijing Securities.
GETTING HIRED
Top talent only

Credit Suisse is “very selective in its hiring.” An insider says that the company “looks for strong candidates with a balance between academics and
participation in organizations on their campus.” There is a list of core schools that the firm recruits from, and one source reports that it is “difficult to
get an interview if your MBA program is not on the target list.” Candidates from non-core schools can expect to go through an “exhaustive vetting
process.” Potential employees “must display sound quantitative aptitude with a good understanding of valuation techniques” in order to be considered.
Though candidates from top schools are screened very thoroughly, one employee feels that the high number of incoming employees each year thins
the talent.
Technically inclined
The core schools where Credit Suisse recruits are the “top-tier undergraduate and top-seven MBA” institutions. The recruiting process begins on
campus with informal conversations to get to know candidates. If selected, candidates go through two rounds of interviews. The first round includes
“two-on-one” interviews on campus. One source says the questions during his “45-minute” interview were “70 percent behavioral and 30 percent
technical.” This round is followed by a final-round, which includes six to eight, half-hour interviews with one or two bankers in each interview.” During
the final round, you “need to show strong technical skills as each interview includes some type of technical question.” Candidates should “be ready
to answer any kind of question, and at least know the basics of finance, valuation and accounting.” One contact remembers being “asked [to give]
three strengths, three weaknesses” and his “thoughts on the market process.” Another current employees recalls example questions such as “Express
1/8 as a percentage,” and “If a clock reads 3:15, what’s the angle between the hour hand and the minute hand?” More general questions include
“How do you compare us to other firms?” and “How are you making your decision?”
Internships a must
A summer internship is an almost guarantee for future employment at Credit Suisse as “all summer interns are expected to get an offer.” Furthermore,
“it is very difficult to get a full-time offer after school without having done an internship.” Many current employees who completed internships with the
company had very positive experiences. One source says that the “internship served as a 10-week interview and really gave me the opportunity to
display my full potential.” The internship gave “very realistic exposure to what a full-time associate would face.” Another says that the internship was
a “great, well rounded experience,” and that the “sky is the limit if you are competent and able to take on the responsibility of a full-time analyst.”
The work and pay of most internships are “equivalent to those of a full-time associate.” There are also side perks. According to one source, the firm
“takes very good care of its summers.” “There is a weekend trip to the Hampton’s—golf, beach BBQ, the works—and an evening when they book
Shake-Shack,” among many other events. The firm also assigns eight to 10 associates as junior mentors to help the interns throughout the summer,”
a current employee says.
OUR SURVEY SAYS
“United Nations of banking”

The general consensus is that the atmosphere at Credit Suisse is “very collegial, team-oriented, supportive, diverse and global.” A current employee
says, “The firm is very supportive in terms of career development for their junior bankers with MBA prep and ambassador programs where Credit Suisse
will pay for your MBA.” There is “generally an open-door policy with senior bankers.” One source speaks highly of the firm’s diverse atmosphere,
saying, “I like to call our firm the United Nations of banking. We have a truly global workforce in our New York office. We have people from a wide

variety of countries, and you often hear a wide variety of languages being spoken in your work area.” The cultural diversity leads to the firm being a
“little less aggressive and merit-based,” a place where “many senior execs have made their career.”
Bonus packages
Salaries at Credit Suisse start at about $60,000 for analysts and $95,000 for associates. According to one employee, “Associates and higher title levels
get paid 20 percent of annual bonus in stock, which vests evenly over three years.” However, in 2009, “bonuses for first-year analysts were severely
impacted by the economy and the market losses.” One employee says that the “firm did a good job paying the younger people despite the horrible
macro” conditions, and adds that Credit Suisse “has not accepted any federal assistance (Swiss or U.S.) and is on track for a relatively stable year.”
“Given the current market circumstances those of us that outperformed were paid higher than the previous year,” says one insider. In order to cut
costs, Credit Suisse has cut back on office perks and downsized its work force in the last year.
Ebb and flow

Hours at the entry level can be brutal at Credit Suisse. However, many report that hours become more tolerable as one accumulates seniority. One
employee estimates, “As a first year, I worked an average of 100 hours per week. As a second year, I worked about 90 hours per week. And as a
third year, I put in about 80 hours per week.” Another employee backs this up, explaining that “during your first couple of years you should expect to
spend over 100 hours per week for many weeks in a row. Every now and then you get a break of a couple of weeks, with more normal hours and
weekends off.”
An equity research analyst reports that “we work long hours during earnings time, but aside from that, the hours are very manageable.” An analyst in
M&A explains that “banking is generally ebb and flow. If you are on a fast-paced live deal, you will find yourself in the office at all hours, all the time.
In between these situations, though, life can be more manageable.” Luckily, almost all employees agree that “not a lot of hours are wasted waiting on
others or putting in face time.” And the majority of employees say they would not take a pay cut in exchange for fewer hours.
Be proactive
The managers at Credit Suisse are described by their subordinates as “phenomenal,” “approachable” and “not your stereotypical bankers.” One
analyst says, “I am encouraged to learn as much as possible, work on group projects, contribute to our team’s projects and bring new ideas to the
table.” Another adds, “Managers don’t play favorites. They have high expectations but treat people fairly.” The bar is kept high due to a policy in
which “there is low tolerance for managers who create work for no reason or who are unappreciative of their juniors’ time.” One source reports that
“managers are often walking the trading floor and know many junior people quite well.” However, another contact warns that “you must be proactive
about developing relationships with senior team members.”
New York vs. the world

Though the outside of Credit Suisse’s headquarters in New York is “impressive” and the lobby inside is “one of the most beautiful in the city,” the
building is “otherwise pretty standard.” Current employees also report that “NYC offices are much less luxurious than the regional offices.” “San
Francisco and Mexico City are much better, and also offer free drinks and coffee.” An employee in New York reports that there are perks in the Big
Apple as well, citing “the cafeteria and other on-site services like dry cleaning, cafes and traders’ pantry on the trading floors.” The New York office is
also “in a prime location in Gramercy, which is much more alive than Wall Street and more gentrified than Times Square.”
The dress code is “business casual all the time,” and “people typically wear suits for client meetings.” In some offices, employees also “get to wear
jeans during August” if they give a charitable contribution. One contact says, “Dress code is a little less strict on the West Coast due to casual attire
of clients.”
Though many employees are unaware of any specific updates Credit Suisse has made to improve its environmental footprint, one source says that the
firm has installed “new faucets that use less water.” Others note that “lights turn off when nobody is around,” and “everything possible gets recycled.”
Training is tops
According to current employees, Credit Suisse has the “top training program on Wall Street.” An associate reports that the “training was exceptional,”
and he “felt like Credit Suisse invested a lot of time into making sure that we were exposed to as much as possible both before our summer internship
and before the full-time program.” After the initial formal training, there are “numerous ongoing training opportunities to further career development.”
“Some groups also have continuing education throughout the year to teach more advanced topics to junior and mid-level bankers.” These sessions
are “often run by managing directors, external law firms and other education consultants,” an analyst explains.

Women’s initiative
Female employees give the company mixed reviews on its outreach towards them. One associate says that “relative to Wall Street, Credit Suisse has
many female bankers,” but she admits that “we’ve got a long way to go here in finance.” Another female associate reports that she “doesn’t see many
female faces on the trading floor.” One employee notes that the firm has a “very strong women’s network,” while another adds that “there are lots of
programs for women.”
As far as racial diversity, one African American employee says that “Credit Suisse is very diverse with regard to minorities relative to other Wall Street
firms.” An openly gay employee gives the firm low marks with regards to outreach for the GLBT community, but does says that “there are two openly
gay people in the investment banking department.”
Happy campers
Credit Suisse has managed to keep its employees relatively satisfied throughout the rocky ride of the past few years. “Our leadership has been
extremely thoughtful during these difficult times,” says one employee, “and that is adequately reflected by our continued strong relationships with
clients and positive presence in the press.” General complaints include the fact that “work/life balance could be better.” “The only reason I am
dissatisfied is due to my bonus,” one employee says, “but that is not uncommon at any financial firm on Wall Street.”
Overall, insiders say that Credit Suisse is “a great place to work,” noting that employees “are able to speak freely and present their opinions.” One
source sums up the situation, “We are in relatively good financial shape and should be able to take market share from competitors in the next year or
two.”
Sunny outlook
Going forward, Credit Suisse’s employees have mixed opinions about what will happen to the company and banking in general. One source confesses,
“It’s almost impossible to see which direction this business is going.” Another has more specific predictions, believing that “the general business
outlook is not very good in 2009.” However, she points out that “Credit Suisse has weathered the storm better than most of its competitors.” Another
source says that Credit Suisse “is extremely well positioned relative to its peers,” explaining that “the company has positioned itself to take significant
market share from key competitors over the next couple of years.”

PRESTIGE
RANKING
8 EVERCORE PARTNERS
55 East 52nd Street KEY COMPETITORS

New York, NY 10055
Phone: (212) 857-3100 Blackstone Group
Fax: (212) 857-3101 Goldman Sachs
www.evercore.com Morgan Stanley
Greenhill & Co.
Lazard
DEPARTMENTS
Advisory Services UPPERS
Investment Management
• “Laid-back” atmosphere
THE STATS
DOWNERS
Ticker Symbol: EVR (NYSE) • Hours can be “brutal”
Chairman: Roger C. Altman
President & CEO: Ralph Schlosstein
EMPLOYMENT CONTACT
2008 Net Income: -$4.71 million Under “contact us,” see “careers” at www.evercore.com
No. of Employees: 335
No. of Offices: 9
THE BUZZ
• “Top ‘prestigious boutique’—intelligent, high quality advisors”
• “Dependent on Roger Altman; ‘eat what you kill’ mentality”
• “Winning many notable mandates; restructuring
powerhouse”
• “Quality firm, but status as a public company may be
challenging”
77
Evercore Partners
THE SCOOP
Boutique on the rise
Founded in 1996 by Blackstone veterans Roger Altman and Austin Beutner, investment banking boutique Evercore Partners went public in August
2006 with an $82.9 million initial public offering. Its public debut was astonishing: Evercore’s revenue increased 47 percent in 2006 while net income
rose 80 percent.
Evercore operates from offices in New York; Los Angeles; San Francisco; Boston; Washington, D.C.; Houston; London; Mexico City; and Monterrey. It
also has alliances in Japan, China, Brazil and France. Its advisory services include corporate advisory and restructuring advisory, serving both public
and private companies, with an emphasis on large multinational corporations. Corporate advisory services include mergers and acquisitions,
divestitures and sale transactions, and special committee and fairness opinion assignments. 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.
Evercore’s private equity 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 among 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 Evercore’s 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.
In addition, Evercore has recently expanded its investing businesses with the launch of Evercore Wealth Management, LLC, which provides customized
investment and wealth management services to families, individuals and related institutions. It also recently established Evercore Trust Company, N.A.,
which specializes in providing independent fiduciary services, including investment management and fiduciary decision-making services, to employee
benefit plans; it has approximately $12.8 billion of assets under management.
Evercore devoted a fair amount of activity in 2008 to pumping up its investment management business, making strategic deals in Brazil, Japan, the
U.K. and the U.S. Evercore hopes fees from investment management will compensate for slowing advisory fee revenue given a shaky M&A deal market.
IN THE NEWS
July 2009: Evercore taps Lehman veteran

Evercore Partners hired former vice chairman of Barclay’s Capital and 28-year Lehman Brothers veteran, Mark Burton. Burton has advised on huge
deals such as Royal Bank of Scotland’s acquisition of ABN Amro and Golden West’s sale to Wachovia.
May 2009: Hiring two more from Merrill

Evercore Partners hired one of Merrill Lynch’s chief advisors to transportation firms in New York and one of the former bank’s senior energy investment
bankers in Houston. Mark K. Friedman, who will work with Evercore as a shipping investment banking executive, and Robert A. Pacha, who will open
Evercore’s Houston office and lead its midstream energy practice, were the most recent high-level departures from Merrill after its sale to Bank of
America in late 2008. Evercore had previously hired ex-Merrill colleague George R. Ackert in February 2009.
May 2009: Evercore gains a new CEO from BlackRock

Evercore scored a major coup, hiring Ralph Schlosstein as its new president and CEO. Schlosstein previously worked for BlackRock, where he spent
nearly two decades as president, helping to grow BlackRock from a start-up into one of the world’s leading financial services firms (Schlosstein also
co-founded BlackRock). Roger Altman will continue to serve as full-time chairman of Evercore, focusing on client relationships and transactions, while
Schlosstein focuses on managing the firm and growing the investment management side of its business. Schlosstein took over the role left vacant by
the retirement of Evercore Co-Founder Austin Beutner. Schlosstein had previously begun working in partnership with Evercore in 2008, setting up
HighView Investment Group.
April 2009: Picking up a piece of BofA

Evercore agreed to acquire Bank of America’s special fiduciary services group, a unit of BofA’s wealth management division that provides services for
companies’ employee benefit plans. Evercore is hoping that the acquisition of the unit, which has approximately $12.8 billion in assets under
management, will boost Evercore’s revenue, compensating for less advisory revenue given the slow M&A deal market. Evercore plans to house the
unit under its newly formed Evercore Trust Company.

Evercore Partners
January 2009: UBS’s loss is Evercore’s gain

Evercore Partners hired former UBS vice chairman Robert Gillespie as senior managing director of the company’s London division. During his 27-year
tenure at UBS, Gillespie advised clients such as Prudential and Vodafone, and assisted in merging banking groups the company had acquired.
December 2008: Big-ticket deals

Thomson Reuters ranked Evercore No. 24 in worldwide announced M&A in 2008 (down three spots from 2007) and No. 16 in U.S. announced M&A.
In 2008, Evercore worked on several major M&A assignments, including Time Warner Cable’s separation from Time Warner, Rockefeller Financial
Services’ sale of a 37 percent stake to Société Générale’s private banking group and Centennial Communications’ $944 million sale to AT&T.
December 2008: Advising General Motors

Evercore’s William Repko—a banker previously named to the Turnaround Management Association’s Restructuring Hall of Fame—was enlisted to
advise General Motors on its bankruptcy talks. Repko isn’t the first Evercore employee to take on such a role; his boss, Evercore CEO Roger Altman,
contributed to the bailout plan of Chrysler when he was assistant Treasury secretary in 1979.
November 2008: Breaking into wealth management

Evercore launched Evercore Wealth Management, headed by Jeff Maurer, former chairman and CEO of U.S. Trust Corporation. Fred Taylor, former
vice chairman and CIO of U.S. Trust, was named EWM senior advisor. The business will concentrate on high-net-worth clients with more than $5
million in assets.
October 2008: Gaining Les and the admiral

Evercore hired 25-year Lehman Brothers veteran Les Fabuss as senior managing director for its advisory business. Fabuss was previously vice
chairman of global investment banking at Lehman. Evercore also added Admiral Sir James Burnell-Nugent to its advisory business; the admiral was
made a strategic advisor in the Evercore London office. Sir James was previously commander-in-chief fleet of the Royal Navy.
September 2008: Helping HighView

Evercore pledged $150 million to help launch HighView Investment Group, headed by BlackRock co-founder and former president Ralph Schlosstein.
Schlosstein and Stone Point Capital, among others, pledged funds totaling another $450 million. Asset manager HighView will seek to acquire minority
interests in independent alternative asset managers with more than $2 billion in assets under management. As part of the deal, Evercore CEO Roger
Altman was named to the HighView board.
August 2008: Partnering up with G5

Evercore announced an agreement with G5 Advisors, a São Paulo-based investment banking boutique and investment management firm, to jointly
advise on cross-border transactions involving Brazilian companies. Together, Evercore and G5 will focus on M&A transactions between Brazilian
companies and ones located outside South America. The partnership should increase Evercore’s M&A standing in Brazil (in 2008, Thomson Reuters
ranked Evercore No. 22 in Brazilian completed M&A deals).
June 2008: Picking up a former Bear banker

Evercore hired former head of Bear Stearns’ restructuring unit Daniel A. Celentano as senior managing director. At Bear, Celentano worked on
restructuring projects for General Motors, Time Warner, Zale Corporation and Andersen Worldwide.
May 2008: Co-CEO resigns

Austin M. Beutner, Evercore president and co-CEO, resigned as a result of medical procedures related to a bicycle accident. In response, Evercore
named Roger Altman its sole CEO, but made no other managerial changes.
April 2008: Investment management expansion aplenty

Evercore announced that the Mizuho Corporate Bank in Japan would invest $120 million in debts and warrants, earning Mizuho the right to add a
director to the Evercore board.

Evercore Partners
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. “It’s 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 seven or eight analysts, but
“most worked in other banks before coming to work here.” Participating in Evercore’s 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, an internship with
the firm is “not essential.”
Regardless of where 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 likes candidates “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’s imperative to have solid technical skills and a good work ethic,
but if you don’t check the ‘fit’ box, you will not be hired.”
Time to get technical

Evercore’s interview process is “short and transparent.” Most candidates interview on-campus, followed by a full day of interviews in the firm’s New
York City office. The number of on-site interviews can range from four to as many as 10; interviews are held by “associates, VPs and partners.” These
“30-minute interviews” tend to be “technically rigorous.” Interviewers also look to gauge fit by asking questions about candidates’ “interest in
investment banking and the boutique environment.” Sources say the question ratio breaks down to about “50 percent technical and 50 percent fit.”
But one source recalls, “The questions I received were much more technical than ones asked by 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 Penn, NYU, Western Ontario, UVA and University of Michigan at the
undergraduate level.
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 won’t mind pulling all-nighters with
the people here.” Evercore’s 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 means substantially longer hours and more
responsibility shouldered by the analysts.” Indeed, “a lot is expected out of 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

Evercore bankers enjoy “higher compensation than peers.” Almost unanimously, insiders give high marks to their pay packages, which, in addition to
nice salaries, include a number of perks. Bankers enjoy a “generous meal allowance” of $30 for dinner during the week and $50 on weekends.
There’s 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,” “discounts on gym memberships,” and free “car service to and from work after 9 p.m. as well as
on the weekends.”

Evercore Partners
The softer side of “brutal” hours

New bankers should “expect to work hard,” especially in their “first years.” Although “hours are generally better than at bulge-brackets firms,” they
“can be brutal at times” and normally average around 90 per week. Most employees 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 you’re 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.” There’s 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.”
It’s a good thing Evercore’s 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 accounting and finance.” The firm “requires self-starters” content with “two weeks of DealMaven training.”
Fortunately, “people understand there is a learning curve and are extremely helpful when you start.” Still, incomers should be prepared for a “learn-
as-you-go environment.”
New office in Midtown

Evercore analysts work from “pretty big cube areas,” which offer “little privacy.” Associates and above have “nice, windowed offices with nice views.”
Everyone works from the firm’s “newly renovated floor of a prime Midtown Manhattan building.” Plus, “the kitchen is stocked with drinks, and there’s
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 sources give high overall marks to Evercore’s facilities,
and one says the firm’s office is “a 1,000 percent improvement” compared to the one he worked in while employed at Goldman Sachs.
No Hermès required
The dress code at Evercore is “somewhere between business casual and business formal,” unless you’re meeting with a client, in which case it’s
“always formal.” On regular days, “some people wear ties every day, some don’t.” Although “some people like coming in suits and ties,” insiders say
Evercore is “not like Lazard, where everyone wears identical Hermès 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 doesn’t even own a tie.”
Time to get formal about diversity

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 “it’s 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 analyst
and 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 diverse” 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.”

PRESTIGE
RANKING
9 DEUTSCHE BANK AG
60 Wall Street KEY COMPETITORS

New York, NY 10005
Phone: (212) 250-2500 Credit Suisse
www.db.com Goldman Sachs
J.P. Morgan
Morgan Stanley
DEPARTMENTS/DIVISIONS UBS Investment Bank
Corporate & Investment Bank

Global Banking (Corporate Finance & Global Transaction UPPERS
Banking)
Global Markets • “Good culture” and “interesting work”
Private Clients & Asset Management • “A pretty diverse place, both in terms of race and gender”
Asset Management/DWS
Private Wealth Management
Private & Business Clients
DOWNERS
• “High-pressure” and “very hectic”
• “There are a lot of politics”
THE STATS
Ticker Symbol: DBK (Frankfurt); DB (NYSE)
EMPLOYMENT CONTACT
Chief Executive: Dr. Josef Ackermann www.db.com/careers
2008 Revenue: €13.5 billion
2008 Net Income: €3.9 billion
No. of Offices: Offices in 72 countries
THE BUZZ
• “Has done well in the downturn”
• “Kills analysts”
• “Great research; solid place to be”
• “Limited US presence”

Deutsche Bank AG
THE SCOOP
All around the world

Boasting more than 80,000 employees across 72 countries, Deutsche Bank truly has a global footprint, with particular strength in Europe and its
homeland of Germany. Deutsche Bank’s international presence encompasses retail banking branches, corporate and investment banking, and asset
management. It’s made up of two main 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 Bank’s corporate and investment bank group oversees the capital markets (origination, sales and trading), corporate advisory, corporate
lending and transaction banking businesses. It also oversees mergers and acquisitions, and gives general corporate finance advice primarily to global
corporations, financial institutions and sovereign entities.
Deutsche Bank’s private clients and asset management group, or PCAM, comprises two subdivisions: 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. The asset management group at Deutsche Bank is one of the largest asset managers in the world. The bank’s 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.
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, its investments were 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 d’America e d’Italia. Other acquisitions included the Morgan
Grenfell Group (1989), the U.S. firm 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).
DB’s shares have been listed on the Berlin Stock Exchange since the bank’s birth in 1870. The bank also listed in Frankfurt in 1880, on the Paris
Stock Exchange (now Euronext) in 1974, on the Brussels exchange (also now Euronext) in 1979, in Tokyo in 1989 and on the New York Stock Exchange
in 2001.
IN THE NEWS
April 2009: Revisiting profit, keeping Ackermann

Deutsche Bank booked $1.6 billion in net income for the first quarter of the year, compared with a $185 million net loss for the first quarter of 2008.
The bank was buoyed by improved trading revenue, which increased 56 percent versus the same quarter a year earlier to $9.4 billion. The firm also
reported record revenue in interest rate and foreign exchange products, in addition to a good showing in its money market area. Its corporate banking
and securities unit increased revenue nearly four times versus what it posted for the same period of 2008. At the same time, the bank also announced
that it would be holding on to CEO Josef Ackermann for three more years after his contract runs out in 2010.
March 2009: Merrill Lynch vs. Deutsche Bank

Deutsche Bank poached several of long-time rival investment bank Merrill Lynch’s senior staff members, including 11 bankers and Merrill treasurer
Eric Heaton. Merrill, which had recently been acquired by Bank of America, called it a “hiring raid,” and according to the bank’s lawsuit, Heaton
violated a non-competition agreement by joining Deutsche Bank and didn’t provide Merrill with the required notice of six months before leaving the
firm. Furthermore, Merrill accused Deutsche of having plotted for many months in advance to poach its staff, which it said had generated “tens of
millions” of dollars in revenue for Merrill.

Deutsche Bank AG
March 2009: Job hopping

DB appointed Tom Cooper, former head of European M&A at UBS, as the co-chairman of global mergers and acquisitions in London. DB also
announced the appointment of Marc Pandraud (joining from Bank of America Merrill Lynch) as chief country officer of France in its corporate finance
group.
February 2009: Group exodus

Deutsche Bank’s quantitative trading unit, Equitech Group, announced its departure from the firm to begin the Roc Capital Management LP hedge
fund. Roc Capital is expected to open in the second quarter of 2009 with about 20 employees. It will be based in New York and headed up by Arevind
Raghunathan, who ran Deutsche Bank’s global arbitrage unit.
February 2009: Deutsche’s largest loss

Following one of the worst financial eras in decades, Deutsche Bank posted a record fourth quarter 2008 loss of $6.3 billion in January 2009. For the
full year, Deutsche posted a net loss of $5 billion after snagging an $8.32 billion profit in 2007. Full-year revenue came in at about $17.26 billion, a
56 percent drop from 2007. Its investment banking unit had a particularly bad year, posting a pre-tax loss of $10.87 billion. Its corporate banking
and securities division and asset management unit didn’t fare much better, reporting losses of $10.85 billion and $671 million, respectively.
While he announced fourth quarter 2008 results, Deutsche Bank CEO Josef Ackermann said that the U.S. government’s executive pay cap at U.S.
companies receiving bailout money under its TARP plan will encourage American executives to work overseas. “If you are only going to be able to pay
a $500,000 bonus, I think talent will be happy to work for us,” he said in a statement.
February 2009: When the German giant gets bigger

As one of Germany’s biggest banking and financial institutions, Deutsche Bank took a great leap forward in its hugeness when it announced that it had
agreed to acquire a 22.9 percent stake in Deutsche Postbank AG, the financial services business of Deutsche Post, the world’s largest logistics group
and successor to Germany’s former state-owned mail monopoly that was privatized in 1995.
January 2009: Bye to Boaz

Deutsche Bank announced that the co-head of its global credit trading business will be departing the firm to create his own hedge fund. Boaz
Weinstein, who headed up the unit with Colin Fan, will leave the company in the second quarter 2009 after 11 years with the firm—taking about 15
of his co-workers to the hedge fund along with him.
January 2009: Nothing like a pat on the back

The year 2009 got off to a good start for Deutsche Bank. On January 19th, DB was named the Best Investment Bank 2008 in the Asia Pacific region
(excluding Japan) by The Asset magazine. Also in January 2009, Risk Magazine named DB’s loan exposure management group the Credit Portfolio
Manager of the year, for the fourth year in a row. Other recent awards include Global Trade Review naming the firm the Best Global Structured
Commodity Finance Bank, and Treasury Management International naming DB the Best Global Cash Management Provider for the second year in a
row.
December 2008: Despite rough waters, Deutsche stays afloat

Globally, merger and acquisition deals decreased 29.6 percent in 2008 versus 2007—and Deutsche Bank felt the squeeze. On the Thomson Reuters
worldwide announced M&A tables for 2008, Deutsche Bank came in at No. 8 for the second straight year, but saw its deal volume decrease by 25.1
percent. In U.S. announced M&A transactions, the firm jumped three places to No. 5, with 89 deals worth $274.5 billion. Deutsche advised on several
big U.S.-based M&A deals in 2008 such as biopharmaceutical company Eli Lilly’s $5.75 billion bid for ImClone Systems and health care company
Fresenius’ $3.73 billion bid for APP Pharmaceuticals. In European announced M&A, the firm also leaped three spots to No. 5, working on 197 deals
worth a total of $351 billion.
On the global debt, equity and equity-related tables for 2008, Deutsche Bank held on to its No. 4 ranking, losing just a bit of market share (0.6 percent).
And in global IPO underwriting, Deutsche Bank fell two spots to No. 9, losing 1.7 percent of market share in the process. In global debt underwriting,
Deutsche Bank moved up a spot to No. 3 versus 2007, with 705 deals worth $287.6 billion. The firm also ranked No. 1 in all bonds in Euros, No. 3
in international bonds, No. 5 in global mortgage-backed securities, No. 6 in asset-backed deals, No. 8 in U.S. investment grade debt and No. 8 in
global high-yield debt.

Deutsche Bank AG
December 2008: Best Bank

Finance Asia magazine named DB the Best Bank in its annual awards.
November 2008: House of the Year awards

Structured Products magazine awarded DB with the titles of both Hedge Funds House of the Year and Structured Funds House of the Year. DB was
also named Equity Derivatives House of the Year and Derivatives House of the Year (excluding Japan) by AsiaRisk magazine.
November 2008: Hundreds of traders shown the door

Deutsche Bank will cut about one in seven of its traders from its global market division, Reuters reported. The unit, which employed about 7,000
traders at the time, was said to layoff approximately 900 employees in total. The wave of layoffs was the largest to hit Deutsche since the beginning
of the financial crisis that crippled the industry.
October 2008: No bonus for Joe

Deutsche Bank CEO Josef Ackermann said that he, along with other top-ranking Deutsche executives, will not be receiving bonuses for 2008. In an
interview with German newspaper Bild, Ackermann said, “I’m renouncing my bonus in this difficult year in favour of deserving employees that need
the money more than I do.”
For 2007, the chief took home about $17 million in cash and stock as a bonus and, for 2008, stood to make a “few million” euros. The move followed
other top-ranking banking executives at (the now-defunct) Lehman Brothers and Morgan Stanley, among other banks, foregoing their bonuses, and
coincided with UBS Chairman Peter Kurer saying that he will “most probably not get a bonus for this year because we will have a loss.”
July 2008: Bargain basement

Deutsche Bank revealed that it would 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 well timed for Fortis, which has suffered the loss of approximately 50 percent of its market value since buying ABN Amro’s
asset management and banking groups in 2007, then selling off the units at a deep discount. According to Deutsche Bank, the deal will significantly
strengthen its corporate banking operations in the Netherlands.
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 straightforward” and “much more friendly” than insiders say they initially expected.
Expect at least two to three rounds of interviews, much of them “behavior-focused.” “Be willing to voice your interest but also be flexible.” And, though
it should be obvious, “make sure you have a passion for the job.” One insider opines that “if you are passionate about the position, conduct yourself
well and come to the interviews prepared, you will get at least past the first round.”
OUR SURVEY SAYS
Pleasant work
The firm boasts a “good culture” and “interesting work,” though it’s “not always the most team-oriented.” Because of this, “if you’re not hard-nosed
now, you soon will be.” It’s a “high-pressure” environmentn and it’s “very hectic, with everyone being responsible for everything.”
But working at Deutsche is “very rewarding” and management “definitely appreciates your efforts and contributions, and works hard toward creating
a fun, relaxed environment.” When it comes to time spent in the office, though “hours at all banks are awful,” “DB is among the more reasonable,”
with “only a few all-nighters.” In terms of hours, it’s also “all about results,” but “the results are viewed myopically—they have to be what the boss
wants, and this is not necessarily what’s right for the organization.”

Deutsche Bank AG
Navigate the politics

“You really need to make some noise to move within the organization,” says one employee, while another complains that “opportunities for
advancement are linked to relationships or perceptions of those who matter like senior bankers on the compensation and promotion committees.”
However, others believe, “The culture at Deutsche is pretty flat and open to meritocracy,” and say that although “politics matter if you want to succeed”
in certain parts of the bank, “there are many recent examples of [the firm] 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. “Don’t underestimate
this firm’s competitiveness,” declares one insider. Another 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 pay off.”
Relaxing a little
While Deutsche Bank is home to “some of the smartest but most demanding senior managers” on Wall Street, sources report a slight recent loosening
of the bank’s tie. “Dress is business casual at the moment,” 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,” says an analyst.
There is “a lot of diversity” within the firm, insiders say. In addition, there are “many women in high positions.” All in all, 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 Bank’s 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 bank’s 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, Deutsche’s people say they’re 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.

PRESTIGE
RANKING
10 ROTHSCHILD
Rothschild North America EMPLOYMENT CONTACT

1251 Avenue of Americas, 51st Floor
New York, NY 10020 www.us.rothschild.com/careers
Phone: (212) 403-3500
Fax: (212) 403-3501
www.us.rothschild.com
BUSINESSES
Asset Management
Investment Banking
Real Estate
THE STATS
Employer Type: Private Company
Chairman, Rothschild: Baron David de Rothschild
Co-Heads, Rothschild North America Investment Banking:
David Resnick & Christopher Lawrence
2008 Net Income: €407 million
No. of Employees: 2,800+
No. of Offices: 49
THE BUZZ
• “Bankruptcy master—top-notch restructuring firm”
• “Old money-focused”
• “Picking up market share”
• “Elite”
87
Rothschild
THE SCOOP
Well connected
Rothschild is one of the world’s largest independent merchant and investment banks. Perhaps best known as a high-powered advisor, Rothschild’s
investment banking division provides debt advice and restructuring services, mergers and acquisitions advice, equity advice, and advice on divestitures
and privatizations. Other divisions cover private banking and trust, merchant banking and corporate banking. It has approximately 2,800 employees
in 49 offices worldwide, though its footprint remains largest in Europe.
Rothschild’s four North American offices are in New York; Washington, D.C.; Toronto; and Montreal. As part of Rothschild’s global investment banking
network, the North American investment banking operation collaborates with offices around the world on cross-border deals, with a special emphasis
on the middle market. Its services include mergers and acquisitions advisory, private placements, restructuring and project finance for U.S., Canadian
and multinational clients. In the real estate department, Rothschild Realty Inc., a real estate investment advisor established in 1981, has $800 million
under management through the Five Arrows Realty Securities family of funds.
Asset management services come courtesy of Rothschild Asset Management, an independent business unit headquartered in New York City. Founded
in 1970, Rothschild Asset Management specializes in U.S. equities, and manages nearly $6 billion in assets for corporations, endowments,
foundations, healthcare organizations, high-net-worth investors, public pension funds and Taft-Hartley plans.
How the story began

The investment banking arm of the family-owned Rothschild Group, Rothschild has been serving governments, corporations and wealthy individuals
for two centuries. Its London headquarters have never moved from New Court, St Swithin’s Lane, though over the years its offices have been rebuilt
and expanded. The latest version, a Rem Koolhaas-designed tower with a rooftop pavilion, is slated for occupancy in mid-2011.
The Rothschild story began in 1769 when Mayer Amschel Rothschild began offering banking services in his home town of Frankfurt, Germany. His
five sons carried the family business—and the family name—across Europe, winning fame as the financiers who funded the Duke of Wellington’s victory
over Napoleon. In later years, the Rothschilds arranged loans for the Prussian government, kept the Bank of England afloat during a financial crisis,
financed the British government’s purchase of a controlling stake in the Suez Canal, helped De Beers founder Cecil Rhodes establish his eponymous
scholarship at Oxford and played a major role in financing the London Tube. The modern Rothschild family includes vast holdings of art and land, not
to mention historic estates and some of the most esteemed vineyards in the French wine country.
There are also the financial services businesses, of course. These underwent reorganization in 2003 when a new holding company, Concordia BV,
was created to oversee operations in Europe. Rothschilds Continuation Holdings AG is the holding company for U.K. and other international
businesses; while it remains under the control of the Rothschild family, Hong Kong-based Jardine Strategic owns a 20 percent stake and Rabobank
owns 7.5 percent.
Nice work
Major deals Rothschild worked on in late 2008 and early 2009 included advising London’s Telereal Ventures on its £750 million acquisition of Land
Securities Trillium, advising CSR plc on its £91 million ($136 million) acquisition of California-based SiRF Technology, assisting Unibanco with its $45
billion acquisition of Banco Itau, and advising the Swedish government on its 19.9 percent-stake purchase in the Nordea financial services group and
participating in its 2.5 billion rights issue.
Rothschild picked up its share of banking industry recognitions, too. EuroWeek dubbed it the LBO Advisory Bank of the Year for 2009, and Acquisitions
Monthly recognized its work on the £7.8 billion ($15.4 billion) acquisition of Scottish & Newcastle plc by Carlsberg A/S and Heineken, naming it the
Cross Border Deal of the Year. In the FT and Mergermarket M&A Awards for 2008, Rothschild won U.K. Financial Adviser of the Year, Italy Financial
Adviser of the Year and Middle Market Financial Adviser of the Year.
IN THE NEWS
April 2009: Staying busy through the storm

The government of Dubai hired Rothschild to help construct a $10 billion fund aimed at softening the impact of the global recession. Officials at the
Dubai Department of Finance began disbursing the funds quickly, saying they would offer most of the support to real estate and property companies.
According to Standard & Poor’s, Dubai’s economy—the second-biggest in the United Arab Emirates—is on track to slump between 2 percent and 4
percent by the end of 2009.

Rothschild
Rothschild picked up another key assignment in April when it was retained by Belgian chemical and pharmaceutical conglomerate Solvay to co-run
the auction of its lucrative pharmaceutical business. The two-stage auction, which is also being run by Citigroup and Morgan Stanley, is expected to
bring in $6.62 billion.
January 2009: Good business from bad business

Since late 2008, Rothschild has been advising Borders Group, the struggling bookseller, on options that may include restructuring or bankruptcy. The
advising team also includes consulting boutique AlixPartners and restructuring attorneys Jones Day. A significant move came in January when Borders
appointed hedge fund executive Richard “Mick” McGuire as its chairman.
December 2008: In the middle

Rothschild ended 2008 at No. 12 on Thomson Reuters’ investment banking league table for announced worldwide mergers and acquisition deal
volume. In U.S. announced deal volume, Rothschild ranked No. 25, with 57 transactions worth $19.9 million.
The middle-market league tables told a different story. Based on fees, Rothschild came in No. 2 for worldwide announced middle-market deals with
values up to $50 million, $100 million and $200 million. For middle-market deals with values up to $500 million, Rothschild ranked No. 4.
November 2008: So close ...

BHP Billiton dropped its hostile bid for mining company Rio Tinto, thereby earning the dubious distinction of “biggest corporate merger ever canceled.”
BHP had valued Rio Tinto at a total of $147 billion, and the news hit BHP’s advisors, including Goldman Sachs, hard: they stood to lose over $300
million in fees. However, analysts suggested that Rio Tinto’s advisors—including Rothschild, Credit Suisse, J.P. Morgan Cazenove, Macquarie, Societe
Generale, ABN Amro and Morgan Stanley—would still earn their fees,.
November 2008: All Circuits go

Rothschild picked up a plum assignment from a retailer’s misfortunes. The bank was hired by Circuit City, the country’s second-largest electronics
chain, in conjunction with its Chapter 11 filing in November 2008. With the advisory assistance of Rothschild and FTI Consulting, Circuit City shuttered
hundreds of stores.
November 2008: Joining forces with the Netherlands

Rothschild announced a joint venture with the Netherlands’ Rabobank. Under the terms of the deal, both companies will combine their food and
agriculture sector operations, and Rabobank bought a 7.5 percent stake in N.M. Rothschild’s holding company, Rothschild Continuation Holdings.
After the deal closed, Rothschild family remained the bank’s largest shareholder, and Rabobank became the third-largest, behind trading group Jardine
Matheson (which owns 20 percent of the bank).
November 2008: Bonus bonanza

For many bankers, 2008 was the year of no—or smaller—bonuses, but not at Rothschild. The Times of London reported that Rothschild’s staffers
worldwide had received “record bonuses,” thanks to booming business in advisory and private banking. Although Rothschild had to write-off many
millions of dollars related to bad loans, its business was relatively unscathed by turmoil in the world financial markets. That’s because Rothschild,
unlike many of its peers, has avoided prime broking, proprietary trading and other risky activities.
September 2008: Bear refuge

Wondering what became of Bear Stearns chief Alan D. Schwartz after his bank was taken over by JPMorgan Chase? After the government-arranged
deal sent Bear to JPMorgan (and many of Bear’s former employees packing), Schwartz made himself at home in Rothschild’s New York offices.
Richard Metrick, a former senior managing director at Bear and Schwartz’s right-hand man, also set up camp at Rothschild while the two men
considered their next moves.
September 2008: Amsterdam advising

Rothschild advised GMR Infrastructure Ltd. on its purchase of a 50 percent stake in InterGen NV, an Amsterdam-based utility company. The seller
was AIG Highstar Capital II, a unit of troubled insurance giant AIG, and the price tag was just over $1.1 billion. In another cross-continent deal
Rothschild client Redpath, a Canadian mining company, acquired Australian mining contractor Eroc in the fall of 2008; Rothschild also advised
international tech company e2v Technologies on its September 2008 acquisition of California-based QP Semiconductor for $80 million.

Rothschild
June 2008: Plenty of work

The Rothschild advisory teams stayed busy in the second half of 2008, despite the global slump in deal making. The bank advised French
manufacturing company Legris Industries Group on its sale to U.S.-based Parker Hannifin Corp., a good example of the international nature of
Rothschild’s investment banking work. Rothschild also dvised a group of funds led by private equity firm Warburg Pincus on its sale of Euromedic
International to Merrill Lynch Global Private Equity, for an undisclosed sum.
GETTING HIRED
A steep learning curve

Rothschild promises extensive opportunities for graduates while warning of the steep learning curve involved in becoming a fully-fledged Rothschild
banker. The company recruits graduates in investment banking in most of its offices, with the graduate training program being run out of London (for
Europe and all overseas offices excluding North America) and New York (North America).
The first six weeks in the London office consist of intensive classroom training to teach you the ins and outs of financial analysis, investment banking,
financial markets and legal issues. After this, U.K. graduates will carry out short placements in the investment and corporate banking divisions, where
they’ll be seconded to a range of teams and see live work. If you have applied for a position in, for example, Madrid or Paris, this stage will see you
join an office in your chosen city.
Considering that Rothschild is not a conventionally hierarchical firm, you’ll find yourself receiving a lot of responsibility from the start. The majority of
your tasks will include research and analysis, as well as financial modeling, such as investigating the likely effect on a company of an acquisition or
disposal. The “steep learning” often mentioned on Rothschild’s careers website will require long hours, flexibility and team-working skills.
In order to apply for a graduate role at Rothschild, you should have a degree from a recognized university. Additional language skills are a bonus.
Applicants should also have a personal interest in investment banking, and understand takeovers, mergers and cash flow statements.

PRESTIGE
RANKING
11 BARCLAYS CAPITAL

New York, NY 10166
www.barcap.com Morgan Stanley
UBS Investment Bank
DEPARTMENTS/DIVISIONS
UPPERS
BARX
Distribution • “Upper management is strong”
Global Markets
Investment Banking
Private Equity
DOWNERS
Research • “Destructive politics”
THE STATS EMPLOYMENT CONTACT

Employer Type: Division of Barclays Bank PLC www.barcap.com/campusrecruitment
Chief Executive: Robert E. “Bob” Diamond Jr.
2008 Revenue: £5.23 billion
2008 Net Income: £1.3 billion
No. of Offices: Locations in over 30 countries
THE BUZZ
• “Reputation greatly enhanced by Lehman—could be a major
force”
• “Wants to be a major US player, but isn’t”
• “The new blue chip; up and coming in the US”
• “Mediocre—not real Lehman”
91
Barclays Capital
THE SCOOP
Debt masters
Known as a powerhouse in the fixed income marketplace, Barclays Capital is the investment banking arm of Barclays Bank PLC, a venerable London
bank that dates back to 1690. The investment bank, often referred to as BarCap, 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 it’s younger than many of its peers, Barclays Capital’s relationship with Barclays Bank PLC allowed it to
grow at an astonishing rate: today it has offices in over 30 countries and 20,000 employees.
The main clients of Barclays Capital’s services are corporations, institutions and government entities, which are offered finance, advisory and risk
management solutions. The firm has expertise in a wide variety of products and services, including bonds, commodities, convertible bonds, credit
products, electronic trading, emerging markets, equity derivatives, equity origination, foreign exchange, fund-linked derivatives, fund solutions, index
products, inflation-linked products, interest rate products, leveraged finance, loans, M&A, market making, municipal finance, prime services, private
equity, research, restructuring, securitization and structured investments.
Born in the ‘80s

Barclays Capital’s parent company Barclays Bank PLC can trace its roots back to London in the 17th century, when city streets were paved with
goldsmith bankers who financed colonialism by funding monarchs and merchants. John Freame and Thomas Gould were two such goldsmiths, who
set up their own firm in 1690. In 1736, a man named James Barclay married into Freame’s family, laying the foundation for what would eventually
become Barclays Bank. By the beginning of the 20th century, Barclays was one of the five-biggest banks in the U.K. In 1925, Barclays merged with
the Colonial Bank, the Anglo Egyptian Bank and the National Bank of South Africa, establishing operations in the Middle East, Africa and the West
Indies. The investment banking business, Barclays Capital, was born in 1986—the year Argentina beat England in the quarterfinals of the World Cup.
It was also the year Barclays Bank became the first British bank to be listed on both the Tokyo and New York Stock Exchanges.
Barclays buys the Brothers

More recently, Barclays became famous for buying big in New York, agreeing to acquire Lehman Brothers’ North American investment banking
business for $2 billion in September 2008. The deal, struck just one day after a struggling Lehman had filed Chapter 11 bankruptcy, included
Lehman’s equity, fixed income and M&A advisory units, as well as approximately 10,000 Lehman employees. The deal also included Lehman’s trading
assets, which had an estimated value of $72 billion; liabilities worth $68 billion dollars; Lehman’s New York City headquarters; and two offices in
neighbouring New Jersey, with a combined market value of $1.5 billion. Barclays expressed delight at the acquisition, making clear an ambition to
increase its presence in the U.S. Barclays Capital’s chief executive, Bob Diamond, confirmed the joy when announcing the Lehman deal, stating, “This
is a once in a lifetime opportunity for Barclays.” A few months after the Lehman buy, in January 2009, Investment Dealers’ Digest named Diamond
its Best Banker of the Year for 2008.
IN THE NEWS
August 2009: Hiring another 1,000

Barclays Capital CEO President Bob Diamond told Dow Jones Newswires in an interview that Barclays Capital will hire up to 1,000 new investment
bankers by the end of 2009. The company’s hires will be “tilted towards Asia,” according to Diamond. Upon hiring its new crop of workers, Barclays
Capital will end up employing approximately the same amount of people it did at the end of 2008. After cutting about 3,000 positions, Barclays hired
about 2,000 in the first half of 2009, Diamond confirmed.
May 2009: A hiring wave overseas?

Barclays Capital said it hopes to hire about 65 bankers for its Europe-based M&A advisory division in 2009. Paul G. Parker, the global head of mergers
and acquisitions, said in an interview with Bloomberg that Barclays Capital plans to hire 30 to 40 bankers in Italy, Germany and France, and 15 to 25
workers in the U.K. Barclays Capital, which Bloomberg ranked fifth in U.S. takeovers after it acquired the U.S. arm of Lehman Brothers, hopes “to
be top three across all products and regions” in the investment banking sector, according to Parker.
May 2009: Trading heats up

Barclays Capital released extremely positive first quarter 2009 results, booking £907 million in net profit, a 361 percent increase versus the first quarter
2008. Thanks to the Lehman Brothers acquisitions and to BarCap’s trading business, parent Barclays PLC increased its first quarter 2009 profit by
15 percent to $2.1 billion, despite impairment charges and other credit provisions that rose to $3.5 billion from $1.95 billion.

Barclays Capital
May 2009: New M&A heads

Barclays Capital appointed Matthew Ponsonby and Mark Warham as co-heads of its European mergers and acquisitions division. Previously, Ponsonby
served as global co-head of infrastructure investment banking at Citigroup, and Warham worked as chairman of Morgan Stanley’s British investment
banking division.
January 2009: Barclays cooks with Kitchen

Barclays Capital hired Tim Kitchen to lead its investment banking business in Canada. Kitchen, who will be based in Calgary in his new position,
previously headed up Lehman Brothers’ Calgary investment banking unit. Prior to that, Kitchen worked for CIBC World Markets for 16 years, focusing
on natural resources deals.
January 2009: A write-down, but no bailout

Barclays PLC announced that it would be taking an additional $11 billion in write-downs for 2008. In an open letter from CEO John Varley, Barclays
confirmed that the bank didn’t need additional capital—it expects strong results in its investment banking, commercial banking and wealth
management sectors, and won’t be seeking funding “either from the private sector or the U.K. government.”
January 2009: Not bad overall despite investment banking decline

Barclays PLC reported $9 billion in pre-tax profit for 2008, beating analysts’ expectations of $8 billion while boosting profit 1 percent versus 2007. The
results were buoyed by the purchase of some of Lehman Brothers’ assets and the sale of an insurance venture. Barclays’ retail banking sector also
helped the year-end results; the unit increased profit by 7 percent to $2.04 billion for the year. But the news wasn’t all positive. Barclays Capital posted
a pre-tax profit of just $1.94 billion, a 44 percent decline versus 2007.
December 2008: Letting the good times roll

International Financing Review and IFR Asia named BarCap the Interest Rate Derivatives House of the Year, Supra/Sovereign/Agency/Regional Bond
House of the Year, and Australia and New Zealand Bond House of the Year. Barclays Capital was also named Most Innovative in Inflation Products
and Most Innovative in Commodities at The Banker magazine’s prestigious 2008 Investment Banking awards.
December 2008: Etching out its spot

In a year where the entire market suffered from the fallout from the mortgage industry, Barclays Capital came in at No. 1 in U.S. mortgage-backed
securities underwriting, up from the No. 2 spot in the previous year, according to Thomson Reuters. It also took the top spot in global mortgage-backed
securities. The firm held steady at No. 2 on the global debt, equity and equity-related table, working on 1,041 deals worth $401.3 billion, and came
in at No. 1 in global debt underwriting as well as all international bonds.
In global equity and equity-related deals, the firm placed No. 8 in 2008. In global common stock, it ranked No. 9. On the mergers and acquisitions
front, Barclays captured the No. 9 spot on Thomson Reuters’ worldwide announced M&A table for the second year in a row, though its deal volume
dipped 26.6 percent versus 2007. In U.S. announced M&A deals, the firm ranked No. 4, up from the No. 5 spot, but it suffered a 31.2 percent drop
in volume.
November 2008: FX awards

FX Week gave Barclays Capital a slew of awards, including Best Bank for E-Trading, Best Bank for FX in London, Best Bank for Euro/Sterling and Best
Bank for Dollar/Sterling.
October 2008: Looking to the Middle East

Barclays Capital parent Barclays PLC decided to raise approximately $11.8 billion from sovereign wealth funds in the Middle East—including investors
in Abu Dhabi and Qatar. Through this plan, Barclays will sell convertible notes and preferred shares through 2019 to the investors in the Middle East.
The move was made to avoid involvement in the U.K. government bailout plan. In addition, Barclays will sell securities to new and current shareholders
to raise capital.
October 2008: From Russia, with capital

Barclays PLC approached the Russian banks OAO VTB and OAO Sberbank regarding potentially investing more than $10 billion in the U.K.-based
bank. Barclays said that in order to meet capital goals set by the U.K. government, it would raise $10.34 billion from private sources instead of

Barclays Capital
attempting to sell shares to the government. In light of the credit market collapse, many of its banking counterparts have turned to state sources in
the form of bailout packages.
October 2008: Three “best of the year” honors

Barclays Capital was named Structured Retail House of the Year by Derivatives Week, No. 1 in equity research (for the sixth year in a row) by
Institutional Investor, and Best Syndicate and Best Structuring Bank by Euroweek.
September 2008: Acquiring Lehman

One day after New York-based Lehman Brothers filed Chapter 11 bankruptcy, Barclays PLC agreed to acquire the ailing firm’s U.S. investment banking
business for $2 billion.
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 he or she 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 questions like ‘Why are you leaving your current job?’” Make sure you’re able to put a positive spin on your departure—the
firm likes to ask questions about “the most and least enjoyable parts of your previous work.”
During the interview process, you “should be fine as long as your answers show some level of analysis and knowledge about the company.” “We had
some interesting discussions,” enthuses one contact. And “at the end of the interview, you can ask any questions to the interviewer.”
Barclays targets more than 30 “top-tier graduate and undergraduate schools,” including 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, “it’s
extremely difficult to get in the door, especially if you don’t know anyone within the bank to refer you.” Still, sources note it’s not impossible to get hired
from a mid-range school.
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 firm’s summer internship program is “what you make of it.” One insider recommends “taking advantage of the time you meet with senior
management. Talk to them about the possibilities to move around once you’re hired full time and prove that the firm should hire you.” The
compensation for interns is “competitive with other firms on the Street.”
Jerks, kindly stay away

For all of its business-minded ambition, Barclays doesn’t seem to be tolerant of ruthless boors with large egos. Barclays Capital President Jerry del
Missier invokes the “no jerk” decree for those wanting to work at Barclays, meaning that potential employees should be team players without bad
attitudes. In addition to understanding the firm’s culture, it’s important that candidates have the proper background. To become a managing director
at Barclays Capital, for example, you have to have held that role previously at another company.

Barclays Capital
OUR SURVEY SAYS
Great expectations
Mostly, Barclays Capital is “a great place to work.” Insiders report that Barclays is “a good company to work for” and “a very pleasant experience.”
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.”
Running the gamut

Management gets mixed reviews from insiders. Some call higher-ups “extremely nice,” “supportive” and “always ready to help.” But others cite
“destructive politics” and “poor leadership on the team and desk levels.” Still, “upper management is strong.” “Basically, you can meet anyone you
want to meet, and they are all helpful.” Offices receive high marks from insiders 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.
When it comes to moving up the corporate ladder, “advancement opportunities are somewhat limited, as there is a strict hierarchy that needs to be
followed.” Because “a traditional British culture prevails,” one insider explains, “it is not common to approach your boss’ boss.”
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,” say insiders, proven by “the new hires and promotions.” Insiders also describe the company as a true melting
pot, saying there are “people from virtually everywhere” at Barclays. Women, too, “share an equal standing, and quite a few are in very important
positions throughout the firm.”

PRESTIGE
RANKING
12 PERELLA WEINBERG PARTNERS
767 Fifth Avenue KEY COMPETITORS

New York, NY 10153
Phone: (212) 287-3200 Evercore Partners
Fax: (212) 287-3201 Greenhill & Co.
www.pwpartners.com Lazard
Moelis & Company
DEPARTMENTS
EMPLOYMENT CONTACT
Asset Management
Financial Advisory See “careers” section of www.pwpartners.com
THE STATS
Chairman and CEO: Joseph Perella
No. of Employees: 250+
No. of Offices: 5
THE BUZZ
• “Top-notch boutique with high compensation”
• “Living off an old image”
• “Getting high-profile deals—making a name for themselves”
• “Sweatshop”

Perella Weinberg Partners
THE SCOOP
Morgan and Goldman alum team up

Founded in June 2006, Perella Weinberg Partners offers two services: advisory and asset management. Its advisory business includes mergers,
acquisitions and restructuring, while its asset management unit focuses on alternative investment products. Currently, the firm consists of more than
250 employees, who work out of offices in New York, San Francisco, Austin, Denver and London (U.K.).
Perella Weinberg Partners’ launch in 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). Perella’s last gig was as vice chairman and managing director of Morgan Stanley, where he became close with some of America’s top M&A
talent. A shareholder revolt at Morgan Stanley—the ruckus that led to the 2005 resignation of chairman Philip Purcell—prompted 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 Weinberg’s first hires.
As for Weinberg, that would be Peter Weinberg, former CEO of Goldman Sachs International and an accomplished banker as well. He and Perella
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 Dubai’s Istithmar PJSC) to
establish operations and fund investments in its asset management business.
It was Perella’s name and the team assembled that made that kind of fundraising possible—after all, he worked on deals like America Online’s 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.
In its short existence, Perella Weinberg has already worked on some monumental deals. Some of its highest profile assignments include advising
Thomson Corporation on its $18.3 acquisition of Reuters Group, Wachovia on its $15.1 billion merger with Wells Fargo, Continental on its $35 billion
sale to Schaeffler and UST on its $11.7 billion sale to Altria Group. The firm was recently enlisted by BlackRock on its pending $13.5 billion acquisition
of Barclays Global Investors and by the FDIC for strategic advice on the ongoing developments in the financial services industry.
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; KCP’s team of professionals also joined the firm. KCP moved its
office, small staff and active engagements from Stamford, Conn., to Perella’s New York office. Since the acquisition, Perella Weinberg’s restructuring
deals have included advising debtors, creditors and third parties. Debtor-side transactions have included Masonite International and Spectrum Brands
(both had more than $2 billion of debt). Recent creditor assignments have included advising Herbst Gaming’s noteholders. Also in the casino industry,
Perella Weinberg Partners advised Columbia Sussex Corporation in connection with Tropicana’s restructuring of $3 billion of liabilities and Dubai World
in connection with its MGM Mirage joint venture for the $8.5 billion CityCenter project. Government-related restructuring assignments have included
advising the New York State Insurance Department and the Pension Benefit Guaranty Corp.
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 protégé 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 Perella’s 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 J.P. Morgan; Gail Zauder,
who became the first woman managing director in Credit Suisse’s M&A group and then founded her own boutique, Elixir Advisors; and Walid
Chammah, head of investment banking at Morgan Stanley.
IN THE NEWS
June 2009: Top 25 worldwide

According to Thomson Reuters, Perella Weinberg ranked No. 24 in worldwide M&A deal volume for the first half of 2009. Perella Weinberg advised
on three deals worth a total of $14.1 billion during the six month period ending June 30, 2009. For the same period, the firm ranked No. 16 in U.S.
announced M&A deal volume. Perella Weinberg worked on one deal (BlackRock’s purchase of Barclays Global Investors) worth more than $13 billion.

May 2009: A new face in energy banking

Perella Weinberg Partners hired Robert Maguire as a partner in its corporate advisory division in London. Maguire, who served more than 20 years as
an energy investment banker for Morgan Stanley, will help the firm “expand our coverage in the global energy sector,” the firm’s co-founder Joseph
Perella said in a statement.
May 2009: Barack, Pete and Joe

U.S. President Barack Obama referred to company founders Peter A. Weinberg and Joseph R. Perella as part of “a small group of spectators” that
assisted in bankrupting Chrysler. While the admonishment may have been slightly misplaced—many factors led to the downfall of the automaker,
including other financiers—Perella Weinberg Partners stood firm in representing its clients’ best interests and ultimately accepted the government’s
terms as the best available outcome. Perella and 17 other financial companies held around $1 billion in Chrysler’s secured debt, and the companies
demanded more than the $2.25 billion the U.S. Treasury collectively offered the firms. Ultimately, Chrysler collapsed—and Perella was left waiting to
see what the bankruptcy court will award it and other creditors.
January 2009: Landing the FDIC

At the height of the current economic crisis, Perella Weinberg was retained to provide advisory services to the FDIC, becoming the FDIC’s strategic
advisor regarding ongoing developments in the financial services industry.
December 2008: Top 25 in M&A

According to Thomson Reuters, Perella Weinberg ranked No. 22 in announced U.S. M&A deal volume for 2008, moving up six spots in the rankings
compared to its finish in 2007. Perella Weinberg advised on four deals worth a total of $26.96 billion during the year.
November 2008: U.S.-driven technological growth

Perella hired two ex-Lehman Brothers technology bankers, Paul Inouye and John Varughes, to launch an office in San Francisco, Perella’s fourth. The
two were hired to provide advisory services to technology-sector clients. At Lehman, Inouye was a managing director in Menlo Park focused on the
firm’s Internet practice; Varughese was a managing director in the technology M&A group.
November 2008: One man’s loss is another man’s gain

There is speculation that the fees paid to advising banks may drop, which would affect Perella’s bottom line. But at the Reuters Global Finance Summit,
Joseph Perella remained confident about the field of restructuring. “The level of activity is intensifying as we speak,” he said. “It has intensified, I’d
say, rather dramatically in the past month … The recession is biting,” and more companies are feeling it.
September 2008: Weinberg in the Times

With some of the biggest names in the financial sector brought to its knees, Peter A. Weinberg, a partner at Perella Weinberg Partners, had this to say
about small investment banks such as his own in an interview with The New York Times: “This environment is a perfect pitch for the business model.
In times of stress, independence is really prized.” He also predicted that “boutiques will suffer little or no decline in revenue because their business
model wasn’t built on, and their headcount wasn’t expanded to serve, the needs of the private equity industry.”
July 2008: Expansion into European real estate

The company held the final closing of Perella Weinberg Real Estate Fund I LP, which invests in real estate, real estate-related assets and businesses
in Europe. Headed by Leon Bressler, the fund will focus on physical property, property firms and debt, with an annual targeted return of 20 percent.
Bressler told Reuters he was, for the time being, refraining from investing in the U.K., where he expects a “third wave of declines in property values.”
January 2008: Starting off with two bangs

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

GETTING HIRED
Take the best, leave the rest

Perella Weinberg Partners interviews at an admittedly very limited number of U.S. and European universities and graduate business schools. 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,
“Analysts and associates are an integral part of all deal teams and get the opportunity to interact with senior professionals daily—a differentiator for
those looking to join the business.”
Perella is still open to top-notch lateral hires, though it doesn’t 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 there’s a match, Perella will be in touch.
Either way, the firm says it’s looking for exceptional talent—and 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.

PRESTIGE
RANKING
13 MOELIS & COMPANY
399 Park Avenue, 5th Floor RANKING RECAP

New York, NY 10022
www.moelis.com #4 – Selectivity
#7 – Offices
BUSINESSES #12 – Best to Work For
#13 – Training
Advisory
#15 – Culture
Capital Raising
M&A
Diversity
Recapitalization & Restructuring
Risk Advisory
Merchant Banking
#12 – Best for Diversity
#14 – Diversity With Respect To Women
THE STATS
CEO: Ken Moelis KEY COMPETITORS
Centerview Partners
Evercore Partners
No. of Offices: 6 (Worldwide )
Goldman Sachs
Lazard
UPPERS
• “We are building, not reducing headcount”
• “Prestige of the firm on Wall Street”
• “Probably one of the best restructuring experiences on the
Street”
DOWNERS
• “Senior people get many more perks than junior people”
• “Unpredictability of hours”
• “Lack of a good bonus compared to the Street”
THE BUZZ
• “The new Goldman Sachs”
moelis.com/careers
• “Growing too fast”
• “The best investment banking boutique”
• “Works you to the bone”

Moelis & Company
THE SCOOP
The newcomer
New York-based Moelis and Company provides corporate finance advisory services for mergers and acquisitions, exclusive sales, restructuring, capital
raising and risk advisory. The firm’s merchant banking arm, Moelis Capital Partners LLC, invests across several industries and asset classes, and
sources portfolio investments through both its managing directors’ industry contacts as well as through those of its investment team. Current portfolio
companies include MidCap Financial, a commercial finance company focused on middle market lending to the health care industry; Wyle Holdings,
Inc., a leading provider of specialized engineering, scientific and technical services to the Department of Defense, NASA and a variety of commercial
customers; and Woundco Holdings, Inc., a leading provider of wound care rental equipment and related services to post-acute and acute care facilities.
Founded in 2007, Moelis has offices in New York, Boston, Chicago, London, Sydney and Los Angeles. It’s headed by founder and namesake Ken
Moelis, and employs approximately 230 people worldwide.
Ken’s enterprise
Ken Moelis rose to fame in the early 1980s, working at Drexel Burnam Lambert, and pioneering the use of high-yield debt to finance M&A deals and
high-growth startups. After a successful career at Donald Lufkin & Jenrette Securities (DLJ), Moelis was lured to the UBS investment banking division
in 2000. He recruited several former DLJ bankers to join him, and promptly turned UBS’ investment bank into a global powerhouse. But Moelis’s
high-flying ways didn’t sit well with the conservative Swiss culture at UBS, so in 2007, he resigned his post as president of the investment bank and
announced the formation of his eponymous firm.
To fill the ranks at Moelis & Company, Moelis turned to his old DLJ and Drexel Lambert friends. He also persuaded several top UBS executives
(including Jeff Raich, former joint global head of M&A, and former global media group head Navid Mahmoodzadegan) to join him. Right off the bat,
Moelis & Company landed big-league assignments that belied its boutique size: in 2008, it helped defend Yahoo! from Microsoft’s $44 billion hostile
takeover bid and advised Anheuser-Busch on its $61.2 billion sale to InBev.
IN THE NEWS
June 2009: Beefing up technology

Moelis & Company hired Kevin Scheetz, the former head of the semiconductors and electronics investment banking franchise at Merrill Lynch, into its
newly-formed technology group. Scheetz was Moelis & Company’s second technology hire in under a month. Stuart Goldstein, formerly the head of
West Coast technology investment banking at Citigroup, was hired at the end of May 2009.
May 2009: Two big hires

Moelis & Company hired Kasim Kutay, former chairman of Morgan Stanley’s European health care group, and Alex Rubin, a former managing director
in Citigroup’s global real estate investment banking group. Kutay joined the firm’s London office, where he’ll oversee Moelis & Company’s European
health care practice. Rubin joined the firm’s New York headquarters, where he’ll advise real estate clients.
May 2009: Offering No. 2

Moelis & Company advised on its second public offering, acting as financial advisor as well as co-manager and underwriter in connection with
Energizer’s $535.3 million follow-on offering.
April 2009: Former Merrill banker to head up EMEA

Moelis & Company announced that it hired Mark Aedy as head of the company’s Europe, Middle East and Africa (EMEA) investment banking division.
Aedy is based in London and serves on Moelis’ management committee. Previously, Aedy was head of Bank of America Merrill Lynch’s EMEA unit.
Prior to that, Aedy worked for Deutsche Bank and Bankers Trust .
In addition, Moelis hired 15-year restructuring veteran Matthew Prest to its EMEA team. Prest was previously head of the European restructuring group
at Close Brothers in London. He brought with him to Moelis Charles Noel-Johnson, an executive director, who will help Prest build the firm’s
restructuring business abroad.
In the U.S., Moelis hired Jared Dermont, a managing director from Rothschild, to expand its restructuring business domestically.

Moelis & Company
April 2009: Advising on Vegas’ CityCenter

Moelis & Company was tapped to advise Dubai World in connection with the restructuring of its $8.5 billion of agreements to complete CityCenter, a
high profile construction project under development in Las Vegas.
March 2009: Adding talent

Moelis & Company expanded its restructuring capabilities with two key hires: ex-Broadpoint Securities banker Mark Hootnick, who joined as a
managing director; and Steve Panagos, previously the national practice Leader of Kroll Zolfo Cooper’s corporate advisory and restructuring practice,
who joined as a managing director and vice chairman.
In addition to beefing up its restructuring practice, Moelis & Company continued to add talent to cover new sectors, including health care and
technology. The firm hired Rick Landgarten, former co-head of global health care investment banking at Citigroup, and Stan Holtz, former head of
U.S. telecom investment banking at Bank of America.
March 2009: Its first offering

Moelis & Company served as financial advisor, co-manager and underwriter to Wynn in connection with its $210 million public follow-on offering. The
deal marked the first time Moelis & Company managed and underwrote a public offering of securities.
February 2009: Poached from UBS and Morgan Stanley

Christopher Ryan, the ex-head of credit fixed income at UBS AG, will soon join Moelis & Company, insiders told Bloomberg. In his new role, Ryan will
advise clients on risk and balance sheet-related matters, and continue the expansion of the firm’s capital markets capabilities, the insiders said. In
addition, Moelis announced that it would hire Roger Hoit, previously a managing director in the global financial sponsors group at Morgan Stanley, to
increase its coverage of financial sponsors clients.
January 2009: Starting the year off on a strong foot

Insurance giant AIG hired Moelis & Company to advise it on the sale of International Lease Finance Corporation (ILFC), one of the world’s biggest aircraft
leasing businesses. Estimates peg the sale at around $8 billion, and Alasdair Whyte, publisher of Airfinance Journal, reported that “a number of banks
with more aviation experience were hoping for the advisory mandate.”
Moelis & Company was also hired by Hartmarx Corporation, the Chicago-based parent company of several apparel brands, to advise on strategic
options and a Chapter 11 reorganization. Hartmarx, which dates back to 1872, was also in the news for making U.S. President Barack Obama’s
inaugural tuxedo, topcoat and suit.
In addition, Moelis & Company client Muzak Holdings reached an agreement with its lenders to extend the maturity date of a $105 million credit facility
by 22 days. Moelis & Company has been working with Muzak, which has $465 million in debt and $25 million of cash on hand, since late 2008. At
the same time, Muzak is investigating a possible merger with its rival DMX Music .
January 2009: Bear veteran joins the fold

Capital markets veteran Dominick Petrosino, who’d headed up Bear Stearns’ leveraged finance capital markets division, became a managing director
in Moelis & Company’s New York office. Ken Moelis noted that Petrosino was “the ideal partner” as Moelis & Company makes plans to expand its
recapitalization and restructuring capabilities.
December 2008: London calling

With its U.S. business going strong, Moelis & Company reportedly began turning its eyes overseas to its fledgling London office, as word spread that
Moelis & Company was considering a U.K. hiring binge. In September 2008, it had tapped former Deutsche Bank vice chairman Kristian Bagger for
the London office to ramp up business in Europe. Bagger began recruiting junior staffers right away, but explained that most of the big London hires
will come later in 2009. The team got to work right away, advising TNS on its £1.1 billion sale to WPP.
Proving his commitment to the Continent, Ken Moelis has been making frequent trips to Europe, meeting with Bagger and introducing himself to
potential clients. As Moelis & Co.’s international work expands, Bagger’s pedigree will become an asset: he has over 20 years experience in the Benelux
and Nordic markets, and has worked with major companies like Swedish buyout firm EQT, Danish brewing company Carlsberg and the Dutch paint
firm AkzoNobel.

Moelis & Company
December 2008: In the game

According to Thomson Reuters, Moelis & Company leaped up the banking league tables in 2008, finishing the year at No. 20 in worldwide announced
mergers and acquisitions—up from No. 47 in 2007. In U.S. announced M&A deal making, it ranked No. 15, up from No. 30 in 2007.
September 2008: Shore joins up

Moelis hired ex-J.P. Morgan managing director Andrew Shore as a managing director in New York to lead its coverage of household and personal care
companies. Shore has more than 20 years of banking experience under his belt. Prior to working at J.P. Morgan, he was a managing director at
Deutsche Bank.
August 2008: An old-fashioned ideal

Banking jobs vanished overnight in the second half of 2008, but at Moelis, they just kept appearing. CEO Ken Moelis told the Los Angeles Times that
he’d increased headcount up to 130, and was aiming for 160 by the end of 2008 (the firm’s headcount as of June 2009 was 190). This isn’t to say
that Moelis plans to outgrow its niche size. Moelis has no interest in building a massive conglomerate, the kind of place where the art of investment
banking gets lost in the quest for big fees. “Investment banking, at its core, is a relationship-based advisory business,” he explained to the Times.
“This is what the great leaders of investment banks used to do. They knew the client by name.”.
August 2008: Gaining Share

Greg Share left Fortress Investment Group to become a partner in the Moelis Capital Partners private equity business in New York. Share previously
worked at Madison Dearborn Partners and Lazard Frères.
June 2008: New leader arrives

Ken Viellieu, a former Bear Stearns senior managing director, signed on as a Moelis & Company MD and head of its Chicago office. According to the
firm, Viellieu will lead expansion plans in Chicago and build out the client list in the Midwest. Greg Shaia, another ex-Bear, joined Moelis & Company’s
New York office as a managing director, and head of the consumer and retail industry sector.
GETTING HIRED
Best and the brightest

Moelis is still hiring at the same pace it was before the recession, and the added competition—”It’s one of the few banks hiring while everyone else is
laying off employees by the thousands”—has allowed the firm “to be extremely selective.” One source agrees, saying that “Moelis is very selective in
hiring new analysts and associates, and requires them to have experience and sharp technical skills.” The talent pool is “the best in class at the top
rated business schools.”
Finding the right fit

Moelis recruiters can be found on the campuses of elite business schools such as University of Pennsylvania, Columbia, Harvard, Berkeley and UCLA.
Current employees report that the interview process is two to three rounds, consisting of a “first round with analysts and associates,” followed by a
“second round with associates, senior vice presidents and partners” and, if needed, “a third round for fit.” A senior vice president at Moelis reports
that the interviews are “usually technically focused in the first round and heavily weighted towards fit given the size of the organization.”
First dibs
An internship at Moelis doesn’t necessarily translate to an automatic hire, but employees report that “interns get first dibs” at entry-level jobs. There
are “very stringent standards” for hiring all employees, even former interns, and Moelis “only gave offers to about 65 percent of summer interns” last
year. Even though it’s not a sure thing from internship to hire, most employees agree that “obtaining a summer position is the best way to earn a full-
time offer.”

Moelis & Company
OUR SURVEY SAYS
Nowhere to hide
Since Moelis & Co. is such a young company, employees say that the “culture is being built from the ground up.” Many note that it is a “very
hardworking and driven” company, with “a pleasant work environment.” However, it seems that this “team-oriented” and “collaborative” firm is still
working out some of the kinks of being a start-up. One source complains that Moelis has the “worst hours on the Street,” and “useless work is given
for no purpose.” Another agrees that the going motto seems to be “work hard, get paid little.” On the plus side, though, you’ll see “lots of deals” and
have the “opportunity to try different things.” A current vice president at the firm sums up the culture by saying, “It’s a relatively small firm so everyone
knows each other. Individuality is encouraged, but there’s nowhere to hide after a poor performance.”
Not enough
Employees at the junior level are not fully satisfied with their level of pay versus the hours put in. One analyst says, “They will pay you enough so you
don’t complain, but not enough to make you happy.” Another employee comments, “The firm claims to pay 5 to 10 percent above the rest of Wall
Street for bonuses, but that no longer seems likely. Bonuses are now expected to be less than the average on the Street.” Reported salaries ranged
from $60,000 for entry-level analysts to $200,000 for employees in management positions. An insider says that entry-level associates can make as
much as $90,000 in their first year.
Potential employees of Moelis can expect to put in a lot of overtime. One source says, “Analysts and associates average anywhere from 85 to 95 hours
per week. And VPs work 65 to 80 hours per week.” Some insiders report weeks when working more than 100 hours is simply par for the course. “It
is extremely rare to have an entire weekend day off,” says one analyst. An associate reports that “17-hour days are the norm, and even weekends
tend to involve 12-hour days.”
Though many employees have not noted significant changes due to the recent downturn, Moelis has cut back on office perks and eliminated its 401(k)
matching program to keep up with cost control in the lagging economy.
Difference of opinion
There is a discrepancy of opinions regarding the relationship between management and junior employees at Moelis. One analyst explains, “Occasional
good guys look out for you, but for the most part, senior guys don’t care about you.” Another says that “given the lean structure at Moelis, managers
put a good effort into trying to limit the amount of non-meaningful work given to the juniors.” One employee puts it this way: “Some of the senior people
are very good at respecting the time of junior people, but others act as if we have no life outside of the office and show no appreciation for the work
completed.” A vice president at the company doesn’t see any problems with the hierarchy and says, “We’re building a culture of mutual respect at
Moelis.”
Very nice
There is a consensus that Moelis’ office space in Los Angeles is nicer than its space in New York. An insider notes, “The New York office is modest,
but it’s a temporary space. (Indeed, the firm moved its New York office into a larger space a few blocks north on Park Avenue in early September
2009). The L.A. office, on the other hand, is one of the nicest offices I have ever seen used by an investment bank—and all of the associates have
offices.” One source working out of Chicago says, “We’re in a brand new location that we moved into a few months ago. The offices are very nice,
and the building is nice as well. It has a gym and other amenities.” Overall, insiders say offices are “not ultra luxurious, but very nice.”
The dress code is a bit more laid-back than at other firms, with “business casual Monday through Thursday and casual Fridays”—which usually
involves wearing “jeans and a dress shirt.” Employees can “wear what they like on weekends.” Of course, every banker is required to “wear a tie if
going to a client meeting.”
Moelis & Co. employees report little to no efforts being made to “green” their offices. One employee even goes so far as to note that “this should not
be an emphasis of firms devoted to maximizing shareholder value.”
Lacking in on-the-job training

New employees at Moelis are sent out to a formal job training program conducted by a third party. A source reports that “the firm’s formal new-hire
training is excellent,” but he adds that “informal on-the-job training has not been as good as I hoped.” An associate explains that at his level, “training
involves two weeks of heavy corporate finance and accounting training, two weeks of Series 7 and 66 training, and one week of internal training.” He
elaborates that “most new associates have a background in investment banking so the training isn’t as meaningful as it would be for an analyst or an
associate with a non-investment banking background.” A disappointed analyst says that “the training program itself was decent. However, on-the-job
training is difficult to come by, since everyone in the firm is way too busy to take the time to properly direct those beneath them.”

Moelis & Company
Getting ‘ramped up’

Moelis is a “new firm” so it’s still “getting ramped up on mentoring and other women-specific programs.” One male insider says that in the early stages
of hiring, there is room for improvement as far as gender equality goes, saying that “we currently have two female analysts in a class of over 20.” Most
employees give the firm high marks in the field of racial diversity, noting that there is a “high amount of diversity in this regard.”
Generating new business

The growth potential and relative newness of Moelis make it an attractive company, even in the midst of a difficult economy. “I wouldn’t want to be at
another firm,” says one current employee. “The senior bankers here are not distracted by corporate issues, and are focused on generating new
business and building the firm.” Compared with bigger firms, employees at Moelis “have been able to develop new skill sets and have been able to
learn a lot.” However, some sources feel that the firm could do more to encourage an overall sense of satisfaction. “Given that we are growing, the
firm should do a better job trying to retain employees. The partners need to be more generous in terms of bonuses and sharing a piece of the pie,” an
insider explains.
When the dust settles

Most employees are optimistic about the firm’s future, and many feel that the crisis on Wall Street may even help them. One associate notes, “Moelis
has been able to take advantage of the current economic environment and has continued to hire an exemplary list of new senior bankers. The firm
continues to grow strong and continues to take advantage of the market conditions to establish itself as a leading independent advisory shop.”
Members of the restructuring group are particularly optimistic about their potential for success, commenting that “the restructuring practice and the
advisory practice have been very successful.” Another source says, “When the dust settles and the economy recovers, Moelis will be in better shape
than most of its counterparts. It has a very bright future.”

PRESTIGE
RANKING
14 UBS INVESTMENT BANK

New York, NY 10171
www.ibb.ubs.com #3 – Training
DEPARTMENTS #9 – Hours
#11 – Offices
Equities
#13 – Culture
Fixed Income
#13 – Selectivity
Foreign Exchange
Investment Banking
Diversity
Investment Research
THE STATS #9 – Diversity With Respect To Women
Employer Type: Division of UBS AG
Co-Chief Executives: Carsten Kengeter &
Alexander Wilmot-Sitwell UPPERS
• “Opportunities to work and travel abroad”‘
2008 Net Income: $34.3 billion
• “Great sense of team”
• “European culture”
No. of Offices: Offices in 38 countries
KEY COMPETITORS DOWNERS

• “The layoffs”
Bank of America
• “Lots of negative media”
Barclays Capital
• “Limited confidence and trust in management”
Citigroup
Credit Suisse
Deutsche Bank EMPLOYMENT CONTACT
Goldman Sachs
HSBC See “careers” at www.ibb.ubs.com
Morgan Stanley
THE BUZZ
• “Large, diverse”
• “Taken some big reputational hits in the last two years”
• “Plays in the middle market—aggressive, solid bank”
• “Lost ton of great bankers; North American presence
unclear”

UBS Investment Bank
THE SCOOP
A tough year for a Swiss giant

One of the world’s largest financial firms, UBS AG serves clients worldwide through its investment banking, wealth management and asset management
businesses. Headquartered in Zurich and Basel, UBS AG has offices in over 50 countries and employs more than 75,000 people around the world.
UBS Investment Bank, UBS AG’s investment banking business, employs more than 17,000 people. It provides advisory services as well as access to
the world’s capital markets for corporate, institutional, intermediary and alternative asset management clients. It also provides securities products and
research in equities, fixed income, rates and foreign exchange.
To say the least, UBS AG has had a rough time lately. As a result of serious losses stemming from the subprime mortgage crisis, it reorganized itself
and shrank considerably throughout 2008 and the early part of 2009. It did so by exiting businesses, divesting assets, internally restructuring and
significantly cutting jobs. The company also received billions of dollars in aid from the Swiss government and sold $39.7 billion of assets to a separate
fund run by the Swiss National Bank. Additionally, Marcel Ospel, chairman of UBS, stepped down from the post in April 2009; Kaspar Villiger,
Switzerland’s former finance minister, succeeded him. The draconian measures were responses to staggering losses: for the fiscal year 2008, its net
operating loss was CHF 20.7 billion, putting its 2007 loss of CHF 4.7 billion to shame.
Back in the day

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, it had acquired a number of foreign firms. One of these, London’s S.G.
Warburg Group, became SBC’s investment banking division (SBC Warburg). In 1997, SBC Warburg brought its business to the U.S. through the
acquisition of Dillon, Read & Co. After the UBS-SBC merger in 1998, the investment bank’s 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
York-based PaineWebber for $11.8 billion, further solidifying its presence in the U.S.
IN THE NEWS
August 2009: Forced to name names

An agreement was reached between the U.S. and Switzerland regarding a lawsuit that sought the names of U.S. UBS clients believed to have dodged
taxes by storing money in Swiss bank accounts. Each government has initialed agreements and will be signing a final accord at a later time, according
to a judge. Specific details of the agreement weren’t released, but tax lawyers said that they anticipate that UBS will ultimately reveal the information
attached to about 5,000 accounts.
August 2009: Three in a row

UBS posted its third consecutive quarterly loss, citing costs associated with its job cuts and reorganization plans as main reasons for the loss. The
$1.3 billion loss for the second quarter 2009, nearly three times larger than the $370 million loss the company suffered in the same quarter of 2008,
extended to the company’s investment banking business. The unit endured a pretax loss of $1.74 billion compared with a $4.93 billion loss in the
same period in the previous year. The overall results led the bank to say in a statement that its outlook “remains cautious, consistent with our view
that economic recovery will be constrained by low credit creation and the structural weaknesses in consumers’ and governments’ balance sheets.”
August 2009: No name protection

UBS will not be required to pay a fine in order to settle a tax evasion clash with the U.S., insiders told the Swiss newspapers Sonntag and
SonntagsZeitung. The company will, however, be releasing about 5,000 names of clients to U.S. authorities. The amount is only a fraction of what
U.S. authorities originally sought out—initially, the government wanted the company to disclose the names of 52,000 of its affluent U.S. clients.
July 2009: Taking Merrill’s bull

UBS snagged Bank of America Merrill Lynch’s Keith Magnus to head its investment banking unit in Singapore and Malaysia. Magnus, who stepped
into a newly-created position (UBS is trying to increase its coverage in the Asia Pacific region), previously oversaw BofA Merrill Lynch’s investment
banking operations in Singapore and Malaysia. Most recently, Magnus’ experience in the region includes advising on a $1.28 billion in rights issues
for Singaporean real estate developer CapitaLand Ltd.

UBS Investment Bank
June 2009: Selling off its building stake

According to the New York Post, UBS will be selling off its 49 percent stake in a New York City building it owns located at 299 Park Avenue. An industry
watcher told the Post that the deal may be “the one that pries open the market again.” Currently, the building’s lease is valid until 2018. UBS, which
occupies the space, doesn’t disclose the rent it is paying on the floors. However, Crain’s and the Post speculated that it may be somewhere between
$60 and $70 a foot. In total, UBS rents 750,000 square feet in the 1.16-million-square-foot building.
June 2009: “Massive” banker raid

UBS filed a lawsuit against Jefferies Group Inc., alleging that the midsized firm engaged in a “massive, premeditated raid” that led to the departure of
36 health care investment bankers. The employee exodus to Jefferies, which took place over the course of five days in June, led to the exit of the
group’s chief, Benjamin Lorello, and to what UBS has called a “nearly complete lift-out” of the company’s health care unit. UBS also said it will soon
name a new head of its health care group.
May 2009: Down again

UBS posted a first-quarter 2009 net loss of $1.76 billion, thanks to big write-downs (including a $1.67 billion one connected to monoline insurance
companies), a goodwill impairment of $554 million and $161 million in severance costs from the sale of its Brazilian division Pactual. Though the
results weren’t as bad as the $10 billion net loss the firm booked for the first quarter 2008, the losses don’t appear to be letting up anytime soon. In
its earnings announcement, UBS also noted that it expects to book approximately $571 million in restructuring and severance charges during the
second quarter of 2009.
May 2009: Wage increases intact

UBS AG CEO Oswald Grübel said the firm will keep to its practice of paying market wages to its employees. This means that despite being disparaged
for raising salaries after taking government aid, UBS will still be increasing senior bankers’ salaries by 50 percent to avoid defections. UBS also put
about $831 million in bonus funds aside in order to help retain senior bankers. The bank will pay out the bonuses over the course of three years.
April 2009: More layoffs on the horizon

UBS was on the brink of more job cuts, according to the Swiss publication Sontag. The report said marketing and support staff in Switzerland will take
the brunt of the cuts, which could affect up to 8,000 employees. Previously in 2009, UBS announced plans to slash about 10 percent of its employees
in 2009, bringing its total headcount to about 75,000.
April 2009: Bye to Brazil bank

UBS agreed to sell its Brazil banking unit UBS Pactual to Andre Esteves, who previously ran the division. The $2.5 billion sale will result in a “small
loss” for UBS but will help it shore up capital. UBS bought Pactual for $1 billion in 2006 and is selling the bank (to Esteves’ company BTG Investments)
at a price higher than its book value. The move was part of UBS CEO Oswald Grübel’s firmwide cost-cutting plan.
April 2009: Goodbye to Johansson

UBS AG announced that Jerker Johansson, head of UBS Investment Bank, would be leaving the firm immediately. The unit has seen more stable
days—UBS Investment Bank has been the source of nearly all of its parent’s credit crisis-related losses, and Johansson’s departure is the fourth for
the unit in the last 18 months. UBS replaced Johansson with co-CEOs: Alex Wilmot-Sitwell, a senior member of UBS Investment Bank; and Carsten
Kengeter, head of fixed income, currencies and commodities.
March 2009: More big cuts

UBS said it will slash up to 5,000 jobs within the month, according to the Swiss newspaper SonntagsZeitung. About 2,500 management jobs may be
cut in the firm’s wealth management unit—a move that comes in addition to the 2,000 positions the firm announced it would cut in February. While
UBS has not officially commented on the latest jobs loss report, the firm had confirmed within the previous week that it was streamlining its business
organization from eight to four regions.
In September 2008, UBS revealed plans to cut approximately 2,000 positions, including support staff, within its investment banking, equities and fixed
income divisions. The new wave of cuts came in addition to the 7,000 jobs the firm has recently eliminated, bringing the total number of jobs purged
by banks globally since July 2007 to about 131,700.

UBS Investment Bank
March 2009: Bonuses freefall but salaries skyrocket

Despite slashing its bonus pool by about 80 percent in 2008, UBS has decided to offer pay raises to its top bankers, company insiders told DealBook.
UBS is in the process of reorganizing its remuneration system, part of which involves boosting the base salary of its senior investment bankers to bring
their pay in line with other jobs in the financial services industry. Some bankers’ salaries will increase from about $170,000 to $430,000. UBS—along
with rivals Credit Suisse and Morgan Stanley—have also inserted “clawback provisions” into bankers’ salaries, which lets banks retract payments from
workers who don’t meet specific goals.
March 2009: No more secrets?

A few days after he took over as UBS CEO, Oswald Grübel told Swiss newspaper Finanz und Wirtschaft that Switzerland should contemplate modifying
its banking laws so potential tax evaders aren’t shielded. As they stand, current Swiss banking laws shelter those wanting to dodge taxes (but not those
who commit tax fraud). Currently, UBS is facing scrutiny with an investigation into whether it deliberately tried to defraud the U.S. government of client
taxes. In addition to the U.S., Germany and Britain have also called for Switzerland to agree to foreign tax probes.
February 2009: Better, but still not stellar

UBS AG posted a $6.9 billion loss for the fourth quarter of 2008. The loss, smaller than the $11 billion the firm lost in the fourth quarter of 2007, was
still enough to cause UBS to make some changes. The firm said it plans to divide its wealth management business into two units: Wealth Management
and Swiss Bank, and Wealth Management Americas. Additionally, UBS plans to cut 2,000 jobs in its investment banking unit, making its employee
count for that business about 15,000. The new wave of reductions brings the firm’s total job cuts since October 2007 to 11,000.
February 2009: Heading to court?

The U.S. Justice Department began to pressure UBS to release information regarding 52,000 of its affluent clients. The push for the release of the
information is related to allegations that the firm assisted some of its clients in avoiding taxes through offshore bank accounts. A federal judge said
that the bank will have until the end of April 2009 to contest the push for publication and ask for a full trial. If not, the company will likely face a mini-
trial in July 2009, Judge Alan S. Gold said in a conference call.
February 2009: Mum’s the word

UBS was slapped with a Swiss lawsuit by affluent U.S. clients looking to thwart the revelation of their names to the public. The suit says UBS and the
Swiss Financial Market Supervisory Authority breached secrecy laws and conducted illegal doings with foreign governments. Part of the lawsuit may
stem from legal and cultural differences between the U.S. and Switzerland: evading taxes isn’t a criminal offense in Switzerland, but revealing client
names is.
February 2009: Poached from UBS

Christopher Ryan, the ex-head of credit fixed income at UBS AG, will soon join Moelis & Co, insiders told Bloomberg. In his new role, Ryan will counsel
clients on risk and balance-sheet matters, the insiders said. Ryan isn’t the first former UBS employee that ex-UBS Investment Bank president Ken
Moelis has drafted for his new venture. Jeffrey Raich and Navid Mahmoodzadegan also joined the firm as head of mergers and acquisitions and media
investment banking, respectively, within the last two years.
February 2009: Paying up for Ponzi

UBS was ordered by the Commission de Surveillance du Secteur Financier, Luxembourg’s financial regulator, to pay for its “serious failure” of
guardianship of a $1.4 billion fund that served as a channel for Bernard Madoff’s suspected Ponzi scheme. The regulator said that “poor execution
of its due-diligence obligations constitute a serious failure of its surveillance role as a depositary bank,” the Financial Times reported. UBS was given
three months by the regulator to hand over compensation and develop and improve its systems.
February 2009: Costas’ new venture

Ex-head of UBS Investment Bank John Costas and former UBS debt head Michael Hutchins combined forces to create a new financial firm, a boutique
that will offer broker-dealer and securities services for institutional clients. Costas and Hutchins previously worked together at the UBS hedge fund,
Dillon Read Capital Management. Matthew Johnson, an ex-trader at Dillon Read, will also be a founding member of the new firm, which reportedly
will be called VinsonForbes.

UBS Investment Bank
February 2009: New CEO: Grübel steps up

UBS announced that its CEO Marcel Rohner had resigned from his post and Oswald Grübel, an ex-Credit Suisse executive, would be taking over for
him. Rohner’s resignation came amid UBS’s tax scheme controversy as well as recent defections and big market-related losses. Grübel, who was co-
CEO at Credit Suisse from 2003 to 20007, was largely responsible for turning that firm around and, so far, investors seem to think Grübel will be able
to do the same for UBS—on the news, the bank’s shares increased 9.7 percent in Zurich trading.
January 2009: Too-big bonuses?

In spite of the investigation UBS is facing for allegedly assisting well-heeled Americans dodge taxes, the firm hired more than 200 U.S. brokers in the
fourth quarter of 2008, offering them signing bonuses equal to 260 percent of the revenue they had brought in over the past year. A spokeswoman
for UBS admitted in a February 2009 interview that, among others, the firm had hired five Goldman Sachs brokers based in Dallas who collectively
had $4 billion under management, and five brokers from Morgan Stanley’s Houston office with $2.1 billion under management. The hiring spree
appeared to be an attempt to recoup losses in the early part of the year. According to UBS, its U.S. clients U.S. withdrew $12.7 billion during the first
three quarters of 2008, and its brokerage staff declined by 340.
October 2008: Finding a lifeline

UBS received a financial lifeline in the form of a fund set up by the Swiss National Bank. The fund will allow UBS to transfer $60 billion in toxic assets
to the fund. Most of the fund’s money will be provided by the Swiss National Bank, but UBS will provide $6 billion in equity capital. Under the plan,
UBS will also receive $5.3 billion in mandatory convertible notes.
October 2008: Picking up some Brothers

After Lehman Brothers filed for Chapter 11 bankruptcy, UBS picked up some of the firm’s top bankers. UBS hired Gregory Fuller to be a senior
technology banker and Jorge Martinez to head up its Asian oil and gas unit. Three other ex-Lehman bankers—Anthony Carango, Scott Wilson and Jia
Zhai—also now work in UBS’ energy banking unit.
September 2008: A new face in fixed income

UBS hired Jeffrey Mayer on as global head of its fixed income unit. Mayer, formerly co-head of fixed income at now-defunct Bear Stearns, has been
in relatively high demand amongst financial firms—in May, JPMorgan Chase offered him the opportunity to vice chair its investment bank, but Mayer
turned down the proposal.
GETTING HIRED
Future All-Stars
Applicants for employment at UBS are “competing with the best and the brightest in a large number of fields.” The bank is even “more selective given
the current environment,” and its recruiters are “looking for ‘All-Stars’ or those with the raw material to become an ‘All-Star.’” When hiring, the firm
“takes into consideration technical skills, fit and potential for career advancement within the firm.” “The number of applicants alone makes it difficult
to get an interview, but UBS does not limit itself to only business degrees,” explains one current insider. A vice president with the company says, “We
compete for the best candidates, but have increasingly focused on candidates who are also selective about their opportunities. We’re actively asking
candidates where else they are interviewing and where else they have offers.”
Rattle and roll

UBS has a standard two round interview process. The “first-round interviews are either on campus or over the phone. Interview questions are mostly
behavioral- and personality-based, but sometimes you’ll get a critical thinking question.” The first round is followed up by a Super Day of interviews
in which candidates interview with associate directors and participate in “a group exercise, in which candidates are split into groups and given a case
study to work and talk through, then present to the managers.” The Super Day “can be an intimidating event because every applicant is grouped
together and one is able to see, speak and hear their competition.” One source says that “this is done on purpose in an attempt to rattle candidates
and see how one reacts to loud, candid environments similar to a trading floor.” UBS recruits from schools in the Northeast, including the Ivy League
and NYU, Cornell, Fairfield, UConn, Fordham, Pace, Howard and Carnegie Mellon.

UBS Investment Bank
Live deal experience

Internships are “very important” as “most, if not all, full-time offers come from the summer internship program.” Nearly all employees agree that “as
the investment banking market contracts, summer internship is becoming more and more essential.” Interns in analyst positions are paid a “pro-
rated first-year analyst salary plus transition payment of $2,000,” and “rotate through trading desks in both sales and trading support roles.” There is
also the “added benefit of getting a part-time overtime allowance.” One source says that with the overtime, “you actually make more money than a
full-time on base salary before bonuses.” For associate interns, the work consists of all the activities of “full-time associates, including modeling,
presentation preparing, financial analysis, and internal and external deal team coordination.” Another says that he “worked on all kinds of M&A live
deals, including hostile takeovers,” and that his “role varied from building models, building CIMs, managing the client and managing the data room.”
OUR SURVEY SAYS
Mixed bag
Employees give the culture of UBS mixed reviews. One respondent says that the firm “has an excellent culture,” and another notes that the firm
“respects individuality and promotes respect for one another.” Others take a negative tack on the issue of individuality, saying that the culture is “very
mixed and unclear” as a result. Another source agrees and says UBS “does not have a strong culture as it’s mostly every man for himself.” There
are those who disagree that UBS is a bank without culture. “There is a strong culture of merit based recognition and advancement,” says an associate.
“In situations where UBS is the market leader, it still conducts itself as the underdog looking to outsmart—through creativity and superior technical
skills—and outwork the competition.”
Bad news and market volatility have recently added another layer to the feel of the firm. A source says, “The markets have taken their toll on morale”
while another says, “There are clearly frustrations around the turmoil in banking, the negative media coverage and the issues that come with increasing
government involvement.” But the news isn’t all bad. Despite the bad press, at least one source reports that “there is a strong sense of pride in the
quality of work done here.”
Bad time for bonus

Starting salaries at UBS are “$60,000 for undergrads and $95,000 for MBAs” with perks including an “equity program consisting of two options for
every one share purchased, a 401(k), three weeks paid vacation and a fully paid training in London for four weeks.” The compensation of employees
through bonuses is a recent sore spot, especially in light of UBS’ Swiss bailout. One contact explains that in 2008, “the Swiss regulators capped the
bonus pool materially, resulting in below-market bonuses paid out at all levels.” This source also says that payments for “2009 are up in the air.” A
disgruntled employee says that in the past year “UBS paid very low relative to the market, which is very unfortunate and disappointing especially since
it used to pay above market.” Another has hope for future bonus increases, saying that “2008 was an abnormal year given the market turmoil and
political challenges.”
Some perks of working at UBS include “cabs after 9 p.m., dinner on nights and weekends”—which have not been cut despite the downturn. Another
advantage to employment with UBS is that “employees are encouraged to use their vacation time and avoid working to the extent possible while on
vacation.”
No need for face time

The “hours are dependent on market activity” at UBS. One trader says that his hours consist of “early mornings on the desk prior to 7 a.m.” but he’s
generally “out of the office by 7 p.m.” There are “occasional crunch times in which hours spike,” but, in general, there is a “proper work/life balance.”
In the past year or so, “hours have been a lot more volatile given current markets.” An insider says that “whereas prior work schedules included all
out sprint for extended periods of time—90 to 110 hours per week consistently—there have been more peaks and troughs in the past few months.”
One upside to the work schedule at UBS is that “there is no pressure for face time.” That means you “can get out of the office at a decent hour” if
your work is finished. “Slow market and no face time policy means hours are highly reasonable,” says one source.
Great interaction
The majority of employees at UBS say that there are “great relationships between managers and subordinates.” One respondent says, “People at all
levels are very open and willing to help. I feel as though I’m treated like an equal, not like someone’s subordinate.” Indeed, you’re treated with
“respect,” and “junior colleagues are included in meetings.” A source explains, “I haven’t had a manager yell at me or heard of anyone being yelled
at. Managers try their best to respect time and commitments.” “There are no raised voices and a minimum of foul language,” adds one contact. “This
is probably the best aspect of UBS’s culture.”

UBS Investment Bank
Lively enough
The UBS office space in New York is “not great, but it is very satisfactory.” One contact notes that “many floors have been recently redone.” Now
there’s “spacious desk space and an open, modern design, with plenty of lighting and window views.” “UBS offices are new and significantly brighter
than our competitors,” an insider in the New York office explains. A respondent in the Stamford location says, “I work on the largest trading floor in
the world, in a building constructed in 2001.” A Connecticut-based source says the offices are “clean and functional,” and there are “plants around
to make it lively.”
The dress code at UBS is, for the most part, business casual, consisting of “slacks or khakis, dress shirts, dress shoes and well kept hair and facial
hair.” However, “some teams are more formal than others; some have a level of dress for Fridays that is more casual.” A contact says that dress is
“almost ad hoc by group or by the whim of senior manager who might start requiring people to wear ties and suits.” Of course, “all client interaction
requires formal dress.”
There is a “team dedicated to reducing UBS’s impact on the environment globally,” and the firm has “done a number of visible things” to promote
green initiatives. The company “encourages car pooling,” and it has “recycle bins for paper, batteries and old cell phones.” In addition, UBS
“encourages people not to print unless necessary.” In the cafeteria, “people are encouraged to use real plates and silverware as oppose to disposable
plastic.”
Training: is a “strong suit”

Training at UBS is “one of the strong suits of UBS.” There is an “extensive six-week training program” followed by “continuing education half-day and
full-day classes year-round for analysts and associates.” There are also “always informal seminars and workshops, group specific training and optional
firmwide training on ‘hot’ contemporary topics, given by leaders either within UBS or external experts on the subject.” One analyst remembers, “We
were sent to London for four weeks of training with our global class in order to ensure that everyone was on an even field. This also gave us the
opportunity to meet colleagues and peers from across the businesses and globe for us to contact in the future.” There are reports, however, that
training has been “scaled back recently because of market conditions.”
Showing initiative
While UBS is “extremely receptive to having women in the group,” the firm still struggles with keeping a high number of females above entry-level
positions. One insider says that the company “still exhibits a number of characteristics of old-school Wall Street; many of the women in the investment
banking department are admins.” However, female respondents give the firm high marks for its outreach. One female analyst says, “UBS has the
most receptive environment to women of all investment banks. It even has a women’s group that all female employees can join.” She continues, “That
being said, UBS recruits from fewer women’s colleges than the average investment bank.”
UBS is also making strides towards racial diversity. One associate says, “Diversity is recognized as one of the ways our bank can differentiate itself
amongst its competitors, and the focus on recruiting, retaining and promoting candidates from a diverse background manifests itself throughout the
firm.” An insider who works with the diversity initiative backs this up by noting that the firm participated in NABA’s national conference and are offering
finance intern positions to Sponsor’s for Educational Opportunity for the first time in 2009. He concludes, “I’ve been extremely happy with the support
UBS has given diversity for both minorities and women.”
As for GLBT diversity, there is a “GLBT network” at UBS, and “many businesses have worked with the network to tap into the gay and lesbian business
markets.”
Coming through the crisis

Employees overall satisfaction with the firm has taken a hit due to the negative events of the bad markets. One contact says that “compensation and
senior management have been exceptionally poor, especially through the crisis.” Another adds that “recently, the experience has not been
satisfactory.” The firm “still lacks a strong U.S. brand” and is “trying desperately to overcome negative press coverage.” Despite the bad feelings of
many employees, there are those who can see the silver lining. One source says, “Other than the recent hiccup with regards to the 2008 bonus
package, the firm is a nice place to work. People who are smart and work hard are taken care of well, promoted well and paid well.” Another adds
that “it has been a very good place to work.”
Looking forward, one reespondent says, “There is still too much uncertainty over economic and market conditions to form a compelling view of the
near-term outlook. However, in the medium and long term, UBS’s global footprint as well as its world-class people and systems make it well-positioned
for a return to its former strength.”

PRESTIGE
RANKING
15 HOULIHAN LOKEY
1930 Century Park West RANKING RECAP

Los Angeles, CA 90067
Fax: (310) 553-2173 #1 – Business Outlook
www.HL.com #1 – Green Initiatives
#1 – Offices
#1 – Selectivity
DEPARTMENTS #2 – Compensation
Financial Advisory Services
#3 – Hours
Financing
Mergers & Acquisitions
#4 – Culture
Restructuring
#8 – Training
THE STATS Diversity
Employer Type: Private Company #2 – Diversity With Respect To Women
Co-CEOs: Jeffrey Werbalowsky & Scott Beiser #3 – Diversity With Respect To Ethnic Minorities
No. of Employees: 800+ #5 – Diversity With Respect To Gays and Lesbians
No. of Offices: 14 (Worldwide)
UPPERS
KEY COMPETITORS
• “Great, smart people”
Bank of America • “Entrepreneurial spirit”
Blackstone • “Access to upper management and lots of client interaction”
Evercore Partners
Greenhill & Co.
Jefferies DOWNERS
KPMG
• “Can be somewhat competitive”
Lazard
• “Hours can be long at times”
Moelis & Company
• “Still overcoming the image of just doing fairness opinions
and restructuring”
Rothschild
UBS
EMPLOYMENT CONTACT
See “careers” section of www.HL.com
THE BUZZ
• “Strong advisory practice”
• “Okay”
• “Terrific restructuring practice”
• “They work like crazy”
113
Houlihan Lokey
THE SCOOP
Worldwide reach
Founded in 1970, the privately-held investment bank Houlihan Lokey now employs more than 800 people worldwide. Although it’s best known as a
middle-market advisor, Houlihan Lokey also serves large public corporations and small private companies. Its financial restructuring division has risen
to prominence in recent years—Houlihan Lokey’s teams have worked on some of the world’s biggest bankruptcy proceedings, including those of
Lehman Brothers, WorldCom, General Motors, Enron and Conseco. And in the past 10 years, the firm has worked on more than 500 restructuring
transactions worth a total of over $1.25 trillion.
California-based Houlihan Lokey’s business is divided into four groups: financing, mergers and acquisitions, financial advisory services and
restructuring. The firm’s U.S. offices are located in Minneapolis, New York, San Francisco, Chicago, Dallas, Atlanta, Los Angeles and Washington,
D.C.; its overseas operations can be found in London, Paris, Tokyo, Hong Kong, Beijing and Frankfurt.
Each year, Houlihan Lokey takes home several high-profile awards and recognitions. In 2008, Thomson Reuters ranked the firm No. 1 in M&A deals
with values under $2 billion, and The Deal Pipeline named it the No. 1 Investment Banking Restructuring Advisor. Houlihan Lokey was also named
Investment Bank of the Year in 2008 by The M&A Advisor, and Mergermarket and the Financial Times dubbed it the Mid Market Financial Advisor of
the Year in the U.S. In addition, Thomson Reuters has ranked Houlihan Lokey No. 1 in U.S. M&A fairness opinions over the past 10 years.
IN THE NEWS
January 2009: The Polaroid picture

Houlihan Lokey was enlisted by the Polaroid Corporation to advise the firm on a reorganization, refinancing or sale. The legendary camera maker filed
Chapter 11 in December 2008 after a fraud investigation involving Polaroid owner Tom Petters. According to court filings, Houlihan Lokey would receive
an upfront fee of $300,000 plus $150,000 a month to advise Polaroid on strategic options. If deals fall through within six months, Houlihan would
receive a termination fee of $450,000, but if a restructuring is successful, Houlihan Lokey stands to earn 1.25 percent of Polaroid’s court-determined
value.
December 2008: Top of the tables

According to the Thomson Reuters investment banking league tables for 2008, Houlihan ranked No. 1 in U.S. mid-market advisory, based on number
of transactions, for all deal value categories. In worldwide announced mid-market transactions, based on fees, the firm ranked No. 4 for deals valued
up to $50 million and up to $100 million. Its ranking slipped slightly as the deals got larger, though. Houlihan Lokey placed No. 5 for deals valued
up to $200 million and No. 10 for those with values up to $500 million.
December 2008: Spotting Bally’s

Houlihan Lokey was hired by Bally Total Fitness Holding Corp. to advise on its Chapter 11 filing in New York. Bally’s, which operates over 340 gyms
in the U.S., reported $1.4 billion in assets and $1.5 billion in debt. It also had over 100,000 creditors, the biggest of which are U.S. Bancorp (owed
$247 million) and HSBC Holdings ($231 million).
September 2008: Picking up the pieces of Lehman

WorldCom’s $107 billion bankruptcy paled before Lehman Brothers’ spectacular demise in September 2008. At the time of its Chapter 11 filing,
Lehman claimed $639 billion in assets, spread across its worldwide network of offices, affiliates and subsidiaries. And once again, Houlihan Lokey
was hired to advise the creditor’s committee in the case.
CEO Jeff Werbalowsky acknowledged that it would be a challenging job. “Enron is the most complex bankruptcy we’ve ever worked on,” he said, “but
it’s possible that the bankruptcy of Lehman Brothers may involve even more convoluted financial issues and relationships.” At least it proved to be a
lucrative job. According to court filings, Houlihan Lokey requested fees of $500,000 per month for the first six months of work and $400,000 for each
subsequent month. It also requested deferred fees of 0.05 percent for the first $30 billion of unsecured recoveries and 0.035 percent of all unsecured
recoveries in excess of $30 billion.

Houlihan Lokey
September 2008: Real estate gurus on board

J.P. Morgan’s loss was Houlihan Lokey’s gain when a team of senior real estate investment banking officers left J.P. Morgan for Houlihan’s New York
City office, joining the real estate and lodging investment banking group. The additions included senior vice presidents Patrick Gillan and John Kenyan,
and Gary Gordon, who joined as a managing director.
At J.P. Morgan, Gordon and his team had led middle-market investment sales, and debt and equity real estate activity. They were involved with a
number of splashy deals, including the sale of 75 Wall Street and 650 Madison Avenue in New York and the sale of News Corp.’s 23-acre site in
Boston’s financial district. They also had a hand in advising the Port Authority of New York on development of the World Trade Center.
September 2008: He’s back

A former Houlihan Lokey managing director returned to the fold, as Matthew Niemann left Cerberus Capital Chicago (an affiliate of Cerberus Capital
Management) to become managing director and co-head of Houlihan Lokey’s Midwest restructuring practice. Before his stint at Cerberus, Niemann
had served as managing director of Houlihan Lokey’s Chicago and Los Angeles offices. According to Niemann, he headed back to Houlihan Lokey
because he had a “desire to return to my roots as an advisor as the distressed cycle unfolds over the next several years.”
August 2008: Aerospace flies high

Investment Dealer’s Digest reported that one industry sector was largely unaffected by the global slowdown in M&A activity: aerospace and defense.
The reason? A flurry of acquisitions by the sector’s largest players, which bought smaller rivals in an attempt to diversify—in part because the
impending presidential election left a great deal of uncertainty about future government spending on defense.
Anita Antenucci, head of aerospace investment banking at Houlihan Lokey, told the magazine that her group had closed or signed 15 transactions in
the past six months, compared to 19 total transactions in 2007. “I think that the number of deals will outpace last year’s level,” she said. “Within
aerospace, it is still as busy as ever.” Antenucci’s team, 25 bankers strong, has offices in Los Angeles and Washington, D.C.
GETTING HIRED
No excess baggage
The hiring process “is selective, but it’s not impossible” to get hired, sources say. “Since we’re not a bulge bracket, we have the luxury of being able
to pick a small amount of people from a large applicant pool.” “This past year, I have seen hundreds of resumes pour in from just my school, often
forcing us to turn down students with nearly impeccable resumes,” adds an analyst.
Candidates who make the cut are those who are “highly motivated, analytical and entrepreneurial types who fit with our culture.” “Houlihan looks for
a particular candidate that is interested in working on smaller deal teams with more responsibility, and with middle-market clients that demand a true
advisor relationship,” agrees another contact. An insider who’s involved with recruiting adds, “To get hired here, it takes a certain tenacity and
confidence coupled with humility and demonstrated willingness to learn.” “We need everyone we hire, and we don’t carry extras or excess,” concludes
a managing director. “Everyone we hire is important, and we want them to grow within the firm and advance. Therefore, we are looking for people
with the right fit and range to accomplish just that.”
Leave the robot responses at home

Houlihan Lokey targets “powerhouse programs” like “Yale and Columbia” as well as “Wharton, UVA and NYU.” “Houlihan recruits at highly-ranked
MBA and undergraduate programs, and invests significant time to find the right candidates,” says a source. Firm reps head to select campuses to
“teach classes, and host case competitions, dinner and cocktail events, and job fairs” in order to meet the cream of the crop.
For new hires, “typically there are two rounds of interviews, during which a candidate will meet anywhere from four to six professionals.” First, you’ll
go through one or two campus interviews (or a phone interview), and then a final “Super Day” round in the office. Campus candidates may be invited
to “a dinner in between” the two rounds. During the interviews, be prepared to field a “mix of technical corporate finance and fit questions.” One
associate describes the process as a “no B.S., straight-shot interview. There’s no political shuffle.”
“I had five or six interviews” during the final round, recalls an employee. “That included vice presidents, directors and managing directors.” “The
interviewers are often from the specific group with which you are interviewing,” tips a source, and questions are “divided between personality questions
and quantitative/finance questions.” And, “there are definitely questions regarding your knowledge of the firm and the group or office that you’ve
chosen for your future career.” “Be who you are,” advises a firm veteran. “One objective we have is to break down and reverse a lot of the prep
students do. In many respects, they start to appear like robots, having all prepared the same way, providing the same pat answers to similar questions.
We are interested in interviewing the person that is actually going to show up for the job.”

Houlihan Lokey
Definitely intern
The summer analyst and associate program is “a large source for full-time hires,” so sources say it’s a good idea to apply. “Every current first-year
analyst in my group originated from the summer analyst program,” a corporate finance insider reports.
Summer hires receive the “same pay as full-time” employees and perform work that’s “reflective of full-time positions, though in most cases, summers
are a bit slow in banking, so it’s not the same volume of work.” “I had a terrific experience,” a former intern says. “I was on several live deals and
spent a week traveling across the U.S. performing due diligence for our client.” “We helped do comps, research and financial modeling, and often sat
in on meetings and conference calls,” recalls another ex-intern. Besides assisting employees, interns get the benefits of “training, an educational
summer speaker series, mentors, social events and mid-summer feedback.”
OUR SURVEY SAYS
Friends with responsibility

“We started as a boutique firm, and though we have grown considerably, we still have the roots of a boutique firm,” declares a Houlihan Lokey veteran.
That means “there’s an entrepreneurial feel and a collaborative energy, driven both by the deal team structure as well as the open-door policy.” Many
Houlihan insiders call their coworkers their “friends,” saying, “We are able to enjoy time spent together, which definitely breaks up the work day and
makes for a happier environment.”
Of course, there’s plenty of work and responsibility to go around, and “people will generally let you take on as much as you can handle.” “We work
on small deal teams where every level has responsibility and ownership of the project,” says an associate. There’s an “emphasis on mentoring,” and
the firm’s history is still close to the surface. “There is a good amount of senior interaction,” explains an analyst. “Perhaps that is the reason why so
many of Houlihan’s senior bankers started as Houlihan analysts or associates.”
Restructuring rules
Sources in Houlihan Lokey’s renowned restructuring group have a lot of pride in their reputation. “Restructuring is an absolutely awesome group,”
raves an analyst. “Restructuring is incredibly busy and exciting,” agrees another source.
Kudos come from other areas of the firm, too. “The M&A group within corporate finance has a footprint in four of our U.S. locations and is led by a
strong team of seasoned managing directors,” an associate says. “Our senior bankers realize this is an apprenticeship-type of job and are always
seeking to grow their subordinates.”
Working together
Senior managers “don’t view analysts as people to take advantage of but rather to work with for a common goal.” “My managers may demand a lot
from me at times, but they show proper gratitude and respect for a job well done,” agrees a recent hire. “Positive feedback is given when deserved,
which is huge.” Besides making time to “discuss current projects,” junior staff members say managers are willing to talk about “broader issues, as
well as their own individual paths to where they are today.”
New hires begin with an initial “three week intensive training program” that’s “very practical” and “exactly what it needs to be.” After that, “outside
training capabilities” are part of the formal offerings, but by and large, newbies learn “through the deal process.” “On-the-job training is very important
and taken very seriously by all managers,” says an insider.
Not too shabby

Compensation gets high marks, even as sources note some uncertainty about bonuses and what the future will hold. “We are at or above market” in
terms of pay, says one source, and since Houlihan Lokey hasn’t taken TARP money or suffered losses the way some rivals have, “bonuses are not
expected to be hurt the way they are for the rest of Wall Street.”
Benefits include “cabs home after 8 p.m., gym membership discounts, dinner allowance, late car service if you want it, reimbursable lunches ... the
standard perks.” Adds an analyst in New York City, “We also get free MetroCards every month, which is great.” (Other locations provide “free
parking.”) There are “no stock options at the analyst level,” but sources do enjoy “10 vacation days with two personal days. Sick days are not treated
as personal days—you may take as many necessary, though people hardly do.”
Hard work, but real work

Hours “ebb and flow” but are “not nearly as bad as at other investment banks.” The workload can get heavy, “especially in restructuring,” but sources
say, “There’s not a face-time culture, so people leave when they’re done with their work and work from home frequently.”

Houlihan Lokey
Many insiders report putting in at least 60 to 70 hours per week, sometimes more—and it’s most intense in the first years. “Junior financial staff often
work long hours but they are treated with respect and are never made to work on unnecessary, time-consuming tasks,” a source explains. Since “the
work is meaningful,” a majority of Houlihan insiders say they don’t mind pulling a late night or checking in over the weekend. “The work is exciting,
value added and we make a difference,” a contact says.
Enough space for most

While there’s “nothing remarkably luxurious” about the offices, they are “very spacious” with “ample room for file storage” and “updated” furniture. A
Los Angeles source gives points for “adequate space, good technology and support, and a great location.” The Chicago office “had a major upgrade
completed recently,” and sources in Dallas, New York and D.C. say the digs are “very nice.” In New York, adds an analyst, the seating is “a bullpen
of cubicles,” but “the walls are high enough” to offer some privacy.
The dress code is “business casual every day,” with “business formal” mandatory for client interaction. “During the summer, we have a more casual
Friday policy where you can wear jeans,” one contact notes.
Gaining, gaining
Houlihan Lokey “employs minorities at all levels of the firm, and is fully receptive to hiring, promoting and mentoring.” And one analyst notes,
“Significant gains have been made over the past several years.” While some employees say they don’t know very much about GLBT coworkers, others
report that there are “openly gay bankers” in various groups, and give Houlihan high marks for its commitment to GLBT diversity.
Women can also be found “at all levels within the organization.” One recent hire remarks, “I was pretty impressed with the number of women hired
at both the analyst and associate level.” There are still “fewer women on the senior level,” but that’s changing. “The head of my office is female as
well as some of the more senior people,” says a D.C. source.
Green from top to bottom

“From the CEO down we are very committed” to environmental awareness, which has meant changes like “electricity saving measures,” paper
reduction efforts and “water-free urinals, which save 40,000 gallons of water per year.” “We have a ‘Going Green’ program where people can identify
green initiatives, and we have a specifically assigned ‘Green Team’ to review and implement changes,” a managing director says. “We have green
resources on our intranet that provides corporate updates on efforts, as well as resources and tips for folks to take advantage of at work and home.”
The firm also replaced “bottled water and Styrofoam cups by distributing Nalgene bottles.” “In a building filled with traditional, conservative
organizations, I was surprised at how much Houlihan is doing to be green,” a Dallas source remarks. “It’s very refreshing.” “We have made many
steps in this area,” declares a senior banker, “and we’re not done.”
Steady does it
There’s been only “one round of extremely minor layoffs” at Houlihan Lokey, and insiders say it’s all up from here. According to one source, in this
environment, Houlihan is “the best place to be in the financial world. The firm does not trade and thus holds no bad assets—it has made solid
decisions protecting it from any instability.” While most insiders agree the firm is “held up by our stellar restructuring group,” praise is also given to
the “very strong corporate finance and financial advisory practices that have held up well” despite trying times. Another contact adds, “Since we’re a
private company, we have more flexibility in managing for the long term, and don’t take steps that drive short-term profitability at the expense of long-
term stability and value growth.”

PRESTIGE
RANKING
16 JEFFERIES & COMPANY, INC.
520 Madison Avenue RANKING RECAP

New York, NY 10022
www.jefferies.com #6 – Culture
DEPARTMENTS/DIVISIONS #9 – Training
Asset Management
Debt Capital Markets
Equity Capital Markets
Investment Banking
#13 – Hours
Mergers & Advisory
#13 – Offices
Recapitalization & Restructuring
#14 – Selectivity
Research
Diversity
Sales & Trading
#11 (tie) – Diversity With Respect To Gays and Lesbians
THE STATS #13 – Diversity With Respect To Women
Ticker Symbol: JEF (NYSE)
CEO: Richard B. Handler UPPERS
• “Compensation is competitive”
• “Great people who are able to have fun”
• “Senior banker interaction”
No. of Offices: 25+
KEY COMPETITORS DOWNERS

• “The hours”
Barclays Capital
• “Constantly being tied to your BlackBerry”
Credit Suisse
• “Recent downsizing and cost cutting initiatives”
Deutsche Bank
Goldman Sachs
J.P. Morgan EMPLOYMENT CONTACT
Lazard
See “careers” at www.jefferies.com
THE BUZZ
• “Hard-charging firm”
• “Overrated across the board”
• “Picking up market share”
• “Lost lots of talent”

Jefferies & Company, Inc.
THE SCOOP
On the move again

New York-based Jefferies Group, Inc. (widely known as Jefferies) is an independent securities and investment banking firm that was founded almost
50 years ago. Today, it employs more than 2,300 people in over 25 offices worldwide.
Jefferies’ investment banking services include M&A advisory, capital raising, debt, equity and equity-linked financing, recapitalization and restructuring
solutions, fairness opinions and corporate advisory services. Jefferies’ sales and trading business offers trade execution and liquidity, and traded equity,
convertible, high-yield, investment-grade fixed income and commodity-linked financial products; the unit also provides wealth management,
correspondent services, prime brokerage, securities finance and floor brokerage services (at the NYSE).
The firm’s research team focuses on covering mid-cap and growth companies, offering investment ideas in equity, high-yield, convertible and
investment-grade fixed income securities. The asset management division manages products that include equities, fixed income securities, convertible
securities and real assets (commodities). And its wealth management division offers financial advisory to corporate clients, private equity firms,
institutions and wealthy individuals.
Jefferies’ investment banking practice focuses on industry specializations, including aerospace and defense, clean technology, consumer, energy,
financial services, gaming, health care, industrials, maritime, media, technology and telecom. It also has a dedicated financial sponsors group, and
dedicated product groups, including equity capital markets, debt capital markets, recapitalization and restructuring, and mergers and advisory.
Jefferies can trace its roots to 1962 when Boyd Jefferies established his eponymous firm with a $30,000 business loan and one employee—a floor
runner. The two began conducting business on the Pacific Coast Stock Exchange floor. Along the way, Jefferies recognized that 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. He began catering to these investors, discreetly matching large institutional buyers and sellers off the exchange. So-called third-market
trading is standard practice today, 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, opening
offices throughout North America, Europe and Asia.
More recently, as a result of a worldwide financial crisis that began in 2007, Jefferies, like many other financial firms, was forced to make staff cuts.
Jefferies laid off nearly 20 percent of its workforce in 2008. However, the firm took advantage of the severe dislocation on Wall Street, hiring several
seasoned professionals in its investment banking and other business groups, including fixed income, research and equities. This included the addition
of the 40-plus person health care investment banking team from UBS, and substantial new hires on its trading desks in the U.S., Europe and Asia.
IN THE NEWS
July 2009: Setting records

Jefferies booked record net revenue for the second quarter 2009 as well as positive net income, versus a loss during the same period a year earlier.
Jefferies reported $578 million in net revenue, a 51 percent boost versus the previous year’s second quarter, and net earnings of $62 million, compared
to a $4 million loss a year earlier. The firm also reported record fixed income and commodity revenue, booking $277 million, a 280 percent rise. In
addition, investment banking revenue rose by 10 percent, and high-yield revenue increased 95 percent.
June 2009: Jefferies goes primary

The Federal Reserve Bank of New York named Jefferies as a primary dealer, which will allow the investment bank to take part in the Fed’s buying and
selling of securities. The bank can also now supply market information to the Fed and participate in Treasury auctions. For approximately a year,
Jefferies has been seeking the title of primary dealer, which is fairly elusive—the Fed has given only 17 other companies the title of primary dealer.
May 2009: Sales and trading hiring spree

Jefferies hired several employees in derivatives, ETFs (exchange-traded funds) and algorithmic trading. Jefferies also bolstered its mortgage-backed
and asset-backed securities units, hiring new employees in Boston, Chicago, Stamford and London. Additionally, the firm added to its high-yield,
leveraged loan, distressed and special situations sales, trading and research teams.
February 2009: Move over, here we come

Underlining Jefferies’ continued expansion in fixed income, the firm acquired the New York-based municipal securities firm Depfa First Albany
Securities, immediately gaining a strong position in municipal investment banking, advisory, and sales and trading services. Jefferies CEO Richard

Handler said the acquisition would offer Jefferies the chance to enter the municipal market in “a comprehensive and high quality way.” He also said
the Depfa’s 70-plus employees would be integrated into Jefferies’ fixed income department, which had more than 250 professionals at the time.
January 2009: Movin’ on up

Jefferies hired two former Merrill Lynch veterans, Daniel B. Markaity and Christopher M. Bury, as managing directors and co-heads of the firm’s fixed
income rates business. In the nine months leading up to these new hires, Jefferies brought on more than 50 new senior professionals in fixed income.
In London, Jefferies added seven new health care research analysts and sales professionals, including the top-ranked health care research team from
Credit Suisse, as part of a continued build-out of its equity department in London.
Other key hires in January 2009 included Stephen Volkmann as a senior equity research analyst in New York, and Hal Kennedy and Leon Szlezinger
as managing directors in Jefferies’ New York-based investment banking division.
January 2009: A rough year

In synch with almost all of its peers, Jefferies posted losses for the fourth quarter 2008 as well as for the full-year 2008. The firm’s net loss for the
fourth quarter was $443 million, while the net loss for the year was $538.8 million (the vast majority of which was a one-time charge for the accelerated
expense of stock-based compensation plans), a huge change from the $144 million it booked for 2007. Total revenue also fell, dropping from $2.71
billion in 2007 to $1.68 billion in 2008.
In terms of performance across the key Jefferies business divisions, revenue for the equities business dropped 17 percent to $495.4 million from
$597.2 million in 2007. However, Jefferies’ fixed income and commodities revenue (excluding high-yield activity) for 2008 was $238.2 million, a
healthy 71 percent rise versus the $139.3 million it booked in 2007. The increase in revenue was largely due to “increased customer flow” in Jefferies’
corporate bond, emerging markets, treasury and agencies, and mortgage-backed securities trading businesses, in addition to “declining competition.”
Meanwhile, the firm’s capital markets revenue took a huge hit, falling 70 percent, and its advisory revenue fell 15 percent.
CEO Handler credited the “unprecedented volatility” for the losses, saying in a press release that 2008 was “the worst year for the financial markets
in our lifetime.” He added, though, that the firm kicked off 2009 with its “strongest opening balance sheet ever.” In December 2008, prior to the year
end, Jefferies issued a statement preparing the public for its results, saying that it had completed a “strategic review” and implemented changes to
“restore profitability” in 2009 that included substantial staff cuts, changes to compensation plans, a reduction of operating expenses, risk reductions
and “other” structural changes.
December 2008: Mid-market master

Despite the slow merger and acquisition market in 2008, Jefferies fared well in Thomson Reuters’ annual M&A rankings. For worldwide M&A advisory
fees on deals with values up to $50 million, Jefferies ranked No. 9. The firm also ranked No. 7 in fees from deals with values up to $100 million, and
No. 9 in fees from deals valued up to $200 million. In fees from deals with values up to $500 million, Jefferies ranked No. 11, working on 63 deals
worth a total of $119.9 million in imputed fees.
On the European tables, Jefferies ranked No. 16 in European announced M&A deal volume, working on 29 deals worth a total of $1.56 billion. Overall
in 2008, Jefferies completed 130 M&A transactions worth a total of more than $45 billion.
September 2008: “Best in Class”

In Alpha magazine’s 2008 Hedge Fund Trading Survey, Jefferies ranked No. 1 in two categories: traditional execution, and trading expertise and market
knowledge. The rankings were compiled by surveying more than 300 hedge funds that use investment banks’ services. Additionally, Jefferies’ prime
brokerage group received 53 Best in Class awards from Global Custodian magazine.
December 2008: Cuts across all lines

Approximately 10 percent of Jefferies’ 2,465-strong workforce will be cut, sources told Fxsteet.com. Nearly every business line will be affected by the
cuts, which aren’t the first during the financial crisis for the firm—Jefferies cut 64 employees in 2007.
June 2008: Adding to its energy

Jefferies named Ralph Eads III as chairman of energy investment banking, and Stephen Straty and David Rockecharlie as co-heads of energy
investment banking.

May 2008: Hiring former Bear and Goldman bankers

Jefferies appointed David Baxt, previously of Bear Stearns, as head of aerospace and defense investment banking, and Sidarth Punshi, previously of
Goldman Sachs, as head of investment banking in India. Additionally, Jefferies expanded its mortgage-backed, asset-backed and commercial
mortgage-backed securities group, adding an entire team of sales and trading professionals in mortgage- and asset-backed securities who formerly
worked for RBS Greenwich Capital. (According to Asset-Backed Alert, the group ranked as the No. 1 bookrunner of all U.S. mortgage-backed securities
in 2008, with a 17 percent market share.),
April 2008: Staking out its claim

Leucadia National Corp. agreed to acquire a 14 percent stake in Jefferies, helping to strengthen Jefferies’ balance sheet. The terms of the deal also
included Jefferies purchasing 10 million of Leucadia’s common shares, and Leucadia getting two seats on Jefferies’ board of directors. In a press
release, speaking about why Jefferies struck the deal, CEO Richard Handler said, “We believe it is prudent to strengthen further our foundation as we
look to take advantage of the many opportunities we see in the current market environment.” He added that despite a $60.5 million loss in the first
quarter of 2008, Jefferies’ “balance sheet and liquidity are solid.”
GETTING HIRED
Looking for smarts

“GPA is definitely a crucial factor” when it comes to hiring new employees. “Prior work experience is also a big thing we look for.” One source notes,
“Drive, smarts and collegiality are three keys to getting hired at all levels.” Candidates “must answer highly technical questions in the interview process
and have a significant grasp of valuation methodologies.” However, the firm “tends to focus more on well-rounded individuals who demonstrate
maturity and client-facing ability, in addition to accounting and financial knowledge.” One employee explains, “We typically are far less interested in
‘human calculators.’”
One current analyst describes the hiring environment for this year, explaining, “For the analyst intern class of 2009, we have 1,100 applicants from a
top-tier undergrad business school and are looking to hire two.”
Why banking?
The interview process at Jefferies consists of two rounds. The first is an on-campus interview, and “the second is the standard Super Day, which
consists of a five rapid-fire interviews over three hours.” One employee remembers being asked “Why banking?” and “How would you value this
painting [in the interview room]?” as well as “basic accounting questions about how depreciation is accounted for in financial statements.”
Another source says, “Interviewers look for intelligent candidates who can do the job and, most important, will fit in with the firm’s culture.” Jefferies
recruits from, among other schools, University of Pennsylvania, University of Michigan, University of Texas at Austin, University of Virginia, New York
University, Harvard, Yale and University of California Berkeley.
An amazing experience
Internships are important at Jefferies because “a high percentage of interns return for full-time” employment. Employees concede that “especially
during these rough economic conditions with limited hiring, a greater percentage of full-time positions will be given to interns.” One current employee
remembers his internship as an “amazing experience” where “everyone took the time to ensure that each intern’s experience was a good one.” Another
source recalls that he “was staffed on two live M&A transactions and gained valuable experience.” “The 10-week program consists of a one-week
training course on accounting, valuation and modelling, as well as nine weeks as a generalist banker, working with a number of industry and product
groups within the bank,” a Jefferies employee explains.
An internship at Jefferies can be a chance to get to know your future employers. “There are many social events organized around the internship
program that allow the interns to mingle with each other as well as full-time and senior bankers in a relaxed atmosphere.” Events include “group
dinners, going out for happy-hour drinks, a group trip to the Belmont Stakes and other fun events, all paid for by Jefferies.”
OUR SURVEY SAYS
Laid-back banking
Jefferies employees note that the culture within the firm is “more laid-back than at bulge-bracket banks.” There are “not many big egos in the firm,”
and “senior bankers are approachable.” One employee agrees, “Although the firm’s rapid growth has recently brought on a slightly more bulge-bracket
feel, Jefferies still boasts a very flat hierarchy.” Many current employees of Jefferies describe the firm’s culture as “entrepreneurial and smart,” and

report that “people have the independence to work and take on responsibility as they are able.” This breeds an atmosphere that “is competitive yet
not cut-throat.” A source says that “it is not uncommon for entire groups to all go out together for drinks to celebrate a colleague’s birthday or on
Fridays during the summer.” He adds, “The firm has a positive vibe—we’re performing a lot better than most other investment banks and have not
needed government aid.”
Pampered workers
Sources report that “Jefferies tends to pay on the higher end of the market to recruit talent.” Analysts receive a minimum of a $60,000 starting salary,
and associates receive a minimum of a $95,000 starting salary. One employee explains, “Besides competitive salaries and bonuses, Jefferies pays
analysts a $10,000 signing bonus with an extra $5,000 early sign-on bonus for returning interns.” The firm also “reimburses the bulk of moving
expenses such as brokers’ fees and offers assistance in finding a living space.” There have been some cuts for budget reasons, but one contact says
that “Jefferies tends to pamper their employees even during the hard times.” The services that have been cut recently were “unique perks such as
free breakfast and lunch every day”—”the firm is now in line with competitors on perks.”
On-call employees
Like many investment banks, Jefferies expects its employees to be “on-call 24/7, including weekends.” One employee cautions that the work is more
intense for those starting out, saying, “As a first-year employee, you will be working long hours. The work is not necessarily difficult, but it is difficult
to plan your own personal time given the unpredictability of client requests.” Another contact says that “the hardworking culture and small deal teams
can add to the hours spent at the office,” but notes that “efficiency is stressed, and Friday evenings are typically considered a no-fly zone, with most
analysts out of the office before 8 p.m.” An associate advises that you should “expect to work on the weekends, so if you don’t have to, it will be a
nice surprise.”
High exposure
Junior employees “have a lot of exposure to senior members of the firm.” One employee says, “There is constant interaction—more than at other
banks—and senior bankers want to see their junior bankers learn and have a good experience.” Another source adds, “I have not been micromanaged
once.” The relationships are more than just business, as senior bankers “will socialize with junior bankers and take them out to dinner.” There are a
few problems, however. One employee complains that there is “very little emphasis put on development,” and the “review process entirely lacks detail
and provides nothing you can build upon.” Another source notes that “the experience with managers varies considerably. Some of the senior
managers are very understanding of the time requirements for junior bankers, while others do not necessarily care how many hours analysts work.”
Big city living

The quality of Jefferies’ office space varies by location. In New York, “there is ample space to work and stretch out, and a brand new state-of-the-art,
in-house conference center to hold meetings.” In Los Angeles, employees report having a “nice office with great view of Los Angeles and the Pacific
Ocean,” but say that “fixtures are slightly dated, and the Internet infrastructure could definitely be improved.” An employee in Houston boasts that
the Texas office “has nice comfortable chairs.” Overall, the general consensus is that offices are “not ultra-luxurious,” but employees “have what they
need.”
The dress code is business casual, with some variation based on what level or department you are in. One employee says that “some people wear
suits every day,” but stresses the fact that “jacket and tie are optional.” Another explains the dress code in more detail, saying, “Senior bankers usually
dress formally, and the trend differs among junior bankers. Analysts will usually be in business casual due to their extremely long hours in the office.
Associates dress formally or in business casual attire depending on if they have client meetings.” Ladies “can get away with a variety of clothing,” but
men are “expected to have dress slacks and a dress shirt.”
Jefferies has made a solid commitment to green initiatives with a “green committee and a renewed commitment to recycling.” In New York, “Jefferies
is in an energy star building with recycling initiatives all around.” One employee reports that the green committee “speaks once a month regarding
different initiatives.”
Training the Street

There is a generally positive feeling about Jefferies formal training programs, which use “Training the Street”—”basically the industry standard for
analyst and associate training.” There is also an in-house training process, which features “lectures from different industry and product groups
throughout the firm.” The only real drawback to the formal program is that it “assumes incoming analysts already have a finance or accounting
background, so it’s very difficult for many of the non-business students to keep up with training.” The firm also offers a mentor program, and sources
say that “on-the-job training is also very thorough.”

Meritocracy
According to one source, female employees make up approximately 20 percent of the work force at Jefferies. A male employee at Jefferies notes that
“despite being in a male-dominated industry, Jefferies has a lot of female bankers at all levels.” Female employees express relatively happiness with
their status within the firm. One female analyst says she is “very satisfied” —her group “has 11 people, four of whom are female.” An associate says,
“The firm is culturally welcoming for women,” but she worries that “there are no formal programs in place to encourage diversity or support women.”
With regards to racial diversity, many employees report that Jefferies is “fair to all candidates and applicants”—it’s a “meritocracy, and no preference
is given to minority groups.”
The firm is open to hiring GLBT employees but “still has a very macho environment, with an old-school banking mentality.” An openly gay employee
notes that it is “not the most comfortable place to be publicly non-straight. There are some employees who are very publicly homophobic.” But another
source says, “We take the best candidate regardless of sexual orientation. A colleague’s brother is homosexual as is another colleague’s brother-in-
law, and I have never heard any inappropriate statements.” An analyst notes, “When I first started, our restructuring group head was gay, and he was
extremely successful.”
Great potential
Most employees report being “very happy” at Jefferies. One contact recalls receiving “offers from bulge-bracket banks and decided against them after
speaking to friends who had summer internships there.” He adds, “I realized I learned more and was a great deal happier than they were.” Another
enthusiastic analyst says that he is “very motivated to continue learning and developing my skills” as a result of employment with the company. “Given
the current market conditions, I think Jefferies is a great place to be,” says an insider. “It’s a good place to learn, and most senior bankers want to
help you learn.”
The outlook at Jefferies is cautiously optimistic. One employee points out that “Jefferies has weathered the storm better than most players in investment
banking and has not had to take huge write-downs.” The firm also “has a strong balance sheet.” And the turmoil in the market presents an opportunity
for the firm. One source explains, “With the loss of competition such as Merrill Lynch, Lehman Brothers and Bear Stearns, there is great potential for
our firm to capitalize.” “Jefferies is in a very strong position,” agrees another, “and although traditional leveraged finance business is struggling,
recapitalization and restructuring assignments are surging.” One contact puts it simply, “It’s Jefferies’ time to grow.”

PRESTIGE
RANKING
17 CITI INSTITUTIONAL CLIENTS GROUP
388 Greenwich Street RANKING RECAP

New York, NY 10013
www.citigroup.com Quality of Life
#2 – Training
#5 – Selectivity
BUSINESSES #7 – Compensation
Citi Alternative Investments
#9 – Culture
Citi Investment Research & Analysis
#10 – Hours
Global Banking
Global Markets
Global Transaction Services
KEY COMPETITORS
THE STATS Goldman Sachs
J.P. Morgan
Employer Type: Division of Citgroup Inc. (Citi)
Morgan Stanley
CEO, Citi: Vikram S. Pandit
CEO, Institutional Clients Group: John Havens
2008 Revenue: -$7.87 billion UPPERS
2008 Net Income: -$20.1 billion
No. of Employees: 309,000* • “People are down-to-earth”
No. of Offices: 7,500* • “Access to products and markets is unmatched”
• “Great training”
*Citigroup Inc.
DOWNERS
• “Potential nationalization”
• “Lots of politics”
• “Low morale”
EMPLOYMENT CONTACT
www.oncampus.citi.com
THE BUZZ
• “Global presence”
• “In deep trouble”
• “Big deals”
• “Have lost a lot of talent”

Citi Institutional Clients Group
THE SCOOP
Down but not out

Citi Institutional Clients Group, one of the main units of global banking behemoth Citigroup Inc., offers a full range of investment banking services,
including merger and acquisition advisory, debt and equity underwriting, restructuring advice, transaction services and alternative investments.
Parent Citigroup Inc. was rebranded as simply “Citi” back in 2007. Citi has over 200 million customer accounts in more than 100 countries around
the world. In addition to the institutional clients group, Citi’s main business divisions include consumer banking and global cards.
Prior to its rebranding, Citi was revered as the world’s largest banking and financial services group, but the financial storm in the recent past has not
been kind to this global giant, which has seen billions of dollars wiped off its market value, laid off tens of thousands of employees, taken $45 billion
in assistance from the U.S. government and shed some assets—including its brokerage arm, Smith Barney, which was sold to long-time rival Morgan
Stanley in January 2009.
Look who’s on top

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 2007. As many expected, Citi’s
capital markets businesses suffered from slowdowns in the credit markets and losses linked to mortgage-backed securities.
Two months later, in December 2007, Vikram Pandit became the chief executive of Citigroup, replacing interim chief executive Sir Winfried Bischoff,
who became chairman of the board as well as remaining chief executive of Citigroup in Europe. Pandit succeeded Chuck Prince (Charles O. Prince
III), who had taken his post in 2003 amid some shareholder frustration that Citi’s stock price wasn’t matching that of its peers. Pandit’s job has not
been easy; he took the helm of the world’s largest banking and financial services group during the worst financial crisis the world has seen in modern
times.
Pandit joined Citi just after it purchased Old Lane Partner, the hedge fund that Pandit set up after leaving Morgan Stanley. (On a side note, and
unfortunately for Old Lane, after two years of “flat” returns that caused $200 million of write-downs in the first quarter 2008, Citi decided to close the
hedge fund.) At the time of his appointment, industry commentators noted that in the wake of the losses the group was hit with under Prince, Pandit
would have to address the firm’s risk management practices to win back the confidence of staff and investors. Although Pandit lowered the bank’s
costs and allowed reinvestments in growth in 2007, the following year was not so peachy. In 2008, the firm received a U.S. Federal Reserve bailout
of $45 billion. And, by the end of the year, Citi’s stock value had dropped to $21 billion from $300 billion two years earlier.
Even so, the firm was still near the top of the investment banking heap in 2008, landing in the top three on numerous league tables for the year.
According to Thomson Reuters, Citi ranked No. 3 in worldwide announced M&A deals, No. 2 in U.S. announced M&A deals, and No. 3 in worldwide
debt and equity underwriting volume.
IN THE NEWS
April 2009: Fraud charges for tipoff

Federal prosecutors charged ex-Citi banker Maher Kara with securities fraud, alleging that he had informed his brother of insider information regarding
imminent mergers. The scheme, which spanned three years and ultimately brought in $6 million in illegal revenue, resulted in civil charges against
the brothers as well as six other friends and family members connected to the Karas.
April 2009: Good news on the earnings front

Citigroup booked $1.6 billion in net income for the first quarter 2009, concluding five consecutive quarters of losses (including a $5.11 billion loss in
the first quarter 2008). Revenue, meanwhile, skyrocketed to $24.8 billion, a 99 percent increase versus the first quarter of 2008. The positive numbers
were propelled by increased fixed income trading revenue, a new accounting rule letting Citi take a one-time gain of $2.5 billion on its derivative
positions and lower costs—Citi cut operating expenses by 23 percent in the previous 12 months and headcount by 13,000 since the beginning of
2009.
January 2009: Selling Smith Barney

Citi agreed to combine its Smith Barney brokerage unit with New York-based Morgan Stanley’s brokerage division, in effect selling a 51 percent majority
stake in the joint venture for $2.7 billion. It was reported that Morgan Stanley is expected to acquire full control in phases over the next five years.

January 2009: Divide and conquer?

Citi revealed that it was splitting into two operating units, Citicorp and Citi Holdings Inc. The former would continue to provide traditional retail and
investment banking services, while the latter would oversee what remained of the group’s high-risk investments (many had already been sold off). Citi
itself remained the parent company, but potential spin offs and mergers from either of the units were not ruled out as possibilities. In fact, the two
operating units were divided so that Citicorp remained the core bank, while Citi Holdings encompassed the saleable assets. Along with the
restructuring, Citi announced its fifth consecutive quarterly loss, booking a loss of $8.29 billion for the fourth quarter 2008.
February 2009: Dollar days

Citigroup CEO Vikram Pandit offered to take a $1 salary and no bonus until the bank gets back on solid financial ground, noting that he understands
“the new reality” and “will make sure Citi gets it as well.” The announcement came amid U.S. President Barack Obama and other lawmakers slamming
Citi and other banks for giving exorbitant bonus payments to top executives while simultaneously accepting federal bailout funding.
December 2008: Top of the tables

Citi is one of the leading investment banks in the world, and each year, it ranks in the top 10 of several important investment banking league tables.
For 2008, according to Thomson Reuters, Citi ranked No. 3 in worldwide announced M&A deal volume, working on 343 deals worth a total of $705
billion. In U.S. announced M&A volume, Citi ranked No. 2 (with 90 deals worth $308 billion).
Equally as impressive were Citi’s standings on the debt and equity charts. In 2008, the bank ranked No. 3 in worldwide debt and equity issues, raising
$309 billion worth of securities. It was also the No. 3 issuer of worldwide equity and equity-related securities, No. 3 issuer of global IPOs and No. 4
issuer of global common stock. In the U.S., the bank came in at No. 3 in all equity issues, No. 2 in IPOs and No. 4 in common stock.
Citi also scored numerous top 10 rankings on Thomson Reuters’ fixed income tables, including global debt (No. 4), global mortgage-backed securities
(No. 7), global asset-backed securities (No.2), international bonds (No. 4), U.S. investment-grade debt (No. 2) and international emerging market
bonds (No. 2), among others.
November 2008: Cutting back again

After four consecutive quarters of losses, Citigroup announced it would be cutting an additional 52,000 jobs (in addition to the 23,000 it had already
sacked before the announcement).
October 2008: Gift from TARP

Citigroup found out that it would receive $25 billion from the U.S. Treasury in an effort to recapitalize the markets. U.S. Treasury Secretary Henry
Paulson announced that the Treasury would inject a total of $250 billion into U.S. banks in order to help restore confidence to the markets. Paulson
said, “The needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it.” With the injection, the
U.S. followed in the footsteps of some European countries, which announced similar moves earlier in the week designed to help thaw their credit
markets.
October 2008: Denying Goldman

Citigroup CEO Vikram Pandit was approached by Goldman Sachs CEO Lloyd Blankfein regarding the possibility of a merger soon after Goldman
received approval to become a bank holding company in September 2008. According to the Financial Times, Citi roundly rejected the proposal,
structured as a Citi takeover that would likely have led to thousands of job cuts in both companies’ investment banking departments. Citi may also
have decided that it didn’t need another securities group, FT speculated.
October 2008: It all went a bit too Fargo

After giving troubled North Carolina-based bank Wachovia Corp. a lifeline, Citi agreed to buy a portion of the Southern bank’s operations for $2.1 billion
in a deal that was to be brokered by the U.S. government’s Federal Deposit Insurance Corporation. Wachovia agreed to the acquisition, realizing that
it was facing imminent threat of dying. However, four days later, it emerged that Wachovia’s board had agreed to another deal: an $11.7 billion all-
stock offer from San Francisco-based bank Wells Fargo for all of Wachovia.
To say the least, Citi was not happy, and said it planned to seek $60 billion in damages for breach of contract. In a statement, Citi CEO Vikram Pandit
stated, “We did not seek the Wachovia transaction; Wachovia brought it to us.” Citi also issued a statement saying, “Without our willingness to engage
in this transaction, hundreds of billions of dollars of value would have been seriously threatened … We stood by while others walked away. Now, our
shareholders have been unjustly and illegally deprived of the opportunity the transaction created.” Citi was adamant that if the original deal was
honored it would still be willing to compete for Wachovia. But, in the end, the Wells Fargo deal was deemed to be best for Wachovia shareholders,
and the Wells Fargo deal went through.

October 2008: Revenue in the red

During the third quarter 2008, Citi’s institutional clients group posted $81 million in negative revenue due to mortgage- and investment-related write-
downs, along with a $792 million charge related to private equity transactions. Total revenue for the unit was also down, dropping 48 percent from the
same quarter in 2007.
September 2008: Citi’s new M&A man

Citigroup’s efforts to tempt the global co-head of Lehman Brothers mergers and acquisitions department finally paid off as Citi hired Mark G. Shafir
shortly after Lehman filed for bankruptcy. In the Citi position (which has been vacant since Frank Yeary left the firm in June 2008), Shafir will report
to Raymond McGuire and Alberto Verme, co-heads of Citi’s investment banking unit.
September 2008: Sallie walks out

Sallie Krawcheck, who headed up Citigroup’s wealth management arm since 2004, was reported to be leaving the firm, according to The Wall Street
Journal. Krawcheck’s exit followed the departure of other high-level Citi employees (such as investment banking co-CEO Michael Klein) who had
recently left. Michael Corbat, the head of the corporate and commercial bank in the firm’s investment banking unit, took over Krawcheck’s position.
August 2008: Payout time

Citi agreed to pay $100 million in penalties—$50 million to New York State and another $50 million to other state regulatory agencies—related to
allegations that it was misleading to consumers in its marketing of certain securities. Additionally, the firm will be buying back approximately $7 billion
in auction-rate securities, according to the Securities and Exchange Commission. In the settlement, Citi didn’t acknowledge or deny wrongdoing.
August 2008: Times are tough

Citigroup revealed some steps it is taking to attempt to counterbalance the heavy losses it’s been hit with during the year. Institutional clients group
head John Havens distributed a memo to employees outlining plans to limit the use of color copies, the firm’s late night car service and even external
training programs. In the memo, Havens noted that Citi intends to “manage our expenses by challenging every dollar we spend to ensure that it is
truly necessary and in compliance with our policies.”
July 2008: He’s outta there

Citi’s investment banking co-CEO Michael Klein stepped down to pursue other opportunities. After Vikram Pandit took over as CEO of the firm in
December 2007, he reassigned Klein from his role in the trading and investment banking unit, replacing him with Pandit’s ex-Morgan Stanley colleague
John Havens. According to Dow Jones, Klein had been contender for Pandit’s CEO gig.
May 2008: Severe cost cutting

Citi promised to cut $400 billion of assets globally in order to shore up its core businesses, and announced that it would cut almost a quarter of its
U.K. consumer employees.
April 2008: Big GE deal

Citi sold its commercial lending and leasing business to General Electric for an undisclosed sum, in an effort to secure much-needed capital.
January 2008: Deeper cuts

Citi announced that it was cutting an additional 4,200 jobs, and that its ultimate total number of layoffs could be close to between 20,000 and 24,000.
Citi laid off about 17,000 people in April 2007 in anticipation of losses in the second half of the year.
GETTING HIRED
Selective, but not snooty

It’s “very difficult” to land a job at Citi, say sources, citing the firm’s focus “on hiring only the best.” Recruiters and interviewers are on the lookout for
“academic performance, interpersonal skills and technical abilities,” and to that end, “we maintain relationships at all the top programs and a handful
of second-tier programs.” “HR focuses its efforts on roughly 10 to 20 top schools,” a recent hire explains. These include big-name institutions like
NYU, Columbia, Wharton, Darden, Duke, UCLA, Michigan and the University of Chicago.

But that doesn’t mean everyone else is out of luck. “The firm is truly a meritocratic environment,” notes an insider. “An MBA degree from one of the
top schools is not a requirement.” Campus candidates will have multiple opportunities to meet-and-greet with Citi hiring teams, including “a series of
cocktails and events in the fall, followed by informational interviews, and first- and final-round interviews.”
Happy hour?
“Typically, two or three rounds” of interviews are required, the first consisting of a couple of “30-minute interviews” “with associates and vice
presidents.” Following that evaluation, candidates may be invited to “a Super Day in New York City with senior bankers.” There, “interviews with all
levels from associate up to group head” cover a combination of “technical and situational questions.” One analyst recalls meeting with “managing
directors, directors and vice presidents,” as well as people from “human resources and the business side of the company. Analysts and associates
interview candidates, too.”
The final round “focuses on fit, firm knowledge and technical ability.” Interviewers “will go through your resume, and ask about certain activities,
employment and internship experiences.” “Quantitative questions vary based on the area and your interviewer,” reveals an employee. “Preparation
is key, especially knowing who’s interviewing you, since their questions reflect who they are.” Another source tips, “As in any interview, the ability to
relate interests to interviewer is paramount. Be able to show that you can have a beer with the person, and it’ll be an enjoyable experience. Don’t
actually drink in the interview, of course.”
Coveted slots
Although “it’s still possible to secure a position without a summer internship,” insiders say a summer stint is “very important, particularly when times
are tight.” “Preference for full-time spots goes to interns,” says a source. Spending a summer at Citi also “offers an opportunity to rotate through
several groups and pick a top choice for full-time employment.”
The 10-week summer program is more than a chance for interns “to sample different groups of their choosing,” however. “The quality of work is on
par with full-time assignments,” an insider says. “Interns are treated, staffed and compensated the same as first-year, full-time associates.” Of course,
the real trick is landing the internship. “Citi usually has very few slots for the summer associate class,” explains one employee. “Fewer, in fact, than
at other banks. However, the firm’s upfront selectivity translates into an almost 100 percent full-time offer rate after the summer.”
OUR SURVEY SAYS
Tangled in red tape

“You will see all different nationalities” at the “very diverse” Citi, where “bright people” keep their “egos in check.” The firm is “definitely a meritocracy,”
and insiders say their “coworkers and senior bankers go out of their way to help, train and ensure an overall pleasant working environment.” “It’s very
collegial,” concurs a source. “The jerk factor is low at this firm.” And while Citi may feel “more relaxed than other banks,” it’s “still serious enough to
get good experience.”
For many, the promise of “international opportunities” and a chance to “build my career” is what made Citi so appealing in the first place. However,
“red tape” and a “confusing structure and responsibilities” can get in the way. Internal bureaucracy “is staggering.” Despite the financial crisis, a
recent hire says Citi still seems to have “a better brand and more deal flow” than its rivals. Another source adds that Citi “has a leg up on the former
investment banks, as they are now going to have to follow the Citi/J.P. Morgan model and the regulations that come with it.”
Don’t blame everybody

One source of frustration for some employees: public opinion that doesn’t differentiate between departments in trouble and departments that are doing
just fine. “Citi is a lot more diverse than it looks from the outside,” says a mergers and acquisitions insider. “The company looks nothing like the one-
dimensional behemoth described in the news. For example, my department has had nothing to do with the crisis, even though I work in investment
banking.” He adds, “Besides the macro problems, I wouldn’t be able to find a better, first post-MBA job.”
Keep it in balance
Hours are “definitely investment banking hours,” says an associate, “but not as bad as I feared before taking the job.” Another describes the hours
as “heavy, but within expectations.” And while most Citi bankers average 70 to 80 hours per week, often putting in time on the weekends, it will “all
depend on the job.” “You might see some bankers staying until extremely late at night while others leave early,” says a source. “Traders, depending
on the product, can leave anywhere from 4 p.m. till midnight. Flow traders leave early, along with salespeople, because they are the ones who come
in to the office first.”

An associate who estimates the work week at “sometimes over 100 hours, sometimes below 60,” notes that, on the whole, Citi provides “a very
manageable lifestyle.” Plus, “hours have dropped significantly since the crisis intensified in October [2008].” It’s still “not unheard of to work all
weekend,” but sources say they may just as likely “have a weekend off.” “People are very understanding if you want to take a trip for a weekend or
something like that,” adds one contact. A managing director notes further, “The hours vary by level. Junior associates tend to spend more time in the
office, but this shifts over time and becomes more out of office—traveling or on conference calls—as you become more senior.”
Shaky pay
Citi insiders aren’t anticipating raises in their base salaries any time soon, and most say their future bonus payouts are “unknown in this environment.”
Aside from that, the firm gets mostly average marks on compensation. One associate who received an MBA in 2008 reports that “the signing bonus
was $40,000.” Another first-year associate pegs base salary at “$95,000.”
Wear a tie, or don’t

A Houston insider calls his office “not over-the-top luxurious, but fine.” Sources in New York agree, calling the digs “very comfortable but nothing
fancy.” However, one New Yorker suggests that “the building and internal IT are definitely in need of an upgrade.” The firm does get the thumbs-up
for its ongoing efforts to minimize impact on the environment. “We’ve been on the front line of going green,” boasts a contact. Another applauds the
fact that “even in the hard times, Citi has demonstrated commitment to green initiatives.”
Generally speaking, the dress code is “business casual, except for client contact.” This means “directors and managing directors tend to wear suits
and ties,” while associates and analysts don ties or business formal wear “once a month, at the most.”
Diversity is key
Diversity is another Citi strength, sources say. “The firm makes active strides to hire ethnic minorities and foreign nationals, as diversity is seen by the
firm as one of its key competitive advantages,” explains an associate. Others note that “the firm is very open to women and to promoting women,”
and say that recruiters “evaluate each candidate on their merits.” One confident contact declares, “I doubt there’s any discrimination in the firm.”
Train with the champs

“I do not recall a single negative experience with my managers,” says a recent hire. Similar reports come from other sources, who say their superiors
are “very respectful, overall.” Lots of praise goes to the firm’s “very thorough training,” which includes “two months of training before you start.” “Citi
has perhaps the best training program on the Street,” brags one insider. “It’s a legacy Solomon [Brothers] program that lasts a total of nine weeks,
starting in early August.”
Not only does the initial training “get you prepared for the real thing,” but sources say it “helps you get back into the swing of working after you have
been at school.”
Changing Citi
Cost-cutting efforts have been felt at Citi, from layoffs to reduced perks to canceled office parties. Even “the annual summer softball league was
discontinued.” That said, many insiders are holding off on worst-case scenario predictions. One experienced insider, who admits he has “less faith
in management than when [he] first started,” says, “I thought it was a great firm with great people—and it still is.”
The tasks ahead will be difficult, no question about it. Employees believe Citi needs to “deal with the market perception, finish its layoffs and resolve
the uncertainty regarding bonuses.” “In the short run, Citi is facing significant pressures that will impact the quality of work till 2011 at least,” explains
an insider. “In the long run, the firm and its core business should survive, although its culture will probably change substantially.”

PRESTIGE
RANKING
18 HSBC NORTH AMERICA HOLDINGS INC.
26525 North Riverwoods Blvd. UPPERS

Mettawa, IL 60045-3428
Phone: (224) 544-2000 • “Committed to a good work/life balance”
www.hsbcusa.com
DOWNERS
LINES OF BUSINESS • Better known in the Europe than the U.S.
HSBC Bank USA
Commercial Banking
Global Banking & Markets
EMPLOYMENT CONTACT
Personal Financial Services See “careers” section of www.hsbcusa.com
Private Banking
HSBC Bank Canada
HSBC Finance Corporation
Card & Retail Services
Consumer & Mortgage Lending
HSBC Insurance
Taxpayer Financial Services
THE STATS
Employer Type: Subsidiary of HSBC Holdings plc
CEO: Brendan McDonagh
2008 Net Income: $91 million
No. of Offices: 470+
THE BUZZ
• “Strong globally”
• “Don’t hear much about them in the US”
• “Strong in Canada”
• “Not really a major player”

HSBC North America Holdings Inc.
THE SCOOP
North American arm

As its name implies, HSBC North America Holdings contains the U.S. and Canadian businesses of London-based HSBC (the name’s an acronym of
its predecessor, the Hongkong and Shanghai Banking Corporation, which remains part of HSBC’s global business and the largest bank in Hong Kong).
With $580 billion in assets, the North American group includes HSBC USA, HSBC Canada and the HSBC Finance Corporation, which provides retail
banking, credit cards, lending, insurance and other consumer services. In the U.S., HSBC’s business lines are commercial banking, personal financial
services, private banking, and global banking and markets. The vast majority of its 460-plus branches are in the state of New York, but others can be
found in Connecticut, New Jersey, Maryland, Delaware, Illinois, Oregon, Washington State, California, Florida, Virginia and Washington, D.C.
British parent
HSBC Holdings is one of the largest financial services firms in the world. Headquartered in London, the global banking group has about 9,500 and
more than 310,000 employees throughout Europe, North and South America, Asia, Africa and the Middle East.
HSBC was established as the international and uniform brand name in order to better promote the banking group as a whole in 1999. However, with
a truly international presence and established local presence in so many countries, HSBC took its internationalism a step further in 2002 by marketing
itself as “the world’s local bank,” an approach that’s still taken by the firm.
HSBC’s largest and most-recognized subsidiaries include HSBC Bank plc in the U.K., HSBC France, Hang Sent Bank Limited in Hong Kong,
Household International and HSBC Bank USA N.A. in the U.S., and HSBC Private Banking Holdings (Suisse) S.A. in Switzerland, Hong Kong SAR,
Monaco, Luxembourg, Singapore, the Channel Islands and the U.K.
In addition to being known throughout the world for its size, HSBC has earned a reputation for being a well-run organization. While many other large
banking groups have struggled in the midst of the worldwide financial crisis that began in 2007, HSBC has remained relatively (though not completely)
unscathed. It has not had to take any government bailout money, remaining one of the better capitalized banks in the world.
Change of address
In 2006, HSBC North America announced plans to relocate its corporate headquarters from suburban Prospect Heights, Ill., to the village of Mettawa,
about 13 miles north. Construction began on a new 440,000 square-foot campus and occupancy started in early 2008, with nearly 2,400 employees
installed by summer’s end. The building, which can accommodate up to 3,000 people, is intended to “support our continued growth plans while
offering the greatest convenience for the overwhelming majority of our Chicagoland employees,” according to executive vice president Steve Gonabe.
By all appearances, HSBC is preparing to stay at its new headquarters facility for quite some time—it’s leasing the space for 13 years, with an option
to renew for up to 30 years.
How the CEO got his job

HSBC North America CEO Brendan McDonagh hasn’t been at the top for long—he started his job in February 2008, following the ouster of former
chief Bobby Mehta. The cause of Mehta’s troubles was fallout from HSBC Finance Corporation’s exposure to the U.S. subprime market; HSBC was
one of the first banks to be hit by the crisis, thanks (or no thanks) to the 2003 acquisition of mega-lender Household International, which became
HSBC Finance Corporation after the $14.2 billion transaction was complete. Also booted in the housecleaning was HSBC Bank USA executive Sandy
Derickson, who had been vice chairman of HSBC Finance.
McDonagh’s no stranger to HSBC, though. Before assuming the top spot he had served as chief operating officer of the bank’s North American
consumer finance business.
A storied history
HSBC’s origins stretch back to the mid-19th century, when Thomas Sutherland, the Hong Kong Superintendent of the Peninsular and the Oriental
Steam Navigation Company identified a need for local banking branches both in Hong Kong and along the Chinese coast. The Hong Kong and Shanghai
Banking Corporation Limited was founded in 1865, and opened offices in both Shanghai and London. And, over the coming decades and then century,
the bank opened branches throughout China, Southeast Asia and the Indian sub-continent, also further expanding in Europe and North America.
In 1959, almost a century into its existence, the Hong Kong and Shanghai Banking Corporation acquired the British Bank of the Middle East, which
was originally known as the Imperial Bank of Persia and had a number of operations in the Gulf Arab states, as well as the Mercantile Bank, which
had banking operations in India and South East Asia. In 1965, six years after purchasing the two banks, the Hong Kong and Shanghai Banking
Corporation bought a controlling interest in the Hang Seng Bank, which had been based in Hong Kong since 1933.

Through the rest of the 1960s, 1970s, and 1980s, the bank continued its strategy of moving into new markets. It established the Hong Kong Bank of
Canada in 1981 and the Hong Kong Bank of Australia in 1986. The following year in the U.S., the Hong Kong and Shanghai Bank acquired the New
York-based Marine Midland bank, further strengthening its U.S. operations. By this point, the group had a global constellation of operations, which
needed to sit unified under one umbrella. In 1991, the international conglomerate of banks and companies owned by Hong Kong and Shanghai Bank
were brought together under the single ownership and control of a newly-created umbrella banking holding company called HSBC Holdings (where
they have remained ever since).
In July 2000, HSBC kicked off the millennium by paying $11 billion dollars for French banking group Crédit Commercial de France (CCF). The
acquisition of CCF, which was established in 1894, gave HSBC a network of 650 branches in France and prompted HSBC to list on the Paris Stock
Exchange (now Paris Euronext). In 2003, HSBC opened a new European headquarters in London. The following year, 2004, was a significant one in
the history of HSBC’s European operations, which continued to grow through strategic acquisitions—one of its largest purchases was the financial
services arm of the Marks and Spencer Group. The same year, HSBC’s French business, CCF, increased its stake in the French private bank Banque
Eurofin S.A to a domineering 84 percent. In 2005, celebrating 140 years in business in China, HSBC significantly increased its business in the Chinese
market, particularly in the areas of insurance. The following year, the banking group expanded considerably in Latin America through HSBC Latin
American Holdings (UK) Limited.
All was going well until 2007 rolled around. The subprime crisis began to snowball, creating a year of huge challenges for the world’s banks, including
HSBC, which was directly affected by the struggling U.S. property market through its American subsidiary, HSBC Finance Corporation. By the end of
2007, HSBC had to close its U.S. sub-prime mortgage loans business, Decision One.
In 2008, HSBC became the first foreign bank to take on at least a 20 percent interest in a domestic Vietnamese bank by increasing its existing stake
in Techcombank. Also in 2008, HSBC strengthened its Central and Eastern European operations, opening new offices in the former Soviet states of
Georgia and Kazakhstan, and expanding its existing services in EU member countries Poland, the Czech Republic and Austria.
Award time
HSBC regularly picks up honours and awards. In November 2008, Global Finance named HSBC the Best Consumer Internet Bank, and in July 2008,
The Banker named HSBC the Top World Bank. Also in 2008, Euromoney awarded HSBC Global Markets with the honour of being the Best Emerging
Markets Bank.
IN THE NEWS
May 2009: Better, but not out of the woods

HSBC Holdings plc posted a $6.6 billion pre-tax profit on its debt for the first quarter 2009, up from $2.5 billion in the same period in 2008. In a
conference call, HSBC CEO Michael Geoghegan admitted that “2009 promises to be a tough year,” adding, “We are in this recession. We have not
come out of it yet.” HSBC, which doesn’t issue full quarterly results, said bad debts increased from the same period in 2008 but were lower than in
the preceding quarter.
April 2009: Big rights offering

HSBC Holdings plc sold about 5 billion shares of its stock to existing shareholders, raising $19.1 billion in one of the biggest rights offering in the history
of the U.K. The sale, which fortified HSBC’s balance sheet, is expected to allow HSBC to continue to avoid taking capital from the U.K. government.
January 2009: Gold for green

HSBC North America’s new headquarters won LEED gold certification from the U.S. Green Building Council, based on a five-point rating system that
analyzed sustainable site development, water conservation, energy efficiency, indoor environmental quality and materials selection.
The bank’s new HQ recycles or composts a whopping 90 percent of its waste and derives 100 percent of its electricity from renewable energy sources.
Employees who drive fuel-efficient vehicles get prime parking spaces, and rainwater is collected for toilet flushing and grounds irrigation. Perhaps most
important to anyone working long hours: light-guided window treatments follow the position of the sun, which allows the building to harvest natural
daylight and adjust artificial lights accordingly.
December 2008: Global skills

HSBC North America’s parent company HSBC Holdings plc ranked No. 21 in worldwide announced M&A for 2008, with 77 transactions worth a total
of $78.4 billion, according to Thomson Reuters. In completed deals, it ranked even higher, coming in No. 16 with 75 transactions worth $152 billion.

The Brit-centric bank didn’t place on the U.S. mergers and acquisitions tables, but in global IPOs, it ranked as the No. 4 bookrunner, right behind Citi,
UBS and J.P. Morgan.
September 2008: When the times got tough, staff had to go

Though HSBC may not have had to open its hands for government bailout funds, it did have to make thousands of job cuts in the wake of the worldwide
financial crisis. In September 2008, less than two weeks after the collapse of New York-based investment bank Lehman Brothers, HSBC announced
it would be cutting 1,100 jobs worldwide, representing 4 percent of its global banking and market division. Of this number, half were to be from the
U.K. offices. Out of a then-global workforce of 335,000 employees, HSBC assured onlookers that the cuts only affected a miniscule 0.3 percent of its
workforce. However, at the time of the announcement, HSBC executives didn’t rule out the prospect of further cuts in the near future, having had
already booked write-downs of $18.7 billion dollars since the crisis kicked off in 2007.
GETTING HIRED
More of a challenge
“If anything, HSBC’s 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 you’re 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 ones such as “What’s 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.” Though,
it will “interview applicants from any school, provided that they have what it takes.”
Settle in
The interviewing process varies and seems to include a bevy of different questions asked by interviewers. These questions might range from “What’s
your strategy to be up-to-date with current financial news?” to “Describe a situation when a group of people disagreed with you and tell me how you
managed it.” (For the latter, one insider suggests, “Briefly explain 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,” “Tell me about a time where you
used something you learned in your studies, applying it to a real business situation,” and “What recent events may have an influence on HSBC?” In
addition, be ready to answer this one: “Where 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 be asked about your “educational background,” “personal
achievements” and “willingness to work long hours.”
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, who says HSBC accommodated his “severe allergies.” “The
department I work for has made tremendous efforts to accommodate me,” he explains, “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. Still, the dress code is “formal when working with clients.”
When it comes to treatment by 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 I’m confused.” One insider says he “works for a great team” and “has never been berated or made to
feel like I don’t 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 employee. “On some trading
floors—there are three in New York—the 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. My floor happens to be fairly boring, but other floors are very nice.”
Covering the bases

The training offered by the firm is a “nine-week process that’s pretty comprehensive.” It “involves not just finance stuff, but also interpersonal training
that enabled the analysts to form lasting connections.” Though, “in some cases, instructors could’ve been better.” Nothing beats the real world.
Another contact notes that “a lot of what you learn doesn’t mean anything until you’re 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,” “many work in sales and structuring.” And some “very high positions are staffed by women, so I don’t think that it’s an issue for HSBC.”
But the representation of ethnic minorities “could improve somewhat,” says one insider, who admits that the lack of diversity 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-wise—there are many Chinese, French and Indian workers, as well as
many Canadians.”

PRESTIGE
RANKING
19 WELLS FARGO & COMPANY
420 Montgomery Street KEY COMPETITORS

San Francisco, CA 94163
Phone: (866) 249-3302 Bank of America
www.wellsfargo.com U.S. Bancorp
Washington Mutual
BUSINESSES
UPPERS
Community Banking
Home & Consumer Finance • “Endless training opportunities”
Wholesale Banking • “Very accessible and helpful” management
THE STATS DOWNERS

Employer Type: Public Company • “No race in senior management other than white”
Ticker Symbol: WFC (NYSE) • “Salary increases are relatively low for non-bonus
Chairman: Richard M. Kovacevich positions”
CEO & President: John Stumpf
EMPLOYMENT CONTACT
No. of Employees: 276,000 www.wellsfargo.com/careers
No. of Offices: 11,000 (branches)
THE BUZZ
• “Wachovia savior; solvent, stable, reputable”
• “Decent regional bank”
• “Exceptional credit training, strong with Wachovia, wants to
keep employees for life”
• “Less of a competitor, but has a friendly feel”
135
Wells Fargo & Company
THE SCOOP
A new era begins

The 150-year old institution of Wells Fargo ushered in a new era of banking in 2008 when it merged with banking giant Wachovia, creating the fourth-
largest bank in assets in the U.S. The new behemoth has $1.4 trillion in assets, services 48 million banking households, employees 276,000 people
and boasts 11,000 branches throughout the nation. Wachovia formerly traded under the stock symbol “WB” but will now trade under the umbrella of
Wells Fargo & Co. (“WFC” to traders). The new company is the largest retail branch banking network in the country.
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 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.
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 $71 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.
Wagons west
Henry Wells and William Fargo founded Wells, Fargo & Co. in 1852 during the West’s 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 then-Wild West to ensure delivery across the country. In 1861, it took over the routes of the
short-lived Pony Express.
In 1918, Wells Fargo’s 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 banker’s 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.
Before the big one

Wells Fargo completed several mergers in 2008 before its historic acquisition of Wachovia. The first was its acquisition of St. Louis-based Insurance
Brokers of America. The Insurance Brokers of America is a small company that offers risk management services including property and casualty and
employee benefits coverages. Details of the deal were not disclosed.
In May, the company went on to acquire the Flatiron Credit Company, the seventh-largest premium finance company in the United. Before the merger,
Flatiron Credit Company was a subsidiary of TD Banknorth, North America. The Flatiron Credit Company originates, funds and services insurance
premium finance contracts. It is headquartered in Denver with offices in San Antonio, Philadelphia, Boca Raton, Boston, Chicago, and San Francisco.
Salary insanity
After banks began accepting money under the U.S. government’s TARP program in late 2008, the American public (and press) called for many TARP-
sponsored CEOs to give up their bonuses for 2008. As of January 2009, Stumpf was on record saying that his bonus was within “the purview of the
board.” And in March 2009, his compensation for 2008 became public knowledge: he took home $13.8 million for the year, during which Wells Fargo
booked $2.66 billion in profits. He did not, though, receive a cash bonus, because the bank did not hit certain performance goals.

IN THE NEWS
July 2009: Above expectations

For the second quarter 2009, Wells Fargo posted net income of $2.58 billion, or 57 cents per share, shattering analysts’ predictions of 34 cents a
share. The figure was a 47 percent increase from the same period in the previous year. The bank, assisted by its purchase of Wachovia, also posted
revenue of $22.5 billion, up from $11.46 billion in the second quarter of 2008.
July 2009: Growing its securities division

Wells Fargo said it will soon “grow and invest” within the securities division it mostly became heir to through its purchase of Wachovia. The bank,
which will be concentrating on services for outside clients, plans to christen the new division Wells Fargo Securities. Through the new group, Wells
Fargo will offer services including fixed-income trading, loan syndications and merger advice.
May 2009: More capital needed

In May 2009, regulators told Wells Fargo that the bank needs approximately $15 billion in new funding as the outcome of its stress test came to light,
Bloomberg reported. Instead of raising capital privately, the bank could convert government preferred shares to common equity. Wells Fargo, which
received about $25 billion in Troubled Asset Relief Program funding in 2008, said it will be paying back those funds in order to re-establish its dividend
as soon as it can.
April 2009: A record quarter

In April 2009, Wells Fargo booked record net income of $3.05 billion for the first quarter 2009, thanks to low mortgage rates that helped homeowners
to refinance. The results were more than 50 percent higher than the net income the firm booked in the first quarter 2007. Revenue for the quarter
also increased, rising to $21.02 billion from $10.56 billion. Meanwhile, deposits increased 1.4 percent to $756.2 billion, largely due to the acquisition
of Wachovia Corp.
April 2009: Evergreen’s not up for grabs

In April 2009, Wells Fargo said the investment management business Evergreen Investments wasn’t for sale. Wells Fargo, which became the owner
of Evergreen after buying Wachovia Corp., has notified potential Evergreen purchasers that it won’t be selling the money-management company,
insiders told the New York Post.
April 2009: New group on the horizon

Wells Fargo will open a division that will supply independent mortgage bankers with funding, insiders told Bloomberg. The bank may ultimately spend
$4 billion on the unit, known in the industry as a warehouse lending division. Such divisions are typically used by mortgage banks to create loans and
retain the mortgages until they sell. Wells Fargo’s plan comes at an ideal time, too. In early 2009, JPMorgan Chase and PNC Financial Services Group
both shuttered their warehouse lending divisions, giving Wells Fargo the opportunity for more prospective clients in the wake of additional foreclosures.
March 2009: Slashing its dividend

Wells Fargo decided to cut its dividend by 85 percent, a cost-cutting measure that the bank says is likely to help it save about $5 billion a year. Wells
Fargo’s thrifty actions didn’t stop there, however. The bank also said it plans to make $2 billion more in unidentified cost cuts in 2009, beginning in
the second quarter. Despite the dividend cut, Wells Fargo’s CEO John Stumpf said the firm will “return to a more normalized dividend level as soon
as practical,” adding that the firm will reimburse the government for its $25 billion loan to the bank under its Troubled Asset Relief Program.
February 2009: Reaching a 10-year goal

In the year when the first African American president was elected, Wells Fargo achieved its 10-year goal of lending $1 billion to African-American
business owners nationwide. The firm set this goal in 1998 with the expectation to complete the program by 2010. However, it came in two years
ahead of schedule, just in time for Black History Month in 2008. The firm celebrated the achievement by holding a series of events, including multiple
screenings of Two Dollars and a Dream, a film about the first self-made female millionaire.
January 2009: Not going well for Wells

Wells Fargo reported a net loss of $2.55 billion for the fourth quarter 2008 (compared with a $1.36 billion profit in the fourth quarter 2007) as the bank
struggled under mortgage assets it took on when it acquired Wachovia. Revenue for the quarter dipped slightly, falling to $9.82 billion from $10.21

billion. Though the bank attributed the loss to the $21.7 billion it created in reserves to guard against losses, it said that it will not be seeking additional
funding from the government. While full-year 2008 net income came in at $2.84 billion, down considerably from the $8.06 billion the bank posted in
2007, full-year revenue looked a little brighter, coming in at $42.23 billion, a 7 percent increase from 2007.
January 2009: Losing employees

In the current financial environment, it seems that all employees at the big banks fear that their jobs are on the line. At Wells Fargo, it seems that the
fears may have some grounding in reality. The firm announced that it was cutting 175 jobs within the first month of the competition of its Wachovia
merger and estimates show that the company may have to cut 25,000 to 28,000 jobs in the coming years in order to keep the company running. CEO
John Stumpf told the Charlotte Observer in January 2009, “I’m not going to kid anybody here. There will be some job loss, and minimizing that is
going to be the challenge for everybody in this company.”
October 2008: Taking TARP

After the market crash of September 2008, the government rushed into to save the banking industry with a $750 billion bailout which became known
as the Troubled Asset Relief Program (TARP). Wells Fargo received $25 billion of the TARP pie, though CEO John Stumpf insisted to the press that
the company didn’t “need or ask for” the extra funds. However, the infusion of taxpayer money may make the company more accountable for its
actions than it has been in the past.
December 2008: The green zone

Environmentally focused investments are a “significant new area of business for Wells Fargo” according to Barry Neal, the firm’s director of
environmental finance. It proved its commitment to the green sector by announcing that it had provided more than $3 billion to environmental
financing, going above and beyond a goal it had set to provide $1 billion by 2010.
Wells Fargo’s green projects include a $2 billion commitment for building projects which are approved by the U.S. Green Building Council’s Leadership
in Energy and Environmental Design (LEED). LEED requires that buildings have improved energy and water efficiency, on-site renewable energy,
resource conservation measures and clean air quality. The company has also invested approximately $700 million in green energy in the form of solar
and wind plants; $500 million in green businesses that support environmental sustainability; and $50 million for nonprofits that work on improving the
environment in low to moderate income communities.
November 2008: Capital raising

In order to subsidize the $15 billion merger with Wachovia, Wells Fargo held a share offering which raised $12.6 billion. The firm offered its shares at
a discount $27 per share, more than a dollar below its actual price of $28.77 per share at the time of the offering. The company raised two and a half
billion more than its target goal of $10 billion. The fresh infusion of cash will provide Wells Fargo with capital in advance of potential losses from
Wachovia’s troubled assets, which are expected to amount to approximately $74 billion.
September 2008: A pitched battle

The merger to acquire Wachovia was hard fought. The firm had to wrest a seemingly done deal from the hands of Citigroup, who had offered the
bargain basement price of $2.16 billion in stock for the struggling financial giant. The deal also required that Citigroup take on Wachovia’s troubled
assets with the provision that $300 billion of the assets were backed by the FDIC. However, just days after Citibank’s offer, Wells Fargo offered Wachovia
$15 billion in a deal that required no government intervention.
Citigroup filed a lawsuit seeking $20 billion in compensation and $40 billion in punitive damages for interfering in its deal. A session of legal wrangling
followed, including a bid by Citigroup to prevent the merger. Though Citigroup soon dropped the legal challenge that would have prohibited Wells Fargo
from acquiring Wachovia, it still plans on seeking nearly $60 billion worth in damages. The merger became official on December 31, 2008.
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 firm’s 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.
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.
Helpful, but not a must

Insiders say Wells Fargo’s internship program, while “very important” because the firm “looks first to its summer interns for full-time 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, it’s not a necessity.”
The summer internship is designed to be “an introduction into the firm’s full-time rotation program.” “If an intern has performed well, they are looked
favorably upon for a full-time position.” And it’s a great learning experience. Most former interns say the internships are “a preview” of a full-time
analyst’s job. “It is an opportunity to see if Wells Fargo is a good fit for you.” Even if you can’t score an internship at Wells—the firm normally hires
“about three interns from a pool of 40”—insiders say “prior internships outside of the company are looked upon favorably” as well. Whether it’s 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 don’t 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
that’s “very focused on retention.” Some employees have a beef or two with managers, however. “Senior management gets involved with minutia,”
says one source, and the atmosphere can turn into “a very political environment too where everybody is territorial.” “There is absolutely no respect
for employees unless you suck up to senior management,” asserts another.
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 that’s 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.”
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” (even for entry-level
employees), which insiders call “one of the more generous and uncommon paid time-offs in American companies today.” 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 every day” 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 firm’s 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 décor, 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 décor 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.”
Won’t see too many ties

Wells Fargo’s dress code falls somewhere between business casual and formal. One contact explains, “They say it’s 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,
you’ll “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 firm’s 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 “don’t look down on subordinates, and they trust and value
everyone’s 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 manager’s attention, “they will take care of it ASAP.” The firm’s 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

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.” There’s 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 firm’s “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 firm’s 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 firm’s employees are female.) Wells Fargo offers “very reasonable to maternity leave,” and it’s 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 firm’s “head
of commercial banking is an Asian female.” Generally speaking, “women are extremely powerful and influential at the company.”
At Wells Fargo, you’ll 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, 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, according some insiders. But not everyone feels the same way. The environment is “often
prejudiced against seniors, African-Americans and other cultures,” says one employee, and “there are no African-Americans or other race in senior
management, other than white.”
When it comes to gay and lesbian employees, however, insiders say they 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.”
Looking ahead
Considering the state of the economy, the future is looking relatively bright for Wells Fargo. “Wells Fargo is actually faring well,” say insiders. “Many
of its competitors are either going bankrupt or being bought out by other financial institutions, but Wells Fargo is still managing to stay afloat,” which
may be due to the fact that it has a “conservative nature” and is “risk-averse.” “In my time at Wells Fargo,” says one employee who has worked with
the company for 12 years, “the stock has risen slowly and steadily. It was like watching grass grow and grow. The stock definitely dropped in 2008
and early 2009, but has recovered and now is doing very well.”

PRESTIGE
RANKING
20 ALLEN & COMPANY LLC
711 5th Ave. UPPER

9th Floor
New York, NY 10022 • Work on huge, high-profile deals
BUSINESS DOWNER
Investment Banking • Workplace is male-dominated

Employer Type: Private Company Allen & Company
President & CEO: Herbert A. “Herb” Allen Jr. 711 5th Ave.
No. of Employees: 200 9th Floor
No. of Offices: 1 New York, NY 10022
KEY COMPETITORS
Goldman Sachs
Lazard
Morgan Stanley
THE BUZZ
• “Great in media banking”
• “Secretive, mysterious”
• “Small but important”
• “Overrated; over-reliant on their VC business”

Allen & Company LLC
THE SCOOP
Allen’s singular status

How is Allen & Company unlike other banks? Let us count the ways: It has no website, no barrage of press releases touting recent deals, no sprawling
menu of financial services, no research division, no employment contact and no formal recruiting process. What Allen & Company does have is a
platinum reputation and serious mystique, earned over eight decades of semi-secretive, exclusive advisory and wealth management work with some
of the biggest names in corporate America. The firm is an institutional broker and money manager for high-net-worth individuals, including the
founding Allen family; it also provides M&A, underwriting and related advisory services. The firm regularly ranks as one of the top-25 M&A advisors
by deal volume each year.
Three-Herbert firm
Founded in 1922 by brothers Charles and Herbert Allen, the (very) private company is now helmed by the third generation of Allens, each of whom
has the same first name. Founder Herbert Allen relinquished control to his son Herbert Anthony Allen in 1966; Herbert Anthony Allen Jr. took the
reins in late 2002. (Rule of thumb around the Allen world: Allen Sr. is always Herbert, while Allen Jr. is always Herb.)
When Herb Allen began his tenure as CEO, the firm quietly revamped its legal structure, creating a limited-liability company called Allen & Co. LLC.
The LLC, seeded with $40 million of Allen family capital, took over the operations of Allen & Co. Inc., which remains alive as an investment vehicle for
the Allens.
Coke is it
Most of Allen & Company’s clients hail from the media, sports, entertainment, communications and technology sectors—this tiny boutique was a player
in Google’s 2004 initial public offering. It’s also been behind the scenes of such headline-worthy deals as Time Warner/Comcast’s purchase of Adelphia,
the Disney/ABC tie-up and the 20-year, $400 million deal that gave Citigroup naming rights to the Mets ballpark.
But Allen & Co.’s closest ties are to Coca-Cola, thanks to a relationship that dates back to 1982. Then-CEO Herbert Allen had bought a controlling
stake in Columbia Pictures in 1973 (he paid just $4 per share for the legendary studio). In 1982, Coke bought Columbia, paying a whopping $750
million. Allen pocketed $45 million and earned himself a seat on the Coke board; the marquee deal also catapulted Allen & Company into the upper
echelons of i-banking, helping it win a number of prestigious clients.
Since its first deal with Coke Allen & Co. has done over 15 subsequent deals and underwriting assignments for the soft drink giant and its affiliates,
raking in millions of dollars in advisory fees. The Allen family still owns a chunk of Coke shares and there’s been some boardroom back-and-forths,
too: Coke president Donald Keough became chairman of Allen & Co., and his son Clarke joined the bank’s institutional sales group.
The place to be
By all accounts, 1982 was a very good year for Allen & Company—that’s also the year the firm launched its annual media conference in Sun Valley,
Idaho. The exclusive executive retreat has become ground zero for big media deal making, attracting the likes of Barry Diller, Bill Gates, Michael Eisner,
Sumner Redstone and Oprah Winfrey.
The event is widely covered by business media outlets, which dispatch reporters to eavesdrop around the closed-door meetings in the hopes of
breaking news about a hot deal. Arena Football League Commissioner David Baker (another Allen & Company client) has called the phalanx of
corporate jets that land in Sun Valley at Allen’s behest “the largest private air force in the world.”
The cream of the crop

Many boldface names have made their way onto Allen & Company’s list of managing directors. Among them are former U.S. Senator Bill Bradley;
George Tenet, the former director of the CIA; Priceline.com director (and media M&A powerhouse) Nancy Peretsman; and Steve Greenberg, former
Major League Baseball deputy commissioner.
As for CEO Herb Allen, he and his family have ranked on the Forbes 400 Richest Americans list every year since the list’s inception in—wait for it—
1982. In the 2008 edition Herb Allen and family ranked at No. 227, with an estimated net worth of $2 billion.

Allen & Company LLC
IN THE NEWS
July 2008: No deal

Bookmarking site Digg hired the firm in late 2007 to help it find an acquirer, but negotiations with Google fell apart in July 2008. Sources say Allen &
Co. may help Digg raise capital by leading future financing rounds.
May 2008: Raising the roof

Reports surfaced that Allen & Company’s Dave Wehner, a senior managing director, was pitching a venture capital round for professional networking
site LinkedIn. The price was no less than $1 billion. Like most Allen deals, there was more speculation than specific information, but sources
suggested that the funding round followed a series of unsuccessful sale attempts. If LinkedIn hits its valuation target, Wehner, who’s said to be the
man who led the $850 million sale of Bebo to AOL in April 2008, would be able to take credit for one of the priciest private venture deals in recent
memory.
January 2008: Raising cash for Slide

In January 2008, Allen & Co. helped Slide, a social network widget creator, raise $50 million in private equity financing.
GETTING HIRED
Good luck
Though former CIA Director George Tenet landed a job as managing director with the firm, that doesn’t mean you’ll easily gain employment there.
(Even the hiring of Tenet himself wasn’t announced in a company release and only leaked months later.) Needless to say, getting hired at Allen &
Company is no small feat. The firm doesn’t publicize job openings, and the company’s human resources department doesn’t 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.
OUR SURVEY SAYS
Nothing but winners

If you manage to join the ranks of the elite at Allen & Company, take heart—it’s 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.

PRESTIGE
RANKING
21 BANK OF AMERICA CORPORATION
100 North Tryon Street KEY COMPETITORS

Charlotte, NC 28255
www.bankofamerica.com Citigroup
Goldman Sachs
JPMorgan Chase
DEPARTMENTS/DIVISIONS Morgan Stanley
Wells Fargo
Consumer & Small Business Banking
Corporate Units (Global Risk Enterprise Technology &
Delivery, Finance, Global Human Resources, Global UPPERS
Marketing & Corporate Affairs)
Global Banking & Wealth Management • Big, global bank just got a lot bigger thanks to the Merrill
Global Card Services deal
Global Markets • Generous benefits
Home Loans & Insurance
DOWNERS
THE STATS • Merrill acquisition = culture in flux + uncertain future
Employer Type: Public Company • Training could use improvement
Ticker Symbol: BAC (NYSE)
Chief Executive: Kenneth D. Lewis
EMPLOYMENT CONTACT
2008 Net Income: $4 billion www.bankofamerica.com/careers
No. of Offices: 6,100 retail bank offices
THE BUZZ
• “Significant future potential”
• “Ranks higher with acquisition of Merrill Lynch”
• “Reputation harmed by Merrill Lynch acquisition”
• “Who would want to work there?”
145
Bank of America Corporation
THE SCOOP
Beyond America
Bank of America is one of the world’s largest financial institutions, with customers in more than 150 countries. The company has business relationships
with more than 80 percent of the Global Fortune 500. And as of the beginning of 2009, it could boast about making one of the most high-profile
acquisitions in banking history.
In September 2008, Bank of America made just about every headline in the world, announcing that it would buy New York-based investment bank
Merrill Lynch. On January 1, 2009, the bank acquired Merrill Lynch in exchange for common and preferred stock with a value of $29.1 billion. BofA,
which called the purchase “a great opportunity for our shareholders,” expects to achieve $7 billion in pretax expense savings by 2012. When the deal
closed in early 2009, it made BofA the biggest U.S. bank in terms of assets, with more than $2 trillion. It also made the combined firm the largest
brokerage firm in the world, with about 16,000 financial advisors; one of the leading investment banking advisory firms, with significant operations in
M&A advisory as well as debt and equity underwriting; and one of the world’s top wealth management firms, with Merrill Lynch’s nearly 50 percent
stake in U.S.-based investment management company BlackRock.
In January 2009, not long after the Merrill deal closed, BofA accepted its second round of TARP (Troubled Asset Relief Program) funds from the U.S.
government, taking $20 billion in exchange for preferred stock in the firm. That brought BofA’s total TARP funds to $45 billion (in October 2008, the
U.S. government gave $15 billion to BofA and $10 billion to Merrill Lynch under TARP in exchange for preferred shares).
Bank of America is headquartered in Charlotte, N.C. Many of Bank of America’s services to corporate and institutional clients are provided through
its U.S. and UK subsidiaries such as Banc of America Securities LLC, Banc of America Securities Limited and Merrill Lynch.
Banc of America Securities LLC (BAS), based in New York City, is the investment banking subsidiary of Bank of America. BAS’s business spans both
domestic U.S. and international investment banking markets. The use of the word Banc tends to confuse some people, but its use bears great
significance in that it is indicative of the fact BAS is not a bank, and its deposits and holdings are not insured by the Federal Deposit Insurance
Corporation. Based in lower Manhattan, Merrill Lynch had two main business segments when it came into the BofA fold: global markets and investment
banking (with sub units of sales and trading; fixed income, currencies and commodities; equities; and investment banking), and global wealth
management (which included global investment management and global private clients).
Bank of America’s global banking unit focuses on companies with annual revenue of more than $2.5 million. This includes middle market and large
corporations, institutional investors, financial institutions, as well as government entities. The unit’s services include M&A, raising equity and debt
capital, lending, trading, risk management, treasury management and research.
Awards galore
Banc of America Securities’ equity markets division—which caters to institutional, corporate and hedge fund clients, assisting them to raise capital,
manage exposure, grow and invest funds—has been extremely successful in recent years, and that success has not passed without recognition.
Recent awards include: No. 1 Converts U.S. Market/Global Issuers (Bloomberg, December 2008); No. 1 Algorithmic Trading (Alpha, September 2008);
No. 1 Listed Options Market Share (a leading independent research provider, 2007); No. 2 Best Broker for Difficult Trades (Bloomberg, October 2008);
No. 2 Best at Recommending Risk Management Solutions (Treasury & Risk Magazine, 2008); No. 3 Overall Best Provider of Derivatives (Treasury &
Risk Magazine, 2008); No. 4 Convertibles Market Share (a leading independent research provider, 2007); No. 4 NASDAQ 100 Trade Volume
(Bloomberg, full year 2007); No. 5 World’s Best Brokers (Bloomberg, October 2008); No. 5 U.S. Initial Public Offerings and Follow On Offerings
(Bloomberg, as of December 5, 2008); No. 5 Equity and Equity-linked Issuance (Bloomberg, as of December 5, 2008); No. 6 NYSE Trade Volume
(Bloomberg, full year 2007)
In addition, DiversityInc magazine consistently names Bank of America—the largest bank in the U.S. by retail deposits—as one of the Top 50
Companies for Diversity; BofA ranked No. 1 in 2007 and No. 3 in 2008. Black Enterprise magazine consistently ranks BofA one of the 40 Best
Companies for Diversity, and Hispanic Business magazine continues to rank the bank as one of the Top 60 companies for Hispanics. And Working
Mother magazine has recognized Bank of America as one of the 100 Best Companies for working mothers for 20 consecutive years.
Leader of the pack

Kenneth D. Lewis has been the bank’s chief executive officer since 2001. Although he’s received a lot of heat in the past two years (while big banks,
including BofA, have been hurting), Lewis has been credited with many achievements during his tenure as CEO. Under Lewis’ watch, before the
worldwide economic slide, BofA doubled annual revenue, doubled annual profit, increased assets to $1.7 trillion from $642 billion and grew its market
capitalization to $183 billion from $74 billion.
A graduate of Stanford University’s prestigious Executive Program, Lewis’ path to company leadership started in 1969 when he joined North Carolina
National Bank (NCNB, predecessor to NationsBank and Bank of America) as a credit analyst in Charlotte, North Carolina. After various U.S. roles, he
took over as manager of the bank’s international banking business in 1977. Lewis’ executive progression continued and when he was appointed as

chairman, chief executive officer and president of Bank of America in April of 2001, he was already serving the company as president of consumer
and commercial banking and chief operating officer. In 2007, Time magazine included Lewis on its “The Time 100 List” identifying him as one of the
100 most influential people in the world. And in 2008, Lewis was named Banker of the Year by American Banker magazine.
Time after time

Bank of America can trace its roots back to the late 18th century when Massachusetts Bank was chartered in 1784 and the Providence Bank was
created in Rhode Island in 1791. These banks were among the first banks in the United States of America. As decades past and the population
expanded, these banks would grow with the country, expanding and merging with smaller firms and businesses.
Two centuries later, in the swinging 1960s, a southern bank known as North Carolina National Bank (NCNB) had began an aggressive plan of expansion
based on the model of a “hometown bank” where a branch would individually cater to the needs of the community it served. NCNB’s model proved
popular, and the bank expanded rapidly through the 1970s and 1980s.
In 1991, NCNB merged with Citizens & Southern National Bank (C&S)/Sovran Corporation to form NationsBank, which acquired BankAmerica in 1998
to become Bank of America. The new entity was mighty in that its business reached throughout the country. But that wasn’t all for growth and
consolidation. In 2004, Bank of America acquired FleetBoston Financial for $47 billion dollars, and in 2006, the bank paid $35 billion for the MBNA
credit card business, which, in addition to its U.S. offices, had operations in Great Britain and Canada. The bank acquired U.S. Trust in 2007.
In spring 2007, Bank of America’s growth ambitions were once again the subject of business headlines, as the bank entered into an agreement in April
to purchase the American business of Dutch bank ABN Amro Holding NV—the ABN Amro North American Holding Company—which was the parent of
U.S.-based LaSalle Bank Corporation and its subsidiaries. The deal was completed in October 2007. In 2008, Bank of America purchased the U.S.
diversified financial services holding group Countrywide Corporation in an all-stock transaction worth about $4 billion, before acquiring Merrill in September.
Merrill’s history
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 with about 900 offices in 40 countries and total client assets of approximately
$1.6 trillion. Before being acquired by BofA, Merrill Lynch had established itself as one of the world’s 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.
IN THE NEWS
August 2009: Bessant’s new role

Bank of America named veteran Cathy Bessant as president of its global corporate banking division. Bessant, who headed up the company’s global
product solutions unit, will work on “bringing together our corporate bankers with product-delivery officers to oversee industry groups” in her new role,
Tom Montag, president of BofA’s global markets and corporate and investment banking divisions, said in a statement. Bessant, who will report directly
to Montag, will work out of the company’s headquarters in Charlotte, N.C.
August 2009: Sontag takes his leave

Bank of America Merrill Lynch’s head of brokerage Daniel Sontag said he will retire—an announcement that came shortly after Bank of America hired
Sallie Krawcheck as head of its global wealth and investment management unit. In a conference call, Sontag indicated that he was leaving voluntarily,
insiders told The Wall Street Journal. Sontag, who had been with Merrill since 1978, had held his brokerage hear role since January 2009. Industry
watchers have indicated that Sontag’s departure may point to an overall wearing down of the Merrill culture, which has seen a number of exits as of late.
August 2009: Hiring Sallie

Bank of America confirmed several management changes. The bank hired Sallie Krawcheck, former head of global wealth management at Citigroup,
as head of its global wealth and investment management business. Additionally, BofA said that Brian Moynihan, head of its global corporate and
investment banking and global wealth management units, would be taking over the reins as the bank’s head of consumer banking. Meanwhile, BofA
confirmed that Liam McGee, head of its consumer and small-business banking arm, is resigning. Tom Montag, the head of BofA’s global markets
division, will also head up BofA’s global corporate and investment banking unit. The moves “position a number of senior executives to compete to
succeed me at the appropriate time,” CEO Kenneth Lewis said in a statement.

June 2009: Bull by the horns

Bank of America confirmed that it decided to resurrect Merrill Lynch’s iconic bull symbol in a new promotional campaign. The print and Internet
campaign will publicize BofA’s Merrill Lynch unit via the “thundering herd” tagline. BofA Chief Marketing Officer Anne Finucane told the Financial
Times that after interviewing clients, the firm realized that “combined, the brands are stronger than either on their own.”
May 2009: Raising billions

Revealing the results of its stress tests, the U.S. government told Bank of America it needed to increase Tier 1 common capital by $33.9 billion to
endure the possibility of an intense and prolonged downturn (beyond what economists had forecasted).
As of the end of June 2009, Bank of America had raised the $33.9 billion, mainly by selling common stock worth $13 billion, selling $7.3 billion worth
of its shares in China Construction Bank and converting nongovernment-owned preferred stock into common stock.
April 2009: Lewis steps aside as chairman

During Bank of America’s annual shareholders’ meeting, Ken Lewis was removed from his post as BofA chairman when shareholders narrowly passed
a proposition (50.34 percent in favor) preventing one person from holding the firm’s CEO and chairman position at the same time. Lewis will retain
his chief executive title. The board elected Dr. Walter E. Massey, a Bank of America board member since 1998 and president emeritus of Morehouse
College, to serve as chairman of the board.
Lewis, once celebrated as a top banker, has become a highly controversial figure in the industry. After paying what some industry watchers deemed
as too much for Merrill Lynch, BofA endured two governmental rescue packages. New York Attorney General Andrew Cuomo is also currently
investigating whether Lewis informed shareholders of the risks of such a transaction.
During the meeting, Lewis defended controversial transactions such as Merrill and Countrywide, saying, “These acquisitions are not mistakes to be
regretted. Both are looking more like successes to be celebrated. We are building this company for the long run.”
April 2009: BofA turning around

Bank of America posted first quarter 2009 net income of $4.25 billion, up from $1.21 billion in the first quarter of 2008. The bank was bolstered by
its Merrill Lynch and Countrywide units, profiting from trading at Merrill and mortgage refinancing at Countrywide. Merrill brought $3.7 billion to the
net income total, due largely to strong capital markets revenue. (Overall, BofA’s corporate and investment bank delivered $2.4 billion in net income,
compared with a $991 million loss in the same period in 2008). Meanwhile, mortgage banking and insurance losses decreased to $498 million from
$732 million in 2008. BofA’s credit card division didn’t fare as well, losing $1.77 billion compared with an $867 million in profit in the first quarter
2008. Overall, net revenue for the company jumped about 50 percent to $35.76 billion.
April 2009: Head of Technology, media and telecommunications resigns

George H. Young III announced his departure from Bank of America. Young, a respected banker within the industry—who headed up Merrill Lynch’s
global technology, media and telecommunications division—is one of a number of bankers and executives from the firm who have chosen to leave
BofA after it acquired Merrill. Insiders have indicated that some of the departures have been motivated by a difference in philosophy between the two
firms. According to The Wall Street Journal, Bank of America has been accused by some of having a corporate business method as opposed to one
that emphasizes person-to-person relationships.
April 2009: Banker leaves for Centerview

Alan Hartman, an experienced health care banker and head of M&A for the Americas at Bank of America, departed the recently merged firm for the
boutique investment bank Centerview Partners. Hartman was joined by senior health care bankers Richard Girling and Mark Robinson, who also
defected BofA for Centerview. As of late, boutique banks have begun to look more attractive to executives of certain large banks, which, as a result of
taking government bailout funds, increasingly have had to deal with the prospects of salary and bonus restrictions.
March 2009: No bonus for Lewis

Bank of America said it did not give a bonus to CEO Ken Lewis or any other of its high-ranking executives in 2008. Although many of its competitors
opted to pay out bonuses, the bank said its most recent financial statement didn’t measure up to its hopes. Though Lewis received a salary of $1.5
million, his total compensation (including stock-based rewards) dropped 56 percent from the previous year; according to AP calculations, it fell from
$20.4 million in 2007 to $9 million in 2008.

March 2009: Commence the probe

Bank of America launched an investigation into how Merrill Lynch accounted for some suspicious trades made by traders in 2008. Among the former
Merrill employees involved in the probe is London-based currency trader Alexis Stenfors, who incurred a loss of more than $120 million. Stenfors’ trades
set off a warning bell to the bank, which then began to look closely at the activities of other traders, some of whom had lost millions of dollars in other
areas such as credit derivatives.
February 2009: Who wants to be a millionaire?

New York State Attorney General Andrew Cuomo revealed that 700 of the 39,000 Merrill Lynch employees were paid a bonus of $1 million or higher
in 2008. In a letter to the House Financial Services Committee, Cuomo said Merrill “chose to make millionaires out of a select group of 700 employees.”
Cuomo also condemned Merrill for moving its bonus payments up to December 2008, prior to the firm’s merger with Bank of America.
A month later, in March 2009, The Wall Street Journal reported that the annual bonuses may have been higher than Cuomo originally thought. Eleven
of Merrill’s high-ranking executives accepted more than $10 million in cash and stock in 2008, insiders told the paper. Moreover, an additional 149
employees collected at least $3 million in 2008. In total, the bonus payments for the firm’s 10 highest-paid workers came to $209 million in cash and
stock, up from the $201 million the firm paid out in the previous year.
February 2009: Lewis gets subpoenaed

New York State Attorney General Andrew Cuomo subpoenaed Bank of America CEO Kenneth Lewis in a state probe regarding whether BofA held back
information from investors prior to its purchase of Merrill Lynch. According to The Wall Street Journal, in addition to looking for facts about whether
investors were deliberately deceived, Cuomo is also investigating if about $4 billion in Merrill bonuses should have been revealed to investors.
January 2009: Not meeting expectations

During the fourth quarter 2008, Merrill Lynch lost $15.84 billion—about $500 million more than the $15.31 billion loss Bank of America had calculated
for the firm. The little $500 million oversight was due to not keeping “effective” internal controls, according to Merrill’s annual report. Merrill also took
several charges in the fourth quarter, including a $2.3 billion goodwill write-down due to exposure in its fixed income, currencies and commodities
trading business. Merrill’s write-downs have stirred up several federal investigations into the firm’s practices.
January 2009: Thain’s exit

Ex-CEO of Merrill Lynch John Thain said he would resign from Bank of America, a decision that came about one month after Merrill Lynch was acquired
by Bank of America. It also came not long after Merrill’s steep fourth quarter 2008 losses led BofA to take another $20 billion in federal aid (and not
long after it was revealed that Thain approved bonuses for several Merrill Lynch executives days before the deal with BofA closed). According to a
spokesman for Bank of America, Thain and BofA CEO Ken Lewis “mutually agreed that his situation was not working and [Thain] resigned.”
January 2009: Done deal

Bank of America officially closed its acquisition of Merrill Lynch on January 1, 2009.
December 2008: Two at the top

According to Thomson Reuters, Merrill Lynch and BofA found themselves near the top of many investment league table rankings for 2008 (the firms
were ranked separately for the year, since the Merrill acquisition didn’t close until 2009). Among its many top rankings in 2008, Merrill placed No. 5
in global debt, equity and equity-related underwriting, No. 6 in global debt, No. 8 in global mortgage-backed securities, No. 9 in global high-yield debt,
No. 7 in U.S. investment grade debt, No. 7 in international bonds, No. 3 in global equity and equity-related underwriting, No. 2 in global common
stock, No. 5 in global IPOs, No. 4 in U.S. equity and equity-related underwriting, No. 1 in U.S. IPOs, No. 4 in EMEA equity and equity-related deals,
No. 4 in EMEA common stock, No. 6 in global announced M&A deal advisory, No. 4 in announced U.S. M&A and No. 8 in announced European M&A.
Banc of America Securities, meanwhile, ranked No. 10 in global debt underwriting, No. 3 in global mortgage-backed securities, No. 4 in global debt,
No. 3 in global asset-backed securities, No. 3 in U.S. investment grade debt, No. 2 in global high-yield debt, No. 7 in global equity and equity-related
deals, No. 10 in global common stock, No. 5 in U.S. equity and equity-related underwriting, No. 5 in U.S. IPOs, No. 14 in global announced M&A
deals and No. 8 in U.S. announced M&A.
December 2008: Cutting back

Bank of America announced plans to cut 30,000 to 35,000 positions over the next three years. “The layoffs will come from both BofA and Merrill
Lynch, and will affect all business lines and divisions,” BofA said in a statement. BofA added that the cutbacks, which will “eliminate redundancies,”

are due to the Merrill acquisition and the anemic U.S. economy. BofA CEO Kenneth Lewis is hoping to save around $7 billion from the merger,
necessitating the abolishment of many jobs along with the possible sale of some of its business units. At the time, BofA and Merrill combined had
260,000 employees, including 50,000 working in investment banking.
September 2008: Buying Merrill Lynch

Bank of America agreed to acquire legendary investment bank and brokerage Merrill Lynch for approximately $50 billion. The deal, which will create
the world’s largest brokerage firm and one of the largest investment banking players in the world, followed on the heels of Merrill competitor Lehman
Brothers filing Chapter 11, in the largest bankruptcy in history at the time.
June 2008: Picking up where Bear left off

Bank of America hired five ex-Bear Stearns senior executives, including David Glaser, Bear’s co-head of investment banking who was brought on to
chair Bank of America’s global mergers and acquisitions department. In addition to the Bear Stearns-set, Bank of America also hired Phil Barnett from
Morgan Stanley, to head up the group’s financial institutions unit.
GETTING HIRED
Casting a careful net

At Bank of America’s careers page (www.bankofamerica.com/careers), you can search for job openings and complete an online application by clicking
the link at the end of your chosen position. Vacancies arise across the bank in a number of departments and divisions, including consumer banking,
card services, global markets, investment banking, wealth and investment management risk management, technology, finance and human resources.
“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 more
than 200 schools globally; its “careers” website maintains an up-to-date calendar of events, and has a “Career Fit Tool” to help candidates find
programs that best suit their skills and interests. In the past, BofA recruiters have turned to places like Columbia, University of Chicago, University of
Virginia, NYU, Harvard, University of North Carolina, Duke, Georgetown, Clemson, Howard, Penn State, Michigan State, 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 team’s need, and therefore can be very
specific.” “We have narrowed our list of schools” in recent years, one insider reveals. That said, all interested students, regardless of school, can create
their profiles via the firm’s website, upload their resumes and select programs of interest.
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 website, 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 option—and it’s “definitely much easier to get hired after completing the internship,” a current insider says. Intern
applicants can apply online or through their career services centers, and must be a full-time graduate or undergraduate student.
Round after round

On the consumer banking side of things, the interview process is a “positive” one, but it can also be “disorganized,” insiders report. Some describe it
as a “very lengthy and tricky” process. Another source says the interviews are “very relaxed,” “more like a conversation,” and adds, “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.”
Another insider interviewing for a management position says, “I was asked very few questions, as it appeared that my resume was used to make their
decision.” The insider reports being asked questions such as “What is the highest number of people you’ve managed and what’s the lowest number?”
Pleasant times in investment banking

The hiring process for investment banking hires typically “involves at least two rounds of interviews.” Expect to meet with “your future team.” One
insider says “the atmosphere was very pleasant, lighthearted and informal.” And 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.”

As for interview questions, expect a “focus on personality and fit.” Still, interview questions 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 Bank of America. The firm offers summer internships for analysts (undergrad)
and associates (grad students). “I essentially functioned as a first-year associate while I was a summer associate in investment banking. I was paid,
pro rata, a first year’s salary,” says an insider. 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 the hiring line, but they get other benefits, too. “Networking and mentoring offered during the summer
allows you to build what could be lifelong friendships,” a former 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.”
OUR SURVEY SAYS
It all depends
With respect to corporate culture, “different groups operate totally differently,” says a source. “Some groups are more laid-back, while some operate
with a lot of intensity. I would say this is because different bankers came from different banks and like to do things their own way.” The Bank of
America culture can also be a “very dynamic” one, according to one insider. Another agrees that it is “different in every region.” “It depends on what
bank was absorbed by Bank of America. There are many cultures among Bank of America, so there is no real consistency in each region.”
That said, despite a “collegial” and “friendly” culture that “encourages success and competitiveness” in the units acquired in the Merrill deal, some
insiders note that the BofA acquisition led to a “sad situation,” with morale taking a toll due to a lot of folks getting laid off. Still, notes a source, “the
majority of the employees are great people, have strong work ethics, and take their responsibilities very seriously.” And another is very optimistic about
BofA’s future with Merrill, noting, “Going forward, we’re in an excellent business position.”
The dress code at Bank of America is “business casual in most departments, though they notify employees when business attire is required due to
executive or client visits.” But it largely depends on your division. Some say the code is “always professional,” but “more so for men than women,
since men always have to wear a shirt and a tie.” As far as hours go, expect to work “normal business hours, including “half days on Saturdays.” One
insider adds, however, that “hours are similar to Wall Street, but given the huge staff cuts, expect to put in more hours regardless of your group.”
Get to class
On the training front, Bank of America offers “formal classroom style” and “on-the-job training.” The training you’ll receive largely depends on your
department, however. “Some departments such as customer service type departments often have lengthy
training that can last up to six weeks,” admits one contact. The training is “combination classroom training and side-by-side training with experienced
employees,” says another. Still, some call the training “substandard.” One insider says, “There are many personal bankers out there who don’t know
what they are doing, and consumers trust them with their private information.”
Meanwhile, management-level employees don’t get to wriggle out of hard work. “Managers are expected to work extended hours and be available on
weekends,” says one insider. “Mobile devices are often issued to managers.”
Benefits-wise, you’re in good hands if you’re an employee. “Even part-time employees get full benefits,” which includes “two weeks of paid vacation plus sick
days” along with “tuition reimbursement,” and paid maternity, paternity and adoption leaves. There is also “definitely potential for growth within the company,”
and “there are resources such as the in-house job postings, where positions are opened for employees before they are released to the public.”
E for effort
Staffing, meanwhile, is “very diverse across most of the company.” However, “senior leader positions are still held by mostly males.” Either way,
“employees have a very diverse backgrounds” overall. Respondents also are happy that “company goals are mostly detailed and well communicated.”

PRESTIGE
RANKING
22 MACQUARIE GROUP (U.S.)
Rockefeller Center KEY COMPETITORS

600 Fifth Avenue, 21st Floor
New York, NY 10020 Citi
Phone: (212) 548 6555 Deutsche Bank
Fax: (212) 399 8930 Goldman Sachs
www.macquarie.com/us
UPPERS
DEPARTMENTS/DIVISIONS • “Friendly people”
Client Services • “Communicative and helpful” managers
Corporate Finance & Advisory • Energy Supply &
Management Solutions • Institutional Stockbroking &
Research • Lending & Asset Financing • Real Restate
DOWNERS
Structured Finance • Treasury & Commodities Activities • “Women are still outnumbered” in the workplace
Investment Management • Employees “often work Sundays or Saturdays”
Infrastructure & Specialised Funds • Institutional & Retail
Funds Management • Real Estate Capital
Product Solutions EMPLOYMENT CONTACT
Business Banking Services • Commodities Funds • German
See “careers” under “about Macquarie” at
& Austrian Closed-End Funds • Equity Derivatives • UK
www.macquarie.com.au
Investment Funds • Wealth Management services
THE STATS
Ticker Symbol: MQG (Sydney)
Chief Executive: Nicholas Moore
2009 Revenue: AU$5.5 billion
2008 Profit: AU$871 million
No. of Offices: 70 offices in 26 countries worldwide
THE BUZZ
• “Up and coming—building a presence in the US and
growing fast”
• “Who?”
• “Australian infrastructure powerhouse”
• “Unsettled”

Macquarie Group (U.S.)
THE SCOOP
Born in ‘69
Macquarie’s origins date back to 1969, when three men founded Hill Samuel Australia bank in Sydney, a wholly owned subsidiary of U.K. merchant
bank Hill Samuel & Co Ltd. The bank grew quickly thanks to its expertise in a diverse range of financial services and products. It wasn’t until the
1980s, 15 years after Hill Samuel was first established in Australia, that the bank’s directors decided to restructure their firm into an Australian trading
bank; they received government approval to do so in February 1985. At that time, they renamed the bank Macquarie after the popular early Aussie
governor, Lachlan Macquarie (1761-1824), who is fondly remembered for figuring out how to solve the then looming problem of a currency shortage
by purchasing Spanish silver dollars and punching out their centers to create two new coins, the “Holey Dollar” and the “dump,” ingeniously increasing
their worth, while doubling the number of coins in circulation. This prevented currency leaving the British colony.
Hill Samuel’s directors chose the Holey Dollar as the logo to represent their new banking entity, as they regarded Governor Macquarie’s ingenious
creation of the Holey Dollar as the ultimate “inspired” solution to a “difficult” problem.
Working in America
Most of Macquarie’s 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.
There’s 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, Macquarie’s 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 Giuliani’s firm). GCA’s
specialty was advising distressed companies, and the deal added 100 investment banking professionals to Macquarie’s North American headcount.
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.
The groups and divisions

Macquarie Group Limited is listed on the Australian Stock Exchange as MQG. In the U.K., it owns Macquarie Bank International and is regulated by the
U.K.’s Financial Services Authority. Macquarie Group is organized into five key operating groups (Macquarie Capital, Macquarie Securities, treasury and
commodities, Macquarie Funds Group, and banking and financial services) and two divisions (real estate banking, and corporate and asset finance).
Macquarie Capital (MacCap) provides corporate advisory, equity underwriting and specialised funds management businesses (including infrastructure and
real estate funds). MacCap’s services include mergers and acquisitions, takeovers and corporate restructuring advice; equity capital markets, equity and
debt capital management and raising; specialized funds management; debt structuring and distribution; private equity placements; and principal products.
Macquarie Securities is made up of three subgroups: cash, which is a full-service institutional cash equities broker in the Asia Pacific region. In Europe,
it operates as a specialized institutional cash equities broker; Delta 1, which oversees the group’s equity finance, arbitrage trading and synthetic product
businesses, catering to both institutional and hedge fund clients; and derivatives, which offers equity-linked investments, trading products and risk
management services to clients around the world.
The treasury and commodities group encompass a range of products and services relating to commodities, futures, debt, interest rate and credit
derivatives, foreign exchange and emerging market bond broking. The Macquarie Funds Group is a full-service fund manager, offering a diversified
range of funds-related products and services. Finally, Macquarie’s banking and financial services group offers banking services to private and corporate
clients, in addition to brokerage services, private portfolio management, mortgage management, credit cards, funds management and life insurance.
The real estate banking division’s activities encompass listed and unlisted real estate funds management, asset management, real estate investment,
advisory, development management and real estate project and development financing. The corporate and asset finance division—located in Australia,
New Zealand, Asia, North America and Europe—specializes in providing leasing and asset finance services, debt and finance solutions, asset
remarketing, sourcing and trading.
New chief
In May 2008, Macquarie hired a new CEO as longtime leader Allan Moss stepped down after nearly 15 years in the chief executive’s office. He was
succeeded by Nicholas Moore, who previously served as head of the Macquarie Capital business, which accounts for over half of the group’s profits.
David Clarke, Macquarie’s chairman, called Moore “the obvious choice” to succeed Moss, citing his “remarkable vision, energy and acumen.”

Moore has been with Macquarie for two decades, and has held a seat on the executive committee for more than 10 years. He is credited with leading
Macquarie Capital’s growth in corporate advisory, institutional stock broking, equity capital markets and infrastructure funds; his successor there is
Michael Carapiet, former global joint head of Macquarie Capital Advisers.
IN THE NEWS
August 2009: Snapping up Delaware

Macquarie Group bought Lincoln Financial Group’s investment management division Delaware Management Holdings for $428 million. The acquisition
will increase Macquarie’s assets under management to more than $300 billion. In a statement, Shemara Wikramanayake, global head of Macquarie
Funds Group, called the deal “a demonstration to our clients of the ongoing commitment we have to developing a global asset management capability
with significant scale, product depth, research and investment capacity.”
June 2009: Steady hiring

Macquarie continued to hire new workers, appointing ex-UBS Managing Director Christopher Striedter in its global industrial unit. Striedter’s
appointment came shortly after the bank hired on Christopher Wofford, who worked in Bank of America’s transportation and logistics department (and
who will play a similar role for Macquarie). A week prior to Striedter’s appointment, Macquarie Capital hired ex-Bank of America employee Doug
Reynolds to work on exploration and production transactions in Houston.
May 2009: So how did the year end?

Macquarie ended 16 joyous years of successfully rising earnings. The actual figures came out soon after the announcement, as Macquarie booked
AU$871 million for the year ending March 2009, down from AU$1.8 billion it made a year earlier (a 52 percent drop, to be exact). The firm’s stock
has also taken a hit as of late. Between May 2007, when the firm’s shares peaked, and March 2009, Macquarie’s shares lost 74 percent in value.
And as of May 2009, the firm’s stock price was about AU$35 per share, nearly half of its 52-week high of AU$66. Though the price drop was
significant, it correlated to market conditions during the period, and was lower than some of Macquarie’s competitors’ stocks had experienced. Further,
as of June 2009, Macquarie’s stock price had risen by more than 34 percent since the beginning of 2009.
Macquarie’s full-year 2008 results included write-downs of AU$2.5 billion, due to continued deterioration of markets and provisions on long-term
investments. (Macquarie exited the sphere of mortgages and personal loans in 2008.) This came on the heels of Macquarie’s assurances to investors
and analysts at its operational briefing in February 2009 that it was comfortably capitalized, which fellow bank Citigroup seconded, saying that
Macquarie’s position was strong enough to soak up AU$2.5 billion in write-downs per year without hurting its Tier-1 capital ratio.
May 2009: Gaining energy

Macquarie announced that it had entered into an agreement to acquire Tristone Capital Global Inc. According to Macquarie, the acquisition will
substantially enhance its energy offering by integrating Tristone’s energy advisory and capital markets capabilities within Macquarie’s global resources
activities.
March 2009: New employees on the block

In the first few months of 2009, Macquarie made some key high-profile hires. Macquarie hired Robert D. Redmond to be the vice chairman of its
capital advisors group, based in New York. Redmond was formerly at vice chairman of the now-defunct Lehman Brothers as well as Barclays Capital.
In the U.K., Macquarie hired Anthony Isaacs, former head of U.K. equity capital markets at Credit Suisse, to develop Macquarie’s European equity
capital markets business.
March 2009: Some really fat cats

According to research comparing employee salaries with both a company’s performance and shareholder returns, two “fat cats” at Macquarie Group,
former Macquarie chief executive Allan Moss and current chief executive Nicholas Moore, are Australia’s most “overpaid executives,” as reported in
the Aussie media. Moss, Moore and three other Macquarie execs reportedly earned a combined AUS $105 million in salaries and bonuses in 2008,
reflecting Macquarie’s best profit results to date and the company approach to profit share being linked with profitability.
In March 2009, Macquarie announced changes (that are subject to shareholder approval) to its remuneration structure. The proposed changes, in
line with recent industry-wide remuneration trends, would cut cash bonuses for close to 300 of Macquarie’s most senior managers (executive directors).
According to Bloomberg, the changes are an attempt to “placate investors,” since the firm’s stock had lost more than half of its value in the tumultuous
2008. Macquarie said that it would be raising the proportion of performance-based pay (bonuses) made in company stock, adding that the cash

component of Macquarie boss Nicholas Moore’s profit-share would be reduced to 45 percent from the previous 70 percent. The change in payment
type would require the firm to issue an estimated AUS$500 million in new equity. The news emerged at a time that public outrage throughout Europe
and Australia (as well as the U.S.) was raging over bankers’ salaries and executive bonuses.
December 2008: M&A tables

Year in and year out, Macquarie turns up on Thomson Reuters’ investment banking league tables for M&A volume—and 2008 was no different. The
bank ranked No. 18 for worldwide announced M&A advisory on deals up to $500 million, working on $7.25 billion worth of deals. It also secured top-
five rankings in the Australia and New Zealand tables (though it didn’t turn up on the European tables).
GETTING HIRED
Back in the U.S.A.

As far as the firm’s 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. There’s 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.
Be up for anything
What you’ll 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, too—along 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 it’s “very different from a typical Wall Street bank.” Workers are “very intense and intelligent,” but they’re also “more laid-back” and tend to “feel
less constrained by hierarchy.” But it’s not too laid-back—workers 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. “There’s little pressure to stay late when you’re not working on a live deal, but you’re 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.”
Rising through the ranks

As far as management goes, there’s 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 don’t
care about face time.” For the most part, they’re “communicative and helpful,” though “if they need your help, they won’t hesitate to keep you longer.”
Macquarie’s diversity efforts receive mostly high marks. But when it comes to women in the workplace, the firm may be “very receptive and
considerate”—”but women are still outnumbered.” Another insider even says that it can be a “very male-dominated Caucasian environment.”

PRESTIGE
RANKING
23 PIPER JAFFRAY COMPANIES
800 Nicollet Mall KEY COMPETITORS

Suite 800
Minneapolis, MN 55402-7020 Houlihan Lokey
Phone: (612) 303-6000 Jefferies
Fax: (612) 303-8199
www.piperjaffray.com
UPPERS
• “Advancement can be quick”
DEPARTMENTS • “Very inclusive”
Asset Management
Institutional Investing & Research
Investment Banking
DOWNERS
• “Employees are viewed more as commodities than assets”
• “Can be a grueling experience”
THE STATS
Stock Symbol: PJC (NYSE)
EMPLOYMENT CONTACT
Chairman & CEO: Andrew S. Duff See “career opportunities” under “our company” section of
2008 Net Revenue: $326.4 million www.piperjaffray.com
No. of Offices: 26
THE BUZZ
• “Rising star”
• “Minneapolis is in the middle of nowhere”
• “Strong equity financing capabilities, great in health care”
• “Weak in M&A”

Piper Jaffray Companies
THE SCOOP
Sweet home Minneapolis

Piper Jaffray & Co. is the operating subsidiary of holding company Piper Jaffray Companies, which focuses on investment banking, institutional
investing and research and asset management. Headquartered in Minneapolis, Piper Jaffray serves middle-market corporations, private equity firms,
public companies, nonprofits and institutional investors. With more than 1,000 employees in 26 offices worldwide, it provides advisory services, equity
and debt capital markets products, public finance services, institutional equity and fixed income sales and trading, research, and high-yield and
structured products.
Piper Jaffray specializes in over a dozen industry sectors, including education; media, entertainment and telecommunications; technology; aircraft
finance; clean technology; financial institutions; state and local governments; real estate, housing and senior living; hospitality; consumer; business
services; cultural and social services; health care; and industrial growth. Its proprietary research covers more than 400 companies; at the 2008
FT/StarMine Global Analyst Awards, senior research analysts from Piper Jaffray received a whopping nine awards for their stock picking prowess.
Piper plus Jaffray (minus Hopwood)

In 1913, H.C. Piper Sr. and C.P. Jaffray opened a commercial paper brokerage in Minneapolis, where grain elevators and milling businesses had
created a serious demand for promissory notes. Four years later, Piper and Jaffray merged with local rival George Lane, who had established his
brokerage firm in 1895. In 1929, a nearby investment firm, Hopwood & Company, was decimated by the stock market crash—so Piper Jaffray was
able to acquire it on the cheap.
As Piper Jaffray Hopwood the firm set its sights beyond Minneapolis, picking up a seat on the New York Stock Exchange and opening offices across
the country. Its shares debuted on the Nasdaq exchange under the symbol PIPR in 1986; in 1992, the firm name was trimmed to Piper Jaffray Inc.
A $730 million acquisition by U.S. Bancorp in 1997 marked the end of Piper Jaffray’s independence, but the tie-up was short-lived: in 2003, Piper
Jaffray was spun off, becoming an independent public company (PJC on the New York Stock Exchange). A final restructuring came in 2006 when
Piper Jaffray sold its private client business to UBS Financial Services for $510 million.
IN THE NEWS
April 2009: Still down

For the first quarter 2009, Piper Jaffray brought in $86.08 million in revenue compared with $102.63 million in the same period of 2008. The company
also suffered a net loss for the quarter of $2.73 million compared with a $1.39 million net loss in the first quarter of the previous year. The firm had
low investment banking revenue due to lower revenue within taxable underwriting, public finance remarketing and auction rate securities and public
finance derivatives.
February 2009: Rough waters

For full-year 2008, Piper Jaffray’s revenue came in at $345.05 million, down from $528.07 million in the previous year. The company also posted a
net loss for the year of $182.97 million compared with net income of $21.94 million in 2007. Although CEO Andrew S. Duff said the company “took
steps to reduce our operating cost structure and manage and mitigate risk exposure,” he added that “our actions were not able to overcome the severe
market conditions and our operating results suffered.”
December 2008: Building up restructuring

The firm’s financial restructuring team expanded when Victor Caruso, who has provided financial restructuring advisory services for over 25 years, left
Morgan Joseph & Company to join Piper as a managing director. Previously he’d been a partner at Gordian Group, a managing director at Bear Stearns
and a co-founder of Lehman Brothers’ restructuring division. Murray Huneke, co-head of investment banking, said Caruso’s expertise “will allow us
to expand our differentiated and integrated advisory strategy, which combines our strong advisory, restructuring and capital markets platforms to best
serve our clients.”
November 2008: Rising in the rankings

Institutional Investor magazine’s annual ranking of the country’s best equity sales teams placed Piper Jaffray at No. 3, a five-spot leap from its 2007
rank at No. 8. The rankings were determined by surveys of analysts, portfolio managers, research directors, CIOs and other investment professionals
at over 500 firms; a total of 28 finalists were ranked based on their small- and mid-cap equity sales teams. Piper’s No. 3 spot brought it right behind
runner-up William Blair & Co. and overall winner Robert W. Baird.

And according to the 2008 Thomson Reuters banking league tables, Piper ranked No. 2 in mid-market advisory for deals valued up to $50 million
(based on deal value), working on 17 transactions worth $287 million. For deals valued up to $100 million the firm ranked No. 3, after Goldman Sachs
and Houlihan Lokey Howard & Zukin. On larger transactions—those valued at up to $200 million and up to $500 million—Piper came in at No. 14
and No. 20, respectively.
October 2008: It’s in the DNA

In fall 2008, Piper Jaffray advised Ohio-based DNA Diagnostics Center, one of the world’s largest DNA testing laboratories, on its sale to MTS Health
Investors LLC, a health care private equity firm.
September 2008: Carpe diem

A newly opened office in Marina Del Ray, Calif., became home to an expanded fixed income group. Piper added five sales and trading professionals
to form a structured mortgage products group, with a focus on asset-backed securities and mortgage markets. The same asset-backed and mortgage-
backed securities that contributed to the global credit crisis? Absolutely. “There are great opportunities in the distressed market that a highly skilled
team can leverage,” explained fixed income head Ben May. “And this is a market we will now serve with an industry-leading and experienced team.”
The new Marina Del Ray team operates under the supervision of Managing Director Cliff Corrall, a former executive vice president at Countrywide
Securities.
September 2008: East Coast grows

Piper Jaffray built up its public finance banking operations, hiring former Wachovia Director Mark Piscatelli as a senior public finance banker. A UConn
grad who specializes in municipal financings, Piscatelli is based in one of Piper’s newest offices, in Hartford, Conn. From there he will work with Piper’s
existing public finance teams in Boston to develop a wide-ranging business in Connecticut and throughout New England.
July 2008: Good advice

Even though the firm struggled through the second half of 2008, its advisory teams managed to stay afloat. Piper Jaffray advised electronics giant
Sharp Corporation on its $99 million sale to United Drug; over the summer the firm also served as exclusive financial advisor to Lone Star Funds in its
acquisition of the Home Lending portfolio and other servicing operations of CIT Group Inc. That deal involved $1.5 billion in cash and the assumption
of $4.4 billion in debt.
May 2008: New faces at the table

Senior management got a shakeup as Chief Financial Officer and Vice Chairman Thomas Schnettler was named president and chief operating officer.
Schnettler, a 22-year veteran of the firm, was replaced in the CFO spot by Debbra Schoneman. She had previously served as treasurer and managing
director.
As COO, Schnettler will oversee growth in the core investment banking and institutional securities business; this will allow CEO Andrew Duff to focus
on the firm’s asset management business, corporate development and other key strategy.
Meanwhile, the heads of Piper Jaffray’s overseas operations received new responsibilities. David Wilson, CEO of London-based Piper Jaffray Ltd., and
Alex Ko, CEO of Piper Jaffray Asia, were tapped to join the firm’s management committee.
GETTING HIRED
Look down the road

If you’re 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 positions—both full time and summer for investment banking—and
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.

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 “behavioral-based.” Internships are also offered by the firm and are “very important” to
get your foot in the door-but 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,” “client-focused” and “lean,” 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 doesn’t 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 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 don’t do any modeling; analysts do all the modeling,” reports one insider. “It’s 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
they’re very good with the male/female ratio. They’re 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 isn’t all that different from the big boys back East. According to the firm, first-year associates get paid the same as what they’d
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 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 profit-sharing 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 firm’s future.

PRESTIGE
RANKING
24 OPPENHEIMER & CO.
125 Broad Street KEY COMPETITORS

New York, NY 10004
www.opco.com Perella Weinberg Partners
Peter J. Solomon Company
PRODUCT & SERVICES

EMPLOYMENT CONTACT
Asset Management
Estate Planning See “careers” under “about Oppenheimer” section of
Investment Banking www.opco.com
Trust Services
Wealth Management
THE STATS
Employer Type: Subsidiary of Oppenheimer Holdings
Chairman: Albert Lowenthal
No. of Offices: 80
THE BUZZ
• “Good research shop”
• “Surprised they’re still in business”
• “Solid”
• “Outdated”

Oppenheimer & Co.
THE SCOOP
Back to Fahnestock
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. Oppenheimer’s 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.
The U.S. broker-dealer is backed by over 125 years of history. The firm’s 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
Oppenheimer’s U.S. private client and asset management divisions in 2003, and changed its name to Oppenheimer Holdings. When that happened,
the company’s principal operating subsidiary, Fahnestock & Co., was renamed Oppenheimer & Co. In the years that followed, Oppenheimer made two
big acquisitions—McDonald Investments and UBS’s Fishkill, N.Y., office—further solidifying itself as a leading financial services company.
Four pillars
Oppenheimer’s capital markets group offers investment banking, research and trading solutions to growing companies, thriving communities and
institutional investors. Oppenheimer’s bankers work across a variety of industries, including consumer, energy, finance, health care, industrials, media,
telecom and technology. The firm’s public finance department works closely with cities, states and public authorities to develop efficient financing
plans.
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 firm’s asset management
arm was founded in 1985 to help individual and institutional investors build customized investment plans based on strategic asset allocation. Today,
more than 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.
I-banking gets a boost

For the calendar years 2008 through 2012, CIBC will receive payment of at least $5 million a year, based on the performance of Oppenheimer’s capital
markets business—but Oppenheimer doesn’t 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, high-yield fixed income origination and loan syndication,” said Oppenheimer Holdings chairman,
Albert Lowenthal, in a statement.
IN THE NEWS
March 2009: Lackluster results

For first quarter 2009, revenue came in at $205.3 million, an 11 percent decrease versus the same quarter in 2008. Though the company also posted
a net loss of $2 million for the first quarter, it was less of a hit than the $16.1 million net loss Oppenheimer took in the same quarter of 2008. The firm
cited “credit market disruptions” as a reason for the lackluster results. However, CEO Albert Lowenthal said that while the company was “disappointed
with the results of the first quarter of2009,” he added that “we are pleased with the dramatic improvement in operating performance.”
January 2009: Taking a hit

For full-year 2008, Oppenheimer reported a net loss of $20.8 million compared with a net profit of $75.4 million for 2007. Annual revenue came in
at $920.1 million, up from $914.4 million for the second quarter of 2007. In regards to the loss, the firm cited performance fees and expenses
connected with the purchase of part of CIBC World Markets’ U.S. capital markets units.
December 2008: Modestly-rated M&A

According to Thomson Reuters, Oppenheimer & Co. ranked No. 20 in announced M&A deal volume for deals worth up to $200 million.

Oppenheimer & Co.
November 2008: More bad news

The Commonwealth of Massachusetts sued Oppenheimer & Co. for fraud and unethical conduct, accusing it of deceiving its customers in sales of
auction-rate securities. Massachusetts Secretary of the Commonwealth William Galvin brought the charges, according to Investment News. In a
statement, Galvin said, “Oppenheimer executives betrayed the trust of their clients by continuing to market these auction-rate securities as safe cash
equivalents when they knew this was not the case … They kept their clients and their own advisers to those clients, in the dark, even as they themselves
got out of that tottering market.” The lawsuit alleges that Oppenheimer customers in Massachusetts could not access $56 million in February 2008
when markets froze up. The suit also called for the revocation of Lowenthal’s broker-dealer agent registration.
Oppenheimer denied the charges, saying in an email to The Boston Globe that the allegations made by Massachusetts Securities Division did not have
“any basis in fact or law,” adding that it indeed to “vigorously defend itself.” In a separate statement, the firm said that it “and its executives and
employees, like dozens of other ‘downstream’ brokerages nationwide, had no knowledge of the conduct of the major dealers which caused the entire
auction rate securities market to collapse.” The firm also stated that it “believes that at all times it acted in its clients’ best interests.”
February 2008: Crimes & misdemeanors

Oppenheimer & Co. was slapped with a $250,000 fine by the Financial Industry Regulatory Authority for supervisory and other failures stemming from
improper market timing of mutual fund shares from January through September 2003. Typically, brokers engaging in market timing try to exploit
mispriced shares by buying or selling mutual fund shares in a very short period of time. As a result, improper market timing can significantly diminish
the value of long-term mutual fund shareholders. “While not illegal per se,” said FINRA in a statement, “market timing is prohibited by the vast majority
of mutual funds.” FINRA found that five traders traded inappropriately on behalf of hedge fund customers, earning the firm $9 million. The company
was also made to pay more than 60 mutual fund companies $4.25 million in restitution.
January 2008: A few key purchases

Oppenheimer’s capital markets group (encompassing its investment banking, research and trading operations) received a big boost when the firm
acquired CIBC’s U.S. capital markets business, including its U.S. investment banking, equity capital markets and debt capital markets groups. The
deal also included CIBC’s Israeli investment banking and equities business, and parts of its U.S. capital-markets-related businesses in the U.K. and
Asia. The acquisition did not expose Oppenheimer to the subprime mortgage business, an area in which the firm has advantageously been uninvolved.
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 you’re interested in a
position as a financial adviser, you can fill out a short online form detailing your work experience and background. Unfortunately, there aren’t any job
listings for those with a little more experience under their belts to peruse—you are, however, encouraged to send in your resume and a cover letter to
human resources at humanresources@opco.com.

PRESTIGE
RANKING
25 RBC CAPITAL MARKETS
3 World Financial Center RANKING RECAP

200 Vesey Street
New York, NY 10281 Quality of Life
Phone: (212) 428-6200 #3 – Offices
#5 – Hours
Royal Bank Plaza #6 – Business Outlook
200 Bay Street #6 – Green Initiatives
Toronto, Ontario, M5J 2W7 #7 – Best to Work For
Canada #7 – Overall Satisfaction
Phone: (416) 842-2000 #8 – Treatment by Managers
www.rbccm.com #11 – Culture
#12 – Selectivity
Diversity
DEPARTMENTS #9 – Diversity With Respect To Ethnic Minorities
Fixed Income & Commodities
Global Credit
Global Equity Markets
Global Investment Banking
Global Research KEY COMPETITORS
Bank of America
THE STATS BMO Capital Markets
Cowen and Company
Employer Type: Subsidiary of Royal Bank of Canada
Credit Suisse
Chairman: Doug McGregor
Goldman Sachs
Co-CEOs: Doug McGregor & Mark Standish
Jefferies
President: Mark Standish
J.P. Morgan
Morgan Stanley
No. of Offices: 76
Thomas Weisel Partners
EMPLOYMENT CONTACT
UPPERS
www.rbccm.com/careers
• “Small deal teams”
• “Matches Street pay”
• “Fewer ‘difficult’ bankers compared to other investment
banks”
THE BUZZ DOWNERS

• “Top Canadian investment bank” • “Becoming even more conservative in these times”
• “Bucket shop” • “Often overly bureaucratic”
• “Solid” • “Still working on building the brand”
• “Co-manager”
163
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 3,000 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.
One tough year

RBC Capital Markets held on during 2008, although it was not immune to a few negative results, including job cuts, a buyback of $850 million in
securities and a fine levied by New York State Attorney General Andrew M. Cuomo for allegedly misleading investors about the riskiness of investments.
But the bank also hired nearly a dozen former Bear Stearns employees and formed a new prime services group, suggesting that business is not all
bad. Overall, according to Bloomberg, RBC Capital Markets cut about 460 jobs—or 7.1 percent of its workforce during the year. This isn’t a small
number, but it was still less than many of RBC’s peers were forced to cut during the year.
Royal history
The Royal Bank of Canada began operation in 1869, and today, it has over $665 billion 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, convertible debt, corporate
finance, high-yield, equity private placements, investment services, income trust group, leveraged finance, syndicated finance, and mergers and
acquisitions.
IN THE NEWS
March 2009: Direct acquisition

RBC Capital Markets acquired Canadian investment service provider Commission Direct Inc. for an undisclosed amount. Before the deal took place,
RBC owned 50 percent of CDI. “CDI has a long track record of independent, high-quality agency execution, serving the growing needs of Canadian
institutional clients,” said John Reilly, RBC Capital Markets’ head of Canadian Equity Trading. “We look forward to CDI continuing to develop and
distribute innovative new products and services for the Canadian institutional marketplace.”
December 2008: Holding (mostly) firm

According to Thomson Reuters, RBC Capital Markets ranked No. 24 in worldwide completed M&A volume in 2008, with 101 deals totaling $70.3
billion, an eight point drop from its No. 19 ranking in 2007. It also ranked No. 24 in Americas announced deals, a 12-place drop from its 2007 ranking.
The firm lost its No. 1 spot in Canadian announced M&A volume to CIBC, coming in at No. 2 with 44 deals worth $26.37 billion—a 22 percent share
of the market.
October 2008: Salut, mon frère

CEO and Chairman Charles Winograd retired, though he agreed to see the firm through the transition until January 2009. Winograd, who holds an
MBA from the University of Western Ontario and the CFA designation, began as a research analyst at Richardson Securities of Canada in 1971. One
promotion after another followed, and Winograd was named president and CEO of Richardson Greenshields in January 1987, and chairman and CEO
in 1991. He joined RBC in 1996, when the firm acquired Richardson Greenshields. He was made president and CEO of RBC Capital Markets in
2001.
His successors, Mark Standish and Doug McGregor, previously co-presidents of RBC, were each named co-CEO. Standish was also named president
and McGregor, chairman, and both were appointed to the RBC executive committee. Indeed, Winograd seems to have been grooming the two for his
job; when they were named co-presidents in February 2007, Winograd called their promotions part of RBC’s “long-term succession planning.”

RBC Capital Markets
October 2008: Maybe not in the spirit of the law …

RBC Capital Markets announced a settlement with the Securities and Exchange Commission and the New York attorney general, Andrew M. Cuomo,
in which it agreed to buy back about $850 million of auction-rate securities from some 2,200 investors. The SEC and Cuomo alleged that RBC misled
investors about the investments’ riskiness. RBC joined Bank of America and nine other large banks in agreeing to repurchase more than $50 billion
of securities. In a statement, the bank neither admitted nor denied wrongdoing, and estimated that the buyback would diminish its earnings from the
fourth quarter of 2008 by about $30 million (pretax). That figure includes a $9.8 million fine RBC must pay to Cuomo’s office and to the North
American Securities Administrators Association, according to The New York Times.
September 2008: Home to Bear

RBC hired a whopping 11 former Bear Stearns employees to form a new U.S. institutional equity sales and trading team that will be based in London
and Switzerland. Those hires include Tim Allen, RBC managing director and head of U.S. institutional equity sales. Allen spent some 18 years at Bear,
where he was head of U.S. equity sales, Europe. It also captured Scott D. Moskowitz, another Bear alum and former senior managing director, making
him managing director, and co-head of the investment banking communications, media and entertainment group.
August 2008: A suite of steels

RBC acquired Richardson Barr & Co., a Houston-based energy advisory firm that specializes in acquisitions and divestitures in the exploration and
production sector. The acquisition will increase RBC’s U.S. presence, which it has made a major priority in the past two years, with some 10
acquisitions in the U.S., among them Carlin Financial Group, Seasongood & Mayer, and Daniels & Associates. The new group is known as RBC
Richardson Barr. Terms of the deal were not disclosed.
In addition, RBC acted as exclusive financial adviser to ArcelorMittal, the world’s largest steelmaker, on its acquisition of London Mining South America
Limited from London Mining. In tandem with the $810 million deal, RBC advised AcelorMittal on its creation of a partnership with Adriana Resources
to develop an iron ore facility in Rio de Janeiro. That same month it also served as exclusive financial adviser to Severstal Resources, the fourth-largest
steelmaker in the world, on its acquisition of PBS Coals Corporation by way of Coals’ acquisition of Penfold Capital.
GETTING HIRED
Core first
When it comes to recruiting, RBC maintains “similar selectivity to other large global investment banking practices,” which means a “competitive
process” for prospective hires. “If we are talking about hiring from undergraduate and MBA programs, I would characterize hiring as highly selective,”
a vice president says. “We probably make offers to 25 to 35 percent of the candidates we bring in for a final round super day.” That’s partially because
“the new analyst and associate class sizes are very small, and usually will not exceed eight analysts and four associates per year at the larger U.S.
offices like New York and San Francisco.”
One contact breaks down the firm’s recruiting targets by percentages hired, saying, “About 60 percent of the analysts and associates are recruited
from eight to 10 core schools, 30 percent come from five to 10 non-core schools and 10 percent come from schools at which RBC does not have an
active recruiting relationship.” Other sources say the firm often looks to NYU, Wharton, Emory, Columbia, Michigan as well as Berkeley, UCLA, Cornell,
Stanford, University of Texas, University of Chicago and other “top” schools.
Straight and to the point

Recruiting is “typically a two round process,” though on occasion there may be “three rounds of interviews.” For most candidates, “the first round is
on campus and is a 30-minute, one-on-one or two-on-one interview.” Campus interviews may involve “senior associates, vice presidents and
directors.” “Students from non-target schools may have first-round phone interviews instead of in-person interviews if that is more convenient,” adds
an insider.
Then it’s on to “a Super Day in New York or San Francisco,” where “each candidate interviews one on one with four to five bankers of various levels,”
including “managing directors.” Current insiders say RBC interviewers rarely throw curveballs, explaining, “Interview questions cover accounting and
basic finance, general market and industry knowledge, brainteasers and fit questions.”
“Small and selective”

“Only a couple” of associate internships are available each summer, and in the U.S., the investment banking group does not have a formal summer
analyst program. “It does have a summer associate program, but it is very small and selective.” Perhaps as a result, “A summer internship at RBC
is not necessary to be hired at RBC, but a summer internship of some kind is needed for consideration for full-time employment.” “Summer associates

RBC Capital Markets
are usually staffed as generalists, and in the past, there have been one or two positions open at the larger offices,” a source says. “Historically, one
summer analyst position is offered per year in the FIG [financial institutions] group located in Boston.”
There were “three rounds of interviews to just get a summer internship offer,” recalls a former intern. Salary was “prorated with the standard $95,000
for two-and-a-half months, with a bonus of $2,500 and signing bonus for full-time at $25,000.” Thanks to the generalist nature of the program, “you’ll
work with all industry and product groups” and get experience working on “live deals.” After the interns’ work is done, insiders estimate that the firm
hires “50 percent” of its summer class—the rest “are fresh hires.”
OUR SURVEY SAYS
Check your ego at the door

“The culture is very collegial and there is no to very little mistreatment of junior bankers,” say insiders who appreciate RBC’s “very flat” structure and
“laid-back” vibe. “Bankers, for the most part, have an open-door policy,” and there’s “not a lot of egos.” While there are “minimal internal politics,”
some say “overall leadership is somewhat lacking,” and report that RBC toes a very conservative, risk-averse line. The firm “should be taking more
advantage of the market environment,” one insider says. “Our progression up the league tables should be more pronounced.”
On the other hand, most employees are quick to admit that a conservative agenda has kept RBC in decent shape despite market turmoil, and say the
firm “has been well managed through these difficult economic times.” Even though the RBC brand “is still growing in the United States,” it’s “gaining
market recognition with clients,” and “pay is largely in line with the market.” As one source sums up, “the firm treats bankers well, but not
extravagantly.”
Up in the air
So how well are bankers treated in terms of compensation? Sources say they receive “standard perks,” including “a 401(k) match,” and average to
above-average compensation. “Twenty percent of total compensation above $200,000 is in the form of restricted stock that vests over a three-year
period,” says a vice president. “In an up market like 2005 and 2006, my compensation was at the low end of the Street range,” but as pay has fallen
elsewhere, RBC now pays in line with many of its competitors.
Of course, there’s a lot of uncertainty about total compensation packages for 2009 and beyond. “Because my compensation, including bonus, is highly
correlated with revenue, I cannot predict my 2009 bonus in this market,” a managing director says. Another associate says he’s “not brave enough
to ponder” what total payout will look like by the end of 2009.
Random hours
Workload “comes in bursts,” says an associate. “You can have great working hours for weeks at a time. Then it can get pretty busy for extended
periods of time.” While overall hours tend to be “reasonable,” many insiders point to the “unpredictability” of their schedules, which also varies by
office and by group. “Some groups seem to get worked like dogs and others have more balance,” one contact says. Another tips, “the San Francisco
office is better than the New York City one” when it comes to hours worked.
Many employees put in a 70-hour workweek, with several saying they put in weekend time from wherever they are. “The BlackBerry makes me
available 24/7,” says a vice president, and “remote access via laptop usually means I have the ability to work from home on weekends.” At least “you
don’t need to stay at the office when work is complete.” And, as a source says, people rarely find busywork to throw at junior staffers. “The firm
focuses on hiring balanced bankers, so it’s been my experience that time is seldom wasted on unneeded work.”
Only the best

When it comes to diversity, says a vice president, RBC “is focused on hiring the best talent possible. Race does not come into play.” For American
offices, “you need to be a U.S. citizen or have a green card in most cases, since getting H1-B visas is becoming increasingly difficult.”
Others say RBC is a fair-minded place, but there’s still some progress to be made in terms of hiring and promoting ethnic minorities and women.
Sources call the firm “very receptive,” but notice that “there are not many women in the investment bank.” One contact estimates the female
proportion of the bank to be “10 percent, at most, and it decreases with seniority.”
Some formal, some less formal

There’s “nothing extravagant” about RBC’s offices, but they’re “still respectable,” and most contacts give the digs decent marks. “We moved to our
World Financial Center offices in April 2008 from another downtown location,” explains a New York City contact. “The office space was built by the
firm. The offices have good views of the Hudson. The furniture, while new, is not of the highest quality—looks a step above IKEA.” However, “We get

RBC Capital Markets
free coffee, tea, soda, bottled water and milk,” and “double computer screens and wireless headsets make matters more comfortable.” Sources in
other cities agree their setups are as nice as can be expected; “I have my own office as an analyst,” crows a Denver contact. As for green initiatives
... RBC’s working on it. “People waste paper,” admits an insider.
The dress code is “formal for client meetings and business casual otherwise,” though the precise meaning of “casual” depends on your location. “It
is office-specific,” contacts say. New York leans “formal,” while actual “business casual” prevails in San Francisco, and things get “very informal” in
Los Angeles (which also allows “casual Friday”). “Most VPs and above wear business attire every day except possibly Friday,” a New York insider
reports. “Analysts and associates are more business casual than formal attire. The official policy is business casual unless client contact, but overall
it’s more formal than it was three or four years ago.”
Friendly folks
“We get treated very fairly and well,” an associate says, and other insiders agree that “we have a good time and work well together.” “The group head
I work for treats me with great respect, and I repay with top-quality work,” says a VP. “Treatment by managers, both in my group and superiors in
other groups, is very good,” a New York-based contact remarks, adding that there are “strong relationships with subordinates as well,” and very little
cutthroat competition among colleagues.
Sources say training is one area the firm can improve: “Formal training is lacking, but on the job informal training is great.” New analysts and associates
begin their careers with “two weeks of training in Toronto,” partaking in “a combination of classroom sessions and networking.” This is well and good,
respondents say, but “could have been longer and more in-depth.” Then, “there are slightly less structured on the job workshops once analysts and
associates arrive in their respective offices. These sessions are usually taught by vice presidents, associates and analysts.”
Too little risk?

There was “a round of managing director and director cuts in October 2008 and a round of associate and analyst buyouts in March 2009,” but “only
5 to 10 percent of people were allowed to leave.” Other than that, there’s been no “layoffs at the junior level,” which has many RBC insiders feeling
relieved. “The firm has been able to hold off on massive downsizing or multiple rounds of cuts that the bulge bracket U.S. investment banks have
gone through recently,” a vice president explains.
And, as larger competitors stumble, insiders say RBC is poised to “gain market share.” “We act like a boutique that gives senior-level attention to
middle market companies, but also act like a large cap company with our full suite of product capabilities as well as our balance sheet”—which has
held up fairly well. However, one source says, “The balance sheet is strong, but the firm is hesitant to put capital to work in this environment, except
for top-tier existing relationships.”

PRESTIGE
RANKING
26 NOMURA HOLDINGS, INC.
Nomura Holding America, Inc. KEY COMPETITORS

2 World Financial Center, Building B
New York, NY 10281-1198 Bank of America Merrill Lynch
Phone: (212) 667-9300 Barclays Capital
www.nomura.com/americas Citi
Credit Suisse
Deutsche Bank
DEPARTMENTS Goldman Sachs
HSBC
Asset Management
J.P. Morgan
Global Investment Banking
Lazard
Global Markets
Morgan Stanley
Global Merchant Banking
Rothschild
Retail
UBS Investment Bank
THE STATS
UPPERS
• “Friendly” culture
Stock Symbol: NMR (NYSE)
• “Fairly diverse” workplace
CEO: Kenichi Watanabe
2009 Net Income: -$7 billion DOWNERS
No. of Offices: 190 • “Lack of decision-making ability” among managers
• “Risk-adverse, muddled” culture
EMPLOYMENT CONTACT
Follow the “careers” link at www.nomura.com
THE BUZZ
• “Strong in Asia—well known Japanese broker”
• “Different culture”
• “A bigger deal post-Lehman”
• “Okay”

Nomura Holdings, Inc.
THE SCOOP
From Tokyo to the world

Nomura Holdings is Japan’s largest securities group. As of April 2009, Nomura boasted $203 billion in assets under management and 190 offices in
30 countries. In the Americas, the bank does business through Nomura Holding America, and has U.S. offices in New York, Chicago, Los Angeles
and San Francisco. Its four operating divisions in the Americas (equities, fixed income, asset management and investment banking) work jointly with
Nomura’s businesses around the world, allowing Nomura to conduct plenty of international and cross-border deals. Its broker-dealer is Nomura
Securities International.
This legend of Japanese finance arrived in New York in 1927. Today, its U.S. offices provide capital raising, mergers and acquisitions advisory, sales
and trading, foreign exchange, derivatives, research and asset management. Its M&A group, based in New York, works both domestically and
internationally on deals, often collaborating with Nomura’s Asian and European staff on divestitures, joint ventures, restructurings and valuations. It
has provided advisory services to companies in the consumer, financial institutions, healthcare, industrial, retail and technology sectors.
Nomura’s equity capital markets group is also based in New York, and offers origination, structuring, marketing, placement of equity-related securities
and strategic advice to corporate, institutional and government clients. This group works most closely with Nomura staffs in Tokyo, Hong Kong and
London, helping non-U.S. companies list on U.S. exchanges, arranging offerings in Asia and Japan for North American companies, offering investment
opportunities abroad for U.S. investors, executing global equity offerings and listing North American companies on the increasingly attractive Japanese
exchanges.
Best known in Japan as a domestic retail bank, Nomura has shown increasing interest in expanding its global operations. Worldwide, Nomura offers
a full range of securities and investment banking services, including asset management, merchant banking, corporate advisory, derivatives, foreign
exchange, sales and trading, research and capital raising. In Europe, its focus is on securities brokerage services, underwriting, M&A advisory and
asset management.
Journey from Osaka to New York

The son of an Osaka moneychanger, Tokushichi Nomura II was born in 1878, the year the Osaka and Tokyo stock exchanges were founded. At that time,
Osaka was Japan’s business and finance center. After a three-year transcription in the Japanese army, young Nomura joined his father at the family
business (called Nomura Shoten, or Nomura Shop). By 1904, the younger Nomura was running the shop, and he decided to add stock sales, trades and
spot transactions to his father’s currency exchange business. In 1906, Nomura created an in-house research department, and, to this day, research is a
central aspect of his firm’s operations. He began publishing a daily newsletter called the Osaka Nomura Business News, which contained stock analysis,
economic research and trading reports. Nomura became well known throughout Japan; no other broker at the time was putting out such reports.
Thanks to his solid reputation, Nomura and his company survived the Japanese market crash of 1907. A year later, he took his first trip to New York.
Nomura returned to Japan with the intention of creating a global finance firm that could compete with the best in America; his first step was to expand
his research department and create a translation department so he could become involved in foreign currency-denominated bonds. Underwriting and
international trading were ramped up, and by 1917, Nomura Shoten became Nomura Shoten Incorporated. In 1922, Nomura formed a holding
company to contain his empire, and three years later, his securities division was incorporated separately as Nomura Securities. In 1927, Nomura’s
dream of opening an office in New York came true. By then, Nomura’s enterprises included the stand-alone securities division, bond sales,
underwriting and commercial banking under the Osaka Nomura Bank name.
In 1946, the firm’s headquarters shifted to Tokyo, and five years later, it launched an investment management business. Nomura is credited with
pioneering the use of investment trusts. It was also one of the first foreign-owned companies to gain membership on the London Stock Exchange. In
2007, Nomura paid $1.2 billion to acquire Instinet, Inc., a major electronic trading services provider with 1,500 clients worldwide.
Landing Lehman
In September 2008, Nomura found itself at the center of the world financial crisis—and made the purchase of a lifetime. After the spectacular collapse
of U.S. investment bank Lehman Brothers, Nomura swooped in to buy Lehman’s equities and investment banking operations in Europe, Asia and the
Middle East. The Asian businesses sold for £123 million (US$225 million), while the European and Middle East arms went for the nominal sum of—
this isn’t a typo—£1.09 (US$2), which was not a bad deal, considering that Europe and Asia typically represented half of Lehman’s annual revenue.
The move preserved thousands of Lehman bankers’ jobs outside the U.S. and boosted Nomura’s head count by over 8,000. In London alone, Nomura
added about 2,500 people to its existing staff of 1,500; Nomura moved the bulk of its businesses into the Lehman Brothers building in Canary Wharf.
Under the terms of the sale, several Lehman managing directors remained in place, and reports revealed that Nomura offered generous compensation
and all-cash bonus payments to retain several top Lehman bankers.
The Lehman acquisition was clearly Nomura’s leap for the major leagues—the businesses it inherited included rosters of FTSE 100 clients and over
20 offices in Europe and the Middle East.

With the deal less than a year old, it remains to be seen how legacy Lehman employees will merge into Nomura’s culture and operating system. In
March 2009, as the 2008 bonus season approached, Reuters reported that veteran Nomura bankers were concerned about disparities between their
pay and the incentives offered to Lehman employees who remained with the firm. Meanwhile, some Lehman bankers have publicly expressed
frustration at Nomura’s conservative, risk-averse way of doing business, spurring rumors of a mass departure, layoffs or both. Compounding matters,
Nomura took a hefty ¥67.8 billion loss for its fiscal year 2008.
IN THE NEWS
July 2009: Nomura acquires NikkoCiti

Nomura Holdings confirmed that Nomura Trust and Banking Co. will purchase NikkoCiti Trust and Banking Corporation for ¥19 billion in cash. If the
transaction receives regulatory approvals, the acquisition will become official in October 2009, Nomura added. As of March 2009, NikkoCiti Trust and
Banking had ¥4.5 trillion in trust assets and more than 100 employees, while Nomura’s trust division possessed ¥19.5 trillion in assets and 261
employees.
April 2009: Cutbacks in Asia

Nomura Holdings cut 50 investment banking positions in Asia, representing 2 percent of the company’s total 2,500 workforce in the region (excluding
Japan). The bank has struggled with the cost of merging operations with Lehman Brothers, which immediately helped Nomura post a record quarterly
loss. The latest round of layoffs followed a few others: in 2008, the firm cut 100 jobs in Asia, 100 in Japan and about 1,000 in London.
April 2009: Taking its biggest hit

Nomura Holdings posted its largest annual loss ever for the fiscal year ending March 31, 2009, booking $7.2 billion in losses compared with a loss of
under $1 billion in the previous year. For its fiscal fourth quarter, the firm posted a net loss of $2.2 billion, wider than the $1.5 billion loss in the same
period of 2008. Nomura cited trading losses and acquisition costs related to its purchase of the Asian, European and Middle Eastern divisions of
Lehman Brothers as major reasons for the slide.
April 2009: London calling

The financial world took notice when Nomura’s global head of investment banking, Hiromi Yamaji, packed his bags for London. In a shift that signaled
Nomura’s heightened focus on Europe, Yamaji announced that the investment banking division would be run from the U.K. instead of Nomura global
HQ in Tokyo. “The importance of Japan as our most important market won’t change,” he told the Financial Times. Even though Japanese retail
banking remains Nomura’s biggest moneymaker, Yamaji promised that his move “is a message that we place priority on London.”
April 2009: New board member

Nomura appointed Rainer Masera to the bank’s board of directors in Italy. Masera, former chairman of Lehman’s financial institutions group, also holds
a position on the board of the European Investment Bank. A former director of the Bank of Italy, Masera served as Italy’s technical minister for budget
and economic planning in the Dini government from 1995 to 1996.
March 2009: Good as gilt

Nomura was one of just 16 firms to be recognized as a Gilt-Edged Market Maker (GEMM) by the U.K. Debt Management Office and the London Stock
Exchange, and the only Asian-headquartered investment bank to earn the status. Thanks to its GEMM designation, Nomura can now participate in
U.K. gilt auctions and make markets for both index-linked and conventional gilts.
March 2009: Off to Italy

Nomura tapped Andrea Pellegrini to serve as Italy co-chairman and co-head of Italian investment banking, working alongside Alessandro Cremona.
Pellegrini had previously served as Merrill Lynch’s chairman of the EMEA public sector group and head of investment banking/Italy.
February 2009: Gathering capital

Nomura announced a new share offering, its first since 1989, in an effort to raise ¥300 billion ($3.3 billion). The news sent Nomura’s shares to a 26-
year low as investors worried that the Japanese bank was losing too much capital on bad investments and the costs of merging in Lehman Brothers’
operations. But the share issue did not seem to be solely intended to recoup losses. Instead, Nomura indicated it also needed the capital to fund
expansion plans—especially brewing efforts to make inroads in the U.S.

February 2009: Kudos on health care

Nomura Code, a Nomura International plc subsidiary that specializes in health care and clean tech investment banking, was named Adviser of the
Year in the Rosenblatt New Energy Awards for 2009. Nomura Code was cited as the most active clean tech advisor in the UK, representing six listed
companies and raising €250 million in eight public market transactions since 2005. In 2008, Nomura raised €20 million in public equity deals for
clients like PuriCore and Ceramic Fuel Cells.
Nomura beat out rivals such as Morgan Stanley and KPMG for the New Energy Awards honor, picking up extra recognition for its in-house initiatives
to promote green purchasing and reduce energy use and waste. Speaking of which, in February 2009, Nomura won a platinum award at the City of
London Clean City Awards—for the third year in a row. The bank was one of just 20 companies in the city to be lauded for its above-average efforts
to reduce, reuse and recycle during daily operations.
February 2009: Dubai will do

Nomura International plc announced that it had been granted a banking license by Dubai’s Financial Services Authority, opening the door to investment
banking and capital markets operations there. Pre-Lehman acquisition, Nomura’s Middle East operations were in Bahrain, while Lehman had a
presence in Doha and Dubai. In 2008, Nomura secured a license to operate in Saudi Arabia, and is slated to begin business there in the second half
of 2009. The firm is also said to be in the process of securing licenses to operate in Qatar.
The firm’s Dubai office will be its largest in the Middle East, and will serve as a link between clients and institutions in Asia and those in Africa and the
Middle East.
January 2009: Four in a row

Nomura Holdings posted a $3.8 billion loss for its fiscal third quarter (ended December 2008), a steep decline versus the 21.8 billion profit it recorded
for the same period a year earlier. The quarterly loss, Nomura’s fourth in a row and its worst ever, was spurred on by bad trades and the costs
associated with incorporating Lehman Brothers’ Asian, European and Middle East operations, which the bank purchased in 2008.
December 2008: Strong standings

On the 2008 Thomson Reuters league tables, Nomura ranked No. 15 in global announced M&A deal volume and No. 12 in completed deal volume,
wrapping 181 transactions worth a total of $268 billion. For European dealmaking, Nomura placed No. 14 and No. 12 in announced and completed
transaction volume, respectively; in the U.K., it ranked No. 11 in announced deal volume and No. 7 in completed mergers and acquisition volume.
Nomura also made the top 10 for completed deals in France, Spain, Germany and Italy, but lingered at No. 20 for completed M&A deal volume in the
Nordic region, and No. 14 in the Benelux countries.
October 2008: Another downer

Nomura posted its third consecutive quarterly loss, booking a net loss of $785.6 million for its fiscal second quarter. The loss was worse than the $126
million loss the firm posted for the same period a year earlier. Nomura’s revenue also fell, decreasing by 28 percent to $1.38 billion. The poor results
were due largely to international fallout from the credit collapse and market conditions causing traders to curb activity.
September 2008: Picking up Lehman

Nomura Holdings agreed to purchase Lehman Brothers’ Asian, Middle Eastern and European investment banking arms, shortly after the U.S. firm filed
for Chapter 11 bankruptcy protection. Nomura’s $225 million bid for the ailing firm’s Asian piece won out over other interested parties, including
rumored interest from Standard Chartered. (The price tag for the European and Middle Eastern arms was not disclosed, but Nomura called it
“nominal.”) Lehman has a sizable presence in Asia, with 3,000 employees and a No. 2 Thomson Reuters overall ranking in Asian mergers and
acquisitions so far in 2008. In Europe, the firm ranked No. 7 in European M&A so far in 2008.
GETTING HIRED
You’ll need to do some digging

Finding out about jobs at Nomura is not as easy as it is at most investment banks. Sources say the firm has “a poor graduate recruiting scheme,” and
that the hiring process is “not systematic.” Nomura’s main career page does provide links to sites for four geographic areas: Japan, Europe, America,
and Asia/Pacific. But while the sites are relatively detailed, information on employment in the Americas is sparse. Nomura advises candidates
interested in employment in the U.S. to call the contact human resources department at (212) 667-2310 or fax them at (212) 667-1016

Worthwhile experience
One intern at Nomura was hired after sending a resume, followed by one round of interviewing consisting of “six or seven” meetings, all with “senior
professionals” who had a “fairly relaxed” and “polite” interviewing style. Internships at the bank can be a good way for candidates to get an idea of
what it’s like to be a full-time banker. One intern was tasked with conducting “extensive analysis into competitors in the biopharma venture capital
market, focusing on size of fund, investment objectives, co-investors and market segmentation.” The intern was “praised” for designing “research
parameters and appropriate questions,” and for analyzing the research results. The intern “gained excellent communication skills and a key ability to
listen to people through in-depth discussions with venture capital managers. Despite the fact that “not that much training” was given, and
compensation was “a little under what most interns got paid,” the intern says, “I didn’t feel that they were ripping me off or anything.”
OUR SURVEY SAYS
Traditions tough to break

Nomura is a “friendly” firm where employers are “respectful” and respondents “generally seem happy to work there.” One source says, though, that
the culture can be “quite bureaucratic.” There can be a “bit too much red tape everywhere,” due in part to the “risk-adverse, muddled Japanese”
culture. One former insider says that the “team often complained about” the way things are run around Nomura. Some have fewer gripes, calling the
culture simply “traditional Japanese.” But it’s tough to ignore that “all the very top positions are held by Japanese guys.” One source notes that in
the junior ranks, the London office is “fairly diverse,” made up of “Brits, Americans, Asians—though they were Asian Brits—and Aussies.”
Management at the firm, aside from being traditional, is described as “disconnected and inexperienced, due to short rotation period and language
difficulties.” One source says, “Local managers take advantage of this to build private empires,” and another suspects that “Nomura will never be a
world-class firm until they fix this.” Overall, there is a “lack of decision-making ability” among the firm’s senior leaders.
Doing time
Some sources say that experiences at Nomura differ drastically among business groups. “There is no movement and no communication between
equities and fixed income,” according to one respondent. Another points out that hours at the firm can be tough, while one contact is not happy with
working “50 to 60” hours per week, but still manages to “rarely or never” work weekends. Yet another insider, who works 9 a.m. to 7 p.m., says hours
are “not that bad,” but points out that “some of the team stays later.”
Dress code at Nomura is “smart,” says one source, but the firm allows “casual Fridays” in some locations. Opinions about the firm’s office space vary,
with some calling it “nice” and others “wanting more space.” Nomura gets below-average marks on compensation and training, but scores well on
receptivity to women, ethnic minorities, and gays and lesbians.

PRESTIGE
RANKING
27 ROYAL BANK OF SCOTLAND GROUP PLC
36 St. Andrews Square KEY COMPETITORS

Edinburgh, EH2 2YB
United Kingdom Barclays
Phone: 44 (0) 131 556 8555 Citigroup
Fax: 44 (0)131 557 6140 HSBC
www.rbs.com
UPPERS
DEPARTMENTS • “Everyone on the team puts in the hours”
EMEA Retail & Commercial • “Friendly and open”
Finance
Global Banking & Markets
Global Transaction Services
DOWNERS
RBS Insurance • Company is going through tough times
Risk & Restructuring • “It isn’t uncommon to put in 60-hour weeks”
Support Division
UK Corporate
UK Personal EMPLOYMENT CONTACT
US Retail & Commercial
Follow the “careers” link at www.rbs.com
THE STATS
Ticker Symbol: RBS (LSE, NYSE)
Chairman: Sir Philip Hampton
CEO: Stephen Hester
2008 Net Income: -£24.1 billion
No. of Employees: 165,000 (Worldwide)
No. of Offices: 2,720 (Worldwide)
THE BUZZ
• “Decent firm but struggling”
• “Game over”
• “Working for Her Majesty’s Treasury”
• “Terrible risk management”
173
Royal Bank of Scotland Group plc
THE SCOOP
Royal in name and lineage

The Royal Bank of Scotland Group (RBS) was chartered by King George in 1727; at the time, its only rival was the non-royal Bank of Scotland. For
the first 50 years of its existence, the Royal Bank operated from a single location in Edinburgh, but in 1783, it opened a branch in Glasgow. By the
1870s, RBS had set up shop in London, and from there it grew rapidly, acquiring a number of English banks and opening a New York office in 1960.
More mergers followed in modern times, as RBS swallowed the National Commercial Bank of Scotland in 1969 and celebrated Britain’s biggest bank
takeover with the 2000 acquisition of National Westminster Bank (NatWest). Then in 2007, RBS led a consortium to acquire ABN AMRO, marking
the biggest bank takeover in the world.
The Royal Bank of Scotland has 10 main divisions: U.K. corporate banking, U.S. retail and commercial banking (which offers services through the
Citizens and Charter One brands), global banking and markets, risk and restructuring, support (HR, strategy and communications), U.K. personal
banking (which operates through the RBS and NatWest brands), RBS Insurance, EMEA retail and commercial banking (through the Ulster Bank brand,
global transaction services and finance.
RBS in the U.S.

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.—it’s 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. It has about $167 billion in assets, $98 billion in deposits, 23,000 employees and more than 1,450 branches.
RBS Asset Finance is a big 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., RBS’s global banking and markets group encompasses corporate banking, leveraged finance, project finance, loan and high-yield markets,
as well as RBS Greenwich Capital—an 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.
The worst is (hopefully) over

The Royal Bank of Scotland set a record in fiscal year 2008—but it wasn’t the kind of record any bank wants to set. The bank’s annual loss of over
£24 billion represented the biggest annual loss of any corporation in British history. In February 2009, one week after dropping that bombshell, RBS
became the first bank to join the British government’s asset protection program for troubled institutions. The asset protection plan allowed RBS to
move £325 billion of toxic assets from its global markets division into a taxpayer-backed pool. In exchange, RBS promised the government it would
divest itself of any remaining illiquid assets within five years, and vowed to increase lending. It also gave the British Treasury preferred shares worth
£19.5 billion.
The asset-relief plan was not the first time RBS had turned to the Treasury for help. In October 2008, RBS accepted funds from a £50 billion bailout
plan, a move that left the British government with a 70 percent stake in the bank. The events of early 2009 meant that the government’s stake in RBS
would rise to nearly 95 percent.
Changes at the top

The financial crisis led to a massive shake-up at RBS, as former chief executive Sir Fred Goodwin and former Chairman Sir Tom McKillop were deposed
in October 2008. Calls for their resignation mounted in as RBS accepted bailout funds from the Treasury; the bank initially brushed off rumors that
the two men might leave. It was Goodwin who had built RBS’s reputation as a ruthless, acquisition-hungry predator that wasn’t afraid to eliminate
thousands of jobs at a time (his nickname: Fred the Shred). He supervised a megamerger with rival NatWest in 2000 and led the RBS-backed
consortium that bid £54 billion for Dutch giant ABN AMRO in 2007, despite early signs of the coming credit crisis. Goodwin also raked in more than
£4 million in annual compensation, making him an easy target for shareholders’ ire.
In mid-October 2008, RBS announced that Goodwin would resign and be replaced by newcomer Stephen Hester, chief executive of British Land.
Chairman McKillop agreed to step down at the RBS annual meeting in April 2009, at which point he was replaced by Sir Philip Hampton. The RBS
leaders’ woes didn’t end there: in March 2009, the Times reported that two British council pension funds had retained Cherie Blair to bring a class
action suit against Goodwin, McKillop and RBS for the losses they have incurred. The pending suit, which is being brought in class action-friendly
American courts, is open to all RBS investors in Europe and the United States.

Circling the wagons

With new management secured and the Treasury’s toxic asset plan in place, in early 2009, RBS hunkered down to plan its way back to profitability.
According to announcements made in February, the bank plans to cease operations in 36 of the 54 countries in which it currently works.
It also intends to realise a one-sixth reduction in costs. Putting a number on that would mean about £2.5 billion in costs cut from RBS’s worldwide
operations over the next three to five years. As a preliminary step, in April 2009, the bank announced deep rounds of cuts that would impact 9,000
jobs, 4,500 of them in the U.K. These layoffs came on top of the approximately 6,000 job cuts that took place in smaller rounds earlier in the year
and in 2008. Although specific details were not provided, RBS said the layoffs would have the most impact in its group manufacturing division.
One thing after another

RBS’s financial problems in 2007 and 2008 were centered in its global banking and markets (GBM) division, which carries out the firm’s investment
banking operations. One of the biggest blows was a goodwill impairment charge of over £15 billion, fallout from the 2007 purchase of ABN AMRO.
(Critics of the ambitious acquisition got their “I told you so” moment, as did critics of former CEO Sir Fred Goodwin, who spurred the purchase to
fruition.) The ABN AMRO impairments were accompanied by yet another £6.5 billion credit impairment loss in fiscal year 2008, £3 billion of which
stemmed from GBM. The firm was also forced to write down approximately £8 billion on its exposure to structured credit vehicles, including
collateralised debt obligations.
As if that weren’t enough, RBS was also heavily exposed to the $50 billion frauds perpetrated by U.S. trader Bernie Madoff. This exposure stands to
cost RBS at least £400 million.
IN THE NEWS
May 2009: A steep loss with a glimmer of hope

Royal Bank of Scotland posted a $1.29 billion net loss for the first quarter 2009, compared with a profit of about $368 million for the previous year’s
first quarter. As a cause for the losses, the bank cited $4.3 billion in write-downs on the value of assets (steeper than the $986 million in write-downs
it made during the first quarter 2008). Meanwhile, revenue increased 26 percent to $14.5 billion, partially attributed to the 97 percent boost in profits
at the firm’s investment bank. However, CEO Stephen Hester warned against overenthusiasm, saying, “We expect credit conditions to continue to
deteriorate over the next few quarters,” adding that “there will be a slowdown in financial market activity compared with the very buoyant conditions
seen in Q1.”
May 2009: Finance chief resigns

RBS said its CFO Guy Whittaker will be resigning from the board immediately and officially departing from the firm in October 2009. Whittaker is the
13th member of the board to leave after the bank accepted a capital injection from the government in late 2008. Whittaker will be staying on while he
helps find his successor, RBS said.
April 2009: Destruction in London

On April 1, 2009, protesters demonstrating against the Group of 20 summit meeting targeted the Royal Bank of Scotland in London and other banks.
About 4,000 people in total demonstrated at what they termed “Financial Fool’s Day” in the city, vandalizing property and outnumbering police forces.
A closed RBS building became the object of distinct rage, as protesters broke windows, tossed office equipment out the windows and sprayed graffiti
on the branch walls. RBS, in particular, has riled fury in many after receiving a bailout from the U.K. government while ex-RBS CEO Fred Goodwin
walked away from his post with a $1.2 million annual pension.
April 2009: More deep cuts

RBS said it would initiate up to 9,000 job cuts, including about 4,500 in the U.K., over the course of the next two years. The new cuts, which followed
the 2,700 redundancies it already made in 2009, will mostly affect the bank’s back-office operations such as its technology and call center divisions.
Hoping to shrink costs by $3.7 billion, RBS said the actual amount of jobs cut could be “significantly lower” due to the bank’s plan to move workers
into new positions. In a statement, CEO Stephen Hester said the bank had “set a new strategy [to return] to standalone strength as soon as
practicable,” adding that “unfortunately, that means taking difficult decisions about jobs.”

March 2009: They’re outta there

RBS said it planned to cut back to focus on its core businesses—mostly banking within the retail and commercial sectors in U.K. and the U.S.—and
remove its banking presence from 36 countries. RBS plans to put its retail and commercial banking units in Asia, central and east Europe on the
auction block, and is considering selling off Charter One bank wholly or in divisions.
March 2009: Pension-related attacks

Ex-RBS CEO Sir Fred Goodwin’s property was vandalized following news that he would be keeping his $24.89 million pension package. The attackers
broke several windows of Goodwin’s Edinburgh home and of a Mercedes Benz parked in his driveway. An email, purportedly sent from his attackers,
read, “We are angry that rich people, like him, are paying themselves a huge amount of money, and living in luxury, while ordinary people are made
unemployed, destitute and homeless. This is a crime. Bank bosses should be jailed.” Goodwin was ousted from his position in October 2008 as the
bank posted its largest loss in its history (about $35.5 billion). Fortunately for Goodwin, he was not living in Edinburgh during the attacks.
February 2009: An unenviable record

The Royal Bank of Scotland reported the largest annual loss in the history of U.K. companies. The bank posted a $34.2 billion loss for 2008 compared
with a profit of about $10.4 billion in 2007. The loss, while less than analysts expected, still shocked markets and caused the bank to be the first to
join the U.K. government’s asset protection program, which will help to insure RBS assets up to $462 billion.
January 2009: Getting out of China

Following months of speculation, Royal Bank of Scotland sold off its stake in Bank of China for $2.37 billion. (After the sale, Bank of China’s shares
closed 2.7 percent higher.) RBS, which had mulled selling the Bank of China stake since October 2008, followed similar moves by other banks. Prior
to the sale, UBS and Hong Kong-based billionaire Li Ka-shing both sold shares in Bank of China, and Bank of America sold $2.8 billion of its stake in
China Construction Bank.
January 2009: A new chief

Stephen Hester took over the CEO position at RBS from Fred Goodwin, who announced his retirement from the post in November 2008. Filling big
shoes is a move that comes naturally to Hester, who also stepped in to replace Sir John Ritblat as CEO of property company British Land in 2006. But
one move Hester likely won’t want to replicate as CEO is another call to the U.K. government. Under Goodwin, who said in 2006 that the taxes RBS
pays help support government and public services, the firm received a government bailout to the tune of $28 billion, a figure outweighing the taxes the
firm paid during that timeframe.
December 2008: Still hanging on

Troubles notwithstanding, RBS managed to hold its own on the Thomson Reuters banking league tables for 2008. In 2008 worldwide announced M&A
by volume, the firm ranked No. 16, slipping three spots from its rank for 2007. In the U.S., the firm ranked No. 20 in announced M&A volume, a one
spot fall versus 2007. In European announced M&A, RBS also ranked No. 20 for announced deals, quite a dive compared to its finish at No. 11 in
2007. And in announced U.K. M&A, RBS ranked No. 17, down three spots versus 2007.
November 2008: More write-downs to come

The Royal Bank of Scotland said it will face more write-downs in the near future, including during the fourth quarter 2008, even as it took $32.5 billion
of emergency capital from its government and from investors. Soon-to-be CEO Stephen Hester said he wants the bank to be able to return to paying
dividends in 2010. In order to do this, RBS would have to buy back billion of government preference shares.
November 2008: RBS to cut 3,000

According to sources inside the Royal Bank of Scotland, the firm is expected to layoff as many as 3,000 insiders in its global banking and markets unit
(about 15 percent of its staff). The cuts, likely to take place over a few-month period, will mainly affect leveraged loans, asset-backed securities and
corporate lending.

GETTING HIRED
Here and abroad

Candidates looking for a job with Citizens should check out the careers section of the company website (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. For jobs with RBS’s global markets group,
you can check the careers link on the RBS website and read about opportunities by location (including the U.S.). Recent grads wishing to check out
opportunities in Europe or elsewhere should also go to the RBS site. RBS gas graduate and internship programs throughout the Americas, Asia and
Europe. Candidates should have “boundless energy and bags of enthusiasm,” according to the firm, which also values fluency in a second European
language and, of course, previous work experience.
Face the challenge

In general, the interview process for banking positions tends to take place in “two stages: one that’s based more around fit questions and another that’s
based more around competency.” The interviews “are usually two-on-one,” and the questions are “challenging and based on scenarios, actions and
results.” But don’t 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 bank’s culture places an emphasis on “delivering as a team with exceptional standards” and “pushes to be market leader in all its markets.” It’s
also “friendly and open,” and “everyone in the office works extremely hard—because there is an emphasis on teamwork, people are happy to go the
extra mile.” And workers actually enjoy each other’s company, it seems. “There are company social activities—everyone seems to get along extremely
well with each other,” reports one insider.
There’s 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 doesn’t feel like
an issue.” Hours vary, but, “if the pressure is on to meet a project deadline, it isn’t uncommon to put in 60-hour weeks and come in on the odd
weekend.”
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 salary—I have not heard
of many better offers than this,” admits one respondent. On its website, the firm also offers perks ranging from pet insurance to the option of buying
or selling a week of allotted vacation during the bank’s 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 that’s 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 email to the team or a social event covered by the company.”
And the bank doesn’t leave workers out in the cold when it comes to their personal development. There’s a “seemingly unlimited budget for training,
particularly for professional qualifications,” and there’s 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.”

PRESTIGE
RANKING
28 CHASE COMMERCIAL BANK
270 Park Avenue UPPERS

New York, NY 10017
Phone: (212) 270-6000 • “Exciting” workplace
Fax: (212) 270-2613 • Good benefits
www.chase.com
DOWNERS
DEPARTMENTS • “Lots of politics”
Business Credit • Not-so-great pay
Commercial Real Estate
Corporate Banking
Equipment Leasing
EMPLOYMENT CONTACT
Middle Market Banking careers.jpmorganchase.com
THE STATS
Employer Type: Subsidiary of JPMorgan Chase & Co.
CEO: Todd Maclin
2008 Net Income: $1 billion
No. of Offices: 73 (US)
THE BUZZ
• “Premier commercial bank”
• “Not challenging, bureaucratic”
• “Great management”
• “Poor service”

Chase Commercial Bank
THE SCOOP
Diverse services
Chase Commercial Bank, a subsidiary of JPMorgan Chase, operates along five business lines. Its middle market banking division, which includes over
600 bankers and 700 service professionals, serves companies with annual revenues ranging from $10 million to $500 million, offering everything from
investment banking to cash management and credit. Companies with annual revenue of between $500 million and $2 billion turn to the corporate
banking division for traditional banking services and select investment banking products; Chase corporate bankers serve these clients through a
partnership with J.P. Morgan’s investment banking teams.
Meanwhile, the business credit, commercial real estate and equipment leasing divisions provide structured asset financing (including loan structuring,
syndication and collateral analysis); commercial banking for real estate investors and developers; and equipment financing, respectively.
Yeah, we do that
All told, Chase Commercial Bank’s more than 5,000 employees work with over 26,000 clients, including financial institutions, municipalities,
corporations and nonprofit entities, in 22 states. Chase can boast that it’s the No. 2 middle market lender in the U.S. and the country’s No. 1 asset-
based lender. It’s also the top commercial bank in its retail branch footprint, which reaches from New York to Arizona. And, perhaps most important,
thanks to several recent monstrous mergers on its parent’s part, Chase Commercial Bank is part of one of the world’s biggest financial services firms:
JPMorgan Chase has nearly 220,000 employees in more than 60 countries and total assets of approximately $2.2 trillion.
Chase Commercial has industry expertise in nearly two dozen sectors, including financial institutions, health care, art galleries, cultural institutions,
labor unions, automotive, entertainment, jewelry and apparel, theaters, sports, technology, funds managers, lawyers and law firms, associations,
nonprofits, municipal governments, associations, social services organizations, Native American tribes, public companies, higher education,
restaurants and restaurant suppliers, and specialty retail.
Plenty of clout
Parent JPMorgan Chase is one of the great legends of U.S. banking history, with roots that date back to 1824, when the Chemical Bank of New York
was formed. Over the decades JPMC incorporated or otherwise evolved from First Chicago, the National Bank of Detroit, Manufacturers Hanover, Bank
One, Chase Manhattan and the original J.P. Morgan & Company.
A 1996 merger between Chase Manhattan and Chemical Bank formed the country’s then-biggest bank holding company, which subsequently merged
with J.P. Morgan & Co. to form JPMorgan Chase. The new powerhouse was led at first by J.P. Morgan CEO William B. Harrison. In 2004, JPMorgan
Chase combined with Bank One, which had been created in 1998 by the merger of Banc One Corp. and First Chicago. In 2006, former Bank One
CEO Jamie Dimon became chairman and CEO.
Buying Bear
Less than two years later, in March 2008, when legendary financial institution Bear Stearns crumpled under the pressure of the credit crisis, JPMorgan
Chase was standing by to pick up the pieces—literally. 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 was converted into 0.21753 shares of JPMorgan Chase common stock.
Bear’s 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 hedges—including Bear Stearns Forex and Bear Stearns Credit Products—from 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.
Rescuing WaMu
Another bank’s failure resulted in a major acquisition for JPMorgan Chase. Washington Mutual Bank, the country’s biggest savings and loan, collapsed
in spectacular fashion: it was shut down by the Office of Thrift Supervision, placed into FDIC receivership and awarded the dubious title of “largest
American bank failure.”
Once more, JPMorgan Chase was there to pick up the debris, acquiring WaMu’s 2,200 branches and its $135 billion in deposits for $1.836 billion.
However, the deal also saddled JPMorgan Chase with WaMu’s extensive portfolio of tanking mortgage-backed investments. To fortify its capital reserves
against write-downs and losses associated with the acquisition—nearly $31 billion to start—JPMorgan Chase quickly raised $10 billion through a stock

sale. WaMu branches, which reopened for business upon completion of the acquisition, are undergoing a rebranding process that’s slated to be
complete by the end of 2009.
Was snatching WaMu from the brink of disaster a risky move for JPMorgan Chase? Perhaps, but the two banks had history: in March 2008, JPMorgan
Chase had made an unsuccessful $8 per share offer for the savings and loan. So, in the end, JPMorgan Chase got what it wanted, including WaMu’s
coveted West Coast branch network and the distinction of being the nation’s biggest bank (finally surpassing Bank of America).
IN THE NEWS
February 2009: A new wave of cuts

JPMorgan Chase & Co. said it will slash 12,000 positions—about 2,800 more than it previously estimated—as part of its integration of Washington
Mutual. JPMorgan Chase also said it plans to save about $2.75 billion from the incorporation of WaMu. The announcement came two days after
JPMorgan Chase decided to cut its dividend by 87 percent in order to save $5 billion annually.
January 2009: Impact on the bottom line

For the final quarter of 2008, Chase Commercial Bank reported revenue of $1.4 billion and net income of $480 million, a 67 percent increase from
the same period in the previous year. The reason for this success in the midst of an economic meltdown was largely due to higher net revenue, thanks
to the WaMu acquisition.
Chase’s middle market banking division had a particularly good quarter, bringing in $796 million (an increase of $101 million from the previous year).
Average loan balances skyrocketed to $117.7 billion, a 63 percent increase from the previous quarter and an 80 percent increase from the same
quarter in the previous year. Chase Commercial also saw its overhead ratio drop in the quarter, going from 46 percent to 34 percent.
December 2008: Still lending

As concern about the U.S. financial system accelerated in the final days of 2008, Chase Commercial and JPMorgan Chase rushed to assure
customers—and the government—that they were, indeed, keeping credit flowing into the economy. JPMorgan Chase announced that it had increased
its loan commitments by 33 percent, compared to 2007, including $5 billion in loans specifically for health care companies, nonprofits and government
units. Chase Commercial Bank CEO Todd Maclin pointed to a children’s hospital in Chicago, which was breaking ground for a new, $900 million
building. In conjunction with a $552 million bond issue, Chase Commercial Bank provided a $196 million mixed-use credit facility. “We have
expanded and will continue to expand our lending to existing clients while beginning new relationships with others,” said Maclin. “Lending to these
organizations helps both them and our communities.”
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 shows—they screen well and they have a return of reliable and hardworking people.”
One source says the interview 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
you’ve worked in a team environment” and “name three things you like and dislike.” You may also get asked questions regarding “what classes you’ve
taken.” “They asked me a wide range of questions,” explains a source, “from working in teams to ideas on how to improve the bank from an outsider’s
perspective.” Occasionally there’s 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 firm’s bottom line—the 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 you’re
good at your job—but more importantly, they want to know if you can function in the environment.” But interviews “aren’t 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?” During the interview, you
can also expect to be asked about “what you are looking for” in a position and “what your ambitions are.” They’re also likely to “see what you know

about banking” through testing and questions. Interviewers may also “ask what your ambitions are and see if they can be filled by the company.” One
insider says “my interview and hiring process was very down to earth and professional, adding “I felt welcomed and relieved that I wasn’t made to feel
like I was food for an ant eater.”
OUR SURVEY SAYS
Exciting times
Chase provides an “exciting,” “fun” and “challenging workplace,” respondents say. The bank also 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.” You’re also “given responsibility early in
your career” within a flat structure—”you can go into anyone’s office and ask them for help.” And the firm trims the fat where it can—”we are goal-
oriented to cut costs and achieve results while being a diverse firm that provides the best financial services.” While there can be “lots of politics,”
insiders generally give the overall company culture high marks.
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 I’ve worked at Chase, I’ve 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 firm—not 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, it’s 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.”) And “turbulent market conditions” frequently make for longer hours,
one insider confesses.
For the most part, the dress code is a “generally business casual” one when client meetings aren’t 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 sleeves—
but most stick with the standard.”
Mixed bag
One thing insiders aren’t particularly keen on, however, is the pay. “Poor compensation” is an issue, according to insiders. It’s not all about cold hard
cash, though—the company also offers “full benefits,” “four weeks’ vacation” and “five personal and six sick days.” “You also have the opportunity
to buy company stock at a 5 percent discount.” 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.”
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, it’s “the only publicly owned bank that can utilize its size and strength to lend credibility in shaky times.” It’s
also “very well positioned relative to other banks suffering from credit write-downs and liquidity issues.”

PRESTIGE
RANKING
29 DRESDNER KLEINWORT*
*Folded into Commerzbank AG’s corporates and markets KEY COMPETITORS

division on September 1, 2009; the Dresdner Kleinwort name
was dropped Credit Suisse
Deutsche Bank
1301 Avenue of the Americas Lazard
New York, NY 10019
Phone: (212) 969-2700
www.commerzbank.com/newCM
UPPER
• Friendly people
BUSINESSES
Capital Markets
DOWNER
Equity & Credit Derivatives • Workdays can be long
Financing & Securities Management
Fixed Income, Currencies & Commodities
Global Distribution EMPLOYMENT CONTACT
Global Equities
“A career” at www.commerzbank.com
Hedge Fund Solutions
Research
Global Banking
Global Finance
Global Loans & Transaction Services
Strategic Advisory
THE STATS
Employer Type: Subsidiary of Commerzbank AG
CEO: Stefan Jentzsch
No. of Offices: 35
THE BUZZ
• “Formidable competitor”
• “Commerzbank tarnishes their once pristine image”
• “Niche player”
• “Don’t do much in North America”

Dresdner Kleinwort
THE SCOOP
Recent history
The investment bank Dresdner Kleinwort is now a part of Germany’s second-biggest bank, Commerzbank, which closed its acquisition of Dresdner
Bank (Dresdner Kleinwort’s former parent) in January 2009. Currently, 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.
Its new parent

Commerzbank has a presence in 50 countries around the world, employing approximately 40,000 people, of which more than a third work outside its
native Germany. The bank’s total private and business customer base of 8.5 million includes more than half a million corporate customers, and the
bank’s network encompasses more than 5,000 “correspondent banks” worldwide. Commerzbank’s business structure is divided into four main units:
corporate banking, retail banking, real estate banking and institutions. The services offered by the corporate banking division include financing,
transaction management, investment, foreign business, risk management consulting.
Before Commerzbank
In 1995, Dresdner Bank took over British investment bank Kleinwort Benson, creating Dresdner Kleinwort Benson. In 2001, the entity took over
American investment bank Wasserstein Perella—a firm that was highly reputed for its debt capital markets expertise. The two investment banks were
merged to form Dresdner Kleinwort Wasserstein. Shortly after that deal closed, German insurance conglomerate Allianz bought Dresdner—and its
subsidiaries—for a whopping $22 billion. The famous dealmaker Bruce Wasserstein subsequently left the firm, 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 Dresdner’s
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).
In addition to a global headquarters in Frankfurt, Dresdner Kleinwort was given a second European headquarters in the financial capital of London
where, through its capital markets, corporate finance and origination business lines, the firm’s long list of pan-European clients were provided with
investment banking products and services. Dresdner Kleinwort quickly developed a strong position in its core home market of Germany and adopted
home market of the U.K. Within only a few years of its creation, Dresdner Kleinwort had offices in more than 35 countries and a staff of over 6,000
employees. Dresdner Kleinwort also boasted particular expertise in the realm of European renewables (such as wind, solar, bio-energy and fuel cells).
Despite its name recognition around the world, the firm hasn’t performed well as of late, largely due to the worldwide financial crisis, and Commerzbank
plans to contract rather than expand the investment banking capabilities once provided by Dresdner Kleinwort. (By May 2009, most of the London-
based corporate and investment banking businesses serving non-German clients had been phased out.) In addition, once Dresdner Bank is fully
integrated, the Dresdner Kleinwort name will likely be retired.
Award time
Dresdner Kleinwort raked in a number of awards in 2008, in recognition of its many deals: Project Finance Magazine named its financing of
Macquarie’s acquisition of Puget Energy (it supplied $3.6 billion of the $7.6 billion agreement) a deal of the year; The Banker recognizes the
Enel/Acciona €42.52 billion acquisition of Endesa as a deal of the year for Spain; and Mergermarket recognized its advisory of Schaeffler Group’s €22.9
billion takeover of Continental.
IN THE NEWS
May 2009: Deutsche’s new acquisition

Deutsche Bank agreed to buy up Dresdner Bank’s Global Agency Securities Lending unit from Commerzbank AG. The business will be incorporated
into Deutsche Bank’s Trust & Securities Services unit. Although terms of the deal were not disclosed, the deal is estimated to be finalized in the fourth
quarter of 2009.
September 2009: Moniker change

The Dresdner Kleinwort was officially disco ntinued, following Commerzbank’s acquisition of Dresdner earlier in 2009. Going forward, former Dresdner
Kleinwort employees will fall under the Mittelstandsbank division of Commerzbank or its corporates and markets unit, and Commerzbank will be the
brand that relates to all investment banking aspects of the former Dresdner.

Dresdner Kleinwort
February 2009: More layoffs in London

About 150 London-based Dresdner Kleinwort staff members in equity research and cash equities were made redundant. In addition, it was revealed
the bank would no longer be covering non-German companies.
January 2009: Shakedown

Commerzbank closed on its $14.2 billion acquisition of Dresdner Kleinwort’s parent bank, Dresdner, from Allianz. Twenty-five percent of Commerzbank
is presently held by the German government, and the sale spells uncertain times for Dresdner Kleinwort; according to Reuters, Commerzbank plans
to scale back Kleinwort to focus on German companies and retail clients.
January 2009: And then there was one

All but one member of the executive committee that ran Dresdner Kleinwort stepped down, following Commerzbank’s takeover. Only Berent
Wallendahl, former head of client coverage at the firm’s global banking unit, remains—as head of client relationship management. He’s joined by Ralf
Werres, not previously a member of the executive committee but the only other Dresdner banker who will hold a top executive role as head of
institutional sales. Notably, chief executive Stefan Jentzsch and COO Badouin Croonenberghs did not make the cut.
January 2009: The full list

Including CEO Stefan Jentzsch and COO Badouin Croonenberghs, the following executives from Dresdner Kleinwort departed, according to Reuters:
Head of capital markets and head of equity and credit derivatives Jens-Peer Neumann, head of global banking Alberto Piedro, M&A specialist and
head of strategic advisor John McIntyre, head of global finance Bertrand Pinel, head of global loans and transaction services William Fish, head of
hedge fund solutions and head of global equities Martin Newson, head of principal investments Thomas Roeder, head of emerging markets Mike
Adams, head of fixed income, currencies and commodities Eddie Listorti, head of global distribution Stefan Guetter, and head of research Colin Philips.
December 2008: Dresdner gets results

According to Thomson Reuters, Dresdner Kleinwort ranked No. 22 in worldwide announced M&A deal volume for 2008, working on 37 deals worth
$73.9 billion. The firm also ranked No. 17 in European announced M&A deal volume, with 36 deals worth $72.6 billion. Additionally, in its 2008
middle market M&A league tables, Thomson Reuters named Dresdner Kleinwort No. 15 in European announced transactions with values up to $100
million, No. 20 in European announced deals up to $500 million and No. 15 for announced U.K. deals up to $500 million.
December 2008: Fact meets fiction

Former Dresdner Kleinwort banker Geraint Anderson published Cityboy: Beer and Loathing in the Square Mile in the U.K. Anderson revealed his
identity shortly before the book was published; he previously wrote a column about his job at the investment bank for the London Times. Anderson
logged 12 years at Dresdner where he was, according to the paper, a “star stock analyst.” The book was serialized in the Times and also became a
national bestseller. “Everybody sells their soul to the devil,” writes Anderson in Cityboy, describing the narrator’s first job interview. “I just decided that
I’d get a damn good price for mine.”
December 2008: Cutting back

It was revealed that Commerzbank would be shrinking Dresdner Kleinwort’s U.K. M&A business and cutting 1,200 of a total 3,300 London-based staff
July 2008: HBOS tanks

Dresdner Kleinwort and Morgan Stanley underwrote the $8 billion rights issue of HBOS, Britain’s biggest home lender, in an effort to help the bank
raise much-needed capital. But only 8.3 percent of its shares sold, leaving the two banks with 3.8 billion pounds of stock to sell. The disappointing
turnout may have ramifications beyond HBOS, according to The New York Times. The “anemic” response to the rights issue, the paper said, may
have made it “more difficult and costly for other banks to raise capital just when they need it most.”
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

Dresdner Kleinwort
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 website, 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 company’s 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.
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 DKIB’s interview process to last two or three rounds, with the final round held “Super
Saturday” style (multiple back-to-back interviews) at the firm’s 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 don’t 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, it’s 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.”
DKIB’s 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 an insider, who also praises the business casual dress code. “People are nice. It’s 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.”
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 don’t 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. “It’s not a firm where you can sort of hide in the corner
and do one small part of a deal.”

PRESTIGE
RANKING
30 BNP PARIBAS SA
16, boulevard des Italiens KEY COMPETITORS

75009 Paris, France Credit Agricole
Phone: +33-1-40-14-45-46 HSBC Holdings
Fax: +33-1-40-14-69-73 Societe Generale
www.bnpparibas.com
EMPLOYMENT CONTACT
DEPARTMENTS
careers.bnpparibas.com
Corporate & Investment Banking
Investment Solutions
Retail Banking
THE STATS
Ticker Symbol: BNP (Euronext Paris)
CEO: Badouin Prot
2008 Profit: €3.02 billion
No. of Offices: Locations in 83 countries
THE BUZZ
• “Strong in Europe”
• “Third-rate”
• “Innovative culture”
• “No US presence”

BNP Paribas SA
THE SCOOP
Leader of the pack

BNP Paribas is the largest bank in France and the fifth largest in the world based on annual revenue. In 2008, BNP Paribas was named Global Bank
of the Year by The Banker magazine, the eighth safest bank in the world by Global Finance and the 13th-largest company in the world by Forbes. In
2009, Brand Finance named BNP Paribas the world’s eighth top banking brand.
In addition to enviably strong European operations, the banking powerhouse has a solid and growing international presence, spanning 83 countries,
with strong operations in both the United States and Asia. The banking group’s total employee network worldwide boasts more than 205,000
employees, of which 165,000 are in Europe.
BNP Paribas can trace its roots back to the early 1800s, though the modern day version of the bank began to take form in 1966, when Comptoir
National d’Escompte de Paris and Banque Nationale pour le Commerce et l’Industrie united to form Banque National de Paris (BNP). The Paribas
Group was formed in 1988 after many (notorious) years of French nationalization and reorganization; the group included the Banque Paribas,
compagnie Financiere de Paribas and Compagnie Bancaire. In 1999, after the French financial markets authorities gave BNP the green light, it took
control of the Paribas Group, creating one of the largest financial institutions in Europe. (In case you’re curious, Paribas comes from the phrase “Paris
et Pays-Bas,” which means “Paris and The Netherlands.”).
The bricks and mortar of it all

BNP Paribas’s international business is comprised of three key divisions: retail banking; corporate and investment banking; and investment solutions.
The banking group’s retail banking operations include retail banking both in France and internationally, branch banking, personal finance and BNL
Banca Commerciale. The corporate and investment banking business encompasses various divisions, including equities and derivatives, fixed income,
corporate finance, structured finance and cash management. The asset management and services business is comprised of private banking, asset
management, online savings and trading, securities services, real estate services and insurance.
The American way

BNP Paribas North America has U.S. offices in New York, Houston, Chicago, Miami, Los Angeles, San Francisco and Dallas, plus branches that operate
under the brand names First Hawaiian and Bank of the West. The vast majority of BNP Paribas employees are based in France and the Eurozone;
the bank employs approximately 15,000 people in the United States.
A fully registered NASD broker-dealer, BNP Paribas underwrites, trades and markets a wide range of global and domestic fixed-income and equity
products in the U.S., and works in tandem with its CooperNeff affiliate on proprietary portfolio strategies. The asset management, private banking and
securities group includes BNP Paribas Asset Management, which also maintains an affiliation with American asset manager Fischer Francis Trees &
Watts; private banking operations are based in Miami and works frequently with Latin American clients. Brokerage services are located in New York
and Chicago, offering clearing, custody and execution on U.S.-listed equity and derivative markets.
North American retail banking operations are carried out under the Bank West brand, with over 350 branches in Oregon, Washington, California, Idaho,
Nevada, New Mexico, Hawaii, Guam and Saipan.
Plagued by recession, the 2008 was tough for BNP Paribas: losses in the third quarter led to tougher risk management in the investment banking
division, as well as a 5 percent worldwide staffing reduction (translation: 800 jobs lost). BNP Paribas was also a victim of Ponzi schemer Bernard
Madoff, losing $470 million to Madoff’s hedge funds (BNP did not invest directly with Madoff, but had risk exposure to his funds through trading and
collateralized lending activities).
However, although profitable, BNP Paribas did have an overall tough 2008, not unlike many other financial institutions did. For the year, the bank
booked revenue of €27.4 billion and net profit of €3.02 billion, down from €31 billion and €7.82 billion, respectively, in 2007.
IN THE NEWS
April 2009: Together at last

Fortis shareholders finally approved the plan to integrate the firm with BNP Paribas in a meeting that was not too cordial—Fortis management was
bombarded with shoes and coins from furious shareholders, who believed the government did not have their best interest in mind. After the
shareholders stopped throwing things, the vote passed with 72.99 percent support.
The merged group will be one of the biggest in Europe in terms of deposits. Additionally, the combined entity will be the sole Europe-based financial
firm with four domestic markets in Belgium, France, Italy and Luxembourg. The transaction included an interest in Fortis’ insurance business in return

BNP Paribas SA
for assurances against losses and ownership of Fortis’ Luxembourg bank. In addition, the deal will have Fortis taking a 25 percent stake of its Belgian
insurance group while BNP Paribas promises financial backing. Previously, a form of the deal had Fortis taking just a 10 percent stake in the insurance
unit, but a court decreed that shareholders must be able to vote on the matter.
January 2009: First time for everything

BNP admitted it was taking a $1.8 billion total loss for the fourth quarter, its first quarterly loss since BNP Paribas was created in 1999. Net income
for the full year was reported to be positive, but just barely, coming in at $3.9 billion. However, the CIB unit is expected to show a pre-tax loss of about
$2.6 billion, the result of write-downs and capital markets risks.
December 2008: M&A advances

BNP Paribas ranked No. 10 in worldwide announced mergers and acquisitions for 2008, according to the Thomson Reuters league tables; with 120
deals in the pipeline, this was a seven-spot jump from its 2007 rank at No. 17. For worldwide completed M&A BNP Paribas ranked No. 13, again up
from No. 17, with 110 deals. In the United States BNP ranked No. 12 and No. 14 in announced and completed deals, respectively, making major
moves from its previous positions at No. 45 and No. 47.
In addition to its advisory prowess, BNP Paribas was the world’s No. 3 arranger of global project finance loans in 2008, coming in behind RBS and
the State Bank of India. In debt markets it was the No. 7 bookrunner for global asset-backed securities, and on the Americas project finance tables,
it was the No. 13 mandated arranger and the No. 19 bookrunner.
December 2008: In the bailout line

The collapse of American banks made headlines in 2008, but BNP Paribas had its own share of the troubles. A French bank bailout in December
allocated $13.9 billion to buy subordinated-debt securities from six of the country’s biggest banks, including BNP Paribas ($3.4 billion), Credit Agricole
($4.0 billion) and Societe Generale ($2.3 billion). BNP Paribas’ stock rose on the news; analysts had feared that it might cost as much as $9.3 billion
to prop up its operations.
Like the troubled asset relief program in the United States, the French bailout was divided into two tranches, and the second round of funding was
expected to be put in action by early 2009. BNP Paribas indicated that it would likely participate in this second round, and if it does, it will be able to
choose between selling more bad debt to the French government, or selling the government preferred shares without voting rights. There’s a catch,
though. In exchange for bailout funds, participating banks had to promise to increase lending by 3 to 4 percent and to focus on building up capital
reserves instead of paying dividends to shareholders. Chief executives also had to agree to give up their 2008 bonuses.
December 2008: Shareholders weigh in

A roadblock arose with a court decision that would subject the sale plan to a Fortis shareholder vote. The Belgian government, calling the BNP deal
“the best guarantee for continuity of Fortis Bank Belgium,” promised to challenge the Brussels Court of Appeals ruling. As part of the decision, the
court ruled that the Belgian government would have to pay Fortis shareholders $6.75 billion if a sale went through before a mid-February meeting.
Meanwhile, BNP Paribas acknowledges that the court case will mean the takeover won’t be completed on its original timetable.
In an interesting twist, the legal tangles only pertain to 50.1 percent of Fortis’ operations; the remaining 49.9 percent are in the clear, and BNP Paribas
plans to proceed with that half of the acquisition.
November 2008: Nice work

Managing director Renaud-Frank Falce, who’s credited with building BNP Paribas’ corporate loan business in North America, was named to the 2008
Investment Dealer’s Digest list of “40 Under 40.” Like many BNP Paribas executives, Falce was imported from Europe, but he told the magazine that
“I’ve been here for five years now, and I’m looking to stay.” In his 13 years at the bank, Falce recently worked on acquisition financing for Mars Inc.’s
$23 billion purchase of William Wrigley Jr. Co.
November 2008: Best of the best

BNP Paribas was named Global Bank of the Year by The Banker magazine; it was also awarded Best Bank in Western Europe and Best Bank in France.
A Ukrainian subsidiary, UkrSibbank, won Best Bank in Ukraine.
October 2008: Still trying for Fortis

European Union regulators approved BNP Paribas’ bid to acquire the Belgian and Luxembourg banking operations of Dutch giant Fortis, which was
carved up by buyers earlier in the year. To comply with antitrust rules, BNP Paribas agreed to sell off its BNP Paribas Personal Finance unit in Belgium.

BNP Paribas SA
GETTING HIRED
Take responsibility
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 BNP’s 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.”

PRESTIGE
RANKING
31 THOMAS WEISEL PARTNERS GROUP, INC.
One Montgomery Street KEY COMPETITORS

Phone: (415) 364-2500 Canaccord Adams
Fax: (415) 364-2695 Cowen and Company
www.tweisel.com GMP Securities
Jefferies
JMP Securities
BUSINESSES Piper Jaffray & Co.
Asset Management
Brokerage UPPERS
Equity Research
Investment Banking • “Very team-oriented”
Private Client Services • “Highly intelligent, respectful” management
THE STATS DOWNERS

Employer Type: Public Company • Culture can be “aggressive”
Ticker Symbol: TWPG (NASDAQ) • “70 to 80” hours per week
Founder, Chairman & CEO: Thomas W. Weisel
2008 Net Income: -$98.2 million*
EMPLOYMENT CONTACT
No. of Employees: 455 (approx.) Follow the “careers” link at www.tweisel.com
No. of Offices: 11
*Non-GAAP net income
THE BUZZ
• “Strong banking boutique”
• “Lots of ship jumpers”
• “Strong in West Coast PIPE deals”
• “Co-manager”

Thomas Weisel Partners Group, Inc.
THE SCOOP
A public affair
Thomas Weisel Partners offers investment banking, asset management, equity research and brokerage services. The firm is headquartered in San
Francisco, and has offices in Baltimore, Boston, Chicago, Denver, New York, Portland, Calgary, Toronto, London and Zurich.
The firm was founded in 1998 by Thomas W. Weisel (Wize-ul), who 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.
Thomas Weisel Partners 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 TWP went public. However, after its successful debut, Thomas Weisel
Partners’ stock has been volatile. As of August 2009, it lingered well below its debut price at approximately $4.75 per share.
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 communications,
electronics, IT, semiconductor, software, technology, telecommunications and wireless companies. It also gives TWP a chance to scout future IPO or
M&A clients.
Big recent hires

TWP benefited from the dislocation in the marketplace, recently hiring several key employees, including 12 senior investment banking professionals
and 22 senior brokerage professionals since January 2008. Among those hires were Jason Moran and Ralph Sutton, who joined as managing directors
in investment banking focusing on the health care sector. Moran was previously with Piper Jaffray, and Sutton was previously with Bear Stearns.
Additionally, Seth Ferguson, previously a managing director and global head of technology M&A at UBS, joined TWP as co-head of mergers and
acquisitions, and Christopher Poggi, who worked for J.P. Morgan, joined as a managing director in investment banking focusing on software. On the
brokerage side, former Lehman Brothers employee Douglas Leo joined as head of commission management for brokerage.
IN THE NEWS
July 2009: Investing in precious metals and mining

TWP announced that affiliate Thomas Weisel Asset Management formed a strategic alliance with Geologic Resource Partners, a $330 million
investment management company that focuses on investing in the global mining and metals sector. According to a TWP press release, “TWAM will
consult and guide GRP in asset gathering, operations, compliance and administration,” and “GRP will assist TWAM in building out its asset
management capabilities in the natural resource sector.”
May 2009: A new alliance

The firm announced that affiliate Thomas Weisel Asset Management would be forming an alliance with IdealRatings, a company that provides
investment services to investors who follow Islamic banking principles (also known as “Shariah compliance”). Through the agreement, funds and
accounts will be created that comply with the principles that Shariah-observant investors must follow. IdealRatings will manage this process for TWAM
clients.
March 2009: Tough year

Thomas Weisel reported $189.5 million in revenue for 2008, down considerably versus 2007, and recorded a net loss of $203.3 million. The reasons
for the loss included a good will charge due to acquiring energy and mining-focused investment bank Westwind Partners, non-recurring and non-cash
items, and “a dramatic slowdown in capital markets activity,” according to Chairman and CEO Thomas Weisel.

December 2008: Bright horizon

In spite of job cuts and disappointing returns, The Wall Street Journal singled out Thomas Weisel as a company that might prosper during economic
recovery. The Motley Fool seconded the Journal’s prediction, calling TWP’s local access to “Silicon Valley finest … a massive advantage.” TWP
President Lionel Conacher’s words in his December 2008 interview with The Deal also echo that sentiment: “Somewhere between 10 percent and 20
percent market share in the areas where we do business is up for grabs,” he said. “That’s not to say that we’ll get it all, but we intend to get more
than our fair share.”
December 2008: Optimistically opportunistic

Thomas Weisel Partners had a rough year. But layoffs, closure of the Mumbai office and net losses did not deter Lionel Conacher, TWP president and
COO. Although he acknowledges the challenges his firm has faced over the past year, he says he is optimistic about the possibilities presented by
overall contraction of the financial industry. “Historically, in venture-backed IPOs, we would have competed with the Morgan Stanleys of the world,”
he told The Deal. “It’s my belief that the bulge-bracket firms are all preoccupied and are going upmarket. Goldman Sachs is getting out of small-cap
stocks. Its layoffs have all been in the small-cap area. For firms like us, this creates an opportunity.”
December 2008: Bye-bye, Mumbai

The firm’s fund of funds business, based in Mumbai, was acquired by U.S.-based asset manager Guggenheim Partners. According to the terms of
the deal, TWP will retain an economic interest in the fund, but no longer control the partnership. Otherwise, TWP closed up shop in India; new products
intended to expand the fund will be solely controlled by Guggenheim. Employees of Thomas Weisel Partners in Mumbai—led by KV Dhillion (India
Head) and Anand Sunderji (Head of Private Equity)—were taken on by Guggenheim, according to Reuters India. Previously, Weisel had also
maintained a 25-member research team in India.
December 2008: More cuts

TWP followed up its May 2008 layoffs with an additional round of job cuts, bringing the total laid off to about 27 percent of its employees. “I don’t
think we’ve cut muscle or bone,” said COO Lionel F. Conacher in a December 2008 interview with The Deal. “I think we’re right-sized. We had been
overbuilt for the market opportunity we had.” He also said that the firm would continue to strategically hire.
May 2008: Firmwide contraction

TWP announced that it would cut an eighth of its staff, slashing some 160 jobs—about 20 percent of its workforce.
March 2008: New hires in energy

The firm beefed up its energy platform, with the addition of Kurt Molnar, who will cover Canadian oil and gas exploration and production companies;
Heather Douglas, who focuses on large capitalization gold mining companies and formerly worked at BMO Capital Markets; and Michael Scialla, who
previously worked for A.G. Edwards and who will expand the firm’s Canadian energy expertise into the U.S. Jon Fredericks was also named managing
director, responsible for expanding the firm’s trading franchise in the energy sector.
January 2008: Where the Westwind blows

Thomas Weisel completed its acquisition of the Toronto-based investment bank Westwind Partners, expanding the company’s 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.
Later in January, Conacher became chief operating officer of TWP, succeeding David Baylor, former COO and CFO. Baylor resigned as COO but agreed
to remain as CFO through a transition period. Shaugn Stanley was named interim CFO and later held the CFO role with TWPG from 1998 to 2001.
GETTING HIRED
Be a rare breed
Thomas Weisel is a firm where “pedigree is important.” Because of that, it’s “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

you’re “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 you’re 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 quizzed—”writing 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.”
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 isn’t visited in the usual rounds—”the
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 firm’s 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 that’s simultaneously an “aggressive” one.
Salaries and perks mostly receive the same degree of praise from insiders. TWP’s base salary is “in line with the Street,” and employee bonuses don’t
look too shabby, either—”15 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” and “pretax 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 “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,” it’s also “often dependent on the efficiency of the managing director.” But there’s good news: “Bankers
tend to be reasonable about not overworking analysts—TWP has a reputation as more of a ‘lifestyle firm.’” One analyst even calls it “the best balance
of life that I know of.”
Class act
Complaints are tough to find—if not downright impossible—when 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.”
It’s 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 it’s Friday or they have been working too much.” Even though there’s 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 formal—”vice presidents and above typically wear suits daily.”

It’s 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 that—three weeks—and “a substantial amount of learning” is done in a trial-by-fire manner. “If you are looking for a two-
month training program to start your career, don’t 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 firm’s push for diversity also generally receives high marks, though there’s room for improvement. “I don’t 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 TWP’s 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.”

PRESTIGE
RANKING
32 DELOITTE CORPORATE FINANCE LLC
600 Renaissance Center, Suite 900 KEY COMPETITORS

Detroit, MI 48243-1704
Phone: (313) 396-3000 Houlihan Lokey
Fax: (313) 396-3618 KPMG Corporate Finance
www.investmentbanking.deloitte.com
UPPER
BUSINESSES • “Supportive and respectful management”
Acquisitions, Joint Ventures & Alliances
Capital Raising
Corporate Development Advisory
DOWNER
Sales and Divestitures • Work hours can be long for a non-bulge-bracket firm

Employer Type: Subsidiary of Deloitte Financial Advisory deloitte.com/careers
Services LLP
DCF National Managing Director: Bob Coury
2008 Revenue: $27 billion*
No. of Offices: Offices in 140 countries*
* Deloitte Touche Tohmatsu
THE BUZZ
• “Smaller deals”
• “They do banking?”
• “Good for accountants”
• “Boring”
195
Deloitte Corporate Finance LLC
THE SCOOP
Well connected
Deloitte Corporate Finance LLC (DCF) is a registered broker dealer that offers investment banking advisory services to large and midsized companies.
It specializes in sales and divestitures; acquisitions, joint ventures and alliances; capital raising; and corporate development advisory. DCF serves
clients across numerous major industries, including aerospace and defense, automotive, business services, consumer business, financial services, food
and beverage, general industrials, life sciences and health care, manufacturing, metals, plastic, paper and packaging, and retail.
DCF is a wholly owned subsidiary of Deloitte Financial Advisory Services LLP (FAS), which is a subsidiary of Deloitte LLP, the American member firm
of Deloitte Touche Tohmatsu—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 FAS are valuation services, reorganization services, and forensic and dispute services. FAS contributes
approximately 5 percent of Deloitte’s overall revenue. That leaves FAS behind Deloitte’s audit, tax and consulting businesses, but DCF has carved out
its own niches. The corporate finance unit’s specialty is the middle market, focusing on deals worth $25 million to $500 million.
Although Deloitte is a giant—it’s not called the Big Four for nothing—DCF operates as a boutique within the conglomerate. At the same time, DCF can
draw on Deloitte’s extensive resources, including Deloitte Tax, Deloitte Consulting, FAS and the Chinese Services Group of Deloitte & Touche USA
(which assists on China-related cross-border deals). DCF national managing director Bob Coury also holds the position of principal at Deloitte &
Touche, and sits on the FAS executive committee. There are four five DCF offices in the U.S. (Detroit headquarters, plus New York, Chicago, Dallas
and Los Angeles).
William and George

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 Western’s 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 America’s new business regulations and income tax laws.
By the end of the 1960s, Touche, Niven became Touche Ross, and William Deloitte’s 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 world—a nod to Tohmatsu &
Company, which had become part of Touche Ross in 1975.
Mid-market M&A leader

Among deals DCF oversaw in 2008 is the close of Japan’s Hayashi Telempu Company’s acquisition of the Ohio-based Amtex; Hayashi had purchased
50 percent of Amtex in 2007. Also in 2008, it advised Ogihara America Corporation on the sale of its Birmingham, Alabama-based stamping and
assembly plant to Cosma International Group. The terms were not released. In the healthcare sector, DCF advised Radiation Oncology Associates on
its partnership with Oncure Medical Corporation. ROA is one of the largest providers of radiation treatment in northeast Indiana. Oncure is one of the
nation’s largest providers of outpatient radiation oncology care.
IN THE NEWS
January 2009: Selling sodium cyanide

DCF advised Evonik Industries AG on its sale of its North American sodium cyanide operations—CyPlus Canada, CyPlus Corporation and Cyanco
Company—to Oaktree Capital Management. The businesses manufactures and supplies liquid and solid sodium cyanide to support technology, which
is used to mine and extract gold.
DCF was also named the exclusive financial advisor to Icon Systems’ sale to Science Applications International Corporation for $135 million. Finally,
through its member firm in Russia, DCF served as exclusive financial advisor to Kellogg Company on its acquisition of The United Bakers Group, a
Russian biscuit, cracker and cereal manufacturer.
December 2008: Little ones add up

According to Thomson Reuters, Deloitte Corporate Finance LLC, together with the member firms of Deloitte Touche Tohmatsu and their affiliates,
ranked No. 16 in 2008 worldwide announced M&A deal volume on deals with values up to $100 million (Deloitte worked on logged 217 deals in that

Deloitte Corporate Finance LLC
category). The firm also ranked No. 20 in announced deal volume on transactions with values up to $500 million, working on 237 deals, and No. 17
for deals up to $200 million.
The company made an even stronger showing for worldwide M&A based on number of transactions, with a No. 3 ranking across the board for deals
up to $50 million, $100 million, $200 million and more than $500 million.
January 2009: Great place to work

Fortune magazine named DCF’s parent company one of 100 best companies to work for—for the tenth year in a row. Deloitte was named to the No.
61 slot. Fortune pointed out that women hold 22 percent of top positions at Deloitte, compared with 6 percent in 1993. Minorities, according to
Fortune, hold some 8 percent of top posts, versus 4 percent in 1998.
GETTING HIRED
Top of your game

Candidates applying for positions “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 you’re 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?”
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 firm’s 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 respondents 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 spent in the office largely depend on your department. One insider describes working “heavy work hours while limited to only officially billing
40 hours per week.” Another says he works about 50 to 60 hours per week and says the company is “very flexible,” although it’s not uncommon to
make a weekend office visit. But one respondent says it’s not bad overall—”I often only go to the office and/or to visit clients two or three days a week
and work from home other times.” (When you’re in the office, “business casual” is typically the code of the land.) And despite the fact that weekend
work takes place, “it’s out of choice and it’s not a requirement.”
As for the future of the company, “Deloitte will always be around.” “For every person that quits, they find two to three other new hires to replace them
with.”

PRESTIGE
RANKING
CANADIAN IMPERIAL BANK OF COMMERCE

33 (WHOLESALE BANKING DIVISION)
161 Bay Street, BCE Place UPPER

Toronto, Ontario M5J 2S8
Canada • Friendly workplace
Phone: (416) 594 7000
US Headquarters: DOWNER
425 Lexington Ave • Hours can be long
New York, NY 10017
USA
Phone: (212) 856-4000 EMPLOYMENT CONTACT
www.cibcwm.com
www.cibcwm.com/careers
PRODUCT & SERVICES

Capital Markets
Cash Equities • Fixed Income, Currencies & Distribution •
Global Derivatives & Strategic Risk

Corporate Credit Products • Investment Banking • Merchant
Banking • US Real Estate Finance
THE STATS
Employer Type: Division of Canadian Imperial Bank of
Commerce (CIBC)
CEO: Richard Nesbitt
2008 Revenue: -C$6.04 billion*
2008 Net Income: -C$4.2 billion*
No. of Offices: 20
*Canadian Imperial Bank of Commerce
THE BUZZ
• “Top investment bank in Canada”
• “Respectable midtier bank”
• “Bush league”

Canadian Imperial Bank of Commerce (Wholesale Banking Division)
THE SCOOP
Canadian contender
Canadian Imperial Bank of Commerce, commonly referred to as CIBC, is one of the largest banks in Canada. Its wholesale banking business provides
a wide range of credit, capital markets, investment banking, merchant banking, and research products and services to government, institutional,
corporate and retail clients worldwide. The firm’s global headquarters are located in Toronto, and it has additional offices across Canada and the U.S.
as well as in other financial centers around the world. The firm’s investment banking and capital markets divisions offer a range of financial services,
including equities, commodities, fixed income, foreign exchange, money market and securitizations. CIBC is one of Canada’s top M&A advisors in a
number of industries, and is a leader in Canadian equity underwriting and structured products.
CIBC’s wholesale banking division was born in 1988 when CIBC acquired a majority interest in Wood Gundy Inc., a leading Canadian securities dealer
established in Toronto in 1905. Combining CIBC’s capital with Wood Gundy’s underwriting reputation, CIBC Wood Gundy Inc. became a powerful
investment banking arm, quickly establishing itself as a leading North American investing institution. Until recently, the marketing name of CIBC’s
wholesale banking division was “CIBC World Markets.” (Today, technically speaking, CIBC World Markets Inc. (Canada) and CIBC World Markets Corp
(U.S.) are wholly owned subsidiaries of Canadian Imperial Bank of Commerce, and form the bank’s wholesale banking arm, which also includes other
affiliates such as CIBC World Markets plc., CIBC World Markets Securities Ireland Limited, CIBC Australia Ltd., and CIBC World Markets [Japan] Inc.)
Neighbor to the south

In the U.S., Canadian Imperial Bank of Commerce’s wholesale banking division maintains a specialized focus on a handful of business lines:
investment, corporate and merchant banking; global equities; fixed income and currencies; and real estate finance. Another key business area is
cross-border U.S.-Canada M&A transactions and investment management.
In early 2008, CIBC sold its U.S.-based investment banking, leveraged finance, equities and related debt capital markets businesses to Oppenheimer
Holdings Inc., exited its leveraged finance activities in London, and placed its structured credit business in runoff. Certain other activities within
continuing businesses, including derivatives trading and asset-backed commercial paper conduits, were also reduced. CIBC retained its other U.S.
wholesale businesses, which include real estate finance, equity and commodity structured products, merchant banking and oil and gas advisory, as
well as the balance of its U.S. debt capital markets, Asia and U.K. businesses. CIBC also maintained its corporate lending capability and its ability to
distribute Canadian equities and fixed income products in the U.S. and international markets on behalf of its Canadian clients.
In addition to its U.S. headquarters in New York City, CIBC’s wholesale banking arm has office in Atlanta, Salt Lake City, Houston, Boston, Los Angeles
and Chicago.
Restructure, revamp, recover

CIBC’s wholesale banking business CEO Richard Nesbitt, former CEO of the Toronto Stock Exchange, has only been on the job since February 2008.
Nesbitt’s arrival was part of a top-to-bottom recovery process designed to restore CIBC’s operations in the wake of the subprime mortgage crisis—CIBC
had $11 billion in exposure to these bad assets, more than any other Canadian bank. As part of the housecleaning, CEO Brian Shaw was dismissed,
as was Chief Risk Officer Ken Kilgour, who was replaced by CFO Tom Woods.
Ups and downs

Although CIBC’s results for its 2008 fiscal year (ending October 31st) included C$4.2 billion in structured credit losses, the bank remained positive
when it reported them, stating that its Tier 1 capital ratio of 10.5 percent “exceeds regulatory requirements” of 7 percent as well as its own “medium
term target of 8.5 percent.” In addition, in 2008 and the first half of 2009, CIBC said it “repositioned its wholesale banking business to reduce risk
and strengthen its alignment with CIBC’s desired risk profile.”
According to a column in Canada’s Globe and Mail, CIBC had greater U.S. credit exposure than its Canadian peers, and its losses were likely the
catalyst for its move to “largely exit” global markets. And between November 2008 and January 2009, CIBC’s stock price fluctuated madly on the
Toronto Stock Exchange, hitting record lows in mid-November, but climbing fairly steadily after that only to fall again in mid-January 2009.
Top honors
The bank and its bankers have received several awards recently, and one of the most noteworthy was given by Bloomberg Markets magazine, which
ranked a senior economist at CIBC World Markets, Avery Shenfeld, as a top forecaster (fifth place) of the U.S. economy between 2006 and 2008.
(Shenfeld received more good news in March 2009, when CIBC’s chief economist Jeff Rubin left the organization and Shenfeld took over his post;
Rubin had been with CIBC for 20 years and, during his stay, was named Canada’s top economist 10 times).

CIBC also picked up honors from Financial Times and Mergermarket in its inaugural M&A Awards Americas. The bank was named Financial Advisor
of the Year in Canada and Mid-Market Financial Advisor of the Year in Canada. The firm was also recently named Investment Bank of the Year for its
strong M&A performance by ACQ Finance Magazine.
IN THE NEWS
February 2009: More changes

Further shakeups were afoot, as the division’s deputy chairman, David Leith, departed after 25 years with the firm. Leith, who was also head of
investment, corporate and merchant banking, simply said that he had “elected to leave the firm.”
Following Leith’s departure Geoffrey Belsher, former managing director of Lehman Brothers Canada, joined as managing director of investment
banking. Laura Dottori-Attanasio, former chief risk officer at the National Bank of Canada, signed on as head of corporate credit activities.
January 2009: TSX top trader

Some good news: CIBC’s wholesale banking unit beat longtime rival TD Securities as the top trader, by value, on the Toronto Stock Exchange. CIBC
had a market share of 13.1 percent for January, with C$28.5 billion worth of trading activity. (By June 2009, CIBC had increased its market share to
17.6 percent, with C$45.5 billion in trading activity.) New CEO Richard Nesbitt deserves credit for this success: he’s the one who hired TMX Group’s
Rik Parkhill to head the cash equities division. Under Nesbitt’s leadership, the division has also cultivated more business with foreign traders who are
interested in low-commission electronic trading.
December 2008: No. 1 in M&A (in Canada)

According to Thomson Reuters, CIBC was the No. 1 advisor of Canadian merger and acquisition deals in 2008. CIBC worked on 54 announced deals
during the year worth a total of US$26.9 billion. The bank was also the fifth most active debt underwriter in Canada in 2008, underwriting 49 debt
deals worth a total of C$14.1 billion. And it ranked No. 3 in Canadian government debt underwriting, having worked on 35 deals worth a collective
C$10.5 billion. In the Canadian equity markets, the bank ranked No. 3 in total equity underwriting volume; it worked on 23 deals worth C$3.4 billion.
And it came in fifth in Canadian IPO volume; the firm only worked on one deal, but that was worth C$60 million.
December 2008: Big losses

CIBC’s fiscal year ends on October 31st, and for the fourth quarter of the year, CIBC’s wholesale banking division reported net income of C$133 million,
compared to a net loss of C$538 million for the third quarter of the year. For the full fiscal year, CIBC reported a net loss of $4.2 billion, mostly the
result of structured credit losses; parent bank CIBC had a net loss of $2.1 billion.
Damage control is ongoing. Besides selling off its U.S. investment banking, leveraged finance, equities and related debt capital markets businesses
to Oppenheimer, CIBC wound down its London-based leveraged finance business and put its structured credit business in runoff. Other operations,
including derivatives trading and asset-backed commercial paper conduits, were scaled back. Going forward, CIBC said it will shift to a 75 percent
retail business, and it has set an annual net income goal of $300 million to $500 million for CIBC World Markets.
December 2008: It’s a miracle

The first Wednesday of every December is “Miracle Day” at CIBC’s wholesale banking unit, and the firm’s major charitable enterprise. Since 1984,
the firm has taken this day to donate all sales and trading fees and commissions to children’s charities, raising more than C$44 million over the years.
The 2008 Miracle Day brought in $3.1 million CDN to support children’s hospitals, shelters, counseling programs, pediatric health research, education
and recreation programs, and meal services.
September 2008: Reducing real estate risk

CIBC began taking further steps to reduce its exposure to the U.S. residential real estate market—in other words, it started scrubbing the subprime
grime from its balance sheet. First step: brokering an agreement with private equity powerhouse Cerberus Capital Management, which agreed to invest
$1.05 billion in CIBC’s U.S. residential real estate portfolio, which was valued at $1.075 billion (down from $1.186 billion) by mid-summer, because it
consisted of mortgage-backed securities and collateralized debt obligations.
Under the terms of the deal, CIBC will retain 100 percent of the returns on the portfolio following repayment of the investment, and CIBC will retain
ownership of the assets. CIBC’s CEO Gerry McCaughey described the arrangement as establishing “a floor under CIBC’s exposure to the U.S.
residential mortgage market” while providing “important flexibility to benefit from a future recovery in the cash flows of these securities.”

July 2008: M&A master

M&A activity CIBC World Markets was the No. 1 advisor for Canadian announced deals, with 54 transactions valued at $26.8 billion. It also ranked
No. 5 for completed Canadian M&A, wrapping 51 deals and maintaining a 21 percent market share. The dealmaking frenzy didn’t extend beyond its
homeland, though—CIBC World Markets didn’t crack the U.S. league tables.
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” who have “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 (in the U.S., 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.
Prepare for questioning

During the interview process, expect “basic questions revolving around organization and preparation,” “what do I do if I need help,” and questions
such as “tell me about a challenge you had and how you overcame it.” Most questions are “framed in a behavioral question format.” 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,” with “questions based on the posting and also some behavioral interview questions.” Another
goes so far as to say “an ideal candidate is good-looking, confident and smooth,” and also advises to “make sure you look glamorous but businesslike”
during your interview.
One contact who attended a “non-core” school was more closely scrutinized, sitting through “an additional four to five interviews.” Summer interns
reveal that it is generally “easier to get hired after completing an internship,” but the firm still weeds out unwanted would-be full-timers. One source
reports that after his summer stint, only four of 12 summer associates received offers (the contact was one of the four).
CIBC World Markets “looks more for a personality fit than someone with the best corporate finance skills,” says one source, but another contends that
“more and more, CIBC is finding that it needs to recruit people with a finance background, because we don’t have the long training programs of the
bigger banks.” (The World Markets full-time new hire training program lasts four weeks.) “Fit” questions may include “Why banking?” and “Why us?”
as well as seek to determine a candidate’s “strengths and weaknesses.” 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 are “customary for banking interviews” and may test a candidate’s
“basic understanding of accounting,” “valuation” and “financial statements.” One current insider advises, “If you have experience in this field, you
won’t 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.
OUR SURVEY SAYS
Friendly faces—mostly
Overall, CIBC is a “very receptive and friendly place to work for on the whole.” “Each group has their own personality.” For example, “M&A is reputed
to be the most hardworking, and leveraged finance is touted as the most laid-back.” Still, the corporate culture tends to “vary according to levels,”
though it’s “friendly at the lower levels.”
“Employee morale is strong,” says a contact, and CIBC World Markets can be an “intense meritocracy,” where “good teamwork” is the norm and
“people 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 “are very cool to one another, and we 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 firm’s male-to-female ratio is extremely male-heavy. However, another says that while balancing the
workforce is on the firm’s to-do list, CIBC is “no worse than the rest of the industry.”
CIBC expects its junior staffers to be “hardworking” and to take on “a lot of responsibility,” and a contact adds that it is “not a place where title restricts
your responsibilities or ability to have an impact.” A former summer associate says that he “was treated like any other deal team member, although I

was typically staffed with another full-time associate.” The relatively thin junior ranks are a big reason why young bankers can take on so much, though
a lot of responsibility often means a lot of hours. One banker who logs 80 to 90 hours per week says that the hours can be “brutal at times.” “If you
are free,” he says, “they’ll give you more work because the firm is so understaffed.” Another insider confirms: “I almost never go home before midnight.
And that’s the same on weekends, too.” Others report constant weekend work but “not a lot of pressure to put in ‘face time.’” One contact has “noticed
that some have the attitude that they stay longer than others because it is some sort of badge of honor.” But hours tend to vary depending on location.
“Work hours are loosely based on the 9-to-5 model,” one insider says, adding that “at 6 p.m., the lights are out for good, and if you’re still around,
people start asking questions.” Overall, however, the general sentiment is that the hours at World Markets are “very unpredictable” but “typical for
banking.”
On the management front, insiders admit that the firm “has become ever more disorderly over the past few years, with numerous senior management
changes over a series of public embarrassments on what seems like an annual or biannual basis.” And, says one source, while “senior bankers say
they treat junior bankers better here than at other banks,” his experience “is that it’s the same as other banks.” In other words, “there is no
consideration for a junior banker’s outside life.” Another insider opines that it “depends entirely on the individual manager’s style, but regardless, junior
people are worked very hard—and sometimes for no reason.” One associate, who calls his relationship with his superiors “collegial and friendly,”
admits that his “direct superior is employed because he’s a great banker, not because he’s a great manager.” Overall, though, the treatment of junior
staffers at CIBC World Markets is “generally acceptable” with “some management” doing “a better job at mentoring and teaching than others.”
Not on par?
According to some employees, the firm pays “consistently below” the Street average but “luckily not by much.” One associate, however, thinks that
pay is “higher than average,” adding that he works “fewer than average” hours. Another says, “CIBC pays fairly, but tends to try to smooth out on a
departmental basis, overcompensating poor performers at the expense of the people bringing in most of the money.” The perks are standard for the
industry, and include a late night and weekend meal allowance and car service. Still, you get “three weeks of vacation, though you need to get special
approval to take the three weeks at the same time.”

PRESTIGE
RANKING
34 CENTERVIEW PARTNERS LLC
640 Fifth Avenue, 19th Floor RANKING RECAP

New York, NY 10019
Fax: (212) 380-2651 #1 – Best to Work For
www.centerviewpartners.com #1 – Compensation
#2 – Culture
BUSINESSES #2 – Hours
#2 – Selectivity
Advisory
Private Equity
THE STATS #4 – Training
#12 – Offices
Employer Type: Private Company Diversity
Co-Founding Partners: Adam Chinn, Stephen Crawford, #2 – Diversity With Respect To Ethnic Minorities
Blair Effron, James Kilts & Robert Pruzan #3 – Best for Diversity
No. of Employees: 80 #4 – Diversity With Respect To Gays and Lesbians
No. of Offices: 5 #4 – Diversity With Respect To Women
KEY COMPETITORS UPPERS

Allen & Company • “Unparalleled access to top dealmakers and senior
Evercore Partners bankers”
Goldman Sachs • “Opportunity to focus closely on key industries and clients”
Greenhill & Co. • “Caliber of employees”
Lazard
J.P. Morgan
Moelis & Company DOWNERS
Morgan Stanley
• “The hours I work as an analyst are a lot”
• “Niche focus limits ability to transfer to new
groups/geographies”
• “Limited resources for information”
EMPLOYMENT CONTACT
Follow the “careers” link at www.centerviewpartners.com
THE BUZZ
• “Strong, emerging boutique”
• “Small—only do a handful of deals”
• “Effron is the man; great senior bankers”
• “Who?”
203
Centerview Partners LLC
THE SCOOP
Small size, big business

In 2006, UBS managing director Blair Effron had dinner with his friend Robert Pruzan, a veteran of Wasserstein Perella. The two men decided to
capitalize on the lucrative mergers and acquisitions boom by going in to business together, opening a boutique they dubbed Centerview Partners (the
name came from the view at their new office on the 19th floor of Rockefeller Center).
Since Effron and Pruzan’s vision was realized, Centerview has added three more high-powered co-founding partners and brought total headcount up
to 80. And even though the market for M&A has slowed down, Centerview has kept up its pace, advising on megadeals like Altria’s $113 billion spin
off of Philip Morris and its $62 billion spinoff of Kraft Foods, ConAgra’s $2.8 billion sale of its trading and merchandising business and InBev’s $52
billion acquisition of Anheuser-Busch.
How it works
There are just two lines of business at Centerview: advisory and private equity. The advisory business addresses strategic, financial and operational
issues for its clients; according to the firm, its partners have advised on over $1 trillion in transactions over the course of their careers, including more
than $200 billion of transactions since Centerview was formed.
The private equity group focuses on the U.S. consumer middle and upper-middle market, and is led by partners James Kilts, former CEO of both Gillette
and Nabisco; David Hooper, who joined from Vestar Capital Partners; and Joseph Schena, who held senior executive positions at Gillette, Nabisco and
Kraft Foods.
Top 10
Centerview made a major splash on the 2008 banking league tables. According to Thomson Reuters’ tallies, Centerview ranked No. 10 in both
announced and completed U.S. deals—the only boutique to land in the top 10. In 2007, the firm had ranked No. 13 in announced U.S. dealmaking
and No. 16 in completed transactions. And in the consumer staples sector in 2008, it was the U.S.’s No. 3 adviser, coming in behind heavyweights
Goldman Sachs and J.P. Morgan.
Perhaps even more impressive, Centerview jumped from No. 31 spots in worldwide announced and completed M&A deals to land at No. 13 and No.
14, respectively.
Relationships matter
As the biggest banks in the U.S. fell to their knees in fall 2008, Centerview co-founder (and Morgan Stanley veteran) Stephen Crawford explained why
his firm will survive—and make the best of a tough time. “The great thing about what we’re trying to do at Centerview, is our relationships are based
on just that: the relationships,” he told Fox News. “We either know the institutions we work with over a long period of time, or we come heavily
recommended. The second thing that’s very different is we’re obviously an earner-operated firm, which is very different than a large firm owned by
shareholders, and I think clients understand that and appreciate it.”
Crawford compared Centerview to “a family practitioner,” adding that the current gloomy environment offers “a great opportunity for us to continue to
build relationships—but I’m not sure it will be through transactions over the next six to 12 months.” Instead, he said, the firm may have to make a
temporary shift to “hand-holding, talking about investor relations, talking about a lot of things that don’t necessarily make Centerview money but make
us very good relationships over the long term.”
IN THE NEWS
April 2009: Coming to Centerview

Centerview Partners hired three senior health care bankers away from Bank of America Merrill Lynch. Alan Hartman (head of M&A for the Americas
at BofA Merrill), Richard Girling and Mark Robinson may have been lured to Centerview by something bigger firms can’t offer: the lack of salary and
bonus restrictions. The bankers brought Centerview their experience in several high-profile deals, including Sanofi-Synthelabo’s $63 billion acquisition
of Aventis, Boston Scientific’s $25 billion acquisition of Guidant and Pfizer’s $68 billion pending acquisition of Wyeth.
November 2008: Safety first

The firm advised on IPC Systems Inc.’s $167 million sale of Positron Public Safety Systems to the West Corporation, and finally, in December,
Centerview stepped up to work on Capital One’s $520 million acquisition of Chevy Chase Bank.

September 2008: Never a dull moment

Despite the downturn, more deals filled the pipeline in late 2008, as Centerview took advantage of its larger rivals’ woes to land some serious
assignments. The New York State Insurance Department hired Centerview to advise on its involvement with beleaguered insurance giant AIG, which
may include assessing the terms of potential sales. One month later Centerview advised apparel legend Liz Claiborne Inc. on its sale of the Enyce
clothing line to Sean “Diddy” Combs.
June 2008: Eye on tech and entertainment

Centerview bulked up its technology and telecommunications advisory group with the addition of David Handler and David St. Jean as partners. The
two came from UBS, where they served as managing directors and co-heads of the Americas technology investment banking unit. Together, they’ve
worked on assignments like Cisco Systems’ $6.9 billion acquisition of Scientific Atlanta; Redback Networks’ $2.1 billion sale to Ericsson; the $1.9 billion
acquisition of AFC by Tellabs, Inc.; and Itron Inc.’s $1.7 billion acquisition of Actaris. Handler set up shop in Centerview’s New York office, and St.
Jean will be based in Los Angeles. Bryan Spielman, a former UBS technology group managing director, also joined as a Centerview partner.
The same month Centerview announced the hiring of Lisbeth Barron, a former partner in Bear Stearns’ media and entertainment investment banking
group. A 22-year veteran of the media and entertainment industry, Barron led Bear’s corporate finance practice for clients in the film, television,
branded licensing, merchandising, recorded music and location-based entertainment industries.
GETTING HIRED
The absolute best and brightest

Landing a job at this prestigious M&A firm is not easy. According to one analyst, the “very selective” company “only looks to hire A+ talent.” Indeed,
says an insider, “each year” Centerview hires “only a handful” of “the absolute best and brightest.” In part that’s because Centerview’s “very small”
size and “boutique culture” mean that “finding the right fit and technical expertise is of great importance,” according to one principal. And, says one
contact, “the firm hires people only when it is sufficiently impressed by a candidate to merit adding to the staff.” “Because the firm is very small,”
says an analyst, “every candidate is tested extremely thoroughly.”
As for the type of employee the firm likes to hire, one insider says, “We’re looking for people who can progress more rapidly than their peers at larger
banks. In fact, given our leaner deal teams, our model requires” the ability to progress quickly. One managing director stresses that “cultural fit is a
key determinant in any hiring decision. Individuals must display team orientation, ownership mentality and high intellectual capital content.”
A rigorous process
Entry-level and more-senior candidates alike can expect a rigorous hiring process, though the particulars “differ depending on the level for which we
are hiring,” says one insider. Typically, entry-level candidates (college seniors) can expect “two rounds of interviews: one on campus and one in the
New York office.” Another contact says to expect “an on-campus or phone interview for a first round,” followed by “a second round ‘Super Day’ at our
offices.” During the Super Day, which “usually lasts all day, each candidate” will endure “several interviews with various employees.” An analyst in
M&A recalls a “first round on-campus with two interviewers,” a process he describes as “a general fit interview,” though he cautions that “finance and
mental math questions do come up.” The second interview, he says, which “takes place at the firm’s offices in Manhattan, involves several two-on-
one interviews.” Candidates who make it to that stage can expect “more rigorous financial and math questions, though a heavy emphasis is placed
on personality and fit with Centerview.”
The process for “lateral hires” is even more challenging. Candidates “for more senior positions” will face “three to four rounds,” according to one
managing director. Another contact says to expect “four rounds of interviews.” And don’t expect to be facing down members of HR: a vice president
of the leveraged finance group recalls interviewing “with all senior members of the private equity team as well as selected investment banking partners.”
A principal in finance “interviewed with eight people, four of whom were partners at the firm.” And a managing director in M&A describes a “detailed
interview process with perhaps 10 interviews or more (as well as several meetings with colleagues in recruitment).”
Regardless of the post for which you’re applying, “every candidate is interviewed by employees from all levels—analyst, associate, principal, partner”—
indeed, even founding partners interview.
One analyst recalls meeting “with 11 people from every level.” An insider says that the “first two” interviews “are generally with midlevel personnel;
the third is often with more senior personnel.” As a result of interviewing with so many employees, “candidates will have met at least half of the bankers
in the firm” by the end of the interviewing process.

The Centerview from the top

Presently, “at the entry level,” the firm recruits from places like Princeton, Harvard, Yale, MIT and Penn—that is, from the “most prestigious colleges
on the East Coast.” According to another employee, Centerview focuses on the “tier-one” schools, but “students from non-core schools are encouraged
to apply.” One investment banking analyst points out that “surprisingly few of the junior staff did their undergraduate degree in economics or business.”
The company also takes “high caliber referrals,” says one vice president.
But if you’re getting your MBA, don’t expect Centerview to come knockin’ on your door. “The firm does not recruit from business schools at the MBA
level,” says one analyst. Indeed, says another, “Aside from entry-level” candidates, “we only hire people with prior M&A experience.” Another contact
says, “We like lateral hires that have client management experience and analytical skills picked up in an M&A department.” According to an insider,
“thus far,” all lateral hires “have come from the pool of top performers at major investment banks and boutiques.”
Industry experience, on-campus recruiting and connections are key to getting your foot in the door, as the firm “does not offer summer internship
programs.” As one contact explains, “for reasons of client confidentiality, all employees are permanent.”
OUR SURVEY SAYS
Collegial, entrepreneurial and tight-knit

Centerview, “consisting of partners from other firms with very different cultures,” has developed a “very unique culture that represents a nice blend of
several other banks.” Respondents express deep pride for the firm’s “culture of excellence” and affinity for its “great people who care.” Although
employees say the firm’s culture is “performance-based,” “the hours and workload can be demanding” and employees are held to “very high
standards,” the culture is also “extremely supportive and understanding.” One insider points out that “the working team is collegial and mutually
supportive.”
But relationships built in this “very collegial place” are not only about work. In this “tight-knit community,” “professionals often interact socially outside
the office,” says one insider. “Friendly collegiality is pervasive,” and “the atmosphere stresses personal and career development.” In spite of the long
hours, one analyst says that he has “been able to pursue a more positive work/life balance than at my prior employer.” Others agree, believing that
the firm’s “high work ethic and philosophy on work/life balance” represents a “perfect blend of hard work and respect for everyone’s time.”
The firm’s size makes it possible for junior-level employees to work alongside senior bankers. “The hierarchy is very flat, and deal teams are very small,
which means analysts work in close contact with principals and partners.” The firm “takes a great interest in the professional development of junior
personnel,” and “junior bankers are given execution and client-facing responsibility very rapidly.” Because “client-focus is paramount,” “junior
employees are encouraged to develop their client-facing skills from an early point in their careers.” Says one insider, “Even at junior levels,
professionals are given the opportunity to accept as much responsibility as they are capable” of shouldering.
“At the same time, given that it is a boutique, each employee needs to be a self-starter to succeed,” notes another source. “No one is going to hold
your hand and encourage you to work hard. You need to be self-motivated.” Another insider agrees, citing the firm’s “entrepreneurial-type culture”—
you have to have the “incentive to take ownership of work assignments and client relationships.” A vice president adds that although the “culture is
very ‘results-focused,’ face time is discouraged.” Others agree, saying, “One very favorable aspect of Centerview is that if your work is done, you go
home.” What counts, says an insider, is “thoughtful and original thinking as well as flawless analytics.”
Most-competitive compensation
Overall, folks at Centerview are happy with their pay. “Salary and bonus combinations are targeted at the most competitive levels,” says one banker.
Hefty bonuses tend to match or exceed one’s base salary. A vice president adds that “vacation time is considered important—very few vacations are
cancelled, and other team members will cover” people who take their days. Few employees have student loans, but those that do say they put
anywhere from 1 percent to 10 percent of their salary toward the loans. Other perks include evening meals and a car service home if working late or
on weekends.
Days, nights, and weekends

For such a small firm to rank in the top 15 in global M&A volume, it’s no surprise that employees log long hours. As a principal in finance explains,
“at the end of the day, Centerview is an advisory business that must respond to client requests on short timeframes, like the rest of the industry. For
that reason, hours can be long. That said, there is much less ‘face time’ here than anywhere else I have seen. And partners do make an effort to be
as reasonable as possible with time outside the office.”
Most employees work more than 60 hours per week; some work anywhere from 70 to 90, and the bulk come in often or frequently on weekends. Some
respondents, including analysts and a managing director, say they work more than 100 hours per week. But, says one contact, the “long hours” are
“part and parcel of the job.” Others agree that the “unpredictable hours” are “an aspect of the job that you will find at any bank.”

An analyst who works 80 to 90 hours per week says, “I am in the office all day and often very late at night and often during the weekends.” However,
another analyst who works about 75 hours per week says that “workflow comes in cycles,” and “work can also be performed remotely.” Although
virtually all employees work long hours, only a handful say they would take a 20 percent pay cut in order to reduce working hours by 20 percent. So,
overall, insiders don’t mind their hours.
Rolling up their sleeves together

The firm’s small size demands that junior and senior bankers work closely together, and “every level employee at Centerview is treated with respect.”
The firm’s “work style is very collaborative,” and sources say that “senior bankers take a genuine interest in teaching junior bankers and developing
their skills.” One analyst says that he “could not be more pleased with my interaction with partners and principals.” And a vice president points out
that the firm’s small size “helps immensely” with regard to maintaining the health and robustness of these relationships.
Although “deference is given to experience,” says one insider, “the emphasis is on efficiency, not ‘command and control.’” In general, “everyone rolls
up their sleeves together.”
Open door and on the job

When it comes to training, explains a principal, “analysts receive a few weeks of formal training at the start of the summer.” Says one source, “There
is a formal training program for the first-year analysts that’s probably less intensive than what you would receive at a large bank.” A vice president calls
the program “modest,” while an analyst calls it “intensive training.” During this time, says a vice president, analysts develop “a full suite of M&A
advisory skills” as well as an understanding of a “broader market context.” By the end of training, all of which is run by Centerview bankers, “analysts
are able to perform basic tasks with ease, and have a very solid groundwork laid for more complex modeling and analytics.” They also have “the ability
to think creatively around research is stressed, as is rigor in analytics.” One managing director says that the formal program is followed by regularly
scheduled “formal and informal training sessions.”
Employees say that “given the small size and tight culture of our firm, superiors take a much greater interest in you and developing your skill set” than
at bulge-bracket banks. Indeed, “there is hands-on training every day,” and the “firm and its partners have a strong focus on developing its
professionals on the job. This is true across the board, from technical and strategic-thinking skills to client interaction skills.” Another insider says
that “senior bankers take care to teach junior bankers all that they can, under the assumption that these junior bankers will stay at Centerview and
eventually become senior bankers themselves.” Indeed, the firm maintains an “open-door policy up to partner level.” As a result, “training is extremely
personal.”
Not enough rooms with a view

On the whole, respondents are not overly thrilled with the Centerview office—the firm has only one—mostly because it is “crowded.” The firm is
“currently at capacity,” due to “significant growth over the past couple of years.” Sources are looking forward to “moving to a larger, more luxurious”
and “more comfortable” space in the summer of 2009. Some do like the old office. One investment banking analyst calls it “very classy.”
When it comes to dress and dress codes, “there is no hard and fast rule. People dress professionally as their schedule dictates.” That tends to mean
“business dress, though not necessarily a coat and tie” in the office—”a sweater and dress slacks” are suitable. An insider says that it’s “up to the
discretion of the banker. Most people choose to wear suits and ties.” Another says that “most but not all of the more senior people tend to be formal
every day.” Some sources also say that the firm has “casual Fridays” and “casual summer.” But across the board, sources are firm about “client
meetings,” which necessitate “a suit and tie.”
The green warden

On the whole, most Centerview contacts feel that their firm is environmentally conscious. “We’re very green,” says one analyst, who cites the company’s
so-called Green Warden. An analyst explains that this “Green Warden,” appointed by the firm, “oversees recycling, energy conservation initiatives and
other environmental concerns.” Another contact notes that firm has also “implemented initiatives such as double-sided printing and no paper memos,”
and installed “motion sensor lighting.” In addition, “all employees are strongly encouraged to embrace these environmentally friendly behaviors.”
Indeed, “there is an awareness of environmental impact at the most senior levels of this firm, unlike that I have seen elsewhere,” says one source.
Others are less sanguine about the firm’s commitment to environmental initiatives. “We are just beginning to develop our green business practices,”
says one employee who feels that the firm could do more. “But,” he admits, “they are in motion.” And respondents say they are open to change:
giving up disposable plates and silverware, reducing overhead lighting during off-peak hours and when it’s sunny, not taking a car service home and
reducing business travel by air are among the initiatives employees are open to implementing.
Change may come soon: According to one vice president, the company’s “new offices,” which it expects to inhabit in the summer of 2009, “have been
designed with environmental sustainability in mind.”

An industry-wide problem
On the whole, respondents give the firm high marks for bringing women and minorities into the workplace. But at least one contact says the firm is
lacking in that area. Most also commend the firm’s commitment to diversity regarding employees who identify as GLBT, but at least a few believe that
the firm can do more. The challenge, according to one contact, may have less to do with Centerview as a firm than with the financial industry itself.
“Women and minorities will increasingly join the finance industry at the same time as upstanding, intelligent and well-meaning become key criteria for
success in the industry,” he says. “Too often, the finance industry is perceived as a haven for underhanded and occasionally bullheaded business
dealings by men, which makes the industry unattractive not only to women and minorities but also to good businesspeople.”
What fiscal crisis?

In an era of cost-cutting, most respondents haven’t noticed any cutbacks, though one says that holiday celebrations were scaled back. Perhaps that’s
because, in today’s “challenging business environment,” says one senior banker, “the firm’s independent advisory model has generally been well
received in the marketplace.” An analyst in corporate finance agrees. “Regardless of the troubled economy,” he says, “there is a lot of business at
the firm. Each employee is busy just the right amount.”
Some insiders believe that where big banks have lost traction, smaller banks, like Centerview, stand to gain. Given the trouble that “public Wall Street
investment banks” have endured, says one analyst, “there seems to be a shift toward working for a boutique investment bank.” And given Centerview’s
“solid foundation of people,” “our firm is well positioned to capitalize on this trend.” Another insider agrees, saying, “Strategic advisory firms will
ultimately benefit as investment banks lose talented personnel and increasingly become providers of commodity financing-oriented products.” Or, as
one executive puts it, “We’re on the offense while the rest of the world is pulling back.”

PRESTIGE
RANKING
35 KEEFE, BRUYETTE & WOODS, INC.
The Equitable Building KEY COMPETITORS

787 Seventh Avenue, 4th Floor
New York, NY 10019 FBR Capital Markets
Phone: (212) 887-7777 Fox-Pitt Kelton
Fax: (212) 541-6668 Sandler O’Neill + Partners
www.kbw.com
UPPERS
BUSINESSES • “Very supportive” culture
Equity Capital Markets • “No real pressure to put in long hours”
Fixed Income Capital Markets
General Advisory
M&A Advisory
DOWNERS
Mutual Thrift & Insurance Company Conversions • “The brand name isn’t as big” as other firms
Structured Finance • “If you want to feel like a master of the universe, this isn’t
the place for you”
THE STATS
EMPLOYMENT CONTACT
Ticker Symbol: KBW (NYSE) www.kbw.com/contact_us.html
CEO: John Duffy
No. of Offices: 10
THE BUZZ
• “Leader in FIG banking”
• “FIG only; small player with little brand equity in I-banking”
• “Good niche player”
• “Who?”
209
Keefe, Bruyette & Woods, Inc.
THE SCOOP
Three leafed clover

KBW, Inc. is the parent firm of three subsidiaries: Keefe, Bruyette & Woods, its American investment banking business; Keefe, Bruyette & Woods
Limited, its international operation; and KBW Asset Management. All three parts of the firm focus on the financial services and institutions sector.
Keefe, Bruyette & Woods serves banking and insurance companies, broker-dealers, mortgage banks, asset management companies, REITs, specialty
finance firms and securities exchanges. Its services include mergers and acquisitions advisory, general financial advisory, equity capital markets, fixed
income markets, mutual thrift and insurance company conversions and structured finance.
The three arms of KBW Inc. employ a total of 450 people in 10 offices around the world; Keefe, Bruyette & Woods is staffed by approximately 75
professionals in Atlanta, Boston, Chicago, Columbus, Hartford, Houston, New York, Richmond, San Francisco and London.
Overcoming all obstacles

Formerly headquartered in the World Trade Center, Keefe, Bruyette & Woods lost 67 employees in the September 11 attacks. The firm fought hard to
rebuild, and in 2003, it opened a new, permanent New York office in midtown Manhattan. (Group CEO John Duffy’s book Triumph Over Tragedy details
the firm’s rebuilding process.)
In November 2006, KBW, Inc. completed the final phase of its post-September 11 recovery by launching an IPO of 6.8 million shares. Priced at $21
a share, the offering was also an opportunity for Keefe, Bruyette & Woods to work with Merrill Lynch as joint bookrunners. Within days the firm sold
the full slate of shares at the top end of its expected price range, reaping nearly $143 million. Analysts were impressed—KBW wasn’t the only boutique
bank to go public, but it was one of the few whose offering was so successful.
IN THE NEWS
April 2009: Staff cutbacks

An insider told the industry publication Private Equity News that Keefe, Bruyette & Woods laid off 7 percent of its workforce—40 staffers in total.
According to KBW, there had been two layoffs in the fixed income division, but the firm didn’t say in which departments the other layoffs took place. A
KBW spokesperson told Private Equity News that the firm is examining the current makeup and leadership of its 70-employee fixed income department.
March 2009: Coats hangs it up

Keefe, Bruyette & Woods’ co-head of fixed income, E. Craig Coats Jr., announced his retirement. Coats, co-head since 2002, started trading in 1969
and was considered a “bond vigilante” who lobbied the U.S. government to force bond yields higher. In the 1980s, Coats worked on Salomon Brothers’
government bond trading desk, which received fame with the release of Liar’s Poker, written by bond salesman (and now Bloomberg columnist)
Michael Lewis. KBW did not immediately name a replacement for Coats.
February 2009: Rough times

For 2008, KBW booked $242.2 million in total revenue and a net loss of $62.3 million, a significant drop versus the $427.5 million in revenue and
$27.3 million in net income it posted in 2007. The firm cited a steep decline in investment banking revenue and institutional commissions as reasons
for the less-than-stellar results. The firm’s fourth quarter 2008 was particularly rough, as KBW booked a net loss of $22.1 million versus net income
of $3.6 million that it brought in during the same period a year earlier.
January 2009: Dealmakers

The firm did well on the Thomson Reuters’ 2008 league tables for middle market M&A deals. KBW ranked No. 5 for U.S. announced M&A deals
valued up to $50 million; No. 11 for U.S. announced deals up to $100 million; No. 17 for U.S. announced deals up to $200 million; and No. 17 for
U.S. announced deals valued up to $500 million.
September 2008: Capital raising on the shelf

In the wake of disappointing returns, KBW filed a universal shelf registration statement that enables the firm to sell, in one or more public offerings,
common or preferred stock, debt and other securities. In a statement, the company said that it “has no current plan to raise capital.” But the
registration allows KBW access to public markets “in order to facilitate and expedite opportunities for growth,” said Chairman and CEO John Duffy. He
added that since KBW’s 2006 IPO, “a significant portion of our outstanding common stock, owned by employees, has been subject to restrictions on

transfer and sale. Those restrictions are scheduled to begin to expire shortly.” The shelf, he concluded, allows employees to effect a secondary offering
on the shares they own.
May 2008: Word on the Street

KBW was repeatedly honored for its research in 2008. David Konrad was named by The Wall Street Journal as the top banking industry analyst in the
U.S. in its Best on the Street survey. Konrad beat 102 other analysts for the title. The newspaper also honored KBW analysts Jeffrey Schuman, Dean
Evans and Bose George. Schuman was ranked the second-best analyst in the life insurance category, and Evans and George were singled out in the
non-life insurance category and real estate category, respectively.
May 2008: Three more bankers

The company hired three bankers from Wachovia Securities to staff its newly formed real estate investment banking group. They are Michael Hawkins,
Robert Woomer and Christopher Haney. Hawkins and Woomer joined as principals; Haney as associate. The group also includes John Dalena, and
focuses on public and private real estate companies and their capital needs.
April 2008: In memoriam

Keefe, Bruyette & Woods was among the companies that donated $5 million to the construction of the National September 11 Memorial and Museum
at the World Trade Center in New York City; the memorial and museum reached their $350 million fundraising goal in April 2008. The firm also
maintains its independent September 11 family fund to support relatives of the 67 KBW employees who died on that day.
April 2008: Misstep

The firm issued a retraction of what it termed a “negative element” in its research report on KBC Groep, a Belgian bank and insurance company.
KBW’s report questioned KBC’s supervision of the Belgian Banking, Finance and Insurance Commission. “After due consideration, we have
determined that such statements were not supported and should not have been included in that report,” said KBW in a statement.
February 2008: New hires for a new group

The firm hired Frederick Kannon as associate director of research and chief equity strategist, a new position. Cannon joined from Golden State
Bancorp, where he was executive vice president, director of investor relations and a member of the operating committee. Cannon’s hire will help KBW
to boost its research capabilities, for which is has been historically lauded by the industry.
GETTING HIRED
Get ready to schmooze

KBW is “specialized due to its financial services focus,” and for that reason, it can be tough to get in. “While the firm makes significant efforts to locate
and hire good undergrads and MBAs, our size and scope obviates many traditional recruiting programs,” says one insider who explains that “KBW is
very small, and focused on the banking industry only.” The contact adds, “As a result, it’s not the kind of place where a regular stream of new analysts
and business school interns come through.” In general, observes another source, “hiring tends to be done on an ‘as needed’ basis, and the truth is
that you really need to know someone or have some connection to get in the door.” Yet another insider confirms, explaining that “hiring tends to be
from within the industry, based on prior relationships or on having amassed a major track record at another firm focusing on the financial industry.”
Still, sources say that “there are plenty of KBW employees that knew no one initially.” For those with the energy to actively hunt down a position with
KBW, insiders have a few words of advice. “First,” one source says, “you’ll want to know exactly what we do, what our business units are, and who
the important people in them are. Then contact those people and ask what kind of needs they have.” “If,” on the other hand, “you don’t have that
much energy, you can use the KBW website and send a message to the departments.” Individuals who take the latter route are less likely to get a
response. Insiders report that KBW “classically likes people who are smart and easy to get along with.” “Humility probably helps more than bravado,”
adds a source. For individuals interested in sales or trading, contacts advise, “humor helps.” Those looking at research or corporate finance should
have “a willingness to work extraordinarily hard.” Interviewing is a “thorough process” that involves “a variety of questions” with “nothing that’s
prescripted.”

OUR SURVEY SAYS
Collegial culture
The firm’s culture is “excellent,” “very supportive” and “collegial.” And even though “there’s positive interdepartmental rivalry like there is at any firm,”
there are few complaints. KBW is “small and quite unified—a firm with a family feel,” notes one banker. “Housed on one floor of a large building in
New York, it’s easy to know and interact with just about everyone. There is very little formality and there are a lot of close friendships.” Just like at
home, dress is still apparently casual except for client contact. “The guys at Keefe long ago came around to the epiphany that no one really wants to
wear suits,” says another. “People keep the place neat, and no one really thinks about it.”
The firm has little hierarchy thanks to “flat structures and management availability.” Compensation is at market, as are hours. “One of the hallmarks
of this firm is that not only is there no real pressure to put in long hours, there’s no real consciousness of the issue,” says a source. “They give us a
clear premise: we’ll talk at the end of the year and see if you made money.”
But Keefe isn’t for everyone, says one insider. “To work here, you have to be geared to a small firm and its reach and resources. I guess the brand
name isn’t as big as Goldman’s, so maybe there are times when you have to work harder to make an imprint on new clients.” The contact adds, “If
you want to feel like a master of the universe, this isn’t the place for you; they just don’t care about the trite side of Wall Street.”

PRESTIGE
RANKING
36 ROBERT W. BAIRD & CO. (BAIRD)
777 East Wisconsin Avenue RANKING RECAP

Milwaukee, WI 53202
Fax: (414) 765-3633 #3 – Culture
#4 – Offices
227 W. Monroe, Suite 2100 #5 – Best to Work For
Chicago, IL 60606 #5 – Overall Satisfaction
Phone: (800) 537-9854 #5 – Treatment by Managers
www.rwbaird.com #10 – Selectivity
#11 – Hours
BUSINESSES #12 – Training
Asset Management
Diversity
Institutional Equity Services
Investment Banking
Research
Private Equity
Private Wealth Management
UPPERS
THE STATS • “Lifestyle is not as hardcore as working on Wall Street”
• “Well positioned for 2009 and beyond”
• “Great attitude of co-workers”
Chairman, President & CEO: Paul E. Purcell
2008 Revenue: $680 million
No. of Employees: 2,400 DOWNERS
No. of Offices: 100+
• “Full-time hires should be shown more appreciation”
• “Middle market stigma”
• “The ridiculous cost cutting measures”
EMPLOYMENT CONTACT
See “careers” at www.rwbaird.com
THE BUZZ
• “Strong middle-market firm”
• “Decent ... for the Midwest”
• “Niche player”
• “Regional broker/investment bank”
213
Robert W. Baird & Co. (Baird)
THE SCOOP
What slowdown?
While other banks handed out pink slips in 2008, Milwaukee’s Robert W. Baird & Co. (better known as Baird) handed out job offers. The firm added
more than 200 employees to its payroll over the course of the year, bringing global headcount to nearly 2,400. Most of these employees were hired in
the U.S.; Baird’s overseas business remains modest, with just about 100 professionals. But according to the firm, European and cross-border
assignments have accounted for one-third of its mergers and acquisitions work in recent years.
Since the late 1990s, Baird has advised on over 620 M&A and financing deals with a total value of over $107 billion. In 2008, Baird was named the
Middle Market Investment Bank of the Year by Buyouts magazine.
Baird’s business mix

Investment banking, research and equity sales and trading comprise the equity capital markets business, which includes an institutional sales team in
London and investment banking teams in Germany and the U.K. The fixed income capital markets unit, with about 25 offices in the U.S., consists of
fixed income sales and trading and public finance.
Baird’s asset management division includes Baird Investment Management (which manages equity mutual funds), Baird Advisors (a fixed-income
investment manager), and Baird Public Investment Advisors (manages investment portfolios for public entities).
The private wealth management division, which serves high-net-worth individuals, corporate clients and business owners, has 63 offices nationwide.
The firm’s private equity business is carried out by several partners around the globe: Baird Capital Partners, Baird Capital Partners Europe, Baird
Capital Partners Asia, Baird Venture Partners and Granville Baird, a German affiliate.
A storied founder
Robert Wilson Baird wasn’t just the lead partner of the firm that bears his name: he was also one of the founders of the National Association of Securities
Dealers, and served as the NASD’s third chairman. Baird the bank traces its roots to 1919, when Robert Wilson was named lead partner of the First
Wisconsin National Bank’s securities division. He rose to become president of the division, called First Wisconsin Company, which was later spun off
and renamed the Securities Company of Milwaukee. By 1948 the firm had obtained a seat on the New York Stock Exchange and assumed its current
name.
Baird gathered its strength in Wisconsin in the 1980s, becoming the state’s top investment bank before embarking on a strategic expansion in the
1990s. This led to the opening of dozens of new offices in the U.S. and Europe. Wholly owned by its employees, Baird has also stayed true to its
hometown and maintained its headquarters in Milwaukee.
IN THE NEWS
January 2009: Courting loyalists

The firm ranked No. 14 overall on Fortune’s 2009 list of the 100 Best Companies to Work For. It also came in No. 3 among small companies (those
with 2,500 employees or fewer). This was the sixth consecutive year in which Baird made the prestigious national listing.
January 2009: Nice deals

For the second year in a row, Baird won top honors for its M&A prowess in the Acquisitions Monthly annual roundup of investment banks. Baird was
named the 2009 Manufacturing Sector Adviser of the Year for its work on deals like the sale of Avery Weigh-Tronix Holdings Ltd. to Illinois Tool Works
and the sale of Driessen Aerospace Group to Zodiac S.A.
December 2008: Consumer and retail bigwig

Baird nabbed the Consumer and Retail Products Deal of the Year award from The M&A Advisor for its role in advising Technical Concepts on its $445
million sale to Newell Rubbermaid Inc., one of the largest middle market consumer products transactions of 2008.
December 2008: Here come more execs

Gregory J. Ingram was named managing director and co-head of equity capital markets. He joined Baird’s San Francisco office from the equity and
capital markets division of Pacific Growth Equities; before that he was co-head of J.P. Morgan’s Americas ECM division.

October 2008: More pros on board

Richard P. Conklin joined Baird’s equity capital markets team in the Chicago office. His new assignment: building Baird’s equity capital markets
business in the industrial and real estate sectors, and overseeing private placement activity for both public and private companies. The equity capital
markets division is clearly on a path of expansion. Earlier in 2008, it opened equity sales and trading offices in San Francisco, Boston and Stamford,
Conn. Conklin joined Baird from ProLogis, the world’s largest real estate investment trust (REIT). Previously, he held a senior position in William Blair
& Co.’s investment banking group.
Two more senior investment banking professionals joined the Baird ranks in October, as the firm opened a new office in Charlotte, N.C. Brian
McDonagh, former head of the industrial growth M&A group at Wachovia Securities, signed on as managing director and co-head of mergers and
acquisitions. Joe Pellegrini, who led the retail and soft goods investment banking group at Wachovia, joined as a managing director. (Pellegrini tackles
advisory assignments these days, but before going into banking he spent seven years in the NFL, playing with the Atlanta Falcons and the New York
Jets.) To further flesh out the Charlotte team, managing director Frank Stokes, who joined Baird in 2007, left the Chicago office and headed south.
September 2008: Target: Asia

For the latest proof that Baird’s gone global, look no further than Shanghai. The firm announced that it had expanded its international platform to
include investment banking capabilities in Asia, thanks to the hire of Anthony Yan-Hong Siu, a veteran Hong Kong investment banker who joined from
Standard Chartered Bank. In his new role, Siu will focus on cross-border M&A deals, working in partnership with Baird’s M&A teams in the U.S. and
Europe. Siu joined Baird’s 140 investment banking professionals in the U.S., U.K. and Germany.
Steve Booth, the firm’s director of investment banking, said Baird is poised to make more inroads in the international market, a move that may mean
more work for its domestic teams. “In the late 1990s, our clients valued us for our deep sector expertise, but we were in danger of becoming less
relevant due to our strictly U.S. focus,” he said. “As we expanded into Europe and gave our U.S. clients the access they were interested in, we formed
relationships with European clients who were similarly interested in our U.S. connections.”
GETTING HIRED
Aggressive growth
The most important criteria for getting hired at Baird is how well an employee can fit in with the culture. One respondent says that recruiters are “very
concerned with personality and cultural fit,” while another adds that “cultural fit is equally as important as intellectual capacity and work ethic.” It’s
become harder in the last few years to get hired at the company, and there’s a “relatively limited number of openings,”—”hundreds apply” with “maybe
10 selected for analyst positions each year.”
The firm is “aggressively growing headcount through the downturn” but “continues to be very selective.” The good news is Baird may take on hires
that other companies might not consider as it’s “more open-minded than other firms about career-changers.”
Screening the field

For entry-level positions, the interview process consists of one or two “on-campus interviews and a Super Day, consisting of six half-hour interviews.”
One current source remembers being “interviewed by 18 people of all levels,” and asked both “fit and technical questions.” Another with the company
explains that “Baird’s interview process is rigorous and thorough.” He adds that “initial resume screens seek to identify those candidates with
outstanding academic records, and evidence of focus and determination to get into the field.”
Baird focuses “more on fit in their interviews, with only one of the six [interviews] devoted to technical questions.” On-campus recruiting is done at
many Midwestern schools, including Notre Dame, University of Chicago, Northwestern, University of Wisconsin, University of Pennsylvania, University
of Michigan and the University of Virginia.
Meaningful work
Internships are “crucial to receiving a full-time offer, especially within this environment.” “Quality interns receive offers every year—and nearly all of
them accept.” The internship doesn’t have to be at Baird, however, as “any banking internship is helpful in the hiring process.” Those who have
completed internships at Baird say they did work “between what an analyst and associate would do.” Although one contact complains that it was “not
a very structured program,” another raves that “the internship was great,” adding that “the work given was meaningful,” and points out that “there are
intern events where department heads speak to interns about each group.” Another insider recalls, “I was treated as a first-year analyst during my
internship, and mostly did basic modeling work. I was staffed on a few pitches and two live sell-side deals, basically assisting the analyst.”

One source offers a tip about a little known and thus less competitive internship, saying that “while not advertised, we have had very good success
with undergrads who have adequate credits and take off the fall semester from school to work as an intern with us. Then they go back to school for
the spring semester and start with us full-time in the summer.”
OUR SURVEY SAYS
“Unusually cohesive”
Baird gets raves across the board for its “down-to-earth Midwestern banking culture,” which is “much more laid-back than Wall Street firms.” At Baird,
“senior bankers care for junior bankers and their lifestyles.” One current insider explains that this kind of relaxed culture is “very unique in investment
banking” and “feels like a true partnership.” Another says that “this is the No. 1 reason I chose Baird. Everyone at the company is approachable,
from the CEO to the director of banking.” Employees “still work very hard,” but say that “having people around you that care about your career and
you as a person makes the stress and long nights a bit more tolerable.” Indeed, “the culture is unusually cohesive, collaborative and generally
employee friendly for an investment bank.”
Employee ownership is a plus

Though “it’s widely known that Baird needs to improve its analyst compensation,” many feel satisfied based on the extra perks that come with being
a Baird employee such as a “strong stock ownership program, a limited 401(k) match and profit sharing.” One source feels that “year-end bonuses
are always below market” and is worried that “perks have pretty much evaporated in current climate.” Another explains that “Baird is an employee-
owned firm with nominal debt. All VPs and above are granted Baird stock and given the opportunity to purchase shares annually. Baird also has a
venture capital group and private equity group that provide investing opportunities.”
Make hay
The hours at Baird “have not been treacherous” in recent years, although one respondent says that “50 percent of that is status quo at my office and
50 percent relates directly to the poor market.” Most report working about 70 to 80 hours per week. Working time gets “much better in the VP and
director years”; before that, “analysts and associates bear the brunt.” There’s “no need for face time,” though, so “if you’re work is done, you can go
home.” And insiders note that the “hours are much better than banking in New York.”
Though most are happy with the workload, some have complaints. One source says, “For middle market banking, the hours are very bulge-like.”
Another says that he can “work at home on weekends, but total hours are 80 to 100 per week.”
Mentors for life

Baird’s manager-employee relationships are highly regarded by nearly all insiders. One says that it is “impossible to overstate the amount of respect
shown by senior people here to junior people.” Another source notes, “This is without a doubt one of the best banks in the world in this respect.”
Training also gets high marks. Baird “has an excellent training program,” which employees attend for four weeks before starting a job. There’s also a
“continual mentor-mentee relationship” that goes on for new employees that includes excellent, on-the job training with “senior involvement in
transactions.”
Clean and bright

Respondents report that the office space at Robert Baird is nothing particularly special. One source says that the space “needs an upgrade.” An
associate comments that having an office at his level of work is “unprecedented” at other companies, but says that “it’s quite nice” of Baird to provide
it. The “Chicago office was recently completely renovated,” and has “extended its lease and remodeled the space.” Employees working in the space
say that the new offices are “clean and bright.”
The dress code at Baird is business casual, although one director says he “would prefer business attire 100 percent of time.” Another insider says
that “clients are not allowed on the banking floor of the Chicago office,” which makes the atmosphere somewhat more relaxed. Employees are expected
to dress “formal for most client meetings” and are allowed a “jeans day occasionally on Fridays.”
Baird contacts report that the company has yet to make the switch to a fully environmentally sound office. One source says that green measures are
“good in theory, but tough to implement,” while another believes that they’re “not a priority.” One banker details some of the measures that Baird has
made, saying that the firm “recycles and has reduced unnecessary printing.”

Receptive and supportive

There is a “balance of females and males in the office,” but, like many large banking organizations, the [number of] females thin out at senior levels.
One male employee explains that with regards to females, “hiring is good, but retention is not.” “We are not very diverse,” says another source, “though
we work hard at getting there. We’ve undertaken huge efforts to broaden diversity.” Overall, there are “not many minorities,” but the firm is “making
strides.”
As for GLBT diversity, one banker notes, “We have a comprehensive diversity initiative staffed by leaders of the firm to encourage and support women,
minorities. I’m confident that we are among the most receptive and supportive to these groups within financial services.”
Room to run
Overall employee satisfaction at Baird is very high. One professes, “I wouldn’t work at a different investment bank.” Another agrees that he “wouldn’t
want to be anywhere else,” and adds, “While Baird is smartly reigning in spending during this environment, we added eight to 10 senior bankers in
2008 and expect to come out of this downturn stronger than we entered. We have a lot of running room, and I’m looking forward to the coming years.”
Like many of its competitors, the “outlook for 2009 is pretty bleak” at Baird, but the company is “very excited about the market opportunity for our
firm.” One current employee says that “compared to other banks, Baird is on solid ground. We are well diversified across product lines and have a
very small leverage ratio. Baird will be around for a long time.” Another agrees, saying, “We’re extremely well positioned for the market recovery.”

PRESTIGE
BROADPOINT GLEACHER SECURITIES

RANKING
37 GROUP, INC.
One Penn Plaza UPPERS
42nd Floor
New York, NY 10119-4000 • Culture is “changing”
Phone: (212) 273-7100 • “US platform is a mix of professionals from many different
www.broadpointsecurities.com backgrounds”
DEPARTMENTS DOWNERS
Broadpoint Amtech (Equity Capital Markets) • In terms of hours, “conditions are difficult today”
Broadpoint Descap • “Needs to pay competitive bonuses to retain top
Debt Capital Markets performers”
Investment Banking
Venture Capital
EMPLOYMENT CONTACT
Human Resources
THE STATS Fax: (518) 447-8115
Employer Type: Public Company Email: careers@broadpointsecurities.com
Ticker Symbol: BPSG (Nasdaq)
Chairman: Eric Gleacher See “careers” under “about us” section of
CEO: Lee Fensterstock www.broadpointsecurities.com
No. of Offices: 8
KEY COMPETITORS
Cowen and Company
Evercore Partners
Greenhill & CO.
Stifel
William Blair
THE BUZZ
• “Solid boutique—high-quality reputation”
• “Who?”
• “Rock stars, well paid, analysts get placed well for PE”
• “Not what they once were”

Broadpoint Gleacher Securities Group, Inc.
THE SCOOP
Rebuilding from scratch

Broadpoint Gleacher Securities Group is a New York-based investment bank whose most recent incarnation was formed in June 2009 when Broadpoint
Securities Group acquired Gleacher Partners for $20 million in cash. Today, Broadpoint Gleacher focuses on serving middle market and emerging-
growth companies, and, in addition to its headquarters in Manhattan, its nearly 300 employees work out of offices in Boston, Chicago, Minneapolis,
San Francisco, St. Louis and London.
In the wake of the subprime crisis and the subsequent collapse of the global markets, along with making a major acquisition, the firm recently added
restructuring and recapitalization groups, and expanded its debt capital markets business.
Five areas of business

Broadpoint Gleacher has five main businesses: investment banking, Broadpoint Amtech, debt capital markets, Broadpoint Descap and venture capital.
Broadpoint’s investment banking group offers M&A Advisory services including buy-side and sell-side advisory, fairness opinions, board and special
committee advisory; recapitalization and restructuring advisory including in and out of court restructurings, exchange offers, Chapter 11
reorganizations, distressed asset sales, company, creditor and board advisory; debt financing solutions including public debt, bank debt, high yield,
private debt and equity financing solutions including IPO’s, follow-ons, PIPEs, registered directs, private placements, convertibles and other equity-
linked securities.
Broadpoint AmTech is the firm’s equity capital markets group. It provides equity research, sales, and trading to institutional investors, covering more
than 130 stocks and 300 institutional account relationships. Broadpoint’s debt capital markets is a group of approximately 50 professionals that provide
primary issuance and secondary trading of debt securities. It trades more than $36 billion in securities annually. The Broadpoint DESCAP group
provides primary issuance, and secondary sales and trading in mortgage and asset-backed securities. Broadpoint’s FA Technology Ventures provides
growth capital to early and expansion-stage companies in information technology and energy technology, and assists management in developing new
companies.
The name game

Before it became known as Broadpoint Gleacher, the firm was known as Broadpoint Securities Group, a name it picked up in December 2007. Prior
to that time, it was known as First Albany Companies. The Broadpoint moniker entered the fold after the firm sold its municipal bond unit for $12
million to Dublin, Ireland-based DEPFA Bank. The sale to DEPFA gave the former First Albany a more streamlined focus on investment banking, and
gave DEPFA the rights to the First Albany name (the municipal bond unit is now called DEPFA First Albany Securities). As a result, First Albany’s board
voted to change the firm’s name to Broadpoint Securities Group.
Also in the fall 2007, MattlinPatterson, a private equity firm, invested $50 million in Broadpoint and gained controlling interest of the company. This
gave MatlinPatterson control of the board and the right to name a new CEO, Lee Fensterstock. Prior to joining Broadpoint, Fensterstock founded Bonds
Direct Securities, and served as its chairman and co-CEO until it was sold to Jefferies Group. Previously, he was president and COO of Gruntal & Co.,
a regional broker dealer. Earlier in his career, Fensterstock worked for PaineWebber. Under the new Broadpoint name, First Albany CEO Peter
McNierney was bumped to second place, taking on the president and COO titles. After acquiring financial advisory firm Gleacher Partners in June
2009, it was rechristened Broadpoint Gleacher Securities Group.
Where the Gleacher comes from

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 started 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.
Before being acquired by Broadpoint, Gleacher offered investment banking and asset management services, advising companies on mergers and
acquisitions, restructurings and capital raising. The firm had advised clients on over $250 billion of M&A transactions, representing such big-name
clients as Apollo Management, AT&T, BAE Systems, Bank of Scotland, British Airways, ConAgra, General Dynamics, Hexion, Telewest, WebMD and
Wyeth.

IN THE NEWS
June 2009: Gleacher enters the picture

As part of its rebranding, the firm officially became known as Broadpoint Gleacher Securities Group as it completed the acquisition of financial advisory
firm Gleacher Partners Inc. The merged firm will have about 300 employees in total.
April 2009: A happy first quarter

The firm posted net revenue of $70.6 million for the first quarter of 2009, a big boost from the $17.3 million in the same period of 2008. Net profit,
meanwhile, came in at $5 million in the first quarter of 2009, quite a different picture from the net loss of $9.2 million the firm pulled in for the first
quarter of 2008. Increased revenue within investment banking, the Broadpoint Descap unit, the equities division and debt capital markets division all
contributed positively to Broadpoint’s strong showing.
March 2009: A new boss

Broadpoint Securities Group agreed to acquire Gleacher Partners, merging Broadpoint’s debt and equity raising prowess with Gleacher’s advisory
expertise. Under the terms of the deal, Broadpoint will pay selling Gleacher shareholders $20 million in cash and issue 23 million shares in common
stock.
February 2009: A positive turn

Things were mostly looking up for Broadpoint when it came to full-year 2008 results. Full-year revenue came in at $145.01 million, up considerably
from the $47.11 million it brought in for 2007. The firm did report a net loss of $17.36 million, but it was less than the net loss of $19.46 million in
reported for the previous year. While the recession affected Broadpoint, it seemed to result in somewhat of a positive turn for the firm. “The current
industry turmoil is providing us with an unprecedented opportunity to hire industry veterans who share our focus on service and whose clients can
benefit from our full suite of products,” Peter McNierney, president and COO, said in a statement. “Over the past 15 months more than 200
professionals have joined Broadpoint.”
November 2008: Technology savvy

The restructuring of the firm’s equity capital markets group was finalized when Broadpoint completed its acquisition of American Technology Research
Holdings, a broker-dealer that specializes in institutional research, sales and trading in the information technology, cleantech and defense areas. The
firm renamed the division Broadpoint AmTech.
The combined Broadpoint and American Technology team consists of 53 professionals including 25 research professionals (including 14 publishing
analysts), 14 institutional sales professionals, eight trading personnel and six management and support staff. Former American Technology employees
Richard Prati and Curt Snyder now serve as managing directors of the division.
July 2008: New blood

The firm’s restructuring efforts also included a new leader in the firm’s executive branch. Broadpoint named industry veteran Robert I. Turner as the
new chief financial officer. Turner previously served as executive vice president and CFO of Knight Capital Group, a Nasdaq-traded online broker-
dealer. He also served as a corporate vice president at Paine Webber and a vice president at Citibank in the treasury and investment banking division.
June 2008: Beefing up the team

Nearly six months after the announcement that Broadpoint was acquiring BNY Capital Markets, it added a team of six investment grade fixed income
sales professionals to its debt capital markets division in order to further strengthen the team. The team is headed by Richard Crecenzo and Douglas
Scales, two Bear Stearns veterans with more than 25 years of experience in the business. Scales and Crescenzo were joined by Robert Arslanian,
Renee Rainero, Michael Leit and Meredith Stable in the new investment grade sales department.
January 2008: Bringing in BNY

Broadpoint expanded its fixed income division by acquiring BNY Capital Markets, the institutional Fixed Income division of Bank of New York. BNY
Capital Markets was formerly known as Mendham Capital Group until it was purchased by The Bank of New York in 1998. The New Jersey-based
group operates a sales and trading platform that specializes in high-yield, distressed, investment grade corporate, treasury, government agency,
convertible bond and equity securities.

Lee Fensterstock said that adding BNY Capital Markets “is strategically additive in that it gives us a distribution capability, particularly in high yield and
convertible bonds, which will enable us to expand our investment banking practice and better serve our corporate clients.” Former BNY Capital
Markets employee Joe Mannello was appointed as the executive managing director and head of the Broadpoint fixed income division.
GETTING HIRED
Selective
Broadpoint Gleacher is in search of “good, quality people” who want to “make an impact.” The firm’s main priority is finding people who embody its
personal ethic of dedication and accountability to clients. But one source notes that in certain departments, candidates must “have niche or area of
concentration to be hired.”
Junior people looking to join the firm normally go through a “three- or four-step” interviewing process. The company recruits “mostly” at “New York
City-area schools” for its internship program and full-time positions. More senior, experienced candidates typically go through a “two- or three-step”
interviewing process.
Insiders say Broadpoint Gleacher is among the most selective firms in terms of hiring (at least, Gleacher Partners was before it was swallowed by
Broadpoint). 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 firm’s 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.
OUR SURVEY SAYS
Happy on payday
The company’s culture is “changing in the U.S.,” according to one associate in the Atlanta office, who adds that Broadpoint Gleacher is “morphing
substantially into a much more aggressive middle-market” type of organization. Working at the firm 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 tends to be “situation-specific.” That contact, who’s
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 the firm “realizes it needs to pay competitive bonuses to retain top performers,” and praises the firm’s wealth accumulation plan, which
allows associates to defer pretax 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 it’s “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.”

PRESTIGE
RANKING
38 WILLIAM BLAIR & COMPANY
222 West Adams Street RANKING RECAP

Chicago, IL 60606
Fax: (312) 368-9418 #2 – Offices
www.williamblair.com #6 – Compensation
#6 – Selectivity
BUSINESSES #10 – Culture
Asset Management
Equity Research
#11 – Training
Institutional & Private Brokerage
Investment Banking
Private Capital
#15 – Hours
Diversity
THE STATS #15 – Diversity With Respect To Gays and Lesbians

President & CEO: John R. Ettelson UPPERS
• “Excellent place to launch one’s career”
No. of Offices: 10
• “Learning from talented and intelligent people”
• “Exposure within small deal teams”
KEY COMPETITORS
Baird DOWNER
Bank of America
• “Hours can be grueling”
Credit Suisse
• “Hierarchy”
FBR Capital Markets
• “Office politics”
Goldman Sachs
Jefferies
Keefe, Bruyette & Woods EMPLOYMENT CONTACT
Thomas Weisel Partners www.williamblair.com/careers
THE BUZZ
• “Baird without the rock solid research”
• “Decent research”
• “Intense, bordering on cutthroat”

William Blair & Company
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 10 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 900 employees (164 of
whom are principals) and more than $182 million of equity capital. Headquartered in Chicago, the firm’s additional offices are in Boston, Indianapolis,
Hartford, New York, San Francisco, London, Shanghai, Tokyo and Zurich.
The firm’s roots go back to 1935 when Chicagoan William McCormick Blair opened a firm with his partner, Francis Bonner; from the start, Blair Bonner
& Company’s mission was to finance the expansion of local Chicago companies during that city’s 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 Chicago’s wealthiest families. Chicago profited from William Blair & Company’s services, and
as the city’s local businesses grew into major companies, the firm profited from them.
Investment banking with William Blair

William Blair’s investment banking division is broken into two groups: corporate finance and debt capital markets. Corporate finance, which operates
from the Chicago, Boston, New York, San Francisco, London and Shanghai offices, serves industries such as business services, commercial and
industrial, consumer and retail, financial services, health care and technology. 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 also
works on public-private partnership (P3) transactions.
“Exceptional financial position”

One week after the collapse of Lehman Brothers, the sale of Merrill Lynch, and the $85 billion federal bailout of AIG, the senior leaders of boutique
investment bank William Blair & Company sent out a press release assuring nervous investors that the firm was in an “exceptional financial position.”
The firm wasn’t just blowing smoke—unlike many of its competitors, William Blair could honestly state that it had “no external debt,” “no direct
exposure to Lehman” and had “virtually no risk of write-downs.”
At the end of the fiscal year, the firm backed up its assertion that business was still going well by ranking high on Thomson Reuters’ M&A league tables.
The company placed 22nd overall for announced advisory deals in the Americas, with 45 transactions valued at a total of $35 billion. The proceeds
from these deals boosted the firm’s rank in the tables more than twenty places and showed a 238.7 percent growth from the previous year. Overall,
the firm’s M&A team completed 60 deals worth $40.5 billion during 2008.
Top talent
William Blair is known for its strong equity research department, which has been a vital part since the firm’s inception in 1935. In 2009, William Blair
proved its researching prowess by taking home six separate awards for individuals who excelled at stock picking or estimating earnings. In the Financial
Times/Star Mine Analyst Awards, awards included the No. 1 stock picker in the air freight and logistics sector, No. 1 earnings estimator in the
professional services sector, No. 2 earnings estimator in the diversified consumer services sector, No. 2 stock picker in the trading companies and
distributors sector, No. 3 earnings estimator in the capital markets sector, and No. 3 earnings estimator in the food and staples retailing sector.
The firm’s researchers also appeared in The Wall Street Journal’s 2008 Best on the Street Awards. John Kreger was named as the No. 5 stock picker
in the health care providers sector, and Mark Lane was named as the No. 5 stock picker in the investment services sector. It was Kreger’s fourth time
being included in the rankings, and Lane’s second.
IN THE NEWS
January 2009: Wizard of M&A

William Blair’s head of M&A, Mark Brady, was named Investment Dealer’s Digest Mid-Market Banker of the Year for his work with the firm in 2008.
Brady was recognized by IDD for his work in expanding William Blair’s business into Asia, where the firm completed eight M&A deals in 2008. His
contributions include serving on the Chicago-China Development Corporation for three years, and making repeated trips to the Guangdong Province
in China.

Brady was also the head of a team that performed surprisingly well even in the midst of one of the worst economies in recent memory. William Blair’s
M&A team completed 60 transactions worth $40.5 billion including 21 cross-border transactions in 2008. Brady told the publication that his success
has been a long time coming saying, “It took me 17 years to do my first $20 billion of M&A deals in aggregate, and a month to do my second.”
November 2008: Tops in wealth management

Barron’s’ ranked William Blair 34th in the country in its 2008 Top Wealth Managers rankings, which listed the top private banking firms in the U.S. by
private banking assets under management. William Blair also appeared on Barron’s list of the Top 40 Private Banks, coming in 25th among banks
with assets of more than $10 million. As of September 30, 2008, William Blair had more than $42 billion in assets under management.
November 2008: Sticky deal

William Blair served as the placement agent on $400 million of senior unsecured notes issued by J.M. Smucker & Company. The funds from the
transaction helped Smucker finance its $3.3 billion merger with Folgers Coffee. J.M. Smucker acquired Folgers from Procter & Gamble in an all-stock
reverse transaction that included the assumption of $350 million of Folgers debt.
April 2008: Sweet deal

William Blair acted as co-advisor to Mars and Warren Buffett’s investment firm, Berkshire Hathaway, on their acquisition of Wrigley Jr. Co. The candy
makers and Warren Buffett teamed up to buy Wrigley for $23 billion. Buffett contributed about $6.5 billion into the deal and told a CNBC anchor, “I’ve
been conducting a 70-year taste test ... since I was about seven years old on the products. I’ve done the same thing with Mars products. And they
met the 70-year taste test.”
GETTING HIRED
It ain’t easy
It’s not easy landing a spot at this highly selective firm, which has only seen five CEOs in its 74-year history. Even during the best of times, “incoming
classes” of analysts “were capped at around 10 to 12.” An analyst in corporate finance agrees that “there are very limited spots available,” while
another contact says that hiring “gets more selective each year.” And given the present economic environment, “we’ll have a class of less than 10
joining summer 2009,” says one employee.
Active recruitment, says one employee in M&A, is “limited to a handful of schools, mostly Midwest and Big Ten types.” But others say that hires come
mostly from the Ivy League, and can boast of “GPAs over 3.8.” In addition to the Ivy League—Brown, Cornell, Dartmouth, Harvard and Yale get special
mention—the firm recruits at the University of Illinois, University of Indiana, University of Michigan, Notre Dame, University of Chicago and Georgetown.
One employee also warns that as a result of “the market downturn,” in the fall of 2008, “the firm concluded full-time recruitment efforts before giving
out any offers.”
The long road to becoming an analyst

Typically, says one contact in M&A, “The analyst hiring process is two rounds, each consisting of five to six interviews with a lunch in between.” For
the second round, expect a “Super Saturday” at the firm’s Chicago headquarters, where prospective employees interview with “associates, vice
presidents and partners.”
One analyst remembers that his “first round consisted of two 30-minute interviews,” followed by a “lunch interview” and a second round of “eight 30-
minute interviews.” Another contact endured a Super Day with “eight rounds of interviews back to back.”
Applicants can expect questions that range from “quantitative” to those regarding one’s “fit” with the firm. One source says that it is “important to
differentiate your desire to be at William Blair as opposed to a bulge bracket bank in New York.”
Into the great wide open

Respondents say that landing an internship “is becoming critical to gaining a full-time offer at William Blair.” In fact, “100 percent” of the analyst class
for the summer of 2009 came from the previous summer’s interns. According to one former intern, “It is definitely easier to get hired after an
internship—almost every intern has come back for a full-time position in the last five years.” But others warn that the internship, considering this
competitive economic environment, is not a guarantee of hire. One analyst explains, “In summer 2008, we had a class of interns four times larger
than in years past and invited the best ones to stay on full time.” According to William Blair, it plans to expand the analyst program in 2010 by hiring
15 analysts and extending the program to four years.)

Interns make a “$40,000 annual salary prorated for three months,” says one analyst who held the role. Another source in corporate finance recalls a
“$50,000 a year salary, adjusted for a 10-week period,” which roughly translates to “$950 per week.” Others note that interns are paid “at street
levels.”
And don’t expect to be making coffee. One former intern recalls working on “multiple live deals and a fairness opinion, as well as pitches and internal
projects.” He adds that his “experience mirrored that of a full-time analyst, though colleagues were more patient and expected that I did not know very
much.” Another says that he worked on “research projects,” and contributed to “pitches and presentations.” “At a place like William Blair,” according
to another insider, “interns can actually become key members of the deal team. They are encouraged to reach for more responsibility, and although
they are still on the bottom rung of the ladder, they are given chances to add real value to the transaction process.” And if you’re lucky, “interns join
the bankers’ meetings with CEOs and CFOs, and even get to travel with the deal team.”
OUR SURVEY SAYS
Kickin’ it old-school
Insiders tend to agree that “William Blair is an old-school financial services firm with Midwest values.” But the culture does vary group to group. One
member of the corporate finance department who says that “the firm has a very good culture overall” cautions that “the corporate finance department
is another world. It is very intense, results-driven. You have to be prepared to pay your dues.”
The firm’s relatively small size seems to exert an influence on the corporate culture. “Most people in corporate finance know each other across all
levels,” says one insider, who calls the firm “pretty collegial.” “There’s no competition among analysts.” In fact, analysts help one another “on a daily
basis.”
Another points out that “in comparison to larger banks, with dozens of analysts and limited exposure to senior bankers, William Blair analysts of the
lean deal teams often interact directly with the vice presidents and principals on the deal.” Indeed, perhaps because “there are only four levels in the
hierarchy”—analyst, associate, vice president/director and principal—”all the bankers know the analysts by name and regularly show appreciation for
their hard work.” Another insider points out that the head of the corporate finance department “says hello to everyone, including analysts, if you pass
him in the hallways.” And apparently the head of corporate finance “sends a very thoughtful department-wide voicemail whenever a corporate finance
employee has a baby.”
“People here are very ambitious,” but “they have great moral values and treat everyone with respect. People are very demanding of your work, but
nobody tolerates disrespect to anyone.” One contact explains, “Senior employees within” investment banking “generally treat people below them with
respect, though expectations are very high for the quality of work.” An analyst in corporate finance finds the “culture extremely male-dominated, but
equal in terms of treatment.”
New York salaries, Chicago style

The bulk of William Blair employees are happy with their compensation, though some feel that the firm could do more by its employees when it comes
to salary. Analysts can expect a “$10,000 signing bonus out of undergrad,” which is “paid roughly six months prior to starting work.” Bonuses, which
are awarded in June, vary, though they are generally greater than or equal to analysts’ base salaries. Given the firm’s location, that’s a boon. “We are
paid New York salaries but live in Chicago.” Insiders say that, given the present economic environment, they’re expecting bonuses “to be on average
with the rest of Wall Street.”
Less than half of respondents don’t have student loans. But those that do spend a good chunk of their salaries paying back the money they borrowed
to finance their education. A few spend less than 10 percent of their salaries on the loans; a handful between 10 and 30 percent; and at least one
spends at least 40 percent of his salary on his student loans.
In addition to salaries and bonuses, employees also earn one vacation day per month. But one insider cautions that there are “no stock options for
entry-level employees.” Generally, employees are eligible to participate in the profit-sharing plan after two years of full-time employment.
The firm provides coffee, tea and soda to its employees in corporate finance. Employees purchase their own phones or BlackBerrys, but the firm “will
reimburse up to $145 of the monthly bill.” William Blair also grants employees “up to $15 for dinner if you stay past 9 p.m. on weekdays” and “for
every four hours you work on the weekend.” Additionally, it foots the bill for “cabs home if you stay past 9 p.m. on weekdays.” On weekends, the firm
covers “cabs to work and back.”
A free weekend? Don’t hold your breath

On the whole, employees at William Blair work hard for their money. Mostly, analysts work 80 to 90 hours per week, although one source in M&A says
that “analysts are no strangers to 100-hour workweeks, though an 80- to 90-hour workweek is more common.” One insider says “there is the

occasional week with a few all-nighters, but overall, you can manage your time comfortably.” Another disagrees, saying, “I probably average getting
out of the office around midnight. A lot of nights are much worse.”
Expect to be logging some of those hours on weekends. Respondents say they come in more than once a month on the weekends. “Sundays are
work days (four to eight hours at a minimum),” says one contact in M&A. “Hold your breath that you will be free on Saturday. We generally work one
or two per month.” Another analyst in corporate finance says that “working Monday to Friday and Sunday is standard” for the department, but “first-
year analysts are here both Saturday and Sunday.”
Sources are split regarding the importance of face time. One says that “there is less face time than at bulge bracket counterparts.” Another agrees
that “if you have work to do, then do it, but if you don’t, there’s no reason to stay until the early hours.” Others disagree. The firm tries “to emphasize
that there’s no face time, but that’s definitely not true. You’re expected to work every weekend, especially Sundays.”
Even so, one insider says that “most of the bankers respect that analysts may also have a life outside of work, and if you have a date, concert, wedding
or other event to attend, your deal team will mostly be OK with it if you provide sufficient notice.”
Some respondents are not sanguine about the time commitment. One complains that “this job requires too many hours of work,” though he admits,
“I have heard the hours are fewer here than at bulge bracket firms. I do not have to work most Saturdays, for instance.” Nevertheless, he says, the
hours are “the worst part about the job.” Another points out that “even though not as many deals are being closed and the bonuses will not be as
good, you’re still working quite a lot.”
The view from the bottom

Sources are split on their take regarding treatment by managers. Some say that “Blair treats all employees with tremendous respect and honors
personal time as well as any investment bank.” In other words, respect transcends hierarchy. “I am shown a great deal of appreciation for the hard
work and long hours that I put in on my transactions,” says one member of the M&A team. “Many of the senior bankers were once investment banking
analysts and realize the immense pressure that we face. They know that we are sacrificing a good chunk of our youth to work these 90-hour weeks.”
And another insider adds that although managers are “demanding,” they “treat employees with respect.”
But some first-year analysts say that life at the bottom of the hierarchy is not easy. “You are definitely at the bottom of the totem pole,” says one source.
“People do not have respect for your time and/or personal life. Many people do not appreciate or thank you for your work, or waste your time by
assigning menial tasks or giving false deadlines.” Another says that “at the lowest level, people treat you like a commodity. You have to be prepared
for this mentally. Otherwise, it can be shocking.”
The case of a few bad apples? One analyst says that although “the majority of senior bankers treat you with respect, there are a few that are fairly
inconsiderate with respect to giving lead time on projects or taking your capacity for new projects into consideration.”
Training the Street—on the South Side

Like their counterparts at other banks, “Blair analysts spend the first month in a comprehensive training program that include Series 7 prep, Training
the Street,” and other internal programming. One analyst recalls “two weeks with Training the Street, one with a senior analyst learning how to succeed
as an analyst, and one with a tutor to help pass the Series 7.” Although TTS “was fairly good at giving a crash course, as a history major, I still had no
idea what I was doing once I started full time.”
Overall, “training is very average for the industry,” and “first-year associates definitely could have used more training.” But another insider says that
training “begins six months before our start date, when we are mailed study materials for the Series 7 and Series 63.” After the training period is over,
“third-year analysts” are “available to help,” though “informal training is hit or miss depending who you work with.”
The firm also has a generalist program for first-year analysts, in order for them to find their place in the company. “Essentially,” generalists “audition
a year prior to placement into an industry or product group, which makes for a stressful first year. Once you are in a group and you can build a
relationship with your team,” says one contact, you can “create a more positive work environment.”
Double room occupancy

“No cubicles or bullpens” here; “analysts get offices!” First-years can expect to share a “spacious” office “with a second-year analyst (for mentoring
purposes).” Of course, the best part about an office is it has a door. “Late at night or during weekends, analysts can close their doors and gain a
welcome level of privacy.” Third-years get offices all their own.
Décor “is very old-school classy and very Chicago with rich dark wood and marble covering the walls, with gold accents,” and is “matched by no other
investment bank.” But at least one insider says that the décor “is a little dated but fits the firm’s culture” while another holds that “the office is nothing
spectacular.” One insider who is less thrilled says, “They provide what we need,” though “the temperature is awful and fluctuates frequently.”

Overall, the dress is “very conservative. You will see a lot of dark pants,” and “white and blue shirts abound.” “No jacket or tie required” for the day-
to-day rounds, “but everyone dresses very professionally—Brooks Brothers or better.” Think “slacks and a dress shirt.” The formality eases up on
weekends and holidays. And in the summer, “some bankers,” who, during the rest of the year “show up in a suit and tie every day,” will “wear polo
shirts on Fridays since they’re mostly all avid golfers.”
Insiders are split regarding the degree of formality in the office. “Chicago business is conducted in a slightly more formal manner than in New York,”
says one contact. Another Chicagoan wishes that “it was more formal so that people always looked presentable.” But all agree that formal is the word
when it comes to client contact.
Employees are similarly split regarding the firm’s attempts to implement green business practices, with some feeling that the firm is doing a good job
of it. Most say they are open to a reduction in unnecessary lighting during off-peak hours, and to giving up disposable silverware and table settings.
Presently, initiatives include “printing double sided, using more electronic files,” which “is a major shift as we traditionally print everything.” One insider
says that these initiatives reflect an attempt “to reduce costs” rather than a conscious effort “of going green.” And at least one employee says that “so
much paper and electricity is wasted it is almost disgusting.”
No high marks for equal opportunity employment

When it comes to gender, racial and GLBT diversity, the firm does not score high marks among the bulk of its employees. The investment banking
division “is a lot of white males. But other departments across the firm are much more diverse.” Although “women are not well represented,” “the
ones that are here seem well respected.” One insider points out that the firm “has always had a good amount of female analysts,” but that currently,
there is “only one female partner in corporate finance.” And a female source says, “I feel that I’m treated differently, less harshly, because I’m a woman.
It can be an advantage, but I’d rather be treated like an equal. I also fear that some people do not think female analysts are as capable as males.”
A few insiders say that “the firm is not racially diverse.” Another points out that there are “hardly any minorities in more senior positions. It doesn’t
seem to be something we even recruit for. I would not call us an ‘equal opportunity’ employer. I also think minorities have a more difficult time fitting
in.” But insiders specify that it’s the corporate finance department that needs to improve and that “Blair overall is very diverse.”
A balance sheet free of toxic assets

William Blair was founded during the Great Depression, so “the business model was designed to operate in difficult economic times.” The firm “doesn’t
lend, has no third-party debt on its balance sheet and doesn’t engage in proprietary trading,” which makes it “one of the best positioned investment
banks in the country.” Others point out that William Blair is “privately owned,” and is “not at risk for defaults or huge asset write-downs.” The firm is
“as well-positioned as any other” in the financial industry “to take advantage of a market recovery.” Nevertheless, “business has been slowing and
revenue has been hit.” As a result, the firm “has taken steps to cut costs and buckle down for the long run,” which include cutting back on holiday
parties, reducing the workforce, and diminishing the number and scale of free meals.

PRESTIGE
RANKING
THE BANK OF NEW YORK MELLON

39 CORPORATION
One Wall Street KEY COMPETITORS
New York, NY 10286
Phone: (212) 495-1784 Citi
Fax: (212) 809-9528 JPMorgan Chase
www.bnymellon.com State Street
BUSINESSES UPPERS
Asset Management • “There are opportunities to move around within the
Asset Servicing company”
Broker-Dealer & Advisory Services • Management is “very open and easy to work with”
Issuer Services
Treasury Management
Wealth Management
DOWNERS
• “No sick days”
• “No overtime pay given”
THE STATS
Ticker Symbol: BK (NYSE)
EMPLOYMENT CONTACT
Chairman & CEO: Robert P. Kelly www.bankofny.com/careers
No. of Offices: Offices on 6 continents in 42 countries
THE BUZZ
• “Strong firm”
• “Old”
• “Well positioned”
• “Needs government funding”

The Bank of New York Mellon Corporation
THE SCOOP
No. 1 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 a 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 world’s 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. Pershing LLC and Pershing Advisor Solutions are the bank’s broker-dealer and advisor service
businesses, and they perform an average of 119,000 trades on a daily basis. The bank’s treasury management services is the third-largest payment
processor in the U.S., with more than 170,000 wire transfers daily.
From New York and Pennsylvania to the world

Founded in 1784, BNY can honestly claim to be the oldest bank in the U.S. 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 before—outside 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 U.S.
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 giants—from an oil company to a steel empire—were 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.
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 became known as BNY Mellon Asset Servicing B.V. and 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 company’s 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 Mellon’s 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.
An embarrassment of riches
Where to begin? BNY Mellon was lauded by industry publications across the board. Its Mellon Transition Management Services was named 2008
Transition Manager of the year by Global Pensions magazine—beating out more than 1,000 other pension funds.
Global Investor named BNY Mellon No. 1 in all major categories, including best FX service overall, while ICFA magazine named it custodian of the year-
Europe, US Fund administrator of the year (onshore) and custodian of the year-overall, in its first-ever global awards. Finally, BNY Mellon won Global
Finance’s World’s Best Global Custodian—for the ninth year in a row.
To give an idea why, during 2008, BNY Mellon was named custodian of a wide range of investments, including Banco Central de Uruguay’s $4.5 billion
portfolio; Old Mutual Capital’s $5 billion mutual fund portfolio; and the Fire and Police Pension Association of Colorado $3.5 billion portfolio. It was
also named sole custodian of the U.K.-based Co-Operative Group’s £5.3 million pension plan and appointed by the Free State of Saxony in consultation
with Landesbank Baden-Wurttemberg and a group of German banks to provide execution services for the €16 billion Sealink Funding transaction.

IN THE NEWS
June 2009: Freddie picks Mellon

Bank of New York Mellon was selected by mortgage provider Freddie Mac as designated custodian. In this role, Mellon will be the custodian for all
documents related to mortgages delivered to Freddie Mac—a role Freddie Mac will be relinquishing. Mellon will officially begin providing custodial
services in October 2009.
April 2009: A big slide

Bank of New York Mellon booked first quarter 2009 net income of $370 million, a 51 percent decline versus the first quarter 2008. The bank’s revenue,
meanwhile, fell to $2.95 billion from $3.75 billion. BNY Mellon’s results were adversely affected by weakened equity markets, which ate into the
company’s money-management fees.
January 2009: Securities lead to slowdown

The bank also suffered billions in write-downs in the fourth quarter of 2008. And it was one of the first banks to receive a boost from the federal
government—to the tune of $3 billion in preferred stock. For full-year 2008, the firm brought in $1.16 billion in revenue, down from the $1.39 billion
it reported in 2007. Net income for the year came in at $1.42 billion, down from the $2.04 billion it posted in 2007. The bank cited mortgage-based
securities write-downs as one of the main reasons for the overall decline.
January 2009: Working for Fannie

Mortgage giant Fannie Mae designated it document custodian for materials related to mortgage loans in its mortgage portfolio.
November 2008: Not even a giant is untouched

BNY Mellon slashed about 4 percent of its 43,000-strong workforce, or about 1,800 positions. “It has become clear that we need to take additional
steps beyond our merger synergies to reduce expenses, given the current weakness in the global economy. We will take advantage of natural turnover
to lessen the impact on existing staff,” Robert P. Kelly, chairman and CEO, said in a statement.
The firm was also one of the first banks to receive a cut of the U.S. government’s initial $250 billion aid package; BNY took a $3 billion shot in the arm
in the form of the sale of preferred stock.
October 2008: Master custodian for TARP

BNY Mellon was named master custodian overseeing the Treasury Department’s $700 billion bailout. Among its responsibilities as master custodian
are providing record-keeping services and overseeing the bailout fund’s cash and assets; providing pricing and asset valuation services; and managing
reverse auctions for troubled assets and executive compensation limits. The company outbid Citigroup, Wells Fargo and State Street for the job,
according to The New York Times.
September 2008: Lehman trustee

When Lehman Brothers went bankrupt, BNY Mellon had no loans outstanding to the firm. But it was a corporate trustee for Lehman debt issues, and
sat on the committee overseeing the Lehman bankruptcy proceedings.
September 2008: Perfect marks for GLBT treatment

And the Human Rights Campaign Foundation awarded it perfect marks in its 2009 Corporate Equality Index, an annual survey that rates employers’
treatment of gay, lesbian, bisexual and transgender employees and clients.
July 2008: End of an era

Thomas A. Reyni retired as executive chairman and director of the Bank of New York Mellon. Prior to the Mellon and Bank of New York merger, Reyni
served as chairman and CEO of the Bank of New York. Reyni, who was fundamental to the merger, worked with the bank for the duration of his career—
nearly 40 years. He was succeeded by Robert P. Kelly, BNY Mellon’s CEO.

June 2008: Two steps closer to world domination

The company announced that would open an office in Dubai—a major step toward its expansion into the Middle East and African markets. It obtained
a license from the Dubai Financial Services Authority and will operate from the Dubai International Financial Centre.
The company also acquired an enhanced banking license for Mexico, which will enable it to bolster its business in that country, where it operates as
The Bank of New York Mellon, S.A., Institucion de Banca Multiple.
April 2008: Equal opportunity employer

In April 2008, the New York City Bar Association named Bank of New York Mellon’s legal department the diversity employer of the year for 2008.
April 2008: Case of the disappearing tapes

A back-up storage tape containing images of scanned checks and other documents related to payments made to some 50 BNY institutional clients
disappeared en route from Philadelphia to Pittsburgh. In apology, the bank offered two years of free credit monitoring and identity theft insurance for
up to $25,000. It also promised to encrypt future data to be transported and, when possible, to transport it electronically. The identities of nearly
500,000 Connecticut residents were put at risk, according to the U.K.-based Register; affected companies include John Hancock, Walt Disney
Company and TD Bank Financial Group.
March 2008: Park steps down

Michael Hughey, BNY Mellon’s controller, stepped down from his position. John Park, previously CFO of the company’s treasury and global markets
businesses, succeeded him.
Feburary 2008: Foibles

Data belonging to more than four million people was exposed after a box of data storage tapes went missing; the tapes included names, addresses and
Social Security numbers of BNY Mellon and the Bridgeport, Conn.-based People’s United Bank. An outside vendor lost the tapes, said BNY Mellon,
while they were being transported to a New Jersey storage facility.
Feburary 2008: Down with OPG

Stichting Pensioenfonds OPG engaged BNY to provide global custody, investment accounting, regulatory reporting, and performance measurement for
€219 million. OPG Group, an international pharmaceutical and medical supply company, has operations in the Netherlands, Poland, Belgium,
Germany, Denmark, Norway, Hungary and Switzerland.
January 2008: A plethora of deals

The bank closed on its acquisition of ARX Capital Management, an asset manager headquartered in Rio de Janeiro with $2.8 billion assets under
management.
GETTING HIRED
Cradle robbers
For potential candidates, especially those just beginning their careers, you just might be in luck. On the firm’s career site, 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 firm’s website makes the
application process easy, allowing you to submit your resume online.

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 questions”—many of them “behavioral.” Expect at least three rounds, but don’t expect bells
and whistles—it’s a “fairly straightforward” process, insiders say.
OUR SURVEY SAYS
They’re pros
The bank houses a “very professional, yet laid-back working environment,” insiders say. Overall, the corporate culture at the firm is “traditional,” but
with a “very good work environment for everybody.” Maybe that’s because where “teamwork is the core of business.” Although “people need to work
hard,” it’s likely an offshoot of the fact that “the company has grown up very quickly in recent years.” But there’s a flip side, too—”the 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.”
Hours spent in office tend to be reasonable—”your 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 warned—”once 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.”
On the management front, sources seem to be pretty content. “My supervisors and managers are very open and easy to work with.” They’re also “not
overly demanding, but expect you to carry your weight and complete your daily work with accuracy.”
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 they’re earned to force staff to stay longer.” There are “four weeks of 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 contact adds that the “‘interview process’ after taking any time off from work
was demeaning and very much like being questioned about an absence in high school.” Another source reports that “the only other benefits are free
coffee and tea—but staff must supply their own milk and sugar” and adds “the milk is frequently stolen from the company fridge by other staff.”
On the bright side, the training offered gets a thumbs-up. “There are terrific online educational programs that range anywhere from in-depth education
about daily activities to a CFA prep course,” one contact notes. And “there are opportunities to move around within the company, including some of
BNY Mellon’s subsidiary divisions.” Another 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 it’s important to “say the right thing” and “impress the right person” to get ahead. One contact says
there was “political correctness in name only—actions and tone spoke louder than words.” One insider notes that “in recent years, the bank has
adopted a policy of ‘no discrimination based on sexual orientation.’ This was the first time the bank acknowledged that there was a sizable gay
employee population, and didn’t reserve the anti-discrimination policies to only race and sex.” This is a move that definitely denotes progress, the
contact asserts. “For a stodgy, old-world bank, this moved the institution light years ahead.”
And the firm seems to be 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.”

PRESTIGE
RANKING
40 COWEN AND COMPANY, LLC
1221 Avenue of the Americas RANKING RECAP

New York, NY 10020
Fax: (646) 562-1741 #6 – Training
www.cowen.com #7 – Treatment by Managers
#8 – Compensation
BUSINESSES #8 – Culture
Institutional Sales & Trading
#10 – Offices
Investment Banking
#11 – Selectivity
Research
THE STATS Diversity
Employer Type: Public Company #9 – Best for Diversity
Ticker Symbol: COWN (NYSE) #11 – Diversity With Respect To Ethnic Minorities
President & CEO: David M. Malcolm #11 (tie) – Diversity With Respect To Gays and Lesbians
No. of Employees: 440 KEY COMPETITORS
Deutsche Bank
Goldman Sachs
Morgan Stanley
UPPERS
• “Attention from senior management”
• “Great culture”
• “Good work/life balance”
DOWNERS
• “The hours”
• “Less commonly known”
• “The politics”
THE BUZZ EMPLOYMENT CONTACT

www.cowen.com/CareerOpportunities.asp
• “Strong niche player, strong in technology”
• “Not a serious player”
• “Solid boutique”
• “Struggling”
233
Cowen and Company, LLC
THE SCOOP
Growth sector gurus

The Cowen Group, Inc. is an investment bank with two arms: Cowen International Ltd., which handles overseas business, and Cowen and Company
LLC, which operates in the U.S. Cowen’s investment banking services are focused on small and midsized public companies as well as private
companies in seven emerging growth sectors: aerospace and defense, alternative energy, health care, consumer goods, telecommunications and
technology. Investment banking services include mergers and acquisitions advisory, equity and convertible debt financing, private placements and
restricted security sales.
Cowen also operates busy institutional sales and trading and research units. Over the years, the firm has become a leader in after-market trading
services among market makers in tech and health care stocks. Similarly, it has proven successful at equity capital raising in these sectors.
The firm has kept busy advising on a variety of M&A deals. In 2008, for deals based on value, Thomson Reuters ranked Cowen No. 8 for U.S. Targeted
M&A up to $50 million, outranking competitors Goldman Sachs and Morgan Stanley. In the other M&A categories based on value, it was named No.
19 for deals up to $100 million, No. 16 for deals up to $200 million, and No. 19 for deals up to $500 million.
A subsidiary no more
In 1918, Harry Cowen and Arthur Cowen Sr. opened a small bond brokerage business in New York City’s financial district. By the 1920s, the Cowens’
firm had joined the New York Stock Exchange, and began offering clearing and execution services for correspondent clients. Research and institutional
sales were added in the 1960s, around the same time the firm relocated to a new headquarters at 45 Wall Street. A decade of rapid expansion
followed—during the 1970s, Cowen opened six offices across the U.S. and began making its first acquisitions. Cowen launched a retail business in
1970 with the purchase of Greene & Ladd, then expanded its retail services in 1977 by acquiring Hardy & Company. The firm’s expertise in technology
and health care dates back to 1976, when Cowen bought Boston-based institutional research firm G.S. Grumman.
Cowen’s reach went beyond U.S. borders in the 1980s with the opening of offices in London, Tokyo, Paris and Geneva. The investment banking unit
debuted in 1986, but it really took off a few years later—by the time the 1990s rolled around, Cowen’s lead-managed transactions accounted for one-
third of the firm’s business.
In 1998, Cowen was acquired by France’s Societe Generale and continued operating as SG Cowen Securities Corporation. A few years later, SG Cowen
sold its retail business in an effort to focus on the core businesses of research and investment banking. By 2006, Cowen was an independent company
once again: its parent SocGen agreed to a spin-off, and Cowen issued its IPO in July 2006, trading under the symbol COWN. Kim Fennebresque, who
guided Cowen’s restructuring under SocGen and the subsequent IPO, led the transition. Today, Cowen employs 440 people in eight U.S. offices and
two international affiliate offices in Beijing, Geneva, Hong Kong, London, and Shanghai.
In spite of its layoffs in 2008, the company did make some hires: Stuart Gould joined as head of electronic trading from Morgan Stanley; Christine
Arnold, another MS alum, was named senior analyst covering managed care and health care service providers; and Paul E. Griffin and Andrew M.
Barish joined the firm’s technology and consumer investment banking groups, from Oppenheimer & Co. and Banc of America Securities, respectively.
The firm also made hires in its capital markets and consumer investment banking groups.
Slumping toward Bethlehem?

Cowen posted disappointing earnings throughout 2008. In the first quarter, total revenue was $55 million, down 25 percent from the same period a
year earlier. Net income for the first quarter of 2008 was $0.7 million. In the second quarter of 2008, total revenue was $62.7 million, a 12 percent
decrease from the same period in 2007. The net loss for the second quarter of 2008 was $0.7 million. In the third quarter, Cowen reported $58 million
in revenue, a 1 percent increase from third quarter 2007. But the company once again posted a net loss, this time of $61.7 million.
For full-year 2008, the firm posted $217.32 million in revenue, down from $261.57 million it posted in 2007. The firm posted a net loss of $72.15
million for the year, deeper than the $11.32 million net loss it posted in the previous year. The firm cited the disarray in the financial markets as part
of the reason for the disappointing results.
IN THE NEWS
December 2008: Sorry, dance card’s full

The firm announced that it had rejected a $100 million hostile bid from Rodman & Renshaw Capital Group. At $40 million, according to Forbes,
Rodman & Renshaw has less than half of Cowen’s market capitalization. The firm, an investment bank that specializes in the biotechnology sector,
said Cowen’s expertise in public offerings would appeal to its clients. Needless to say, folks at Cowen felt differently.

In a statement, the firm said: “There are no complimentary products or business strategies and little additional sector coverage between the two firms
due to Rodman & Renshaw’s reliance on the life sciences sector and the fact that Cowen offers all of the primary products and services offered by
Rodman & Renshaw. Further, Cowen believed, and continues to believe, that there is significant risk that a transaction with Rodman & Renshaw would
result in the destruction of shareholder value.”
The hostile bid wasn’t Rodman & Redhaw’s first attempt to acquire Cowen. The two, according to Forbes, had been in informal discussions throughout
the fall—to no avail.
In spite of Cowen’s rejection, Rodman & Redman was undeterred. After Cowen declined its bid, Rodman & Redman took its offer public, hoping that
it could entice Cowen’s shareholders to agree to it. According to Forbes, the firm offered to pay Cowen shareholders a 20 percent premium to the
company’s stock.
December 2008: Parting is such sweet sorrow

Cowen cut 11 percent of its workforce in the fourth quarter of 2008, according to The Wall Street Journal.
September 2008: Underwriting time

With Citigroup, UBS and Wachovia, Cowen underwrote the $100 million IPO for medical device company Therox, which focuses on treating oxygen-
deprived tissue in heart-attack victims.
August 2008: Dealicious

Cowen acquired Latitude Capital Group, a boutique investment bank headquartered in Hong Kong. Latitude is now known as Cowen Latitude Asia,
and Frank K. Au, president of Latitude, has become its CEO and has joined Cowen’s investment banking operating committee. According to Cowen,
the acquisition will open up access to Asian markets; Latitude had offices in Hong Kong, Beijing and Shanghai, which are now Cowen affiliates.
May 2008: A new chief

Amid a tough market that has caused the firm trouble, Cowen named a new chief. Not long after announcing dismal first quarter results, Cowen
announced that David Malcolm, an executive vice president of the firm, would take over as president and CEO, while former chief executive Kim
Fennebresque would resign after 10 years as the firm’s leader.
July 2008: Health care royalty

The company closed its Cowen Healthcare Royalty Partners fund (CHRP), with commitments in excess of $500 million. In a statement, Cowen said
that the fund “was significantly oversubscribed, and substantially exceeded its initial target size of $350 million.” Under the direction of Gregory Brown,
Todd C. Davis, and Clarke B. Futch, CHRP focuses on long-term investments in health care products and companies. Investors include affiliates of
OMERS Capital Partners, Crestline Management, Nordea, Strategic Investment Group, New York Life Insurance Company, and The Travelers
Companies.
June 2008: Stepping down

Kim S. Fennebresque departed from the firm. Fennebresque, the former Cowen CEO who had stepped down in January 2008, resigned from his post
as nonexecutive chairman of Cowen Group. John E. Toffolon Jr. succeeded him as nonexecutive chairman of the board.
April 2008: Tasty deal

And it advised Landry’s Restaurants, owner of the Chart House and Rainforest Cafe chains, on the possibility of a sale, following a bid by Tilman Fertitta,
Landry president and CEO.
January 2008: Things will get worse before they get better
Cowen & Company rang in 2008 with a bang and a whimper. The company started 2008 down 52 percent since the beginning of 2007—a worse
record than now-defunct Bear Stearns. The year never really turned around for Cowen, which posted disappointing returns, was the subject of a hostile
bid, and cut some 11 percent of its workforce in the fourth quarter.

GETTING HIRED
Make it your first choice

Cowen & Company is “more selective in the current environment,” and there are “not many positions available.” One associate explains that the
company is “looking for very few, extremely qualified candidates who can clearly articulate why they are interested in being investment bankers here.”
If you want to get your foot in the door, “Cowen does typically recruit from a small batch of schools,” but “there are several analysts hired through
connections.” Only a handful of recruits are hired each year, and the numbers are dwindling. An insider says, “We usually do maybe 15 to 20
preliminary interviews for each spot, which comes after screening resumes, of which we probably get 40 to 50 per open spot. We hired sixteen for the
class of 2007, 15 in 2008, and 10 for 2009.”
The No. 1 most important requirement is that Cowen be the candidates’ first choice. One contact says, “Cowen doesn’t want people that only want to
work here because they can’t get a job at a bulge bracket. They want people that choose to work here because they recognize the advantages of the
platform.”
Round ‘em up
Candidates recall two to three rounds of interviews where they’ve gone one on one with up to fifteen different people. One current analyst describes
the process, “The first was a 30- to 45-minute introductory interview on campus with an associate. The second was an office visit, comprised of several
30- to 45-minute interviews with VPs, directors and MDs. The second round was much more intensive than the first.” Recruiters can be found at
schools such as “Tuck, Columbia, Emory, Haas, UCLA and Carnegie Mellon on the MBA side,” and “Bowdoin, Richmond, Berkeley on the BA side.”
On the West Coast, Cowen “recruits primarily from UC Berkeley, UCLA, USC and, to a lesser extent, Stanford.” Current insiders also say that generally
the company “has a national eye towards Ivy and NESCAC schools” (like Amherst, Williams and Wesleyan).
Interviews at Cowen are “focused on fit as opposed to pounding you with technical questions.” Because of the “the number of hours spent with your
colleagues, personality fit and intelligence is extremely important,” and the responses to these questions are more important than “memorizing the
answers to the basic gamut of IB interview questions.”
Prior experience necessary

Internships can be the key to employment at Cowen. One former intern recalls, “My summer internship was a good experience. I worked as if I was
a full-time analyst, albeit without nearly the same level of expertise. I received a full-time offer at the end of the summer.” An internship at either
Cowen or another banking firm is almost a prerequisite for hire. Be wary, however, of how you frame your prior internship experiences, because “if
you did not intern at a bank, the question will be ‘Why not?’ And if you did intern at another firm, the question will be ‘Why are you not going back
there?’”
OUR SURVEY SAYS
Small but competitive

The firm culture is “more relaxed than at a typical investment bank due to the smaller environment”—”the hierarchy associated with most banks does
not come into play as much here.” Entry-level employees may want to be cautious, however, because “as an analyst, you have a lot of rope so-to-
speak—more than enough to hang yourself at times if you are not careful.” Though the group atmosphere is described as “very collegial and tight-
knit,” the “culture can be very aggressive”—employees “need to be very thick skinned to fit in.”
Analyst salaries start at $60,000 and “increase $10,000 a year for seniority.” “Bonuses are based upon firm wide performance at the analyst level,”
and “vacation is accrued at 1.5 days per month.” Perks include “free meals and transportation nightly and on weekends” (“Individuals receive $20
a night for meals assuming they work past 8 p.m.”) One analyst working out of the San Francisco office reports, “We have a box at the Giants games,
which is a great perk. I got to go to maybe seven or eight games last year.”
Despite Cowen’s size most respondents say that the salaries are “comparable to Wall Street”, “the same as everywhere else,” and even on the “high
end of the Street range.” However, the firm may see this change in the future as recently “salaries were frozen for all levels,” and in the past year,
“bonuses were down significantly, about 60 to 80 percent.”
Dig in
Employees who are hired at Cowen are expected to contribute a sizable amount of their time to the company. Most employees at the analyst level and
above report working between 80 and 100 hours per week, and one source confirms that “during 2008, 100-hour weeks were standard.” Another
comments that “even during market slowdowns, leaving before 9 p.m. is uncommon.” Long hours “come with the territory,” and one goes so far as

to warn, “If hours are a concern, this is not the right industry for you. People here won’t waste your time, but you will likely find you don’t have the
time to waste.”
Take me seriously
Managers at Cowen “generally treat colleagues with respect.” “As an analyst, your opinion and advice is often critical and is taken very seriously,”
which “doesn’t always seem to be the case at other banks.” Most managers get high marks from their subordinates but “it depends a lot on who you
work for. Some managers are mindful of your time and others are more focused on getting the work done.” Though most employees report a very
open environment, one source notes that “direct managers have become more difficult to work within the downturn,” and “the environment is no longer
as collegial—there are many more closed doors to senior bankers’ offices.”
The downturn has also caused employees to note that the firm has cut back on several former mainstays, including its winter holiday celebration.
According to insiders, Cowen has also downsized its workforce and reduced business related travel as a result of the difficult market.
Basic banking
Office space is “is fairly basic” and “nothing fancy.” One source says, “I grade it well since I have a reasonably-sized office with a window where most
associates don’t have that.” Another says, “I work in the Bank of America building in a cubicle on the fifth floor. It’s not glamorous, but it’s not all that
bad, either.” San Francisco gets high marks for its offices, with one employee commenting that the space is “very nice, light and modern”— it’s not
dark and depressing like most banks.” Another source notes, “Associates all have offices.”
Cowen employees have a dress code that consists of “business casual in the office on the West Coast” and “formal dress in New York.” All employees
are required to wear suits for client interaction. The company has “become more business casual over time,” and many offices offer a business casual
dress code in the summer. One respondent reports that in his office, even though a “jacket is not formally required during the summer, most if not all
bankers stick to formal dress.” A West Coast contact says that he “always wear slacks and a collared shirt to the office.”
At this boutique firm, “training can be very intimate.” A source explains that “compared to the bulge banks, Cowen provides the exact same training
without the credit analysis.” Another agrees that the training is similar to bulge banks, but says that it also has an added perk: “We benefit from small
class size and much more insightful feedback.” Training programs have a duration period of five weeks and are split into two different groups: one for
analysts and one for associates.
Not there yet

Cowen’s offices “have not been retrofitted for environmentally sustainable practices,” though the firm does “employ power conservation and similar
cost-saving techniques.” Many sources give the firm low marks for its lack of green initiatives, with one commenting that “we recycle but it’s not a big
focus.” Respondents suggest cutting back on disposable plates, napkins and lighting during the day as potential means of addressing the problem.
No bias
Insiders agree that “the firm is male-dominated,” but “there are a number of females that work at all levels.” The good news is that Cowen is making
efforts to reach out to its female employees. One female associate explains, “Last year the firm had a Women’s Summit event in New York, where every
woman professional in banking, sales and trading met for a day to talk about women in the workplace.”
The firm doesn’t have any outreach targeted towards hiring or supporting minorities, but many employees feel that their colleagues “are unbiased when
it comes to ethnicity in hiring, promotion and mentoring.” One source cites that there are “not many minorities here,” while another agrees that “the
firm is mostly Caucasian.” Still, “a number of different races are represented at all levels.” As for diversity as far as sexual orientation, it “is not a topic
often discussed around the office so it’s a little bit more difficult to gauge.”
Job jitters
Cowen respondents feel that their firm is surviving the financial crisis better than others, but at least one source admits that “no one is completely
satisfied in an investment banking position right now.” Another adds, “I share a healthy fear with everyone on the Street that this will not last.” One
current associate’s overall satisfaction at Cowen is so great that he confesses that he “would not work at another firm on Wall Street. When I leave
Cowen, I will leave Wall Street.”
Looking forward, most employees think that Cowen is “taking the right steps to survive and come up with interesting ways to make money.” One source
says that the downturn has actually benefited the firm, saying that “given the current shake up and issues at bulge bracket firms, Cowen has been
able to increase its face time and mindshare of the CEOs of our clients.” Indeed, most agree that the “the firm is in a much better position than most.”

PRESTIGE
RANKING
41 CITI CONSUMER BANKING

New York, NY 10043
Fax: (212) 793-3946 #1 – Hours
www.citi.com #7 – Selectivity
BUSINESSES #13 – Treatment by Managers
#14 – Training
Commercial Business
Consumer Finance
Diversity
Retail Banking
Retail Distribution
THE STATS #8 – Diversity With Respect To Ethnic Minorities
Employer Type: Division of Citigroup Inc.

CEO, Citigroup, Inc.: Vikram S. Pandit KEY COMPETITORS
CEO, Consumer Banking North America: Terri Dial
Bank of America
HSBC
Wells Fargo
No. of Offices: 7,730
*Citigroup Inc. UPPERS

• “Great learning opportunities”
• “Intelligent and accomplished people”
• “Global footprint”
DOWNERS
• “Politics”
• “Hierarchy suppresses ideas and discussions to drive
growth”
• “Uncertainty regarding the future”
EMPLOYMENT CONTACT
THE BUZZ www.oncampus.citi.com
• “Good; smart people”
• “Mediocre”
• “Stalwart US brand”
• “In trouble”

Citi Consumer Banking
THE SCOOP
Global giant
Although its official name is Citigroup Inc., the global banking group based in New York and known throughout the world was rebranded as simply
“Citi” back in 2007. Citi has over 200 million customer accounts in more than 100 countries around the world. Citi’s main business divisions are
consumer banking, the institutional clients group and global cards.
Citi’s 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 Citi’s biggest revenue drivers, typically bringing in more than half of each year’s Citi-wide
earnings. The institutional clients group includes global banking services such as merger and acquisition advisory, debt, equity, restructuring and
underwriting, as well as global capital markets, transaction services and alternative investments. The global cards business encompasses Citi’s
worldwide credit card business.
Prior to its rebranding, Citi was revered as the world’s largest banking and financial services group, but the financial storm in the recent past has not
been kind to this global giant, which has seen billions of dollars wiped off its market value, laid-off tens of thousands of employees, taken $45 billion
in assistance from the U.S. government and has sold off some assets—including its brokerage arm to longtime rival Morgan Stanley in January 2009.
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 bank’s 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 offices—
Travelers was spun off from Citi and merged with the St. Paul Companies in 2004, becoming St. Paul Travelers.
Look who’s on top

Vikram Pandit became the chief executive of Citigroup in December 2007, replacing interim chief executive Sir Winfried Bischoff, who became
chairman of the board as well as remaining chief executive of Citigroup in Europe. Pandit succeeded Chuck Prince (Charles O. Prince III), who had
taken his post in 2003 amid some shareholder frustration that Citi’s stock prices weren’t matching those of its peers. Pandit’s job has not been easy,
taking the helm of the world’s largest banking and financial services group during the worst financial crisis the world has seen in modern times.
Pandit joined Citi just after the global banking group purchased Old Lane Partner, the hedge fund that Pandit set up after leaving Morgan Stanley. At
the time of his appointment, industry commentators noted that in the wake of the losses which the group was hit with under Prince, Pandit would have
to address the firm’s risk management practices to win back the confidence of staff and investors. Although Pandit lowered the bank’s costs and
allowed reinvestments in growth in 2007, the following year was not so peachy. In 2008, the firm received a United States Federal Reserve bailout of
a whopping $45 billion.
IN THE NEWS
April 2009: Good news on the earnings front

The firm booked $1.6 billion in net income for the first quarter 2009, concluding five consecutive quarters of losses (including a $5.11 billion loss in the
first quarter 2008). Revenue, meanwhile, skyrocketed to $24.8 billion, a 99 percent increase versus the first quarter of 2008. The positive numbers
were propelled by increased fixed income trading revenue, a new accounting rule letting Citi take a one-time gain of $2.5 billion on its derivative positions
and lower costs—Citi cut operating expenses by 23 percent in the previous 12 months and headcount by 13,000 since the beginning of 2009.
March 2009: Giving unemployed homeowners a break

Citi said that it will reduce some of the mortgage payments it receives from unemployed homeowners. The move, which will cut monthly payments to
about $500 for three months, came shortly after the firm received additional government bailout funds. To qualify for the reduced payments under

the program, homeowners must have a loan from CitiMortgage, live in their home as a primary residence and be at least 60 days past due on their
mortgages or in home foreclosure.
February 2009: TARP spending breakdown

Citi posted its initial progress report regarding its use of the funds from the U.S. government’s Troubled Asset Relief Program. During the fourth quarter
of 2008, of the $45 billion it received, Citi said it lent $36.5 billion, including $1 billion in student loans and $2.5 billion in business and personal loans.
Citi also increased credit lines and opened new credit card accounts. Most of the funds, though, were ironically allocated toward the very thing that
got the company into trouble: the housing market. Citi spent $27.5 billion to buying mortgages in the secondary market during the last three months
of 2008.
Also in February 2009, the U.S. Treasury said it would boost its stake in Citi from 8 percent to 36 percent, converting $25 billion of its preferred stock
into common equity. The move freed up capital for Citi—the bank doesn’t have to pay dividends on the common stock unlike it did on the preferred.
It also significantly diluted existing shareholders’ stake in Citi by nearly 75 percent.
According to Citi CEO Vikram Pandit in a statement, the swap “has one goal —to increase our tangible common equity.” He added, “While we believe
Tier 1 capital remains the most important measure of the financial strength of banks, we recognize that the markets also view tangible common equity
as an important measure.” Coinciding with the announcement, Citi agreed to make several changes, including changing the makeup of its board to
include a majority of independent directors.
February 2009: Dollar days

Citigroup CEO Vikram Pandit said he had offered to take a $1 salary and no bonus until the bank gets back on solid financial ground, noting that he
understands “the new reality” and “will make sure Citi gets it as well.” The announcement came amid President Obama and other lawmakers
slamming Citi and other banks for giving exorbitant bonus payments to top executives while simultaneously accepting federal bailout funding.
January 2009: Selling Smith Barney

Citi agreed to combine its Smith Barney brokerage unit with New York-based Morgan Stanley’s brokerage division, in effect selling a 51 percent majority
stake in the joint venture for $2.7 billion. It was reported that Morgan Stanley is expected to acquire full control in phases over the next five years.
January 2009: Divide and conquer?

Citi revealed that it was splitting into two operating units, Citicorp and Citi Holdings Inc. The former would continue to provide traditional retail and
investment banking services, while the latter would oversee what remained of the group’s high-risk investments (many had already been sold off). Citi
itself remained as the parent company, but potential spin offs and mergers from either of the units were not ruled out as possibilities. In fact, the two
operating units were divided so that Citicorp remained the core bank, while Citi Holdings encompassed the saleable assets. Along with the
restructuring, Citi announced its fifth consecutive quarterly loss, as it booked a loss of $8.29 billion for the fourth quarter 2008.
January 2009: Big trouble in China banking?

Citigroup will shutter its China-based private banking division and make the operation part of its consumer banking group, insiders told Reuters. Citi,
however, said that private banking services will remain on its menu. Meanwhile, the news agency reported that many employees currently working
within the private banking unit will be relocated to the firm’s consumer banking area.
November 2008: Bring on the deep cuts

The firm announced that after four consecutive quarters of losses, the firm would cut an additional 52,000 jobs (in addition to the 23,000 it had already
sacked before the announcement).
October 2008: An ongoing battle

Just days after Citigroup’s proposal to buy Wachovia’s banking operations for $2.2 billion in stock, Wachovia found another suitor—one that would buy
its entire operations. In early October 2008, Wells Fargo agreed to acquire Wachovia Corporation for $15.1 billion in stock, usurping the earlier offer
by Citigroup. The Wells Fargo deal included Wachovia’s brokerage and asset management units, which were excluded in Citi’s proposal. Although the
new acquisition was approved by shareholders of Wachovia and Wells Fargo, Citi has said it had an exclusive deal with Wachovia, and the Federal
Deposit Insurance Corp. and other regulators initially appeared to favor the Citigroup deal.
Less than a week after the Wells Fargo offer went public, a judge with the New York State Supreme Court issued a temporary edict preventing Wachovia
from “negotiating, entering into or consummating any transaction” involving an acquisition or merger with any other bank than Citi. An official hearing

regarding the legality of the Wells offer was scheduled for October 7th, but a day before the hearing, Citi filed a suit seeking $60 billion in damages
from Wells Fargo and Wachovia for obstructing its transaction. This, in turn, prompted the Federal Reserve to get involved, and the Fed successfully
brought Wells Fargo and Citi to the negotiating table to agree to stop their battling until October 8th, when litigation and negotiation was slated to begin
again. But when October 8th came around, Citi and Wells Fargo decided to lengthen their truce until the morning of October 10th.
Again, in another early announcement, on the afternoon of October 9th, Citi said that it was dropping out of the running for Wachovia but added that
it was going ahead with its $60 billion lawsuit against Wells Fargo. “We stood by while others walked away,” Citi said in statement. “Now, our
shareholders have been unjustly and illegally deprived of the opportunity the transaction created.” Neither Wells Fargo nor Wachovia made any
immediate comments on Citi’s announcement.
October 2008: A gift from Hank (and Uncle Sam)

Citigroup found out that it will receive $25 billion from the U.S. Treasury in an effort to recapitalize the markets. U.S. Treasury Secretary Henry Paulson
announced that the Treasury would inject a total of $250 billion into U.S. banks to help restore confidence to the markets. Paulson said, “The needs
of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it.” With the injection, the U.S. followed in the
footsteps of some European countries, which announced similar moves earlier in the week designed to help thaw their credit markets.
February 2008: Rock on

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 Citi’s
150 million U.S. credit card holders, and as part of the deal Citi will also receive marketing perks like venue naming rights, branding rights at concerts
and a special partnership with Live Nation’s new ticketing operation.
January 2008: More write-downs and job losses

While the world’s banks were reporting dramatic write-downs and losses, Citi’s write-downs of $15 billion fell below analyst expectations of $22 billion.
Still, the firm announced it would cut another 5 percent of its workforce.
April 2007: It’s credit crunch time

Due to the U.S.-subprime crisis, Citi announced it would cut costs by axing 5 percent of its workforce, representing 17,000 jobs, in a restructuring
attempt to boost its suffering stock value.
GETTING HIRED
Lots of ways in
The odds of landing a position can vary depending “on the program you apply to,” but insiders say Citi tends to be “highly selective” when it comes
to new hires. “Several very qualified people interviewed for the 13 positions in my class from top national and international institutions,” a source
reports. Primary recruiting targets include “top-20 rated business schools” and high-caliber undergrad institutions around the world; expect to see Citi
recruiters at places like “Michigan, Harvard, Wharton, Duke, Tuck, Georgetown, ESADE, LSE, Columbia and NYU.”
But that’s not all: insiders say Citi pays serious attention to job fairs and its own web site, which allows students and experienced candidates to search
open positions, consult up-to-date recruiting calendars, create profiles and submit online applications.
Questions and a challenge

Most candidates will go through “three rounds of interviews,” starting with “a campus round” that focuses on behavioral and personality questions.
The process intensifies with “an on-site all day interview and business case session” in which “three to four managers” conduct a series of competency-
based and knowledge-based interviews. According to Citi’s careers page, it’s a good idea to come armed with some detailed questions of your own to
prove you’re interested in the specifics of the job.
The on-site round will include a “candidate challenge case study and presentation with other candidates,” and the process wraps up after “a final
round with the business head” of each prospect’s preferred division.

Take it if you want it

Participating in a summer internship is “a plus but not necessary” for those seeking full-time positions; insiders caution that “not all MBA recruiting
programs have a summer program” available—for instance, there’s no way to intern within the Global Consumer Group Management Associates
program. “Internships in other management associates programs are available,” one woman says, “but I did not see any correlation between
participating in those and being accepted in the program.” Although Citi hires plenty of people from outside the internship pool, sources say those
who do well during a summer stint may be on their way to employment, if they want it. “Nearly all summer interns get jobs,” an employee says. “You
have to blow it to not get an offer.”
OUR SURVEY SAYS
Diverse, but unsettled

There’s a “diverse group of people” inside Citi’s walls, and most insiders say their co-workers are “great to work with.” They also applaud the “high
priority placed on employee feedback, and reward systems for recognizing good work.” Thanks to Citi’s sheer size and the scope of its businesses,
many respondents say they were lured by the opportunities for lateral moves and relocation assignments. “It’s so vast that there are almost no jobs or
career tracks that would not be available for you within this company,” says one contact.
The downside? Citi’s recent woes have dealt a blow to morale and shaken the internal culture. “Fragmented” is how one insider describes the vibe
at Citi today; others point to “constant flux.” One insider wishes the firm would make an effort to “streamline and build a common culture across all
businesses.” Another sums up the uncertainty many feel: Citi is “a world leader changed to a struggling giant.”
Balance it out
Reasonable hours in the consumer bank get high marks from employees, who say they enjoy “very flexible” work schedules with “almost no weekend
work,” leaving plenty of “time for family and children.” Citi is “respectful of work-life balance,” adds an insider, “and supportive of work at home options.”
Perhaps best of all, “face time doesn’t seem to be a necessity here,” but that doesn’t mean slacking is OK: “The successful people clearly put in their
time,” one management associate says. “They don’t stroll in at 9 a.m. and leave at 5 p.m.”
As for pay, there’s no way around it: Citi insiders say there’s a lot of “uncertainty” about their compensation in 2009 and beyond. “All salaries were
frozen this year, and obviously bonuses were kept to a minimum,” explains a recent hire (who, before the downturn, received “a $20,000 signing
bonus”). Management associates who “rotate through different businesses, functional areas and geographies” every six months receive “$10,000
cash after taxes, lump sum, to cover moving expenses” and insiders note that “four weeks of vacation is standard.”
Global feel
For the most part, Citi is doing well on diversity, although insiders point out that “mentoring programs are not gender specific.” “It is definitely a male
dominant industry,” one woman says. But Citi is “very accepting of minorities in general.” Another source suggests that more could be done during
the recruiting process to attract a diverse workforce. “Have representatives show an interest in diversity,” she says. “Have actions and results to show
commitment.”
Toe the line

Managers get mixed reviews from sources who say Citi can there’s “limited mentorship, although effort has been made.” While some call their
managers “respectful,” others say the “very hierarchical” nature of the firm means junior staffers are “not encouraged to speak up or question
directions from above.”
Formal training programs are “minimal” and could “be streamlined and moved online,” but sources agree that they are “given significant responsibility”
early on, which means plenty of opportunities for “on-the-job training.”
Rotating wardrobes
There’s nothing fancy about Citi’s office setup, which is “mostly cubes,” and sources bemoan the “dated and worn” furniture at their disposal. For
management associates, dress code “depends on the business you are rotating through.” “Front-line bank employees must wear formal dress,” but
“different businesses all have their different dress codes.” “Citi Cards is business casual, but the retail and commercial banks are business [formal],”
an insider explains. Some divisions do allow “casual Fridays.”

The fight of its life

So what lies ahead for Citi? “There is too much uncertainty with the firm and the larger business environment right now to give an accurate outlook,”
a source admits. “I do believe that the senior leaders of the firm are trying their best to get the company back on track.” Another frustrated insider
sounds a far bleaker note, saying, “Big diversified financial services companies are not the rage. We’ve taken a beating and will continue to do so.
Financial strength and product diversification use to be our strengths, but balance sheet losses, poor operational integration, mediocre customer service
and general mismanagement have driven this company into the ground.”
Most agree that Citi’s pedigree is “prestigious,” and say they arrived at the firm confident that it was a “great company to work for.” But as one source
says, “Many changes in the environment have changed my perceptions.”

PRESTIGE
RANKING
42 BROWN BROTHERS HARRIMAN & CO.
140 Broadway KEY COMPETITORS

New York, NY 10005-1101
Phone: (212) 483-1818 Bank of New York Mellon
Fax: (212) 493-8545 J.P. Morgan Private Bank
www.bbh.com Northern Trust
State Street
BUSINESSES
UPPER
Corporate Banking
Corporate Finance • Culture supports a work/life balance
Global Custody
Investment Management
Investor Services & Markets
DOWNER
• Some face time required: “modest pressure to be in the
office”
THE STATS
Managing Partner: Douglas “Digger” Donahue
EMPLOYMENT CONTACT
No. of Employees: 4,000 See “career opportunities” at www.bbh.com
THE BUZZ
• “Good niche player”
• “Average”
• “Traditional; old, old, old Wall Street name”
• “Snooty”

Brown Brothers Harriman & Co.
THE SCOOP
What, me worry?
North America’s oldest and largest partner-owned and managed bank, Brown Brothers Harriman has seven offices in the U.S. and seven overseas,
employing about 4,000 people. In addition to a full range of commercial banking services, the firm provides global custody, foreign exchange, private
equity, mergers and acquisitions services, investment management for individuals and institutions, personal trust and estate administration, and
securities brokerage. It also operates a subsidiary, Brown Brothers Harriman Investment Management LLC.
In July 2006, BBH converted its New York trust company into a nationally chartered trust, Brown Brothers Harriman Trust Co., with offices in New
York, Boston, Chicago, Charlotte, and Philadelphia.
The Brothers’ history

Alexander Brown left his native Ireland for America in 1800, arriving in Baltimore to establish an import/export business built on his experience as an
auctioneer in the Belfast linens market. Ten years later, his four sons opened a merchant banking firm in Liverpool; a branch office in Philadelphia
followed in 1818. In 1825, Brown Brothers & Co. opened an office in New York City, and proceeded to expand their business into shipping and
banking. By 1857, Brown Brothers’ banking business had become the focus of the operation, and import/export work was discontinued. In 1931,
two businesses owned by railroad tycoon E. H. Harriman merged with the Browns’ company, forming Brown Brothers Harriman (BBH).
Ready for M&A

BBH’s mergers and acquisitions practice is focused on growing mid-market businesses, with special industry emphasis on health care services,
medical technology, telecommunications and media and outsourced business services. The M&A group is part of BBH’s corporate finance department,
which also includes the private equity and mezzanine groups. BBH offers equity and mezzanine capital for corporate growth via its 1818 Funds. The
corporate finance department serves private and closely held companies, advising on middle-market mergers and acquisitions for companies with
values between $50 million and $500 million.
Unlike some private banks that boast of their advisory groups’ independence, BBH believes its ability to be both advisor and investor creates several
unique advantages—the firm takes an “owner-oriented” approach to examining strategies for clients.
IN THE NEWS
July 2009: No. 1 securities lender

BBH was ranked as the No. 1 Securities Lending provider in the 2009 Global Custodian Securities Lending survey.
July 2009: Landing the first Islamic ETF

BBH was chosen to be the custodian, administrator and transfer agent for the JETS Down Jones Islamic Market Index Fund, the first U.S. Islamic ETF
(exchange-traded fund).
March 2009: Appointing two new partners

BBH named two new partners: Geoffrey M. Cook, of BBH Luxembourg, who joined the firm in 1997; and Kevin W. Stone, who joined the firm in 1992.
January 2009: On the coast

The company advised Coastal Maritime Stevedoring, a Jacksonville, Fla.-based marine terminal operator, on an agreement to sell CML and affiliated
companies to ICS Logistics.
November 2008: Bottoms up

Forbes named BBH Core Select the best bottom-up stock picker for long-term investors. “With only $197 million in assets,” said the magazine, “what
this fund lacks in name recognition it makes up for in performance.” BBH Core Select returned 8.3 percent annualized over the past five years,
compared with 5.2 percent for the S&P 500. The fund is co-managed by Richard Witmer Jr. and Timothy Hartch, who invest in established businesses
that provide essential products and services, and who typically hold stocks from three to five years.

Fitch Ratings also praised the bank, saying that its rating outlook as of 2008 is stable. It listed the bank as having an A+ in Long-term IDR and F1 for
Short-term IDR, and credited those ratings to “the company’s solid track record of performance and its strong specialized franchise in global custody.”
Fitch also pointed to BBH’s “low-risk balance sheet” and “ample capital and liquidity positions” as well as its strong risk management. (In its appraisal,
Fitch also mentioned BBH’s “relative lack of business diversity” and “smaller asset servicing scale” than its peers.)
July 2008: Best of the best

The firm was ranked No. 1 global mutual fund administration provider by Global Custodian magazine. Global Custodian also bestowed 48 best in class
awards upon the firm, and named it the top firm of fund managers of $1 billion to $5 billion in assets and fund managers with more than $5 billion in
assets. The firm was also highly ranked for its client service, proving that there are people behind the numbers. As one client commented, BBH staff
members “understand client service, and provide top quality client service, and always take time for discussions to take place immediately.”
May 2008: X-ray vision

Among deals that the company announced in 2008 was an $18.75 million investment in the Bedford, Mass.-based Reveal Imaging Technologies,
which provides explosives detection systems used by the Transportation Security Administration at airports.
March 2008: Aid in India

BBH also assumed the post of full service custodian, administrator and transfer agent for PowerShares India ETF, a global exchange traded fund that
invests in Indian securities. PowerShares, a subsidiary of Invesco, has franchise assets of more than $35 billion.
March 2008: Partner up

The firm appointed two new partners: Carl S. Cutler and Maroa C. Velez. Cutler originally joined the firm in 1988 and is responsible for developing its
banking business. Velez joined in 1995 and is currently head of BBH’s operations division.
February 2008: Minor reshufflings

Brown Brothers Harriman merged its investor services and treasury and markets businesses. The new division, known as investor services and
markets, is led by William B. Tyree. He replaced Douglas A “Digger” Donahue Jr., who became BBH’s new CEO as of January 1, 2008.
The divisional merger also saw some shuffling of staff. Although senior management stayed in place, the company said in a statement, each partner
assumed additional responsibilities: Andrew J.F. Tucker became head of the company’s market-related activities; Susan C. Livingston was named to
oversee the asset manager and fund client relationships and related services; Jeffrey R. Holland became head of client relationships and related
services for the financial institution group; and Timothy J. Connelly was named head of client technology solutions and subcustodian network
management.
GETTING HIRED
From all corners

The firm utilizes “multiple resources” to traffic in top-shelf candidates. Brown Brother Harriman recruits via “colleges,” “job fairs,” “internal postings
and referrals,” “Internet job boards” and even “cold-call recruiting.” But no matter how they get them, the firm “is known for selecting candidates
from the top schools around the world and certainly in the U.S.,” says a source. “This is also true of the institutional equities business, on the sales
desk in particular. The recent history of hiring patterns in institutional equities has shown somewhat of an Ivy League bias in sales.” On the flip side,
another insider notes that not all departments are so stringent. “In research I think they look for something a little less traditional. I think they are just
looking for really good thinkers, maybe with a flair for the creative, no matter what school they went to.”
Interested candidates can check out the firm’s open positions on the company website, www.bbh.com. Applicants can search the firm’s database of
job opportunities by title, keyword, location, line of business and career level. Postings include a full list of responsibilities and qualifications. Brown
Brothers has an internship program, but one former intern calls the experience “a little dull.” “There is a lot of back-office activity and interns rarely
get exposed to the revenue generating parts of the company.” But internships are also available “in all areas” and if you’re willing to do a little drudgery,
you may be rewarded, since “most interns/co-ops get full-time offers.”
No applicant is an island
Expect “competency-based” interviews where “the questions are all pretty similar, but teamwork is a main focus.” Also, “most of the teamwork
questions were specific and I needed to give detailed examples of how I influenced others within my group, how I solved a problem within a group,

etc.” Candidates interviewing for positions at Brown Brothers Harriman are also advised to “study your resume really well.” One source says it is
important for applicants to “know yourself and know what you want in life.” Candidates whose resumes spark interest among Brown Brothers recruiters
may receive a phone call from human resources “to go over the position and the company.” One source remembers the phone interview as a good
opportunity “to have my questions answered, as well as for Brown Brothers to get a feel for my personality and see if I would be a good fit for them.”
Recruiters ask a variety of questions, including ones about “basic knowledge of finance and the stock market,” as well as ones to determine how much
the candidate has researched the firm.
After one or two phone interviews, candidates are invited to Brown Brothers’ offices, where a number of interviews take place. One investment banking
recruit recalls “one extremely vigorous eight-hour Super Day. I met everyone, including Brown Brothers Harriman’s equivalent of the CFO, the senior
partner managing the institutional equities business, managing directors, strategists and associates.” Another recruit recalls meeting “a senior portfolio
manager,” “an assistant” and a manager in the group he’d be working for. This candidate was asked “various questions about managing people’s
money and how I saw the market in the near term.”
Another source says the most difficult interview was with one of Brown Brothers’ strategists, who initiated a “conversation about my thoughts on the
market and what was going on out there, probing me for opinions and what I knew.” One source recalls “a lot of product questions, which I feel took
some of the interviews to a level of detail they otherwise would not have gone to.” Other interviewers just want to “see if I was comfortable talking with
people and could think on my feet,” according to one source. The process could involve “up to 20 interviews” depending on your level, reports one
insider (yes, you read that correctly—20 interviews). One insider vying for the position of vice president calls the process “rigorous” and says it’s “very
careful about who it brings in at senior levels.” Another insider reports going through “seven or eight interviews over the course of a nine-month
period.”
On the whole, interviewing days can be “long,” but they’re fair. “No one was out to give me a hard time,” says one source. “My impression was that
people seemed more interested in how I was as a person, what I was like to work with, and how I would fit in with a team that works long hours together.”
Just don’t expect the process to be fully over once the interviews are finished. Anticipate “a background check” (though “they’re mainly just concerned
if you’re wanted by the law and that you haven’t declared bankruptcy in the last few years”), a “drug test” and a “reference check.”
OUR SURVEY SAYS
Life, meet work

There’s a “good work/life balance” at Brown Brothers Harriman, which is “supportive of career development.” Some also call the firm “very tapped in
to the prep school and old wealth networks,” as well as “conservative” and “risk-averse.” It also places an “emphasis on individual results,” but
employees are “encouraged to do the best thing for their clients and there is no pressure to sell inappropriate products.” Still, you will have a life
outside the firm if you work here, since “management is very respectful of personal lives and other commitments.”
No major complaints
Compensation gets a thumbs-up from most sources. One source, who says Brown Brothers is a true meritocracy, agrees that “your bonus and raise
depend solely on your performance.” Benefits are “nothing to complain about,” says another. The firm matches 50 percent of employees’ 401(k)
contributions for up to 6 percent of salaries. After five years with the company, you are fully vested in 401(k) contributions. “Vacation time is good,”
adds one respondent, who currently has “about 28 days vacation.”
You may feel a little pressure ...

As far as hours spent in the office, there’s a “modest pressure to be in the office,” but “face time is not as important as other shops.” “I work a lot of
hours due to personal devotion to my work,” says one workaholic. “But no one asks me to stay late.” One source reports spending “less than 40
hours” per week at work and “rarely or never” working weekends. Managers at the firm don’t require face time, but one contact notes, “Your colleagues
will definitely pay attention to your hours. If they feel you’re not working hard enough, they’ll give you a tough time, but it’s all in good fun.”
If you’re a big boss, expect to dress to impress. “The managers—vice presidents and above— seem to wear suits every day except Fridays.” But for
everyone else, the dress code at Brown Brothers is business casual. “Collared shirts and slacks will suffice,” says one source. There are “no jeans”
allowed, but “no tie” required. “People dress in khakis and a polo shirt.”
The firm’s training programs get mixed reviews, with some calling them “very useful” and others giving them below-average ratings. Brown Brothers
Harriman scores well on diversity with respect to women, ethnic minorities, and gays and lesbians. But there’s always room for improvement. “I think
the firm is eager to hire women, but I don’t see a lot of formal efforts with respect to promoting and mentoring them.” Even so, insiders say they’ve
“never encountered any problems or prejudice.”

PRESTIGE
RANKING
43 RAYMOND JAMES FINANCIAL, INC.
880 Carillon Parkway KEY COMPETITORS

St. Petersburg, FL 33716
Phone: (727) 567-1000 Edward Jones
Fax: (727) 567-5529 Morgan Keegan
www.raymondjames.com Wells Fargo
DEPARTMENTS UPPERS
Asset Management • “Working at Raymond James is phenomenal”
Financial Planning • “Extremely flexible” hours
Investment Banking
DOWNERS
THE STATS • “Formal attire” only in some offices
Employer Type: Public Company • Diversity efforts could be improved for gays and lesbians
Ticker Symbol: RJF (NYSE)
Chairman & CEO: Thomas A. James
2008 Net Revenue: $2.8 billion
EMPLOYMENT CONTACT
2008 Net Income: $235 million See “professional opportunities” section of www.rjf.com
THE BUZZ
• “Major competitor”
• “Regional firm that’s not that great for I-banking”
• “Strong research, great southern presence”
• “Supermarket for people with $2,000 to invest”

Raymond James Financial, Inc.
THE SCOOP
Financial Floridians
Founded in 1962, Florida-based Raymond James Financial (RJF) is one of the largest financial services firms in the U.S., with 2,300 offices around
the world. RJF subsidiary Raymond James & Associates is the largest full-service investment firm and New York Stock Exchange member
headquartered in the Southeast. Its business falls into four core areas. The private client group offers securities transaction, investment advisory and
financial planning services to approximately 1.2 million client accounts. It operates through subsidiaries Raymond James & Associates (RJA) and
Raymond James Financial Services (RJFS) in the U.S. In Canada, it’s known as Raymond James Ltd., and in the U.K., it is Raymond James Investment
Services. The private client group consists of more than 5,000 financial advisors.
The equity and fixed income capital markets group includes institutional sales, investment banking, syndicate, equity research, equity and fixed income
trading and public finance. It also provides research on more than 600 companies and market-making in 330 common stocks, as well as bond trading.
And its research group is well regarded on the Street.
RJF’s professional asset management division includes proprietary asset management operations, internally sponsored mutual funds, nonaffiliated
private account portfolio management alternatives and several nondiscretionary fee-based programs. As of early 2009, assets under management
totaled nearly $28 billion—a significant decrease from the $37.3 billion it managed a year earlier. The asset management group also includes personal
trust services and two private equity funds. Finally, the Raymond James Bank is a federally chartered savings bank providing loans and deposit
accounts to clients of the firm’s broker-dealer subsidiaries.
Hometown spirit
At Raymond James Financial customer service is a No. 1 priority. In practice, this means that financial advisors are given a certain degree of autonomy
in their dealings with clients. As CEO Thomas James puts it, good customer service can’t come from “automatons who only read scripts provided by
the home office.”
RJF’s philosophy extends to its community, and many Floridians know it as a major supporter of local arts, sporting events and charities. The firm also
sponsors the Raymond James Gasparilla Festival of the Arts, an arts and crafts festival that has been held in downtown Tampa since 1971. The RJF
main campus in St. Petersburg is also home to over 1,800 works of art, almost all of which are owned by CEO Tom James and his family. It is
considered one of the largest private art collections in the Southeast.
IN THE NEWS
June 2009: Two top women

Barron’s named financial advisors Sheryl Stephens and Margaret Starner to its Top 100 Women Financial Advisors annual list. The list takes into
consideration factors such as assets under management and client retention. COO Chet Helck said in a statement that the advisors “define what it
means to be the best in the industry and perennially appear on these lists of the nation’s top advisors.”
April 2009: Sliding down

For the second quarter ended March 31st, revenue came in at $596.1 million, down from the $807.13 million the company brought in for the same
quarter of 2008. Net income, meanwhile, slid to $6.09 million in the quarter from $59.79 million in the previous year’s quarter. The firm partially
attributed the overall decline to loan losses.
March 2009: Here comes Reilly

Raymond James confirmed that Paul Reilly will take on the role of president of Raymond James Financial on May 1, 2009, and will ultimately succeed
Thomas A. James as CEO one year later. After Reilly takes over the role of CEO, James will stay on as executive chairman of the board.
February 2009: Go big or go home

Super Bowl XLIII was played in the Raymond James Stadium in Tampa, Fla. According to Joyce Julius & Associates, a research company, the hubbub
leading up to and during the Super Bowl granted Raymond James an estimated $37.3 million worth of media exposure. That includes pregame
mentions of the stadium’s name and references to it in print-media for the two weeks prior to the game, Reuters reported.

January 2009: A weak link

For the first quarter of the 2009 fiscal year—ended December 31, 2008—the firm reported $61.1 million in net income, an increase of about $5 million
from the same quarter a year earlier. These results represent weakness in the firm’s private client group, said CEO James, as well as a 17 percent
decrease from the previous quarter in the company’s retail commissions and fees. But investment banking revenue climbed an astonishing 126
percent in domestic M&A fees from the same quarter a year earlier.
January 2009: No buybacks

Chairman and CEO Thomas James announced that the firm wouldn’t buy back the auction-rate securities it sold to investors. His reason: the company
doesn’t have “anything near” the $1 billion necessary to buy back those investments, according to the St Petersburg Times. What’s more is that
regulators would not extend credit to the company to repurchase the securities “because they are illiquid,” the paper said. The firm’s stock
subsequently plummeted.
In a letter to clients, James alluded to other broker-dealers that allegedly intentionally misguided investors, to whom they sold the securities while
liquidating their own positions. “To the best of my knowledge, we didn’t participate in those types of acts,” he wrote.
December 2008: CNBC’s blooper

When news of Bernard Madoff’s Ponzi scheme broke, Raymond James was implicated by CNBC as having marketed Madoff Investment Securities.
The company, in fact, “has no history of marketing Madoff Investment Securities and otherwise no known exposure to the scheme,” it said in a
statement.
November 2008: Down all around

The firm didn’t do so well in the fourth quarter of 2008, for the fiscal year ending September 30th. It reported net income of $49 million. Investment
banking revenue was down 39 percent from the same quarter a year earlier. Commissions and fees were also down, said the firm, adding that it had
suffered from a 41 percent tax rate as a result of declining values of securities in its life insurance programs. “Although that might be disappointing
to analysts, I’m actually pleased that our results were that good in light of the devastation in the financial sector,” James said. The firm wrapped up
the year with net revenue of $2.8 billion, an eight percent increase from 2007.
November 2008: Top entrepreneur

For his leadership, Thomas James, the firm’s chairman and CEO, won the 2008 entrepreneur of the year award presented by Ernst & Young.
November 2008: Facing off against Barron’s

Barron’s ran “The Siren Song of Banking,” an article in which it speculated that the price Raymond James’ shares could fall as much as 20 percent
as mortgages and business loans go bad. The article also cautioned investors from buying Raymond James stock, which has declined in value and,
as a result, is attractively priced.
In response, the bank issued a point-by-point statement addressing the price of its stock and the health of loans it has underwritten.
September 2008: “An important lesson”

In an interview with the St. Petersburg Times, Raymond James Chairman and CEO Thomas James told the paper, “When times are good, leverage is
wonderful … When times are bad, it’s a disaster. It’s an important lesson.” Indeed, operating procedure at Raymond James bears out his point. According
to the paper, where other firms acquired “$20 to $30 worth of assets for every $1 owned,” “leverage at Raymond James remained at half that much.”
September 2008: From thrift to commercial

The bank announced its intention to change from a thrift to a commercial bank. The company issued a statement declaring that the move had been
part in the works for years. “For some time, the Raymond James Financial board has been concerned about the limitations associated with Raymond
James Bank’s thrift status, leading to alternative charter considerations,” the firm said in a statement. “The move would permit a higher proportion of
corporate lending, which has historically been more profitable and bears less interest rate risk,” it said. Overall, the firm said, “the switch will have
little impact on the firm’s overall operations and organizational structure.”
The announcement followed Goldman Sachs’ and Morgan Stanley’s announcements that they, too, would change become bank holding companies.
But Raymond James’ CEO Tom James emphasized that the spirit of these transformations “are more form than substance.” He also sought to put
distance between his firm and the other, troubled banks that have made the switch.

September 2008: Leaders in diversity

The Human Rights Campaign gave Raymond James a perfect score on its Corporate Equality Index. The index is used to rank companies on their
diversity policies.
July 2008: Brand new post

The firm also hired Angela Biever, who was named chief administrative officer. The CAO post is a new position. Biever previously served as a member
of the Raymond James’ board of directors, a position she held since 1997. Prior to her appointment, she was vice president of Intel Capital and
managing director of the consumer internet sector at Intel Capital.
June 2008: Welcome to the firm

Raymond James hired Paul Allison as co-president and co-CEO of its Canadian arm. Allison will partner with co-president and co-CEO Peter Bailey to
grow Raymond James’ equity capital markets and private client businesses in Canada. Allison was most recently executive vice president and vice
chairman at Merrill Lynch Canada as well as co-head of its investment banking business.
June 2008: Award-winning

The firm was named best full-service broker in the SmartMoney annual broker survey for 2008—an honor for which it beat out Merrill Lynch, Wachovia,
UBS and Morgan Stanley, among others. Twenty-seven advisors registered with the firm were named to the Top 100 Independent Financial Advisors
list published by industry magazine Registered Rep.
April 2008: No backsies, please

Raymond James was named among 10 broker-dealers in a lawsuit involving the sale of auction rate securities. Like UBS, Merrill Lynch and other large
investment banks that had been named in the first round of lawsuits, the suit alleged that Raymond James had misinformed investors about the
riskiness of auction rate securities.
GETTING HIRED
Seasoned pros wanted

Be sure you’re at the top of your game if you want to apply for Raymond James—insiders say “you must have attained a higher level of production”
and “seasoning in your field” to be considered for employment with the firm. If you feel up to the challenge, job openings available at Raymond James
can be found by checking the “career opportunities” link at www.raymondjames.com. There, the firm has full job listings in all of the firm’s locations,
detailed descriptions of job duties in each of its 18 departments and a section extolling “life at Raymond James.” For entry-level opportunities in
investment banking, Raymond James offers undergraduates three avenues: financial analyst, research associate and syndicate analyst. RJF offers a
three-year financial analyst program where, according to the firm, analysts play an integral role in the department’s activities and are given a high level
of responsibility as a member of a specific industry-focused team. Research associates work directly with senior research analysts in the firm’s equity
research department. And syndicate analysts work closely with the investment banking, research, institutional sales and trading departments, gaining
a broad understanding of equity public offerings and the equity markets.
Expect “many rounds of interviews” if you’re asked into the office. You’ll likely go through “generally at least three interviews” and possibly take a
multiple-choice personality and intelligence test. An investment banking analyst, for example, reports going through “an on-campus interview that
consisted of fit questions,” and second rounds that typically “last two days and involve many interviews of varying types— some fit, some technical.”
The source adds, “You also take a test that has math, logic and psychological questions.” A research associate, who went through two rounds of
interviewing, says the first round was a three-on-one, on-campus interview with “numerous macroeconomic questions.” The source faced six senior
interviewers in the second round and warns prospective researchers to “know the current market environment very well.” Insiders advise applicants
not to stress about the firm’s assessment test, describing it as “standard in the industry.” The 100-question exam, “which you’re not expected to
complete,” “measures the ability to think quickly and accurately.” One insider even says “they also asked all the financial planners in my geographic
region about my integrity.”
And don’t try to hide anything, because you likely won’t get away with it. The company requires an “extensive background check” before any
prospective employees join the Raymond James team.

OUR SURVEY SAYS
Happiness all around

Generally, employees at the firm seem content. “Working at Raymond James is phenomenal,” asserts one insider. “The flexibility to change jobs is
provided because the company strives to ensure each employee loves his or her job and is happy doing it.” Another says “the company culture is
great—very family-friendly and family-oriented.” More than one correspondent mentioned “integrity” when it comes to the workplace culture. One
insider simply calls it “great,” adding, “That’s why I’ve been here for more than 20 years.” “The company works for me and allows me to make the
best recommendations to my clients.” And in striving to maintain a “personal” atmosphere, Raymond James is “more laid-back than your average
bulge bracket New York firm,” says a source in investment banking who’s pleased with the exposure to management and deals. “The investment
banking group is small, and analysts have access to managing directors and senior management within equity capital markets. Because industry
teams are smaller, you develop better relationships with superiors and are often given significant responsibility.” Another insider who says that
Raymond James has a “strong history of family values” supports the claim by pointing to “associate phone directories listed by first name instead of
last,” and “company-wide events, including fiscal year-end parties, graduation ceremonies for [the firm’s] in-house education system and annual
company festivals.”
A little bit of everything

The firm also offers a wide range of perks—although benefits offered may hinge on your office location. In independent offices, “each individual
chooses the perks they want to have.” Some perks the firm offers include “401(k),” “profit sharing,” “stock options” and a “retention bonus.”
Raymond James also offers significant educational benefits, including tuition reimbursement and firm-run training (“Raymond James University”),
which includes industry- and product-related courses, as well as leadership development classes. Vacation time offered is “two weeks for the first year,
and it keeps increasing based on length at the company.” Plus, “unused vacation and sick time can be rolled over for one year, after which it is lost.”
As far as hours go, many employees are allowed to set their own “extremely flexible” hours. But staffers will “meet with clients as needed.” One
contact is fine with maintaining a certain flexibility, adding that “if meeting with clients means coming in on Saturday or Sunday, that’s cool.” There
also may be travel required at times. One insider reports their time out of the office as happening “two or three days per week.” But if you’re looking
to quickly move up the company ladder, you may be in luck—”opportunities for advancement are available to anyone seeking such,” stresses one
insider.
Wide wardrobe
Outerwear required for the job is based largely on where in the country you happen to work. An insider based out of Atlanta says the code is mostly
“formal always,” while a Tampa contact calls the required dress code “business casual. We’re expected to wear a collared shirt, but jeans aren’t
allowed.” And another working out of a Los Angeles branch says “casual summer” attire is allowed.
Tackling diversity
In terms of diversity with respect to women, there’s “no glass ceiling, as evidenced by the number of women at the top of our company,” one insider
says. Underlining its commitment to the development of women, the firm has two in-house groups to promote the cause: the Women’s Advisory Council
(WAC) and the Women’s Initiative Network (WIN).
Ethnic diversity receives high marks as well. The firm has a “Cultural Awareness Week” and “color is not an issue in our company,” another source
reports. But when it comes to the company’s treatment and hiring of gays and lesbians, the jury may still be out. One contact reports that “our
company is definitely family-oriented, but our independence allows all walks of life to coexist.”

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RANKING
44 SANDLER O’NEILL + PARTNERS, L.P.
919 Third Avenue, Sixth Floor KEY COMPETITORS

New York, NY 10022
Phone: (212) 466-7800 Keefe, Bruyette & Woods
Fax: (212) 466-7888 FBR Capital Markets
www.sandleroneill.com Fox-Pitt, Kelton
BUSINESSES UPPERS
Capital Raising • “Very friendly” atmosphere
Equity Research • “Flexibility to work at home”
Equity Sales & Trading
Fixed Income Transactions
Investment Portfolio & Interest Rate Risk Management
DOWNER
Investment Banking • “Functional, but not luxurious” office space
Mortgage Finance • “There are a few egos”
Mutual Conversions
EMPLOYMENT CONTACT
THE STATS
Follow the “careers” link at www.sandleroneill.com
Senior Managing Principal: James J. “Jimmy” Dunne III
No. of Offices: 6
THE BUZZ
• “Top FIG bank”
• “Small US broker/investment bank focused on financials”
• “Who?”
253
Sandler O’Neill + Partners, L.P.
THE SCOOP
Small and powerful

In its September 2008 story about the “smaller, nimbler rivals” of Wall Street’s major investment banks, The New York Times named Sandler O’Neill +
Partners among the new generation of firms to watch. The 21-year-old company, said the paper, is part of the “corps of small investment banks is
hoping to carve a lucrative niche in the new financial landscape.”
A privately owned boutique, Sandler O’Neill focuses exclusively on the financial services sector—its client list consists of banks, thrifts, real estate
investment trusts (REITs) and insurance companies. Its services include mergers and acquisitions advisory, IPO underwriting, capital-raising, research,
trading and sales, fixed income advisory and strategic consulting. It also assists insurance companies and thrifts with the demutualization process.
Sandler O’Neill + Partners was founded in New York City in 1988 by Thomas F. O’Neill, Herman S. Sandler and four other veterans of Bear Stearns.
Sandler and O’Neill brought several of their Wall Street contacts on board as their business grew; today, Sandler O’Neill has additional offices in Boston,
Chicago, Atlanta and San Francisco. Its mortgage finance division operates in New York and Memphis.
Formerly headquartered in the World Trade Center, Sandler O’Neill lost more than a third of its employees, including co-founder Herman Sandler and
investment banking head Christopher Quackenbush, on September 11, 2001. Current senior managing principal Jimmy Dunne led the rebuilding
process after the September 11 terrorist attacks, relocating the firm to new offices in Manhattan.
Huge deals
Sandler O’Neill + Partners advised on 37 M&A deals in 2008, among them the advisory of National City Corp on its $5.6 billion sale to PNC Financial
Services. That deal, which closed on New Year’s Eve 2008, garnered significant media attention; PNC used a good chunk of its federal bailout money
to make the purchase. Sandler O’Neill also advised Countrywide Financial on its $2.5 billion sale to Bank of America in the early part of January 2008.
Finally, in February 2009, the company joined forces with Citigroup, Deutsche Bank, and JPMorgan Chase to help sell $413.9 million of bonds in the
first pooled debt offering for regional banks, according to Bloomberg.
The firm also participated in 42 capital-raising transactions in 2008, among them offering private placements for New York Community Banccorp, North
State Bancorp, and Security Bank Corporation and public offerings for such big names as Bank of America and Citigroup.
Rebuilding post-September 11
Sandler O’Neill’s recovery from the September 11 terrorist attacks earned it respectful praise in the press. In a Newsweek feature, senior managing
partner Jimmy Dunne revealed the changes that had taken place at his firm. In addition to maintaining the Sandler O’Neill Assistance Foundation for
the victims’ families, Dunne and the firm’s partners decided in 2007 to expand benefits to the families for another three years. “[That] discussion was
12 seconds,” Dunne said.
The tragedy made some significant differences in the way Sandler O’Neill does business, most notably in terms of Dunne’s own leadership style.
“Having the luxury of Chris Quackenbush and Herman Sandler before September 11th allowed me to play a hard-edged, tough, deliver-the-news-with-
no-Novocain kind of guy,” Dunne told Newsweek. With their loss, his approach “had to” change. While he maintains that he’s opposed to “any kind
of cuddling” or kid-gloves treatment on the job, Dunne admits that September 11th made him “much softer ... I remember one of my partners saying,
‘I’m afraid to go into Jimmy’s office now because I don’t know if it’s the nice Jimmy or it’s the old Jimmy.’”
Dunne’s diligence and relentless focus played a major role in rebuilding Sandler O’Neill’s business in 2001 and 2002. “I’m kind of a nut on the figures,”
he said, “so I kept all our [financial] figures at my home. I’d go through them overnight. And that was extremely helpful in rebuilding. At one point
all we had was that.”
IN THE NEWS
January 2009: The REIT stuff

In January 2009, Sandler O’Neill announced that Alexander D. Goldfbarb had joined the firm as associate director. Goldfarb covers real estate
investment trusts, or REITs; his hiring marked the initiation of the company’s REIT coverage. Goldfarb was previously director and senior REIT analyst
at UBS. Prior to UBS, he was vice president and REIT analyst at Lehman Brothers. He graduated from Wheaton College in Norton, Mass., and earned
his MBA from Babson College.

December 2008: On the tables

Sandler O’Neill ranked No. 23 in U.S. announced M&A deal volume in 2008, according to Thomson Reuters. The firm also made a respectable
appearance on Thomson Reuters’ league tables for midmarket M&A. For U.S. announced deals based valued up to $50 million, it ranked No. 10; for
deals up to $100 million, it ranked No. 12; for deals up to $200 million, it ranked No. 11; and it ranked No. 16 on deals up to $500 million.
November 2008: Irish eyes are smiling

According to The Irish Examiner, Sandler O’Neill + Partners was in talks with Bank of Ireland about the possibility of acquiring a major stake in the
bank. Bank of Ireland, according to the paper, is hoping to avoid pressure to merge with rival domestic banks.
GETTING HIRED
Inside connection is important

Insiders at Sandler O’Neill give pretty high marks to selectivity. Scoring a full time gig at the firm can be “on the difficult side,” due to “limited recruiting
activities.” Also, “new hires typically know someone at the firm.” Sandler does do some campus recruiting, however, picking its lot from “select
colleges.” Specifically, the firm concentrates on “schools overlooked by bulge brackets,” including “some Ivies, Patriot League schools, and top-level
state schools like UVA and UNC.” The firm tends to focus on “institutions where current employees attended.” Candidates also come via “word-of
mouth recommendations from through clients and colleagues.”
Thorough and straightforward

The firm’s interview process is “very thorough,” with candidates meeting with “employees at all different levels of the firm.” There are typically two or
three separate sessions, each running “long, about three hours in length.” Things can be “somewhat less formal in the Chicago office,” but even
candidates for that office may “meet with heads of I-banking and others at the New York headquarters.” In total, a candidate will have “about four-to-
five 30 minute interviews per round.” Some meet as many as seven different people. A contact says, “If you are interviewing for an investment banking
position, you will most likely meet with at least six people, from analysts to partners.”
Interviews are designed to “test personality and reason for wanting the job.” The firm also assesses “thinking skills, but is not necessarily looking at
specific skills related to the job.” Questions tend to be “straightforward, focused on past experience” and “willingness to work in the banking industry.”
A summer well spent

“A large percentage of those hired into Sandler’s investment banking group have done an internship” for the firm. Participation in the program is “very
important when considering interns for employment,” as the experience is “essentially a 10-week interview” during which “the firm can assess the
candidate’s skill set.” Sandler’s internships offer “good exposure and potential to yield a full-time offer.” Those who exhibit “the right attitude and
effort” can get “tangible, hands-on experience.” A contact warns, “You need to be proactive, otherwise it is easy to get lost in the shuffle.” Although
“not all new hires are from the internship program,” participation “gives them a great chance at a New York full-time position.”
On its own schedule

Candidates who make it through the resume screen and first interview should expect to meet “three to six people” on-site at Sandler O’Neill, “including
associates through partners.” A current managing director was hired after meeting “the CEO and two department heads.” An analyst recalls
interviewing “with two principals, an associate director and two vice presidents” after a preliminary phone conversation. “The questions were all
behavioral,” he adds.
Because Sandler O’Neill is so small and selective, contacts count. One source describes “staying in touch with the firm” after an initial round of
interviews, which led to “a phone interview with a partner a few months later, followed by an offer.” This kind of cultivation is especially important at
a firm that doesn’t operate on the same prescribed hiring cycles as bigger banks. “Hiring is more needs based and less structured in terms of a
formalized program than at larger firms,” says an insider.
OUR SURVEY SAYS
Friends in the office

The firm promotes a “very friendly working environment” where “the people are extremely nice.” Spend a day at Sandler O’Neill and you’ll find “a
generally collegial atmosphere that promotes a proactive approach to the job.” The firm’s “work hard, play hard” environment “lacks the need to put

in face time and some of the other political requirements of larger firms.” Employees of this “meritocratic” firm are given “a high responsibility level”
and “room for advancement.” Investment banking deal teams tend to be small, which “provides great experience for junior bankers.” There are many
“opportunities for career advancement, and there’s lots of deal exposure.”
Sandler’s “smaller-firm feel” offers “flexibility” and creates an environment in which “everyone is very accessible.” Junior bankers enjoy “constant
exposure to partners and senior bankers,” and sources at all levels “feel appreciated and well compensated.” There’s “a lot of interaction and idea
bouncing among co-workers.” Sometimes it feels “almost like a family” at Sandler, because “the firm really goes above and beyond to assist employees
experiencing personal problems.”
As with any firm, “there are a few egos,” but on the whole, “most people are friendly, intelligent, knowledgeable about their fields and helpful to others.”
Some complain that there is “a certain degree of monotony to the work,” which can be “redundant and tiresome.” And “travel destinations are never
exciting.” But the consensus among Sandler insiders is that their firm “treats employees very well.”
Catered lunch
Sandler bankers feel “well compensated.” In addition to salary and bonus, employees are entitled to the firm’s “non-matched 401(k) program, along
with a profit sharing.” Bankers get catered lunch every day and a “dinner allowance if working past 8 p.m.” Car service is also provided after 8 p.m.
Reasonable hours
On the whole, Sandler has “generally reasonable expectations” about work hours, although some feel as though they “need to be accessible at all
times.” Workload is “in proportion to compensation,” and most people have “flexibility to work at home outside of normal office hours,” which are
considered 8 a.m. to 7 p.m. Still, it is not uncommon to find bankers logging up to 90 hours per week including weekends. Some “nearly always work
on the weekends,” but most can “limit it to one weekend day.” Hourly requirements can “fluctuate wildly” depending on deal flow and projects.” The
rule of thumb is, “stay as late as you need to, and leave as early as you can—within reason.”
Learning opportunities
Bankers at Sandler O’Neill enjoy “free interaction with management.” Juniors “work directly with managers” and are “not micromanaged.” It’s a place
where “everybody is treated with respect, regardless of rank.” A contact says, “I have been treated better at Sandler than any other firm I have ever
worked at.” The senior bankers are “uniformly sharp, helpful and respectful.”
Training at Sandler could be a little more helpful. There is “little formal training,” so bankers are expected to “learn on the job.” One insider says,
“Depending on your learning style, this is either a positive or a negative.” Learning at Sandler requires you to be “self-motivated and proactive,”
because “nobody is going to hand anything to you.” The bright side is, “there is more to be taken than at bigger shops.” Bankers are “afforded many
opportunities to learn.”
Not too stuffy

Office facilities get average marks from Sandler respondents. Those who are based in New York work from a “good building in a good location.” The
look is pretty formal around headquarters, with bankers sporting business casual “during summer only.” Casual days are sometimes allowed on “days
with poor weather or during holidays, if no clients are visiting.” Overall however, the vibe is “not too stuffy.” A contact says, “They just expect you to
be nicely dressed.” And in Chicago, “it’s a bit more casual than in New York.”
Equal opportunity for all

Sandler insiders give decent marks to the firm’s attitude toward diversity. The firm “employs many women, and several hold top management
positions.” A contact points out that there are “few women” in the Chicago office, but notes that things are “more balanced at New York headquarters.”
Sandler “has never displayed any kind of discrimination toward any race,” as the firm is “truly about equal opportunity.” “People are judged on their
work, not any other factors.”
No hunting, just gathering

Many Sandler O’Neill sources give the firm middling marks on pay; one analyst wishes the firm would “increase junior investment banking
compensation levels to [match] the rest of the Street.” “Standard” benefits are considered “comparable to other firms,” and include “meal and taxi
allowances,” a 401(k) plan and “expense accounts.” One busy contact says, “I love the fact that I do not have to go out on a day like today and hunt
for food. They provide daily.”
Dress at the firm is “business attire,” and when warm weather arrives it’s “business casual until Labor Day.” But Sandler O’Neill’s offices are a low
point for some. One respondent calls the workplace “functional, but not luxurious by any means.”

All-access pass
“Such a firm probably exists,” says a corporate finance staffer, “but it’s tough for me to imagine an investment bank with better access to high-level
bankers than Sandler O’Neill. The senior bankers are uniformly sharp, helpful and respectful.” “If you’re a junior person who works hard and keeps
a good attitude, you will get a great deal of respect from senior people,” notes another source, and an analyst points out that “you know everyone on
a personal level.” Managers and senior staff “are typically extremely helpful,” and most feel that “the firm does a good job of training and investing in
the next generation.” While most training at Sandler O’Neill still happens “on the job,” sources say that “training has been a major focus in the last
few years,” with marked improvement in terms of formal preparation.

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45 PETER J. SOLOMON COMPANY
520 Madison Avenue KEY COMPETITORS

New York, NY 10022
Phone: (212) 508-1600 Evercore Partners
Fax: (212) 508-1633 Goldman Sachs
www.pjsc.com Greenhill & Co.
Morgan Stanley
DEPARTMENTS
UPPERS
Fairness Opinions/Independent Committees
Family Business Advice • “You are respected”
General Financial Advisory • “Very friendly and understanding” managers
M&A
Restructuring, Recapitalization & Refinancing
DOWNERS
• Training “may not be as comprehensive as at larger banks”
THE STATS • “There is not too much ethnic diversity”
Founder & Chairman: Peter J. Solomon
EMPLOYMENT CONTACT
No. of Offices: 1 See “careers” section of www.pjsc.com
THE BUZZ
• “Very strong in retail”
• “Not a good place to learn”
• “Prestigious”
• “Limited breadth of industry coverage”

THE SCOOP
Ex-Lehman brother branches out

Peter J. Solomon opened his eponymous Manhattan firm in 1989. Before striking out on his own, the Harvard-educated Solomon had spent many
years at Lehman Brothers. Solomon remains chairman of the privately owned boutique; by mid-2009, the firm’s upper crust included 16 managing
directors and six senior advisers.
Peter J. Solomon Company (PJSC) offers strategic and financial advice to owners, chief executives and senior management of public and private
companies. The firm’s industry expertise includes retail, wholesale and catalog distribution; branded and unbranded consumer products; health care
and life sciences; media and communications; energy, pulp and paper; and industrial products. Since its founding, PJSC has completed more than
350 advisory assignments.
Business at PJSC is divided into five primary divisions: mergers and acquisitions, restructurings, financing advisory services, the special committee
practice (which provides counsel to corporate boards and renders fairness opinions) and the family business advice practice. But don’t mistake this
last division for something out of Norman Rockwell; PJSC advises families like the Fortunoffs, the Comers (who own retail giant Lands’ End), the Rabbs
(owners of the Stop & Shop grocery chain) and the Wylys (who own the Michaels craft supply stores, and entered into a $5.6 billion leveraged buyout
agreement with Bain Capital and the Blackstone Group).
Private banker’s public persona

In 2007, Peter J. Solomon told The Deal that he intends to keep his firm private. But the veteran banker—dubbed a Master of the Universe by The
New York Times—seems to relish bringing his opinions to the public. Solomon published a number of articles in 2008 and 2009, in the Times and
the New York Sun, criticizing the particulars of the government’s bailout plan. In addition to his industry experience, Solomon has public-service
credentials to back him up: he served as counselor to the secretary of the Treasury under President Carter and was New York’s Deputy Mayor of
Economic Policy and Development under Ed Koch.
Deals still flowing

Despite an overall slow M&A and capital raising deal market worldwide since the beginning of 2008, PJSC has been busy. Some of its most recent,
high-profile deals include advising Eddie Bauer on its $286 million sale to Golden State Capital in August 2009; Quicksilver on its $150 million term
loan, $200 million revolver and $400 million credit refinancing in July 2009; and Office Depot on its $350 million convertible preferred stock offering
in June 2009. PJSC has also recently advised on big deals for grocery retailer A&P, retailer Tween Brands and beauty salon conglomerate Regis
Corporation.
IN THE NEWS
July 2009: Hiring a hitter

PJSC hired experienced M&A banker John Sheldon as a managing director. Sheldon brought 27 years of dealmaking experience to PJSC. He has
worked at Lazard, Goldman Sachs and J.P. Morgan for big-name clients such as Quaker Oats, Mars and Cerberus. Sheldon became one of the
approximately 10 senior-level bankers to have joined PJSC in 2009.
June 2009: Selling Tween

PJSC advised retailer Tween Brands on its $320 million sale to Dress Barn Inc. Bank of America Merrill Lynch advised Dress Barn on the deal.
March 2009: A new era for Solomon

There’s a new movement sweeping Wall Street. As the big firms—once thought to be the VIPs of the scene—are slowly shrinking or seeking fiscal
reprieves in government bailout funds, smaller firms such as Peter J. Solomon have stepped in to fill the void. In an interview with Investment Dealers’
Digest, firm founder Peter J. Solomon agreed, admitting that “you cannot rely on capital providers. The trust is broken.” Instead, institutions such as
Solomon “will have a more important role going forward.” Additionally, Solomon said, “The world will divide into two: capital providers and people with
wits.”
Solomon also added that President Barack Obama, in his battling against Wall Street bonuses and support of limiting high-earners’ salaries, has helped
Solomon’s recruiting efforts. To that end, Solomon told IDD he hopes to boost his 40-employee firm by 40 percent within 2009. By mid 2009, the
firm had grown 50 percent—to 61 people.

February 2009: Welcome to the firm

The firm added Richard S. Brail as managing director to head its media and communications advisory. Brail joined from Morgan Stanley, where he
worked for 18 years and specialized in media and communication firm advisory. Among other deals, he advised SIRIUS Satellite Radio on its merger
with XM Satellite Radio. Brail earned both a BA and a BS from the University of Pennsylvania and his MBA from Harvard Business School.
In addition, the firm hired Wall Street veteran banker Frederic Seegal, formerly president of Wasserstein Perella, to work with Brail and along with Senior
Advisor Robert Glauber, to work on financial institution transactions. PJSC also brought on renowned health care bankers Frederick Frank and Mary
Tanner. Frank was hired from Barclays where he was vice chairman, and Tanner, the founder of Life Sciences Partners, was hired to co-head PJSC’s
global pharmaceutical and life sciences practice.
January 2009: More opinions

In a New York Times editorial, PJSC Founder and Chairman Peter J. Solomon wrote that the Obama administration should “be explicit about a changed
relationship between government and private banking.” He added, “Active involvement, including perhaps board representation, is necessary as the
taxpayer finally provides capital sufficient to permit a sound financial system.”
November 2008: Pontificating on TARP

PJSC Founder and Chairman Peter J. Solomon published his opinions about the federal bailout of the financial system in The New York Times. “As
constituted,” he wrote, “TARP is an incipient disaster.” He criticized then-Treasury Secretary Henry Paulson for repeatedly changing the objective of
the program; pointed out that the two-page application for federal assistance is “shorter and less detailed than a mortgage application that a homeowner
must complete”; and concluded that TARP is an example of ineffective, inefficient government. Furthermore, he wrote, “taxpayers need protection
from profligate ‘bailouts,’ which have the potential of making ‘earmarks’ look penny ante.”
As an alternative, Solomon proposed creating an independent agency based on the Reconstruction Finance Corporation, which was implemented
under the New Deal. The agency, staffed by “professionals,” would answer to the Treasury secretary and Congress; would offer the sort of
bipartisanship advocated by President Obama; and separate “dealmaking from policy,” empowering the Treasury secretary to “fashion policies that will
restore long-term growth.”
September 2008: Active advising

Peter J. Solomon advised Athleta, a women’s active apparel company, on its $150 million sale to Gap.
May 2008: “Let losers lose”

PJSC Chairman and CEO Peter J. Solomon published an editorial in the—ironically—now-defunct New York Sun. In the article, he contended that “it
was simply a question of time before a lack of personal liability coupled with access to unlimited capital would lead to disastrous levels of risk.” Rather
than modify or enhance existing market regulation, “let the players know they can get wiped out,” he wrote. “If we let losers lose, more permanent
stable markets will result. The greater good, then, will be served.”
March 2008: Pharmacy purchases

The company advised Walgreens on its $278 million purchase of the Chadds Ford, Pennsylvania-based I-trax and on its acquisition of Whole Health
Management, a privately held company based in Cleveland, for an undisclosed amount.
GETTING HIRED
Make the top five

The firm is “very selective in that it accepts as few as six analysts per year.” And “since it is a relatively small place, with everyone working on one
floor, fit is extremely important.” PJSC finds potential candidates at a variety of schools, such as University of Michigan, MIT, Harvard, Wharton,
Columbia, University of Chicago, Duke and “select undergraduate business school programs.”
Expect two or three interviews in total, starting with a first-round campus interview. The second round is usually a Super Day featuring “an interview
with three to six bankers, ranging from analysts to senior managing directors, followed by a dinner with analysts and associates.” The on-campus
interviews “will typically be ‘two-on-ones’ with a partner as well as either an analyst or an associate,” and “about two or three people from each school
are invited back for the final round of interviews, which is usually a mix of partners and associates.” During the process, expect to field some technical

questions, and “if a candidate has trouble with technical questions, it is much more difficult for them to get hired.” But expect a wide range of queries
as well. One candidate recalls “There were all types of questions, ranging from resume-based questions to technical questions.”
Interns may face slightly better odds. The firm hires “two to three” summer interns who “get a real idea of what it’s going to be like” as far as day-to-
day tasks. And they “definitely have an advantage in getting a full-time offer” if they perform well.
OUR SURVEY SAYS
Both sides now

The culture is described by insiders as “hardworking” within a “family company” that’s “analytically intensive” but simultaneously “extremely friendly.”
“You’re definitely expected to work hard, but in general, you are respected,” an insider adds. Another comments that “it’s a small firm with a good
culture.” Yet another says, “We have quarterly outings for analysts and associates to sporting events, dinners, billiards and bowling.” Some insiders
paint a different picture of the culture, though. And though you can “take on serious amounts of responsibility while dealing with very senior people
both internally and with senior clients,” says one insider, “senior partners show little care or consideration for analysts’ well-being.”
There’s a range
Insiders disagree about PJSC’s salary package. Some say it’s “about average for the Street,” others say it’s “well below what the rest of the Street pays.”
Perks, however, mostly receive pretty decent marks. The company springs for half of employees’ gym memberships, offers a “$25 dinner allowance
for night work,” provides “all weekend meals,” reimburses “taxis home past 10 p.m.,” provides “a BlackBerry” and offers “a fully stocked fridge with
juice and soda every day.” But insiders also warn that “the firm has a strong tendency of pinching pennies, and nickel and diming employees.”
Practices like “questioning taxi cab receipts” “add up and create bitterness among the junior people.”
Watch out for the hours

As for hours, these are “unpredictable,” possibly because some insiders say that “face time is required”—”people often stay later than they have to,
waiting for senior bankers to leave before them.” One insider warns that “though the firm claims there is no face time policy, PJSC has one of the
worst unspoken of face time policies on the Street.” Though the hours are better than those typically required at larger banks, “there are still late nights
and weekends, and we are always on call.” And don’t even think about being late: “There are times when attendance is taken and scolding mass
emails are sent regarding having to be in the office between certain hours.” Sources tell us that, “When projects arise, there can be times when people
work 100-plus hours per week.”
A few bad apples?

Overall, managers are “very friendly and understanding” and “treat the junior resources well and with respect,” though more than one insider notes
that one bad banker can spoil the whole bunch. “It only takes one influential banker to make life difficult,” he observes. Another tells the story of a
partner who “treats analysts with no respect whatsoever,” sending out “weekly emails scolding analysts, masquerading as ‘helpful career advice’ that
are all aimed to call out and embarrass a particular analyst.” “When an email is sent about having to shave, we all look around to see who got him
mad by not shaving.”
But bad behavior from the higher-ups seems to be the exception to the rule at PJSC. Insiders say that, “Most senior bankers are great to work for”
and that “associates at the firm are very good teachers and managers.” Management also seems to “take an active interest in developing junior
people’s work potential and understanding for the subject matter.” Junior analysts “are brought to client meetings and participate on conference calls
whenever possible, which tends to happen more frequently at a smaller firm like PJSC.” And communication is encouraged, as “the open-door policy
actually means something here.”
Look sharp
The firm’s digs are “very nice,” “comfortable” and “appealing,” and offer “great views” from the New York offices. Enthuses one staffer, “It’s one of
the nicer I-banking offices I have seen.” The offices also have “roomy cubicles,” and “there are multiple conference rooms and spare rooms.” Plus,
“the building is very well maintained.”
But be prepared to maintain your appearance to match your office surroundings. The dress code has always been governed by a “formal always” rule,
“even at the height of the dot-com bubble.” And while it can be “annoying,” it’s a “part of life at PJSC,” respondents say. Don’t expect to scoot by on
charm, either. “Appearance is very important and scrutinized and systematically checked—from the type of shirt to shaving every day.” And although
“weekends are casual,” the protocol for the rest of the week is unyielding—”You have to be fairly well put together every day.”

Getting the skill set

While the training offered provides “individual attention and specific skills,” it’s also “not as formal as bigger banks.” It’s mostly “led by associates and
senior analysts” but “includes classes with an outside accounting professor.” Training typically lasts four weeks and “definitely provides the skills
necessary to succeed on the job,” but “may not be as comprehensive as at larger banks.” Part of the program is outsourced and includes “a visit to
Bloomberg headquarters” and seminars with outside specialists, though the “nuts and bolts of analyst training is done in-house by other bankers.”
But once the formal training process concludes, the firm makes sure that learning doesn’t stop. “Classes are often taught throughout the year” and
“continually improving training is a real focus for the firm,” sources note.
Putting forth the effort

Although the workplace culture is “somewhat male-dominated,” the firm is “making more of an effort to recruit women.” PJSC “actively seeks female
analysts and has two female managing directors.” One insider adds that “about 33 percent” of his first-year class was female. But the firm’s attempt
at ethnic diversity could use a shot in the arm. There are “very few minorities in the office” and overall, “there is not too much ethnic diversity.”

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46 KPMG CORPORATE FINANCE LLC
757 Third Avenue KEY COMPETITORS

New York, NY 10017
www.kpmgcorporatefinance.com Merrill Lynch
Morgan Stanley
SERVICES
EMPLOYMENT CONTACT
Advisory Services & Financial Opinions
Global Infrastructure & Projects See www.kpmgcorporatefinance.com/careers or email your
Investment Banking resume to uscorpfinrecruit@kpmg.com
Private Equity Coverage
Special Situations Advisory
THE STATS
Employer Type: U.S. based subsidiary of KPMG LLP (UK)
Managing Director, Head of KPMG Corporate Finance
LLC: Stephen Gaines
No. of Offices: 9
THE BUZZ
• “OK in the US”
• “Smaller deals”
263
KPMG Corporate Finance LLC
THE SCOOP
Not just audit

KPMG Corporate Finance LLC, a member of FINRA (Financial Industrial Regulatory Authority) and registered as a broker dealer with the SEC, is a U.S.
subsidiary of KPMG LLP (U.K.), a limited liability partnership. KPMG LLP (U.K.), like KPMG LLP (U.S.), is an independent member firm affiliated with
KPMG International, a Swiss cooperative. One of the Big Four auditors, KPMG is structured as a Swiss Verein, with each member firm acting as an
independent legal entity. Its three lines of service—audit, tax and advisory—brought in global revenue of $22.7 billion in 2008. KPMG is one of the
world’s largest professional services firms, with over 137,000 employees working in 144 countries.
KPMG Corporate Finance LLC is a part of KPMG’s corporate finance practice, which operates in 62 countries and comprises more than 2,200
professionals. KPMG Corporate Finance provides investment banking and advisory services to domestic and international clients. Its professionals
advise clients on mergers and acquisitions, sales and divestitures, buyouts, financings, debt restructurings, equity recapitalizations, fairness opinions,
infrastructure project finance and other strategic initiatives. On a global basis, KPMG’s corporate finance practice regularly outranks almost all other
financial advisers by volume of deals completed annually.
KPMG’s corporate finance practice is part of KPMG’s advisory service line, which includes eight other service offerings: accounting advisory; internal
audit, risk and compliance services; forensics; transaction services; restructuring; IT advisory; business performance services; and financial risk
management services.
As of October 2007, KPMG Corporate Finance LLC has included the realty advisory practice of Long Island-based Keen Consultants; the business now
operates as a wholly owned subsidiary of KPMG Corporate Finance LLC. One of Keen’s most notable assignments in 2008 was assisting video rental
giant Movie Gallery with the disposition of several Movie Gallery and Hollywood Video store locations. Given the current economic environment (in the
aftermath of the subprime mortgage crisis), KPMG Corporate Finance’s real estate services team has shifted from focusing on traditional acquisition
and disposal services to a broader focus of providing lease mitigation services—a means for companies to reduce their lease costs and effectively raise
capital amid frozen credit markets.
KPMG Corporate Finance’s key assignments for 2008 included advising Cash Management Solutions on its $36 million sale to River Associates
Investments; helping Unilever Canada divest assets to Margarine Golden Gate-Micha; working with the trustees of Food Management Group LLC on
the disposition of 27 Dunkin’ Donuts franchises in New York; advising Vivitar Corporation on the sale of its brand and intellectual property to Sakar
International; advising Concept Mining on its sale to ArcelorMittal; and advising Frontline Direct on its $20 million sale to Adconion Media Group.
KPMG Corporate Finance experts also provided a valuation opinion to Pacific Crossing LLC in conjunction with its Chapter 11 filing; and offered fairness
opinions to the boards of Pacific Internet and Precision Dynamics Corporation.
Declaration of independence
A unique feature of KPMG Corporate Finance’s operations is that the firm is completely independent of financing sources—it does not underwrite,
make loans to or invest in any of its clients, and it doesn’t have an in-house research division. According to the firm, “Our independence helps insure
that our interests are aligned with those of our clients.”
Speaking of clients, at KPMG Corporate Finance, they fall into 10 industries: business services, consumer markets, energy and natural resources,
financial services, health care and pharmaceuticals, insurance, media and marketing services, real estate, industrial markets, and technology and
communications. The firm’s U.S. offices are located in Atlanta; Austin; Baltimore; Chicago; Dallas; Los Angeles; Melville, N.Y.; New York; and Orange
County, Calif.
IN THE NEWS
June 2009: “Special Situations” honors

KPMG Corporate Finance was awarded the Special Situations M&A Deal of the Year at the Turnaround Atlas Awards for its role as advisor to Vivitar in
its sale from Syntax-Brillian Corporation to Sakar International.
March 2009: Energy award time

The M&A Advisor handed KPMG Corporate Finance its 2008 Energy Deal of the Year award for its role as advisor to Concept Mining in conjunction
with its sale to ArcelorMittal.

KPMG Corporate Finance LLC
January 2009: Recovery’s on the horizon

With all eyes on the global economic meltdown in early 2009, many wondered what the New Year had in store for M&A deals. Enter KPMG Corporate
Finance’s annual publication, the Global M&A Predictor, a forward-looking survey of 1,000 leading companies that analyzes prospective price to
earnings ratios and balance sheet capacity.
Unsurprisingly, the January 2009 edition of the report forecast “a very subdued year for M&A activity,” as Stephen Gaines, head of KPMG Corporate
Finance LLC, put it. The silver lining: according to KPMG, deal volume is nearly at the trough—which means it’s all up from here. “While this M&A
downturn is different from previous ones in
character, I think we can draw some parallels between the current situation in the deals market and how we emerged from one of the last big deals
recession in the early 1990s,” Gaines said. “I am feeling very optimistic that we will see a similar pattern emerge this year and next, and that by the
close of 2010 the M&A downturn will be behind us, with a sustained recovery in transactional activity.”
January 2009: Big Four advantages

A Financial Week review of middle-market M&A activity in 2008 noted that the Big Four, while primarily known for their audit prowess, had certain
advantages over pure investment banks: like a well-coordinated network of professionals around the world. “We’re able to identify counterparties, be
they acquirers of businesses or capital sources, across the globe and not just in one market or another,” explained Stephen Gaines, the head of KPMG
Corporate Finance LLC. The larger KPMG network “gives us access to on-the-ground intelligence and cultural sensitivities that competitors can’t
match.”
December 2008: Top of the charts

In 2008, KPMG’s Corporate Finance practice completed 390 deals totaling $51.5 billion, according to Thomson Reuters’ global M&A league tables.
KPMG outranked (by number of deals completed) other Big Four players Ernst & Young LLP and PricewaterhouseCoopers Corporate Finance, as well
as bulge bracket banks J.P. Morgan, Goldman Sachs and Merrill Lynch.
GETTING HIRED
Fitting the ideal

The career section of the firm’s website (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 bachelor’s 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 entry-level
positions and more than seven for managing and upper-level positions. If you are interested, send your resume to uscorpfinrecruit@kpmg.com.

PRESTIGE
RANKING
47 U.S. BANCORP
800 Nicollet Mall KEY COMPETITORS

Minneapolis, MN 55402
www.usbank.com JPMorgan Chase
Wachovia
Wells Fargo
BUSINESSES
Consumer Banking UPPERS
Payment Services
Wealth Management • Employees are “always treated with respect”
Wholesale Banking • “Good job of hiring for diversity”
THE STATS DOWNERS

Employer Type: Public Company • “The pay is far less than what we deserve”
Ticker Symbol: USB (NYSE) • “No special perks”
President, Chairman & CEO: Richard K. Davis
EMPLOYMENT CONTACT
No. of Employees: approximately 55,000 www.usbank.com/careers
THE BUZZ
• “Strong and still lending”
• “Midwestern commercial bank”
• “Escaped subprime”
• “Competitive”

U.S. Bancorp
THE SCOOP
Finding its footing

U.S. Bancorp, with $256 billion in assets as of December 2008, is the parent company of U.S Bank, the sixth-largest commercial bank in the U.S.
Based in Minneapolis, the firm offers a full range of banking, brokerage, insurance, investment, mortgage, trust and payment services to individual
consumers, businesses and institutions.
Though U.S. Bancorp remains one of the 10-largest banks in the U.S., it suffered huge losses in 2008 that have seriously affected its bottom line.
Once seen as a conservative bank that strayed away from risky investments, U.S. Bancorp lost more than 50 percent of its stock price in 2008,
reporting billions of dollars in losses in the final quarter of the year. The fourth quarter earnings report showed that U.S. Bancorp set aside $1.27 billion
for credit losses in relation to the drop in home values and commercial and construction loans. It also reported net charge-offs of $632 million.
Securities tied to structure investment vehicles cost the company $253 million. The bank’s profit for the quarter was $330 million, the lowest it had
been since the third quarter of 2001.
Lines of business
Business is divided between four core lines at U.S. Bancorp. The wholesale banking division provides commercial banking to middle-market
companies, as well as commercial real estate services, correspondent banking, equipment finance, foreign exchange and international banking,
government banking, treasury management, dealer commercial services, consumer banking and small business services. U.S. Bancorp’s payment
services division contributes nearly a quarter of its total revenue each year, and offers corporate payment systems, merchant payment systems, retail
payment solutions (including debt, credit and gift cards), consumer and integrated credit and debit card processing through Elavon, formerly Nova
Information Systems.
The wealth management and securities services division includes a private client group, plus corporate trust services and institutional trust and custody.
FAF Advisors distributes U.S. Bancorp’s proprietary mutual funds family, First American Funds. Funds, investments and insurance are handled
through U.S. Bancorp Fund Services, LLC; U.S. Bancorp Investments, Inc.; and U.S. Bancorp Insurance Services, LLC respectively. According to U.S.
Bancorp, all of its subsidiaries range in size from $39 million to $139 billion in deposits. Most of its business is centered in the U.S., although it does
offer merchant services in Canada and parts of Europe; those operations, however, are “not material.”
Finally, the rapidly expanding consumer banking division provides community banking, metropolitan branch banking, in-store and corporate on-site
banking, consumer lending, financial sales, small business banking, home mortgages, community development, workplace and student banking, and
transaction services.
The company has 2,791 banking offices (primarily in 24 states in the Midwest and the West) as well as 5,159 ATMs in the country. U.S. Bancorp is
proud of its Five Star Service Guarantee, which it claims as a unique customer service experience “to change forever what you expect from a financial
institution.” This includes the promise of 24/7 service, accurate online account information, and a response via email inquiries within 24 hours.
IN THE NEWS
November 2008: Changing its mind

As one of the largest U.S. banks, U.S. Bancorp received a big chunk of the money the government allocated to struggling banks as part of the Troubled
Asset Relief Program, or TARP. U.S. Bancorp agreed to take $6.6 billion of capital from the Treasury Department. The agreement to participate in the
government’s bailout plan was a sharp turnaround for the company. The bank’s CEO Richard David told investors that “we don’t have any particular
reason to need that,” referring to the sale of troubled assets. However, as conditions on the ground changed as a result of failing credit and falling
home prices, the bank agreed to sell a preferred stake to the U.S. government in exchange for help.
November 2008: Sharing with the FDIC

The biggest acquisitions of the year for U.S. Bancorp came after the markets crashed, leaving many institutions on the verge of bankruptcy. U.S.
Bancorp took over the branches, deposits, and most of the assets of California-based banks Downey Savings and Loan and PFF Bank & Trust from
the Federal Deposit Insurance Corp. U.S. Bancorp entered into an agreement with the FDIC to alter the mortgages taken out by Downey and PFF’s
customers. In return for modifying the mortgages, the FDIC agreed to share losses on the loans with U.S. Bancorp.
Though U.S. Bancorp agreed to buy Downey and PFF, it did not acquire any of the assets of liabilities of the banks’ parent holding companies. The
company picked up 213 new branches throughout California as a result of the merger. Downey had $12.8 billion in assets and $9.7 billion in deposits
at the time of the acquisition while PFF had $3.7 billion in assets and $2.4 billion in deposits.

U.S. Bancorp
October 2008: Banking on women

A spot of good news came when U.S. Bancorp was named the Top Banking Team in U.S. Banker’s annual rankings of The 25 Most Powerful Women
in Banking. The ranking was based on hard data: U.S. Bancorp scored the best overall in terms of percentage of women corporate officers and
management committee members, number of senior women executives and financial performance of women-led business units.
Two of U.S. Bancorp’s employees also made the Top 25 Most Powerful Women in Banking list. Pam Joseph, vice chairman of payment services, ranked
No. 5 on the list while Diane Thormodsgard, vice chairman of wealth management and securities services, ranked No. 14. The firm got an additional
shout out as Leslie Godridge, executive vice president and head of national corporate and institutional banking, was recognized as a Woman to Watch.
Overall, 44 women were part of the group that was recognized as the Top Banking Team in the country.
June 2008: Expanding operations

The crisis in the markets may have made a significant impact of U.S. Bancorp’s balance sheet, but it didn’t affect its growth goals. The firm continued
its buying spree in 2008, starting in June with the acquisition of Mellon 1st Business Bank in California. Mellon 1st Business Bank provides standard
retail deposit products and operating and equipment loans, treasury services, asset-backed financing and financial advice to businesses, entrepreneurs,
professionals and nonprofits. U.S. Bancorp acquired $3.4 billion in assets, $1.1 billion in loans and $2.7 billion in deposits from the merger.
August 2008: Purchasing Capital City

U.S. Bancorp continued on its expansion spree by acquiring the merchant processing portfolio of Capital City Bank through Elavon, a wholly owned
subsidiary that was acquired by U.S. Bancorp in January 2008. Elavon paid Capital City Bank $6.25 million for the purchase of its merchant services
business assets.
GETTING HIRED
Log on
U.S. Bancorp “primarily” keeps a “local” focus to its recruiting. However, the company website allows applicants to search for open positions by job
category or location (the link is www.usbank.com/careers). There, candidates can also find scheduled recruiting events at regional job fairs, including
those aimed specifically at minorities (like the National Black MBA conference). While some respondents don’t think U.S. Bancorp is overly selective,
the company emphasis is on customer service—and that’s a key consideration for recruiters and hiring managers. The bank says its guiding principle
is its Five Star Service Guarantee, which “ensures specific performance standards that reflect our customers’ expectations for quality, responsiveness,
accuracy and availability.”
After an initial resume screen, most candidates go through “multiple interviews.” One corporate finance staffer recalls “half a dozen interviews, round-
robin style.” “Two or three is normally the minimum,” says another source.
Quick and painless

The interview process is a “very brief” one, especially “compared to other banks,” insiders say. There’s “the initial submission of your resume,” then
“an HR review and phone interview with an HR representative.” If you pass that initial interview stage, you’re “brought in for an in-person interview,”
which one contact describes as lasting around an hour. Then, “you interview with your direct reporting manager or managers who ask a few standard
interview questions” and “a few questions regarding your goals and expectations.” You may also be asked about your “overall ability to work in a
banking atmosphere,” “your resume,” and “working in a team versus working independently.”
Employee love
U.S. Bancorp recently showcased a film about its employees in 75 different locations around the nation. Featuring real employees, the film allows U.S.
Bancorp workers from different divisions the chance to share what they love about the company. The movie will be used to recruit new talent, and
showcases new employee programs, such as Five Star Volunteer Day, a paid day off to volunteer with a nonprofit of the employee’s choosing. U.S.
Bancorp also announced that it had created an employee assistance fund to aid workers who have experienced natural disasters, illness or other
extreme situations.

U.S. Bancorp
OUR SURVEY SAYS
Be up for anything
Insiders call U.S. Bancorp “a great company to work for” and “a decent employer,” but also note that “the corporate culture varies greatly from
department to department.” Even so, one characteristic that seems to be constant is that “the company has a lot of great employees and great
expectations.” On the other hand, however, “the corporate culture does not stress challenging the status quo.” “Put another way,” one insider
extrapolates, “the way the business operates is the same today as it was 15 years ago.”
As far as management goes, employees are “always treated with respect and challenged,” insiders say. “My manager is incredible,” enthuses one
insider, “even though the company has yet to promote this manager even though [he is] taking care of multiple branches at the same time and has
improved the quality of employees and the quantity of sales.” Another contact says, “My manager cares strongly not only about the business but the
employees who work for him and the customers who help keep him in business.” Salaries, however, don’t receive quite such glowing reviews from
insiders. “The pay is far less than what we deserve,” says one insider. “With my experience and education, I am not being paid what is standard—
not even in my state,” says one source. “I have done the research and I am being paid $7,000 less a year than I should be.” Plus, “raises are very
low and based on overall corporate performance—there aren’t any performance incentives.” All in all, “this is a great company to work for, they only
need to adjust the pay for their employees,” admits one respondent. Benefits, too, could use a little jazzing up. There are “no special perks or
reimbursements” and “no stock options.” “Benefits are not the greatest,” says one contact. “Although employees are presented with many options
for benefits, none are all that great.”
There are a few aspects that insiders seem to enjoy universally—the “standard,” “9-to-5” work hours, for one. And there’s also “a lot of room for
advancement”—the company “recognizes achievement.” There are “numerous opportunities to apply for other positions within the bank after being
in your position for one year,” says one employee.
Running the gamut

When it comes to the dress code, employees can expect “anywhere from casual to business formal,” depending on office. In other words, “the dress
code varies from jeans to a suit-and-tie daily, with no casual Fridays.” One insider in a more formal outpost says wryly, “Regarding casual dress—I
wish,” adding, “We are not allowed to wear jeans or T-shirts. Granted, I don’t have to wear a blazer every day, but we do not get to go casual.” The
bottom line, says one contact, is that “we feel that our customers should always see us at our best.”
One thing U.S. Bancorp is staunch about are its principles. “They have a no tolerance policy on ethical issues,” says one insider. And diversity within
the firm is “great—HR does a good job of hiring for diversity.” Another says “diversity is excellent,” adding that “working here you get a chance to
meet so many people from different cultures.”
What’s next?
By and large, U.S. Bancorp’s future prospects look bright. “I think the firm will succeed for years to come,” says one source. “It has not, like some
banks, been very impacted by the mortgage crisis.” Additionally, “the firm is growing—especially into the international markets—and continues to look
for new opportunities in distribution channels, products and services.”

PRESTIGE
RANKING
48 BMO CAPITAL MARKETS
100 King Street W., 1 First Canadian Place KEY COMPETITORS

Toronto, Ontario M5X 1H3
Canada Baird
Barclays Capital
111 West Monroe Street Deutsche Bank
Chicago, IL 60603 Houlihan Lokey
www.bmocm.com Piper Jaffray
RBC Capital Markets
TD Securities
SERVICES UBS Investment Bank
Wells Fargo
Capital Raising
Institutional Brokerage
Market Risk Management UPPER
Merger & Acquisition Advisory Services
Research • “Great corporate culture” where “everyone respects
Treasury Services everyone else”
THE STATS DOWNER

Employer Type: Subsidiary of BMO Financial Group • “Few minorities in professional positions”
Chairman: L. Jaques Ménard
CEO: Thomas Milroy
2008 Revenue: C$2.41 billion
EMPLOYMENT CONTACT
2008 Net Income: C$692 million See “careers” section of www.bmocm.com
No. of Offices: 27 (including 14 in North America)
THE BUZZ
• “Good in Canada, good in metals and mining”
• “Mediocre in the US”
• “Up and coming”
• “Third-rate”

BMO Capital Markets
THE SCOOP
North American leaders

A division of BMO Financial Group, BMO Capital Markets offers a full range of wholesale banking services, including advisory, capital markets, research,
risk management, sales and trading, treasury management and institutional brokerage. BMO Capital Markets has over 2,400 employees working from
offices in 27 locations around the world, including 14 in North America. In the U.S., BMO Capital Markets focuses on middle market clients with $250
million to $2 billion in annual sales. Wealth management services are provided to these middle market clients through BMO’s subsidiary Harris Private
Bank. In Canada, the firm caters to larger clients and is a major underwriter and advisor on Canadian transactions.
BMO Capital Markets is a listed member of all the major stock exchanges including NYSE, Nasdaq, American Stock Exchange, The London Stock
Exchange, AIM (London Stock Exchange’s international market for smaller, growing companies), The Toronto Stock Exchange and The TSX Venture
Exchange.
Coming to the U.S.

BMO Capital Markets has been focusing on grow its presence in the U.S. through increased product penetration, improved cross-selling, expanded
trading activities and enhancing client coverage within key industries. Underlining the firm’s success south of the Canadian border, during its 2008
fiscal year, the firm doubled the size of its U.S. municipal bonds business through the acquisition of Griffin, Kubik, Stephens & Thompson Inc. (BMO
Capital Markets has been active in originating Build America Bonds, which were introduced in the American Reinvestment and Recovery Act of 2009),
and the firm advised U.S. Sugar Corporation on a multibillion-dollar sale to support Florida Everglades restoration. In addition, during the second
quarter of BMO Capital Markets’ fiscal year 2009, over 50 percent of its net income was earned in the U.S.
IN THE NEWS
May 2009: Rough recession

For the second quarter 2009 (ended April 30, 2009), BMO Financial Group brought in C$2.65 billion in revenue, up slightly from the C$2.62 billion it
brought in for second quarter 2008. Net income, meanwhile, took a drop to C$358 million in the quarter from C$642 million. The firm cited “an
increase in the general allowance for credit losses” and “severance costs” as reasons for the dip. The BMO Capital Markets division produced solid
results, growing revenue 17 percent year over year and increasing net income by 33 percent.
March 2009: Finishing strong

Despite the difficult financial environment in 2008, BMO Financial Group still managed to deliver net income of C$2 billion, and BMO Capital Markets
saw an increase in net income to C$692 million. BMO Capital Markets participated in 162 corporate and government debt transactions with a value
of C$126 billion as well as 197 equity transactions with a value of C$45 billion. It also advised on 54 completed mergers and acquisitions in North
America totaling C$46 billion.
January 2009: Leading the charts

BMO Capital Markets is one of the biggest players in North America in the areas of mergers and acquisitions, equity and debt underwriting, and
securitization. The company jumped three places to take the No. 7 spot on the Thomson Reuters league tables measuring announced M&A deal
activity in Canada in 2008. The firm completed 26 deals with Canadian involvement that had a rank value of $10 billion or 8.4 percent of the market
share. For all deals with North American involvement, the firm placed No. 19 overall, with 46 deals valued at $38 billion. BMO was also one of the
only companies to see an increase in value of deals completed in the midst of a very difficult financial environment.
In equity capital markets, the firm ranks even higher in the Canadian market. BMO ranked No. 4 in equity and equity related deals, behind only RBC
Capital Markets, TD Securities and CIBC World Markets. It completed 19 deals with proceeds of $3 billion and a total market share of 10.5 percent.
The firm also finished No. 4 in Canadian common stock and trust deals, with 17 deals with proceeds of $2.9 billion.
December 2008: “Renaissance man” makes an exit

Don Coxe, the global portfolio strategist for BMO Capital Markets and the firm’s resident “Renaissance Man,” retired from the firm in late December
2008. Coxe was one of the firm’s most decorated strategists, winning awards such as the National Polst/StarMine lifetime achievement award in
investment research. Though Coxe will be opening his own independent advisory firm, he will retain his role as portfolio consultant to BMO’s Coxe
Commodity Fund.

BMO Capital Markets
November 2008: Heading up an IPO

BMO Capital Markets led the initial public offering of Cymbria Corporation, a Canadian investment company which raised $220 million.
November 2008: Moving into Mumbai

BMO Capital Markets announced that it would be expanding its business into India with the opening of an office in Mumbai. The company’s Indian
operations will include a collaboration with Ernst & Young that will help the two companies to “develop cross border opportunities between India and North
America.” Its business will focus on mergers and acquisitions in the sectors of mining and metals, health care, oil and gas, IT and industrial production.
September 2008: Best in tough times

In a year when investment banking faced some of its biggest challenges in history, BMO Capital Markets was awarded the honor of the Best Investment
Bank in Canada by Global Finance. The publication announced the winners in its September 2008 issue and held an awards ceremony in Washington,
D.C., in October. According to Global Finance publisher Joseph D. Giarrupto, in this volatile environment, the awards for best investment bank carry
special meaning. “The last 12 months have been some of the most difficult ever for investment bankers,” he said. “But many institutions made heroic
efforts to continue to provide the best possible services to their clients, and we salute them.”
April 2008: More municipals

BMO acquired the Chicago-based bank Griffin, Kubik, Stephens & Thompson (GKST) in an effort to grow its domestic fixed income business. GKST
specializes in debt securities including municipal bonds, U.S. Treasury debt, agencies, and mortgage-backed securities. The acquisition more than
doubled the size of BMO’s municipal bond business, creating the largest bank-qualified municipal bond dealer in Illinois and the sixth-largest in the United
States. The merger brought together approximately 100 employees from GKST and 20 from BMO’s Chicago office, creating a total team of 120.
December 2007: Big deal

The firm was a part of several significant deals in 2008. It was the bookrunner on the IPO of Franco-Nevada, a mining and energy royalty company
which debuted on the Toronto Stock Exchange. The deal was the biggest mining IPO in North American history, raising $1.26 billion in its share sale.
The transaction officially closed on December 20, 2007, which falls into revenue for fiscal 2008 for BMO.
GETTING HIRED
Consider the odds

“Beyond academic and professional experience, personality and cultural fit are highly emphasized in the selection process,” a source says. Because
the firm prizes its “tight-knit culture” and has “small analyst and associate classes relative to the bulges,” the recruiting process “can be somewhat
selective.”
According to one contact, BMO “has been more selective every year, but does not necessarily target the top business schools, so it’s not so hard to
get hired.” Instead, the firm “targets selected schools” within its footprint. Chicago sources say “the Big 10, Morehouse, Depauw and the University
of Chicago” are frequent feeders, while the New York office’s targets often include “Brown, Columbia, Wharton, Villanova and Emory.”
“The decision process takes longer for senior hires, but is quite clear-cut for analysts and associates,” an insider says. “We are not hiring in large
numbers for the New York office, so it is competitive.”
A social process
Candidates who come from nontarget schools must go through “one or two” preliminary interviews before being invited to “a full day” on site. For
campus recruits, the process “begins in the fall with an informational presentation session on campus,” explains a source. “About a month later there
are one-on-one interviews on campus. Within two weeks of the interview, selected candidates will be called back to the head office” for a series of
second-round interviews “plus a meal with several employees at the same level as the candidate.”
There may be an additional “socializing event or dinner” with fellow candidates “the day before the final rounds.” On-site interviews may be conducted
by “a range of senior analysts and associates along with a few vice presidents,” and sources say it’s the second round that has “more technical
questions.” Behavioral questions are still in the mix, though: a contact recalls “naming examples of times when I was challenged or took a leadership
position.” Generally, you can expect a first round that’s “more technical and skills-based,” while the second round is more qualitative-oriented.” The
company “wants to know how you will fit with the bank’s culture and atmosphere.”
Another insider notes that BMO tries not to leave candidates hanging too long—”offers are made promptly” after the final round.

BMO Capital Markets
Few summer slots

The firm does offer summer positions “for both undergraduate and graduate students,” but “participation is not critical to getting hired.” Of course, it
“is one important way to learn about our firm and gain consideration for full-time employment,” but BMO’s summer classes “tend to be far smaller
than our classes of full-time hires.”
An insider adds that there are “limited summer opportunities available” in the first place, though this varies by office. “Even at the analyst level there
are few summer opportunities in New York,” he says. “Most of the summer opportunities are in Chicago.” Those who do enter the summer program
will find that “pay is market,” based on an equivalent first-year’s rate. Summer staffers “work alongside coverage, M&A or commercial bankers doing
live deals.” They also “get additional training and go to events.”
OUR SURVEY SAYS
No “freaking out”
The firm has a “great corporate culture” where “everyone respects everyone else.” The company boasts “great people,” and “your input actually
counts for something.” Also a plus: there’s “no yelling or freaking out.” Perhaps this is because the company culture is steeped in Canadian politeness.
The BMO culture “is very collegial and reflective of our Canadian roots,” sources say. There’s a “strong emphasis on teamwork,” but a contact points
out that “individuals who excel are able to quickly take on more.” Senior bankers are “smart and busy, but very approachable”—”everyone knows
each other by name.” An “open-door policy” helps managers “delegate more and more responsibility.” There is also “direct access to and work
directly with directors and managing directors as a first-year analyst,” reports one insider. “Superiors actually care what you think and take an interest
in your develop and career track.”
Overall, there is a “charismatic style of leadership” among managers at BMO. And “managers seek to help and guide junior professionals—and not
as subordinates.” “Managers outside my group know my name and make the effort to say hello and to ask how things are going.” Expect “a great
deal of respect” from “seasoned managers who know the business.” According to this source, “It is rare to find big egos here.”
One managing director appreciates that BMO has “the resources of a large firm, but the entrepreneurial spirit of a small firm.” And although it “covers
all industry groups and provides all investment banking products,” BMO is “less structured than a large bank.” This creates a “very tight network
between junior bankers.” “We celebrate the wins rather than getting yelled at for the misses,” explains an insider.
There’s “a common spirit of having fun while getting deals done,” and young bankers get “lots of visibility.” The downside, insiders say, is that while
“you can work closely with upper-level management, you must sacrifice the volume of deal flow” that larger banks enjoy.
Big deal, long hours

BMO’s marks on pay are mostly above average. One associate says, “If you are in banking only for money, BMO is not bad, as it pays competitively.”
However, “if you are in banking for exit opportunities or deal flow,” BMO may seem less attractive. Besides offering competitive compensation, BMO
provides a “401(k) matching plan with up to 5 percent of salary before taxes, and an employee stock option purchase plan with a 15 percent discount
on the purchase price.” Senior bankers can take advantage of a “long-term incentive plan paid out over three years with a tie to stock price.” For
those working late in New York, there’s “$25 a night for dinner and $25 per meal for up to two meals on the weekends, and car service if you work
after 8 p.m. or on weekends.” In Chicago, employees get “meals and cabs after 7:30 p.m., company-provided lunches once a month or so,” plus
“free downtown parking” and discounted gym memberships.
In terms of time spent in the office, the company offers “pretty good hours for investment banking,” but hours do depend “on the time of year and
what live deals are going on.” There can be “crazy weeks,” but, in general, employees “work the amount of time that we need to, and there is little
required face time.” “Some weeks are about 60 to 70 hours, while others can easily be 80 hours or more,” says an insider. The situation can also
become more manageable as employees work their way up the management ranks. “As a director I control my hours more than I used to,” says a
source, “but it is almost impossible to go a weekend without a phone call or answering emails.” “Work on the weekends can vary,” reports an analyst,
who averages “about five to 10 hours split between both days. A completely free weekend is rare—about once a month.” BMO’s lean teams can help
keep individuals from getting overwhelmed, however. “The group is small enough that we look out for each other, so workload is pretty evenly
distributed,” a contact explains.
Dodge the tourists

For BMO’s New York City employees, the office location in the heart of Times Square’s bustle is a “major downside.” However, the firm occupies “the
top four floors of the Reuters building,” and “the conference rooms are very modern and cubes are spacious.” It’s “very typical office space,” but BMO
does provide “a fully stocked kitchen and decent comfort and amenities.” A banker in Chicago says, “I have a nice big office, although it lacks
windows.”

BMO Capital Markets
The “business casual” dress code means that “ties are optional, unless you are pulled into meetings.” And “usually in the summer we can dress
slightly more casual,” a source says. Then again, “casual” seems to have its own meaning at BMO. The company dress code is “business casual
daily but more business than casual.” “Casual in this case means business casual and business formal for client meetings,” clarifies one insider. But
“people dress appropriately” and “you rarely see khakis on the banking floor except on Fridays.” But generally, there is a “broad range of standards
and the code “is what you make of it.”
Lots to learn
BMO’s current training program “first started in summer 2006,” and “it is trying to mimic the training programs of other banks on the Street.” Sources
describe initial training as “very good,” thanks to the firm’s “extensive training environment.” The formal training session “is just the right length—six
weeks.” A contact notes, “It is very relevant to how business gets done at our firm, and helps get new hires up to speed quickly. It is also a great way
to meet people.” After initial training, learning takes place “on the job” or through seminars. Says a source, “Informal training is good, because you
are exposed to a lot of hands-on experience and can work directly with senior bankers.”
Trying to cultivate
Generally, the firm has “a diverse workforce throughout the entire bank.” “There are many women in upper management at BMO” and there is “great
opportunity for women in the firm.” In fact, “40 percent of the incoming I-banking analyst class was female,” and although “few senior bankers are
women,” “those who are do a good job of mentoring.” But there’s always room for improvement. “Specifically in terms of women, finance companies
need to offer more opportunities for women to work part time or flex-time,” notes one insider.
Although the bank tries “very hard to recruit women and minorities,” there are still “very few minorities in professional positions.” One insider suggests
“making sure that there is a diverse group that goes to recruit at the universities.” But the firm is making progress—”Having a mentoring program of
men-to-men and women-to-women set up for the new hires has been great.” Treatment of gays and lesbians receives generally high marks from
employees as well—”We extend all benefits to spouses and life partners.” Still, for GLBT staffers a “don’t ask, don’t tell” mentality prevails; an insider
believes that “the firm is underrepresented relative to the general population.”

PRESTIGE
RANKING
49 MORGAN KEEGAN & CO., INC.
Morgan Keegan Tower KEY COMPETITORS

50 Front Street, 17th Floor
Memphis, TN 38103 Edward Jones
Phone: (901) 524-4100 Raymond James Financial
Fax: (901) 579-4406
www.morgankeegan.com
UPPERS
• “Friendly, fun people”
BUSINESSES • “Challenging and rewarding”
Private Client
DOWNER
Wealth Management • Salaries could be higher
• Corporate politics
THE STATS
Employer Type: Subsidiary of Regions Financial Corporation
EMPLOYMENT CONTACT
CEO: John Carson Jr. www.morgankeegan.com/MK/CareerOpp/default.htm
President: R. Patrick Kruczek
No. of Offices: 400 (approx.)
THE BUZZ
• “SunTrust Lite”
• “OK”
• “Small and Southern”
275
Morgan Keegan & Co., Inc.
THE SCOOP
Out of the South

Morgan Keegan is the brokerage and investment banking arm of Regions Financial Corporation, one of the top 12 bank holding companies in the U.S.
and the largest regional bank in the Southeast. In 2004, Alabama-based Regions merged with Memphis, Tenn.’s Union Planters Corp., and in 2006,
the entity merged with Birmingham, Ala.-based AmSouth Bancorporation in a massive $9.8 billion deal. These mergers—plus the company’s organic
expansion efforts—have turned Regions into a national banking powerhouse, with over $146 billion in assets and $89 billion in deposits.
Morgan Keegan’s story began in Memphis in 1969, when it went into with just five employees and one office. By 1972, Morgan Keegan had secured
a seat on the New York Stock Exchange, opened a second location and launched a fixed-income group. It added an investment banking division in
1976, and after a successful IPO in the 1980s, expanded into asset management. Although it made a handful of acquisitions, Morgan Keegan stuck
close to home, buying smaller investment boutiques in Mississippi, Louisiana and Arkansas. It was acquired by Regions in 2001, and today, Morgan
Keegan’s clients include corporate, institutional and individual investors around the world. Regions has used some of its vast resources to grow Morgan
Keegan, which employs approximately 4,300 people in 300 offices across the country. And when Regions sealed its big deal with AmSouth, all of
AmSouth Investment Service’s accounts and brokers were handed over to Morgan Keegan.
Top underwriter
Morgan Keegan’s underwriting prowess was demonstrated in 2008, when the firm continued to have success in its municipal bond business despite
the adverse market conditions. According to Thomson Reuters, the firm ranked as the 10th-largest underwriter of municipal bond issues in 2008, with
457 issues valued at $10.7 billion. The firm was also the No. 1 underwriter in all of the South Central U.S. (Alabama, Arkansas, Kentucky, Louisiana,
Mississippi and Tennessee), serving as senior manager on 219 issues with a total value of $4.9 billion. In addition, the firm generated significant
business from the Southwestern region, where it issued 136 bonds with a value of $4 billion.
IN THE NEWS
February 2009: Hiring the best

As the fallout continued over the collapse of large Wall Street banks, Morgan Keegan sought to take advantage of the turmoil by snapping up some of
the talent that was no longer needed on the Street. A report by OnWallStreet.com reported that Morgan Keegan had hired 17 advisors in January alone,
many who were seeking a change after becoming disenchanted with the bad reputations of the big investment banks.
January 2009: Icy environment for I.P.O.s

With the abysmal state of the market in late 2008 and early 2009, there was understandable reluctance on the part of companies to venture forth into
the risky world of initial public offerings. Underwriting dropped 64 percent in 2008 to $931 million for all American investment banks, and big
investment banks were desperate to score IPO deals and boost their fee income. In the midst of this highly competitive environment, Morgan Keegan
was the only bank to score an IPO deal in the first two months of 2009. The bank agreed to underwrite the initial public offering of O’Gara Group, a
security company that was expected to raise $172.5 million upon its debut. No other investment banks were involved in the transaction.
January 2009: Regions’ problems

Morgan Keegan’s parent company, Regions Financial Company, ran into significant problems during the 2008 fiscal year as it saw its stock price decline
by more than 80 percent. The bank registered a $5.5 billion loss for the year, most of it resulting from a $6 billion non-cash charge the bank was
forced to take in the fourth quarter due to bad assets. Regions took $3.5 billion in aid from the government as part of its Troubled Asset Relief Program.
As a result of the bank’s financial woes, it was forced to sell 11 RMK Select Funds to Pioneer Investment Management in January 2009. The funds
had approximately $2 billion in assets under management. The transaction included five equity funds, one balanced fund, two money market funds,
two bond funds and one tax-exempt bond fund.
Dowd Ritter, Regions’ CEO assured investors that “Our team at Morgan Keegan excels at managing our clients’ assets, municipal underwriting, and
investment banking. This transaction will allow us to continue to meet our clients’ investment needs while offering them the breadth of options Pioneer
brings to the table.”

December 2008: What recession?

A bystander looking at Morgan Keegan’s activities in the past year might not realize that the bank is operating in the midst of a credit crisis. The bank
found it within its means to make three strategic acquisitions in late 2008, adding resources to its swiftly growing business even in the midst a cash
strapped economy.
In December, the company acquired Atlanta-based investment bank Burke Capital Group, a firm that has advised on more than $5 billion in merger
transactions since 1995. Burke’s specialties include buy and sell side advisory, private equity and ESOP valuations, fairness opinions and trust
preferred placement services.
A later acquisition expanded the company’s operation in the Northeast as Morgan Keegan moved to buy Revolution Partners, a Boston-based
investment bank that specializes in mergers and acquisitions and private capital advisory services. Revolution will also strengthen the company’s
capabilities in the technology sector due to its narrow focus on certain niches including application and infrastructure software, business services,
wireless infrastructure, storage, communications infrastructure, hardware and financial technology.
November 2008: Big spenders

While it usually hires advisors who generate about $400,000 to $800,000 in fees and commissions, some of its new advisors have figures much higher.
In November, the firm hired an employee who had garnered $4.5 million in fees and commissions the previous year. Jim Parrish, the president of the
private client group at Morgan Keegan, told OnWallStreet.com that many of the new employees are almost apologetic about their pasts. He said, “I
feel sorry for them when they say ‘I didn’t have anything to do with those headlines.’”
July 2008: Funds fiasco

One of Morgan Keegan’s top-ranked bond investors saw his rising star flicker out in 2008 when the seven funds he managed for Morgan Asset
Management lost more than 67 percent of their value. James Kelsoe was once considered to be a company hotshot who easily outperformed his peers
by making risky bets which usually paid off. However, as the credit market dried up in 2008, things went very quickly awry. The largest fund that
Kelsoe managed, Regions Morgan Keegan Select High Income, lost more than $1 billion in value as its value plummeted from $1.23 billion to $104
million in just one year.
In late July 2008, Morgan Keegan handed over management of the seven funds to Hyperio Brookfield Asset Management, removing Kelsoe from the
account altogether. Kelsoe was to remain with Morgan Asset Management in a “portfolio management role.” Dozens of lawsuits were filed against
Morgan Keegan by angry investors who lost money on the funds. The lawsuits allege “mismanagement and misrepresentation” on the part of both
Kelsoe and the firm.
May 2008: Tennessee flavor

Morgan Keegan added Shattuck Hammond, a Tennessee-based investment bank which specializes in health care to its team. The firm bolstered its
new Shattuck Hammond Partners division by opening a Nashville office in November and added six new investment bankers to the team there.
GETTING HIRED
All on file
Check out the firm’s open positions at www.morgankeegan.com/MK/CareerOpp, which are separated by location (headquarters or elsewhere) and
division. Candidates for senior positions at Morgan Keegan should expect to go through a “very difficult” hiring process with “two to three interviews.”
A senior financial planner notes that when she was hired years ago, “it was a very easy interviewing process. Now, it’s a much longer procedure,
meeting all management and department employees.” Although they can be arduous, Morgan Keegan interviews are generally “informal” and are
reported to consist primarily of “questions about experience.” “I met with professionals from trading, sales and research,” says one contact. Another
says, “No one really interviews. It’s a ‘who you know’ thing at Morgan Keegan.” Interested candidates can apply for desired openings through an
online application process.
Certain departments at Morgan Keegan such as “investment banking, equity capital markets and fixed income like to recruit from the top MBA schools
in the country,” says a source, “but it’s possible to get a job without that credential. If you are sharp and have a good rapport with management, you
can get hired.” Another contact says that Morgan Keegan “mainly recruits by word of mouth,” but says the firm usually swings by the campuses of
Duke, the University of North Carolina, the University of Virginia, Vanderbilt, Washington University and the University of Texas on a quest for new
analysts and associates.

OUR SURVEY SAYS
Family affair
According to insiders, Morgan Keegan is “a regional firm with a small, family feeling.” It’s also “competitive, young, challenging and rewarding.” The
employees are said to be “friendly, fun people who have numerous interests outside of work.” One source confirms that there is a “very flexible culture
that rewards people who can make money for the firm.” Downsides at Morgan Keegan include “competing with bigger firms with more resources,”
says one insider. But “they want results” and “the good thing, though, is that Morgan Keegan can deliver.” As for the dress code, it’s professional
business attire only. “Everyone is expected to be in suits,” says a contact in Morgan Keegan’s Memphis headquarters. However, the firm does allow
for casual Fridays during the summer.
Managers get fairly high marks. One source warns, though, that banking “is a tough industry. If you want to get treated with great respect, you should
probably work for a government entity, not an investment firm.” For those outside investment banking, the workweek isn’t too strenuous, but junior
investment bankers can work long hours. As for climbing up the corporate ladder, one contact believes that getting promoted at Morgan Keegan is
largely a function of “who you know, not what you know.” Another confirms, “Corporate politics are terrible.” The source, a female banker, also
complains that “women still fall behind men in pay and management.” Another, more vocal contact adds, “Women are not respected. Cultural and
ethnic diversity is not accepted. You are expected to assimilate to move up the ladder.”
Bottom of the barrel

Most Morgan Keegan sources believe their salaries could be higher. One insider notes that “bonuses are paid in August and February. The August
bonus is a fixed percentage of base salary, while the February bonus is based on the profitability of the department.”
Perks at Morgan Keegan include “discounted gym memberships,” plus “the firm matches part of the 401(k) contribution, and it issues options and
restricted cash.” There is also a deferred compensation plan. One contact reveals that the firm “used to have a stock purchase plan but it stopped
when Regions bought us.” The source adds that “stock options are available for senior VPs and up.” Other benefits at Morgan Keegan include a
qualified parking/mass transportation plan, partial tuition reimbursement for approved courses, and free counseling for employees and their families.

PRESTIGE
RANKING
50 BB&T CORPORATION
200 W. Second Street KEY COMPETITORS

Winston-Salem, NC 27101
Fax: (336) 733-2009 SunTrust
www.BBT.com Wachovia
DEPARTMENTS UPPER
Asset Management • “Work hours are conducive to having a life outside of work”
Brokerage
Commercial Banking
Commercial Finance
DOWNER
Equipment Finance • “Compensation is below average compared to industry
Insurance peers”
International Services
Investment Services
Mortgage EMPLOYMENT CONTACT
Retail Banking
See “careers” section of www.BBT.com
Trust
Wealth Management
THE STATS
Ticker Symbol: BBT (NYSE)
Chairman: John A. Allison IV
CEO: Kelly S. King
No. of Offices: Approximately 1,500 branches
THE BUZZ
• “Solid, sustainable, wise”
• “Average”
• “Growing”
• “Small shop, Southern”
279
BB&T Corporation
THE SCOOP
Southern comfort
With over $152 billion in assets as of March 2009, Winston-Salem, N.C.-based BB&T is the 10th-largest financial holding companies in the country.
Through its subsidiaries, the firm offers retail and commercial banking, brokerage, commercial finance, insurance, trust and investment services
through approximately 1,500 branches principally in the Southeast and Mid-Atlantic States. BB&T currently is ranked No. 260 on Fortune’s 2009 list
of the 500 top corporations in the country.
Small town story

Before BB&T grew to such proportions, it was more of a small-town story. Its history begins like a late 19th-century novel: Alpheus Branch, the son
of a wealthy planter, moved to eastern North Carolina to attend military school and married into a prominent Wilson County family. He set up a small
trade business, through which he met Thomas Jefferson Hadley, who was trying to set up an educational infrastructure in Wilson. The duo thought
the county could use a reliable bank—swindlers were taking citizens’ money right and left—so they set up Branch and Hadley in 1872. The county
residents slowly started leasing money from Branch and Hadley, using its loans to build up their farms and plant a new crop, tobacco.
Branch bought Hadley out in 1887. As the years went on, the bank added savings accounts, trust departments and, come World War I, liberty bonds.
Insurance and mortgage products were offered by the early 1920s. When the stock market crashed in 1929, dozens of North Carolina banks had to
close their doors. BB&T survived and grew, doubling the number of branches and tripling its assets between 1929 and 1933.
Size without red tape

BB&T’s main subsidiary is Branch Banking and Trust Company, but the bank owns many other businesses, including Agency Technologies, an
insurance software and computer hardware provider; BB&T Insurance Services and Prime Rate Premium Finance Corporation, insurance offerings;
Scott & Stringfellow, brokerage and private client services; BB&T Investment Services, a discount brokerage; BB&T Equipment Leasing; BB&T
Commercial Finance, a firm that buys, manages and provides funding for accounts receivable for various clients in the furniture, textile and home-
furnishing industries; FARR Associates, leadership development consulting; Grandbridge Real Estate Capital, which provides commercial real estate
financing; Lendmark Financial, offering consumer finance; Liberty Mortgage, specializing in wholesale mortgage lending to brokers; Regional
Acceptance, for auto financing; Sheffield Financial, for small equipment financing; and Stanley, Hunt, DuPree & Rhine, which offers employee benefits
consulting.
To help such a sprawling organization run efficiently, BB&T management has streamlined the decision-making process, organizing its banking network
into 33 regional groups, each run by a separate president. Each region is able to apply strategies and policies applicable to its particular area without
the red tape of securing approval from BB&T’s headquarters.
IN THE NEWS
July 2009: Credit-related conundrums

BB&T’s second-quarter profit dropped 52 percent as the company continued dealing with the fallout from credit woes. Earnings dropped to $204
million from $428 million while revenue saw a 13 percent boost to $2.1 billion (analysts had expected only $2.01 billion). The company was battered
by credit-loss provisions, which increased by more than 50 percent to $701 million from the previous year’s figure of $330 million.
June 2009: Buyback time

BB&T announced that it was leaving the Troubled Asset Relief Program by repurchasing the preferred stock it sold to the U.S. Treasury in November
2008. The bank paid the Treasury $3.1 billion along with a dividend payment of approximately $13.9 million. In total, BB&T’s dividend payments
under the program came to about $92.7 million. All in all, 10 banks have received permission from the TARP program to repay their loans.
January 2009: King of BB&T

Kelly King assumed the role of chief executive officer of BB&T on January 1, 2009 after the retirement of John Allison, who had served the company
for 19 years as CEO. King takes the helm after more than 35 years with the company. The Raleigh native was one of a group of young MBAs known
as the “fab five” who shook up the company in the early-1980s. The group included outgoing CEO John Allison, and fellow executives Ken Chalk,
Scott Reed and King’s good friend Henry Williamson. King’s group was the driving force behind the series of acquisitions which began in the late-
1980s that eventually catapulted the company to its spot as the 10th-largest financial holding company in the country. Before being elected as CEO,
King served as COO of the firm.

BB&T Corporation
King’s era of leadership will undoubtedly be fraught with challenges. King acknowledged the enormity of his task in a press release announcing his
promotion. “If you’re someone who relishes a challenge, then you certainly couldn’t ask for a better time to assume the role as CEO of a major financial
services company than right now.” In light of the credit crisis and complications in the residential mortgage industry, the firm will focus on four main
areas of improvement under King’s leadership; continuing to work through the credit crisis, revenue growth, client service quality and expense control.
Just two weeks after his appointment as CEO of BB&T, Kelly King was elected to service on the board of the directors of the Federal Reserve Bank of
Richmond. King will serve a three year term as a “Class A director.”
January 2009: Down we go

Despite John Allison’s letter to Congress insisting that there was “no panic” for BB&T, the bank’s investors may have reason to be concerned. The
firm announced that its earnings for fiscal 2008 were $1.5 billion, a 12 percent decline from earnings the previous year. Net income in the fourth
quarter was down to $305 million, a decline of 26 percent compared with fourth quarter 2007. Newly appointed CEO Kelly King explained that the
year “was very challenging and credit deterioration remains a significant concern.” BB&T also pointed to the swift deterioration of the housing market
in Georgia and Florida, saying that more homebuilders and developers have stopped paying their debts. The firm’s stock declined more than 28
percent during the 2008 fiscal year.
January 2009: Still acquiring assets

There is still action in BB&T’s M&A department. Several of its subsidiaries have recently expanded operations through strategic acquisitions. In
January 2009, the company completed two acquisitions. The first was through its insurance premium finance subsidiary, AFCO Credit Corporation,
which agreed to acquire Cananwill, a Glenview, Ill., firm. Cananwill was founded in 1937 and provides insurance premium financing for commercial
property and casualty policies.
On January 16, 2009, one of BB&T’s commercial banking subsidiaries, Grandbridge Real Estate Capital, completed the acquisition of Live Oak Capital.
Live Oak Capital is a Houston-based commercial mortgage banking firm, which closed more than $7 billion in commercial real estate capital
transactions since its formation in 2000. Terms of the deal were not disclosed.
December 2008: Tapping into TAPCO

In December 2008, the firm’s subsidiary CRC Insurance Services, announced it would acquire TAPCO Underwriters, Inc., a Burlington N.C.-based
company. TAPCO specializes in high-volume, middle market excess and surplus insurance lines.
November 2008: Accepting assistance

Under the Troubled Assets Relief Program, BB&T Corporation received $3.1 billion in capital in exchange for preferred shares. The program provided
banks with much-needed capital infusions when the economy led to the failings of several large financial institutions. Even banks like BB&T that were
well capitalized were strongly encouraged to participate to help loosen the credit freeze.
September 2008: Criticizing Congress

Before his retirement as CEO of BB&T, John Allison criticized Congress for its allocation of bailout funds, saying that the TARP plan aims to help “poorly
run” companies. The scathing letter was sent on September 23, 2008, when panic over the collapse of major banking institutions such as Lehman
Brothers and Merrill Lynch was still palpable. Allison said that the Treasury is “totally dominated by Wall Street investment bankers” and “cannot be
relied on to objectively assess” the situation of the industry.
He pointed to BB&T as an example of a responsible institution that avoided the risky subprime mortgage market, saying that, “there is no panic on
Main Street and in sound financial institutions. The problems are in high-risk financial institutions and on Wall Street.” Allison’s suggested solution
for the problem was to offer a tax credit for home purchases or to purchase vacant lots for homes under construction, citing these ideas as far superior
to the government’s plan to purchase troubled assets.
August 2008: Servicios en español

BB&T reached out to the fastest growing minority demographic when it launched a new multimedia Spanish language advertising campaign. The ads
were designed by Machado Garcia-Serra Communications (MGS) for the purpose of targeting select neighborhoods in Georgia, North Carolina, Florida
and Washington, D.C., with large Hispanic populations. This newest wave of advertising featured tips for money management and investment
translated into Spanish.

BB&T Corporation
The campaign is part of series of efforts on BB&T’s part to reach out to the Hispanic community. Approximately 10 percent of the firm’s branches are
staffed with bilingual employees and feature Spanish signs and brochures. In the past, the company has also created a series of Spanish language
audio recordings about a fictional character named “BiBi” who is designed to help Hispanic immigrants adapt to life in the U.S.
GETTING HIRED
Make them feel special

Selectivity at BB&T “varies greatly depending on the position being sought.” The firm’s leadership development program, for example, “is very
selective” and “the process is difficult.” Only “the cream of the crop” receives offers, as the firm focuses on “hiring intelligent individuals with a lot of
potential for success.” A contact says, “We are looking for long-term relationships not only with our clients, but also with our employees.” To find
these people, recruiters turn to universities “all across the U.S.,” with emphasis on the Southeast. It is “not typical for them to recruit schools in the
Northeast,” but “they will take applications from all over.”
Overall, BB&T is “generally looking for intelligence and basic financial knowledge and interest with strong academics” when it comes to its college
recruiting. The firm whittles its list over the course of two or three interviews. A typical experience starts with an on-campus interview with a recruiter,
followed by a “wine and dine dinner and two interviews,” and ending with a final round of “in-depth meetings with prospective bosses.” Some simply
have “one on-campus interview followed by a full day on site.” Potential questions include the following: “Why do you want to work for a financial
institution? What are your strengths and weaknesses? Why would you be valuable to our corporation?” In addition, “there can be role-play skits that
make you think on your feet.” When going through the interview process, “the important thing is to walk through a reasonable thought process that
leads to a reasonable answer, which demonstrates logical thinking ability,” shares one insider. The company “wants to know about your personal skills,
asking about situations where you dealt with teams and difficult people.” They also “want to know that you have done your research on the bank, its
operations and its culture.” And be sure to let them know “why you want to join them instead of one of their immediate competitors.” Insiders say
that largely, the process is “smooth,” but warn it can take “a while to hear back from them between the first and second interviews.”
Under-the-radar internship program

Those looking for a leg up might consider participating in one of BB&T internships, which are “offered in an informal basis by select departments.”
Insiders say participation is “not overly important,” but does “give you an edge over an outside candidate because they are familiar with your work
ethic.” It’s not surprising that “internships are not vital for someone seeking employment,” considering few BB&T insiders even know they are offered.
Still, those who are aware of them say participation is an “excellent opportunity.”
OUR SURVEY SAYS
Growing pains?
While BB&T is “definitely a conservative banking culture,” it’s also a “growing organization,” insiders say. BB&T insiders can’t say it enough: “This is
a value-driven firm.” The firm’s mission is to adhere to 10 core values: “teamwork, productivity, self esteem, pride, justice, integrity, honesty, reason,
reality and independent thinking.” These are “continually discussed and emphasized.” This “altruistic” bank is “uncommonly focused on the well-
being of the client,” which creates a “highly moral” environment in which employees are “treated fairly.” A contact says, “I’ve worked for several other
banks, and BB&T is the first bank where I have not questioned whether I was in the right place.” People at BB&T “really do follow the mission of the
firm.” Insiders say BB&T is “very disciplined and conservative compared to peers.” The “old-school banking” culture, though, is “not stuffy.” There’s
a healthy dose of “work/life balance” and “those who contribute the most are rewarded the most.” It’s a “family-orientated” place that “people come
to because of the environment.”
Some say there is “a disconnect between the corporation’s beliefs and the regions responsible for implementing them.” BB&T “expects a lot” from its
employees, but also offers “a great deal of job security.” This isn’t always a good thing, however. A contact says, “There are a great number of
employees who fly under the radar that should be forced out based on retirement age or fired for incompetence.” This might be because “the good
ole boys seem to run the place,” causing “age and tenure to be treated as a skill.” Some find the firm to be “naïve,” “ignoring problems” that should
be dealt with. And “sometimes the politics and personal agendas can be frustrating.”
“Excellent” benefits aren’t enough

BB&T insiders are not thrilled with their pay packages. “At BB&T, you are not paid to industry standards,” states one insider. “I believe that there is
more to life than money, but bills must be paid.” “Compensation is below average compared to industry peers.” And the formula for annual bonuses
is “too complicated.” Not only that, but “the incentive structure makes co-workers work against each other rather than together.” New employees might
have an edge, because “they treat existing employees unfairly in terms of compensation.” According to one source, “They will bring in a new employee

BB&T Corporation
in a higher salary bracket than someone who has proven himself year after year.” Employees do enjoy some nice perks, including “excellent stock options
and excellent medical care.” The firm also picks up the tab for “travel services, including hotels and rental cars, and per diem food expenses.” In one
case, “the company paid the initiation fee to join a tennis/social club.” The “health incentive program” offers insurance premium discounts and
motivates employees to purchase “discounted gym memberships.” Employees also enjoy “flexible vacation schedules” and a “401(k) matching plan.”
Flexibility counts
There’s a little bit of wiggle room when it comes to hours worked at BB&T. The hours are “somewhat flexible,” and have “an allowance of plus or minus
an hour around the typical 8:30 a.m. start time and 5:30 p.m. departure.” Most employees work between 40 and 60 hours per week and rarely on
weekends. Some log “10-hour days and are still asked to do more,” but the consensus is that “work hours are conducive to having a life outside of
work.” And the firm overall is “pretty flexible to allow for personal issues.” “Some departments are expected to stay late and held to higher
expectations,” but for the most part, “working extra hours is not mandatory.” Newer employees may find it “necessary to work extra to keep up with
the workload.” One source, who works between 60 and 70 hours per week and “often” on weekends, says, “I wake up at 5:30 a.m. and read The
Wall Street Journal and other materials. I’m at work between 8 and 8:30 a.m., and leave around 6 p.m. After a few hours with my family, I work from
around 11 p.m. to 1 a.m.”
Learning experience
BB&T’s managers are “amazing mentors and coaches.” Subordinates are treated “very fairly” and receive a “great deal of assistance with career
development.” Most managers are “very open and inviting,” offering “support and empathy” to those working for them. Some say leadership skills
could be improved. According to one source, “Everyone is friendly and respectful, but some managers have never been in lower positions, so they
don’t set realistic expectations.” And some feel “favorites are apparent.” “Managers have their own agenda and will play favorites to other managers
to “pad their pockets.’” Overall, treatment by managers is “pretty respectful.”
Insiders can’t say enough about training for the firm’s leadership development program. “The LDP program is the best training program in the
industry.” This “nationally recognized” program teaches “not just specific work-related classes but also various skills such as MS Office and public
speaking.” The bank’s “impressive” dedication to employee training and development is evident in its “exceptional offerings.” BB&T “always tries to
further educate its employees and provide appropriate resources.”
Don’t come looking for luxury

BB&T’s office space is a mix of bare-to-reasonable styles inherited through its acquisitions. The Baltimore digs are “horrible” and “look bad.” In
Raleigh’s “very old” offices, “it seems there are no upgrades given until it is absolutely necessary, and even then it is just enough to where it is
presentable.” The Greensboro, N.C., location “does not provide offices” (meaning it’s all cubes), which can make it “difficult to conduct activities
related to my job.”
By way of contrast, down in Atlanta, some first-year employees have their own offices. This is rare, however, as the office in Wilson, N.C., is “90 percent
cubicles.” The Asheville office is a “fairly nice facility.” In Orlando, Fla., meanwhile, offices are “adequate and comfortable with a responsible sense
of fiscal responsibility.” Frederick, Md., employees enjoy a “fairly spacious, clean and comfortable” facility.
Not quite obligatory

Overall, BB&T’s dress code is “business casual but not strictly enforced.” Generally, the company’s dress code is “pretty conservative,” with most
wearing “business casual-to-professional attire.” On Fridays and Saturdays, people drift more to the business casual end of the spectrum, but “no
khakis or jeans” are worn. “A button-down shirt or a golf shirt is acceptable” on these more casual days. For women, “shoes must have a defined
heel and panty hose is always encouraged.” Managers must “always wear a jacket,” but a contact says, “In Florida, the jacket policy slides a bit.”
Difficult at all levels

Insiders admit “there isn’t a lot of diversity at BB&T, and it just gets worse the higher up you go in the organization.” Although the firm offers ongoing
diversity and communications training opportunities, and is “open to minorities,” insiders say it is “not racially diverse.” “There are some obvious issues
with the number of minorities that are employed at BB&T.” “Essentially, if you are not a white male coming through the Leadership Development
Program (LDP), you can forget about going very far there.” As for diversity with respect to women, sources say there are “not a lot of women in
leadership positions” at BB&T. Some note that the firm is still “probably superior to other firms” in this regard, but the reality is that “most of upper
management is men.” A contact says, “We have 33 regions and three of them are run by female regional presidents. That speaks for itself.” However,
insiders add that this “doesn’t necessarily indicate a preference for men over women.”

THE BEST OF
THE REST The Vault Guide to the Top 50 Banking Employers, 2010 Edition
BANK LEUMI USA
579 5th Avenue KEY COMPETITORS

New York, NY 10017
Phone: (917) 542-2343 Chase Commercial Bank
Fax: (917) 542-2254 Citi Consumer Banking
www.leumiusa.com Israel Discount Bank
BUSINESSES UPPER
Advisory Services • Good perks
Brokerage Services • Leumi “has potential”
Cash Management
Corporate Services
Deposit Products
DOWNER
Insurance Products • “Limited technology”
Lending • “Poor management”
Leumi Direct
Leumi Global Link
Trade Finance EMPLOYMENT CONTACT
Wealth Management
Follow the “careers” link under “about us” at
www.leumiusa.com
THE STATS
Employer Type: Subsidiary of Bank Leumi le-Israel
Chairman: Eitan Raff
President, CEO & Director: Uzi Rosen
No. of Offices: 13
THE BUZZ
• “Smartest guys in the room”
• “Minor player—not very active in the US”
• “Small, Israeli bank”
• “Who?”

Bank Leumi USA
THE SCOOP
Loans, not handouts

The Bank Leumi story began in 1902 as part of a Jewish repatriation effort. The bank’s founder, Dr. Theodore Herzl, established the Anglo Palestine
Company in London; as he explained at the time, “Jewish settlers in the Land of Israel do not need charity, but rather bank loans.” Herzl believed that
a Jewish state could not survive without a robust industrial and financial infrastructure, and, over the years, the institution that became Bank Leumi
has played a major role in Israel’s development.
Today, Bank Leumi is the biggest bank in Israel by market share, and the Leumi Group includes some 230 branches in Israel and 82 branches and
offices in 21 countries around the world. At the group level, services are divided into four business lines: middle-market commercial banking, corporate
banking, private banking and retail banking.
Bank Leumi USA is one of Leumi Group’s nine international banking subsidiaries. Based in New York, it also has operations in California, Florida and
Illinois.
New York roots

Bank Leumi USA was established in New York City in 1954, and for the first two decades of its existence, expansion was confined to the five boroughs.
After changing its name to Bank Leumi Trust Company of New York in 1973, the subsidiary opened additional branches in Manhattan and Queens,
as well as a foreign exchange facility at Kennedy International Airport.
In 1975, the bank made its way to Chicago and opened a branch in Beverly Hills, Calif. A 1976 acquisition deal with American Bank & Trust Company
added five more branches, and in later years Leumi unveiled locations in Long Island, Florida and offshore centers in the Bahamas and the Cayman
Islands. Bank Leumi USA’s nationwide presence ballooned in the 1980s with the launch of a dozen more branches, a leasing corporation and an
international banking facility.
A slimdown began in the 1990s, as Leumi sold off its retail branches concentrate on core commercial, private and international banking businesses.
Its name went on a diet, too: the Bank Leumi Trust Company of New York became Bank Leumi USA (occasionally abbreviated BLUSA) in 1997.
A brokerage is born
In recent years, Bank Leumi USA has moved into the brokerage business with the 2001 debut of Leumi Investment Services, Inc., a wholly owned
subsidiary that provides financial planning, insurance programs, investment plans and services, equities, bonds, mutual funds, annuities and hedge
fund products.
As an FDIC-insured, full-service bank, Leumi USA provides a complete range of international, commercial and private banking services to middle
market businesses, multinationals, nonprofits and high-net-worth individuals. One of Leumi’s prime niches in the U.S. is its ability to serve as an
intermediary for American companies and individuals with investments in Israel.
Rosen’s rise
CEO Uzi Rosen came to Bank Leumi USA from another Leumi subsidiary, Bank Leumi U.K. A 20-plus year veteran of the Leumi Group, Rosen replaced
Dr. Zalman Segal at the top spot in late 2004.
Rosen rose through the ranks after joining the Leumi Group’s corporate division in 1982; from there he became a regional manager in charge of 65
branches, then served as head of the banking division’s commercial credit department. He became head of the bank’s construction and real estate
division in 1995, then took over at the U.K. subsidiary in 2001—but departed after a few years to focus on the United States business.
IN THE NEWS
February 2009: Fighting through tough times

The global financial crisis of 2008 made an impact on Bank Leumi, but the situation certainly could have been worse. The Leumi Group closed 2008
with net income of $19 million compared to $30.5 million a year earlier. The bank’s assets were basically flat, finishing the year at $5.8 billion.

Bank Leumi USA
December 2008: Cerberus, out

Since 2005 Cerberus Capital Management—the mega-hedge fund that owned U.S. automaker Chrysler (until it filed for Chapter 11)—has held a 4.83
percent stake in Bank Leumi, but in December 2008, Cerberus indicated that it will join former partner Gabriel Capital Management in selling off its
shares. (The two funds obtained the stake together during Leumi’s privatization by the state of Israel.)
Bank Leumi’s shares plummeted by more than 50 percent over the course of 2008, and by most accounts, Cerberus and Gabriel lost 37 percent of
their initial investment. If the funds do divest their interest in Leumi, it will close a long chapter between the institutions: Cerberus and Gabriel had
previously tried to acquire up to 20 percent of the bank, but the bid was blocked by Israel’s central bank.
October 2008: Jumping in the safety net

As the U.S. Treasury’s bailout of the American banking system dominated the final months of 2008, Bank Leumi USA was among the institutions to
participate in the FDIC’s Transaction Account Guarantee Program. Under the terms of the program, the bank’s non-interest-bearing transaction
accounts are fully guaranteed by the FDIC through December 31, 2009. (This coverage is in addition to general deposit insurance coverage.) All other
deposit accounts are insured up to $250,000 until January 1, 2010, when the FDIC coverage limit will return to its normal rate of $100,000—except
for IRAs and certain retirement accounts, which will continue to be insured at the higher rate.
July 2008: Cross-border deals

Despite a difficult climate for acquisitions, Israel’s Teva Pharmaceuticals announced in July 2008 that it will buy Barr Pharmaceuticals, the New York-
based pharma giant, for a reported $7.46 billion plus $1.5 billion in assumed debt. To fund the deal, Teva sought $1.75 billion in loans.
GETTING HIRED
Send it off
If you’re interested in applying for a job at Bank Leumi, check out the Careers section of www.leumiusa.com. From there, applicants can look at
detailed job openings and send their cover letter, resume and salary requirements to the bank’s physical address or to jobsusa@leumiusa.com.
Alternately, Leumi hopefuls can fax their resumes to 917-542-2352.
OUR SURVEY SAYS
A little bit of everything

Potential candidates looking for a firm that offers options that extend above and beyond traditional compensation packages will probably be pleasantly
surprised with Bank Leumi. In the way of company perks, the firm extends amenities such as gym reimbursements, referral services for child care
and elder care, work/life lunchtime seminars and in-office preventative health screenings.
And all employees get a fair shake (at least officially)—the bank doesn’t discriminate against “race, creed, color, sex, national origin, religion, age,
disability, marital status or sexual orientation.”

THE BANK OF NOVA SCOTIA (SCOTIABANK)
Scotia Plaza KEY COMPETITORS

44 King Street West
Toronto, Ontario CIBC
Canada M5H 1H1 RBC Capital Markets
Phone: (416) 866-6161 TD Bank
Fax: (416) 866-3750
www.Scotiabank.com
UPPERS
• “Supportive,” with a “strong commitment to team spirit and
BUSINESSES success”
Scotia Capital • “Amazing” diversity
ScotiaMcLeod
ScotiaMcLeod Direct Investing
Scotia Private Client Group
DOWNERS
• “Communication” between senior and junior bankers could
be improved
THE STATS • “A lack of overall privacy”
Ticker Symbol: BNS
CEO & President: Richard E. Waugh
EMPLOYMENT CONTACT
2008 Revenue: $11.88 billion See “careers” link at www.Scotiabank.com
THE BUZZ
• “Best of the Canadians”
• “Weak investment bank”
• “Small player”
• “No presence in the US”
289
The Bank of Nova Scotia (Scotiabank)
THE SCOOP
Home sweet Canada

The Bank of Nova Scotia (usually referred to as Scotiabank) calls Canada home, but that doesn't mean that it hasn't spread its wings to embrace the
rest of the world. Founded on the northeastern Canadian island of Nova Scotia in 1832, the company moved to the big Ontario city of Toronto in 1900.
Today, it holds the rank as Canada's third-largest bank, and provided a range of services—concentrating on retail, corporate and investment banking—
in 50 countries around the world. Scotiabank's other services include personal savings and checking accounts, as well as lending, brokerage and trust
services. The company also offers asset management (including mutual funds) and, through its Scotia Capital division, investment banking services,
including underwriting, and mergers and acquisitions advising.
The bank's biggest area of operations remains its homeland, Canada, where it offers banking services through a national network of about 1,000
branches, commercial and business banking centers, and four call centers.
Market expansion—at home and abroad

Throughout 2008 and early 2009, Scotiabank CEO Rick Waugh continued to expand Scotiabank’s overseas reach. The bank now has outposts in
Russia and Turkey, an enhanced presence in Central and Latin America, and greater stake of a major bank in Thailand. Indeed, Bloomberg reported
that Waugh has spent more than C$2 billion to acquire foreign banks and lenders during his tenure.
Scotiabank’s expansion was complemented by relatively strong returns in 2008. Though it sustained significant losses in the final quarter of 2008, it
nevertheless posted a net income of $3.14 billion for the fiscal year.
Down South
Scotiabank maintains six locations in the U.S.—Atlanta, Chicago, New York, San Francisco, Houston and Portland—from which it caters to large,
national and multinational corporations through its subsidiary, Scotia Capital. Scotia Capital has operated in the U.S. for more than a century,
overseeing the bank's global relationships with large corporate, institutional and government clients. The subsidiary specializes in syndicated lending,
corporate debt and equity underwriting, mergers and acquisitions, fixed income and institutional equities sales and trading, foreign exchange,
derivatives, and precious metals products and services.
From all over

With more than 60,000 employees, Scotiabank and its affiliates lay claim to about 12.5 million customers internationally, operating in more than 50
countries around the world. The firm also trades on the Toronto, New York and London Stock Exchanges. Scotiabank stands as the leading provider
of financial services in the Caribbean, has the broadest Asian network of any Canadian bank, and is active in the Latin American market through
subsidiaries in Chile, Costa Rica, El Salvador and Mexico, and affiliates in Peru and Venezuela.
The bank also has a long track record of community involvement. To celebrate its 175th anniversary in 2007, the bank commissioned and donated
new artwork by John Hartman, a Canadian painter, to the Art Gallery of Nova Scotia. Waugh said the donation “offered a unique way for us to create
a permanent tribute to Halifax, Scotiabank's city of origin, and all of the communities in which we share a long and rich history.”
IN THE NEWS
February 2009: Doubling down

Scotiabank doubled its stake in Thanachart Bank, the largest auto-finance company in Thailand. Scotiabank now owns 49 percent of the company,
a move that cost it $218 million, according to Bloomberg. Thanachart is the eighth-largest bank in Thailand by assets. The increased stake also
granted Scotiabank an additional member on the Thai bank’s board, bringing its presence to three board members.
November 2008: Welcome aboard

Scotiabank Vice Chairman Bob Brooks retired from the company after more than four decades with the bank. Jeff Heath, senior vice president and
head of risk policy and capital markets, was named executive vice president and group treasurer, taking over Brooks’s treasury responsibilities. Sabi
Marwah was named vice chairman and COO. He was previously vice chairman and chief administrative officer.

November 2008: Mixed bag of 2008

Results for fiscal year 2008 (ended October 31) were down from 2007, but still quite strong. Total revenue was $11.88 billion. Net income dropped
by a billion, to $3.14 billion from $4.05 billion the year before. In a statement, president and CEO Rick Waugh acknowledged that 2008 “was a difficult
year ... While Canadian banks have fared better than their counterparts in other parts of the world none of us have been immune to the forces buffeting
global markets,” he said. He credits geographic and business diversification for the bank’s relatively positive results. Nevertheless, the bank’s Scotia
Capital business segment was hit particularly hard.
The company suffered most in the first and fourth quarters of 2008, with profits of $835 million and $315 million, respectively. It posted second quarter
2008 earnings of $980 million and an impressive $1 billion in the third quarter of 2008 (compared with $1.03 billion from the same quarter a year
earlier).
In the fourth quarter, the bank sustained significant write-downs, which it broke down as follows: $115 million after-tax related to the bankruptcy of
Lehman Brothers, which occurred as “a result of a failed settlement and the unwinding of trades in rapidly declining equity markets” after the
bankruptcy, the bank said, adding that it had submitted a bankruptcy claim for the losses. The bank also reported $370 million after-tax valuation
adjustments and $265 million after tax on adjustments on collateralized debt obligations. Finally, it also lost $110 million after tax related to derivatives
used for asset/liability management purposes
October 2008: A stake in Sun Life

Scotiabank bought Sun Life Financial’s stake in CI Financial Income fund for C$2.3 billion. The purchase gave Scotiabank a 37.6 percent stake in CI.
In a statement, Scotiabank’s CEO, Rick Waugh, said that the acquisition “demonstrates Scotiabank’s ongoing commitment to growing our wealth
management business.” CI is the No. 3 mutual fund company in Canada.
July 2008: Buying E*Trade

Scotiabank agreed to buy the Canadian operations of E*Trade Financial Group from the U.S.-based E*Trade for $442 million. The purchase expanded
Scotiabank’s wealth management business and added 125,000 active accounts to its stable, doubling its presence in the Canadian internet-based
investing. E*Trade Canada had 190 employees and C$4.7 billion in assets under administration at the time of the deal, according to Scotiabank.
June 2008: Banking on the Turks

Scotiabank was granted a license to begin business in Turkey. Its office will be based in Istanbul.
May 2008: New board members

The firm appointed two new board members: Indira V. Samarasekera, president and vice chancellor of the University of Alberta; and Thomas C. O’Neill,
retired chair of PricewaterhouseCoopers Consulting.
May 2008: Outposts in the land of Lenin

Scotiabank opened its first office in Russia. The Moscow office makes Scotiabank the only Canadian bank with “an on-the-ground presence in each
of the "BRIC" (Brazil, Russia, India, China) countries,” executive vice president Alberta Cefis said in a statement. The bank will use its office as an
opportunity to increase trade and banking businesses in the region.
May 2008: Peruvian purchase

Scotiabank bought Banco del Trabajo, the Grupo Altas Cumbres’ Peru-based bank. Banco del Trabajo is the ninth-largest commercial bank in Peru.
As of December 31, 2007, it had total assets under management of $430 million and 132 points of sale. Scotiabank has maintained a presence in
Peru since 1997.
April 2008: Partnering with Western Union

The bank teamed up with Western Union in late 2007 to enable Scotiabank customers to wire money to Scotiabank branches around the world. The
bank expanded the service to more than 1,000 branches in Canada from only 42.

February 2008: Investing in the future

The bank launched its Scotia Global Climate Change Fund. The first of its kind in Canada, the fund covers 10 economic sectors and is diversified
across nine so-called climate themes, including clean fuels, clean technology and efficiency, efficient transport, environmental finance (such as carbon
market infrastructure-related companies), power technology, power merchants and generation, renewable energy, sustainable living and water.
February 2008: Buying South American

Scotiabank acquired Grupo Altas Cumbres’ Banco de Antigua in Guatemala and select assets of Banco de Ahorro y Credito Atlas Cumbres in the
Dominican Republic. The terms of the transaction were not disclosed. Banco de Antigua had 47 branches and 98 “rapidito” kiosks at the time of the
deal, and had 160,00 clients with $82 million in assets under management as of June 30, 2007. Banco de Ahorro y Credito had six branches and
35 kiosks, and served some 39,000 clients. As of June 30, 2007, it had $29 million in assets under management.
GETTING HIRED
Watch employees testify

Check out Scotiabank's fairly comprehensive employment guide on its website, www.scotiabank.com, where you can do everything from watch video
interviews with current employees to peruse a list of current openings. Job seekers also have the option of searching for open positions by city, state
or province, division or by performing a keyword search. Potential candidates can fill out an online application or simply submit a general resume and
application. The company also provides a general HR email and snail mail address where resumes can be sent. Resumes are kept on file for six
months.
Get ready to field it all

During the hiring process, candidates typically face at least three interviews. One insider reports being asked questions “related to job function and
how I could contribute to improving processes” in addition to “questions regarding my ability to make decisions in leadership and employee
management.” And be prepared—you may be subject to a “behavioral interview” as well.
OUR SURVEY SAYS
They love it
Respondents seem to “love working for Scotiabank.” “Our motto is ‘one team, one goal,’ and I experience that every day,” boasts one insider. “The
bank is great,” another says simply. Other contacts call the work environment at Scotiabank ”flexible,” “service-oriented,” “customer-focused,”
“supportive” and say that it “provides excellent career opportunities.” Others say there's a “very strong commitment to team spirit and success,” and
the firm “tries for work/life balance.” “Everyone is always busy but finds the time to help each other as the need arises, sometimes without even being
asked.”
It seems one way the firm attempts to achieve that balance is to “truly embrace and practice flexible and mobile work arrangements.” Though “you
are expected and required to spend the necessary hours to complete your assigned tasks, regardless of the number of hours paid,” hours for most
employees tend to fall somewhere within the range of 40 to 50 per week. “Sometimes after-hour demands are extensive, but in general, hours are
fair," believes this insider. And while employees are not compensated by money as far as overtime goes,” they can “take the extra time off as needed.”
The firm offers employees an array of perks (though they tend to “vary with location”), from an “employee share ownership plan” to “free banking
within reason.” One insider says when it comes to stocks, “the bank purchases 50 cents for every $1 employees invest.” On an annual basis, the
company awards its employees a set number of what it calls “flex” credits that they can use to “buy” company benefits or take as cash. The company
also offers flex hours, flex days and telecommuting options.
Praise for superiors

It seems as though employees (mostly) love their managers. Insiders say, “There is great respect from my superiors and the feelings are mutual,” even
though “communication can be at times removed and greater presence amongst staff would go a long way.” For the most part, though, employees
report being “very pleased” and say “respect, encouragement and mentoring are all alive and well.” Offers one staffer, “We are a family here, and
since each of us has ups and downs, we don't take it personally. But if something is wrong, it is usually taken to management, and then it’s taken care
of with delicate understanding.”

Fancy pants
While the firm's official policy on dress leans toward business casual with casual Fridays, there seems to be an insider consensus toward keeping things
a little more elegant. “I am more comfortable with more formal dress,” admits one insider. Another employee agrees, noting that while “sometimes
summer dress is a little more casual,” dress shouldn't swing toward overly casual. “I don't think jeans are appropriate.”
Could stand an upgrade

Generally, respondents aren't delighted with the state of their office space. One says the offices are “a little noisy at times as we work in an open-
concept environment,” while another complains about the office being housed in a “very old building where ventilation is difficult and fluctuates.” And
one contact complains that there are no ceilings in the offices that are “right beside teller line—there's a lack of overall privacy.”
The firm's training programs receive meager marks from sources as well. Scotiabank gave “no training at all when I was promoted to my current
position,” reports one contact. Another adds that the bank's “formal program is a little weak,” although “informal and formal coaching is very strong."”
Receiving recognition
The firm is “all-inclusive” and offers “equal opportunity to women and men,” insiders report. And those outside Scotiabank seem to agree as well.
The firm was honored with the 2007 Catalyst award for their “Advancement of Women” initiative. Presented to just a few companies per year, the
award singles out efforts toward developing women's careers.
Scotiabank's recruitment and retention of ethnic minorities receive high marks, though employees don't seem to recall an official company policy
regarding gays and lesbians. “My location is rural, and clients are conservative,” says one insider. “However, I have never felt my firm has any opinion
on gays and lesbians. It's just not an issue.”
Another employee working in Calgary is stunned by the diversity within the company. “The diversity in our branch alone is amazing and truly reflective
of Canada as a global melting pot. We have employees from countries like Ethiopia, India, Ukraine, Denmark, Philippines, South Korea, Vietnam and
Zimbabwe.” And “being as diverse as our branch is, we’re always learning more about each other through social events and pot-luck lunches.”

CALYON
1301 Avenue of the Americas KEY COMPETITORS

New York, NY 10019
Phone: (212) 261-7000 Societe Generale
Fax: (212) 459-3170 BNP Paribas
www.calyon.com Deutsche
BUSINESSES UPPER
Brokerage • Respectful culture
Commercial Banking
Coverage & Investment Banking
Fixed Income Markets
DOWNER
International Private Banking • Difficult to advance
Structured Finance
EMPLOYMENT CONTACT
THE STATS
www.calyonamericas.com/content/career_opportunities.asp
Employer Type: Subsidiary of Crédit Agricole
CEO: Patrick Valroff
2008 Profit: €1.5 billion
No. of Employees: 13,000 (Worldwide)
No. of Offices: 6 (US)
THE BUZZ
• “Good at lending”
• “Small”
• “Strong in Europe”
• “Who?”

Calyon
THE SCOOP
A little piece of France

Headquartered in Paris, Calyon is the corporate and investment banking arm of French banking giant Crédit Agricole, a sprawling corporation with a
presence in 60 countries. In the U.S., Calyon has two divisions: banking unit Calyon and Calyon Securities (USA) Inc., its full service broker-dealer.
One of the top foreign banks in the U.S., Calyon operates in six divisions, including corporate banking, derivatives, debt markets, investment banking,
equity products and foreign exchange. Its industry expertise includes aerospace and defense, agrifoods, automotive, energy, financial institutions,
gaming, health care, homebuilding, lodging, media and communications, real estate, transportation, water and environmental and forest, paper and
packaging. Calyon also maintains a European group that focuses on international deal making.
Calyon was formed in 2004, when Crédit Agricole Indosuez consolidated its banking operations with the corporate and investment banking division of
Crédit Lyonnais, which was promptly absorbed into Crédit Agricole.
All about the IB

Investment banking at Calyon is split between a mergers and acquisitions practice and a corporate advisory practice. The M&A group advises clients
and prospects of the entire Calyon Group network; the U.S. team works closely with colleagues in Paris, London, Hong Kong, Singapore and Warsaw.
Because of the bank’s international reach, cross-border transactions are the name of the game, and Calyon staff members are trained in international
planning, due diligence, negotiation and execution. Calyon typically focuses on middle market transactions valued at $50 to $500 million, and almost
all of its deals involve European buyers seeking U.S. targets (or U.S. buyers going after European targets).
The corporate advisory group deals with financial strategy, working in conjunction with Calyon’s international equity, fixed income, specialized
industries, financial sponsor, loan syndications and structured product and project lending teams. It also provides fairness opinions and transaction
structuring advice.
IN THE NEWS
January 2009: Still high ranking

Despite its troubles in 2008, Calyon still found itself represented on the all-important Thomson Reuters league tables for investment banking. In
completed M&A deal volume, the firm was No. 17 in the world in 2008, with 38 deals valued at $147 billion. Its rank value jumped 130 percent,
catapulting Calyon from its spot of No. 34 worldwide in 2007. The firm did not fare too poorly in Europe either, and according to Thomson Reuters,
Calyon ranked No. 8 in announced M&A volume in France in 2008, slipping from its ranking of No. 3 in 2007. Calyon fared better in completed French
M&A volume, coming in at No. 2. The biggest deal Calyon advised on in France in 2008 was that the $75.2 billion merger between GdF and Suez.
According to Thomson Reuters, Calyon advised on eight of the 20 biggest transactions in France in 2008. In overall European announced M&A
volume, the firm ranked No. 22. And it ranked No. 15 in completed European M&A. In debt underwriting, the firm ranked No. 8 in euro bonds, with
112 deals valued at $36 billion.
January 2009: Some good news

Calyon was named “Investment Bank of the Year for the Middle East and North Africa (MENA)” by Thomson Reuters and Acquisitions Monthly for its
work in the 2008 fiscal year. The bank was honored by the publication primarily for its role in the biggest-ever M&A deal in the region—the $15 billion
acquisition of Orascom Industries by Lafarge. The deal boosted Calyon’s visibility in the Middle East and North Africa, giving the firm an even stronger
hold on business in the region.
Other deals in the Middle East and Africa in 2008 include the advisory mandate for Emirate International Investment Company for the purchase of a
3 percent stake in Vivendi, a deal that was valued at $1.6 billion. The firm also oversaw an advisory mandate for Saudi Basic Industries Corporation
to purchase $1.4 billion in a Sukuk Islamic Bond. Finally, Calyon completed its biggest ever initial public offering deal outside of France in the Middle
East region. The deal was for the $1.9 billion IPO of Zain KSA, a Saudi Arabian telecommunications company.
January 2009: Deals down under

Calyon further expanded its global business with the opening of an office in Australia which will serve as a part of the Calyon’s Asia Pacific brokerage.
On January 19, 2009, the firm’s launched its Sydney office in conjunction with a 12-month plan to build its Australian operations. The Sydney office
will only house research and sales teams, deferring bigger deals to the firm’s Singapore office. Calyon’s Asian branch (CLSA) was named the No. 1
brokerage for research and sales in Asia by Asiamoney in November 2008. CLSA was also one of the first foreign brokers to be granted a remote
access membership by the Australian Stock Exchange.

Calyon
November 2008: Another big deal

One of the reasons for Calyon’s high rankings in the charts is that the bank has continued to executive high profile deals. Calyon acted as the lead
arranger and bookrunner on the acquisition of N&W Global Vending, a Northern Italian manufacturer of food and beverage vending machines. The
Italian company was bought for €470 million by a consortium made of Investcorp and Barclays Private Equity. The deal was the largest leveraged buy-
out in the Italian market in 2008.
September 2008: Cutting back

In September 2008, the firm cut approximately 500 jobs from the Calyon unit, 250 in France and 250 elsewhere. The reorganization efforts at Calyon
are expected to save Credit Agricole $425 million by the end of 2009.
May 2008: Trouble from the top

Turmoil in the market caused a shake-up in Calyon’s business structure as parent company Credit Agricole was forced to write-down more than $8.5
billion in subprime losses in the first two quarters of 2008 alone. The losses forced Credit Agricole to sell €5 billion worth of assets and to cut back
heavily on the operations of Calyon. Part of the reorganization will be to dramatically decrease risky deals in its capital market unit. The company will
also shutter all structured credit and derivatives activities that result in “risks that may be difficult to cover during periods of instability.”
May 2008: Out with the old

Another major change that the firm implemented as a result of the credit crisis was the ouster of newly elected Calyon CEO Mark Litzler. Litzler was
only announced as the new CEO of Calyon in July 2007 and came under fire from the board of directors almost immediately. Litzler’s error was a failure
of oversight on an authorized position at the New York subsidiary of Calyon, which resulted in the company taking a charge of €250 million. The
controversy coupled with the firm’s massive losses in the subprime market resulted in Litzler’s eventually resignation in May of 2008.
Litzler was replaced by Patrick Valroff, who had previously headed the bank’s consumer credit arm, Sofinco. Valroff’s credentials also include serving
as an advisor to Jacques Chirac when he was prime minister. “Valroff is a confirmed manager, who is used to negotiating with corporates,” said Credit
Agricole CEO Georges Pauget.
GETTING HIRED
Find it all
Check out full descriptions of responsibilities and qualifications necessary for positions when you visit Calyon's website. Candidates interested in
working for Calyon can visit the "career opportunities" section of the site (www.calyonamericas.com), which provides a list of current job openings.
Applicants can also fax their resumes to (212) 459-3182 or e-mail them to openings@us.calyon.com. And if you have any additional questions, pass
them on to hr@us.calyon.com.
Expect the interview process to be “numerous and friendly.” Once called in for an interview, candidates can expect a process that one insider says is
“the easiest I have gone through.” It's “an honest process,” with questions “more directed at motivation and career ambitions rather than experience.
You will typically have three meetings and, depending on your level, you will meet all the heads of desks before an offer is made.”
Calyon's website also provides information about the firm's special technology co-op program. Calyon in the Americas partners with Stevens Institute
of Technology and the New Jersey Institute of Technology to give current students real-world work experience. More specifically, the technology co-op
program enables students “to combine classroom study with periods of paid professional employment which is directly related to their university major
and career goals.”
Prospective employees shouldn't feel too much pressure about picking the perfect job right off the bat. Calyon offers employees an internal transfer
option which allows them to move between departments after working at the firm for at least 18 months. And for those seeking an American base but
some global exposure, Calyon employees can take advantage of international assignments (when available), typically located in Calyon's Paris
headquarters.

Calyon
OUR SURVEY SAYS
Parlez-vous Français?
Calyon's corporate culture, which is called “formal,” “kind,” “respectful” and “multicultural,” is often defined by its French connections. “Very, very
French,” says one insider. Another contact reports, “Regardless of what it pretends to be, Calyon is still a very French environment. Everything is very
political.” But this contact also notes the upside of the French aesthetic: “Being a French bank, the dress code is the most interesting aspect of a
typical working day. All are suited with ties but it's more for the trendy than actual obligation.” The “extremely various and often casual” dress code,
it turns out, is the most frequently praised aspect of Calyon's culture (along with the firm's strong marks for diversity). In general, it’s “more relaxed
than in the banking industry.”
For the most part, “corporate culture has really easy access to the top management.” However, there are some complaints. “[It is] difficult to
understand the strategy of the firm due to the ongoing process of change of strategy. Also, there is some inflexibility in relationships between high-
level management and the rest of the staff.” Another contact says that there are “lots of politics, which seems to be their favorite game. And there
are plenty of overpaid, badly performing French managers who protect each other. No drive, no innovation, no comparison with the top American
investment banks.”
When it comes to advancing within the firm, “opportunities for advancement do exist, but are somehow rare as the hierarchy is very flat.” And although
“advancement opportunities do exist, so do stagnant positions”—that is, try your best to stand out in this evolving firm, or else you very well may be
lost in the shuffle. One insider even says “it's better to be French in order to get promoted and receive recognition.”
Pretty standard
For the most part, employees are happy with their compensation. Calyon bankers receive a relatively standard compensation and benefits package,
including a 401(k) program, health and dental insurance, as well as tuition reimbursement for qualifying personnel. However, bonuses are “below
market, except for the top happy few.” Another insider agrees, noting that while “basic salaries hit the market's average,” “bonuses are below the
mark.” But employees do enjoy the company's perk package. In the past, employees have also had the opportunity to purchase company stock at a
discounted price. In New York, staffers can join the Lyons Club, an employee club that entitles members to receive corporate discounts (e.g., gyms
and cultural events) and participate in various activities such as ski trips and volunteering for nonprofit organizations. And “due to the firm's strong
international network,” diversity is “wide, with a lot of different backgrounds in terms of cultures, education and citizenship.”

CANACCORD ADAMS INC.
99 High Street KEY COMPETITORS

Suite 1200
Boston, MA 02110 Jefferies
Phone: (617) 371-3900 RBC Capital Markets
Fax: (617) 371-3793 TD Securities
www.canaccordadams.com Thomas Weisel Partners
BUSINESSES EMPLOYMENT CONTACT

Corporate Services www.canaccord.com/careers
Investment Banking
Research
Sales & Trading
THE STATS
Employer Type: Subsidiary of Canaccord Capital Inc.
President: Jamie Brown
2009 Revenue: C$277 million
No. of Offices: 10
THE BUZZ
• “Good research; very strong in Canada, energy and small
caps”
• “Who?”
• “Better than you would think”
• “Co-manager firm”

Canaccord Adams Inc.
THE SCOOP
A new face for Canaccord

Canaccord Adams is the product of a merger that took place between Canaccord Capital's Global Capital Markets Group and Adams Harkness in
January 2006. In addition to research, sales and trading, the firm provides merger and acquisition advice, debt and equity underwriting, valuations
and fairness opinions. It has over 450 employees, including investment banking professionals and research analysts, who cover more than 600
companies in eight focus sectors. In its latest fiscal year (ended March 31, 2009), Canaccord Adams booked C$277 million in total revenue, led 89
equity transactions of $1.5 million or more. Canaccord Capital Inc. (Canaccord Adams’ parent company) recorded revenue of C$477 million, and had
$9.2 billion in assets under administration and C$393 million in assets under management at its fiscal year end.
Canaccord Adams focuses primarily on the following industries: metals and mining, energy, technology, life sciences, real estate, consumer,
sustainability and infrastructure. The firm works on banking and research desks in Boston, San Francisco, New York, Houston, Toronto, Vancouver,
Montréal, Calgary and London. Notable clients include Rubicon Technology and Monotype Imaging. (technology); Integra Lifesciences and Luminex
(health care); and Telvent and Enernoc (sustainability).
The firm's parent, Canaccord Capital, is a big fish in the investment pond, with over 1,500 employees in 30 offices worldwide. Its origins were a little
more humble, beginning in 1968 when its partners acquired Hemsworth Turton & Co. and renamed their firm Canarim Investment Corporation. By
1992, the firm set about embarking on a series of mergers and acquisitions to broaden its base. The strategy seemed to have worked, and by 2003,
its employees, clients and transactions had tripled from the previous decade. In June 2004, Canaccord became a public company and made its $70
million (CAD) initial public offering on the Toronto Stock Exchange under the symbol CCI. The company is also listed on the AIM—a market operated
by the London Stock Exchange.
The Adams name in the firm's name can trace its roots to the 1960s, when Weston W. Adams founded a brokerage firm called Adams, Harkness & Hill.
The Adams family carried a lot of weight in the Boston area, and Weston's father, Charles, was the founder of the NHL's Boston Bruins. The family
remained principal owners of the team until 1951 and maintained a presence until 1973. The company branched out into institutional research in 1967,
and two years later, became Adams, Harkness & Hill. In April 2001, it expanded into Europe, opening offices in London and Paris.
Trusted advisor
In 2008, the firm served as financial advisor on a number of notable M&A transactions for small- to mid-cap firms such as Harvard Bioscience, City
Sports, Hargraves, Copley Controls Corp., Celoxica and LGC Wireless. The firm has also led or co-led a number of big-ticket equity transactions over
the last two years, including a $472 million deal for Niko Resources Ltd., a $342 million offering for Heritage Oil Corp., a $257 million offering for Gold
Wheaton, a $127 million offering for Yamana Gold, and a $103 million offering for Telvent.
Internationally Recognized
Canaccord is regularly recognized for its accomplishments from outside sources. In 2007, Brendan Wood's International 2007 Equity Research Report
ranked Canaccord No. 1 for institutional equity research, sales and trading, lauding the firm for its investment ideas. (Those ideas come from a variety
of sources: Canaccord has relationships with more than 1,500 institutions globally, with professionals who work on deals of all sizes.) Additionally,
Canaccord Adams was ranked No. 1 by the National Post, and No. 3 by the Globe and Mail for equity proceeds raised in 2007.
IN THE NEWS
June 2009: Hiring a new president overseas

Canaccord Adams Limited (Canaccord's U.K. business) named ex-Fox-Pitt Kelton CEO Giles Fitzpatrick its new president. Prior to FPK, Fitzpatrick
worked at ABN AMRO as the firm’s head of European equities and, prior to that, as its global head of trading.
May 2009: Down again

For fiscal 2009, Canaccord Capital booked C$477.7 million in total revenue, a 34.7 percent decline versus the C$731.5 million it booked a year earlier.
The firm also reported a significant decrease in earnings, recording a C$1.4 million loss for fiscal 2009 versus a C$79.3 million gain for fiscal 2008
(excluding non-recurring charges not indicative of operating income). According to the firm, much of this decline was attributed to the poor market
conditions and extreme market turbulence that existed through much of Canaccord’s fiscal 2009 year.

Canaccord Adams Inc.
June 2008: Promoting (to the top) from within

The firm's head of investment banking, Jamie Brown, also became its president. Brown, who continues with his investment banking duties, succeeds
Kevin Dunn. Brown has been with Canaccord Adams since 1997 and will work with the heads of several departments, including U.S. institutional
sales, U.S. sales trading, U.S. equity research and North American capital markets.
May 2008: Slight slip

For fiscal 2008, the firm's total revenue for Canaccord Capital came in at $690.2 million, slipping slightly from the $714.1 million it posted in the
previous year, pressured down by an economy that left the financial services industry badly shaken. Net income, too, was down to $29.5 million from
$88.2 million the year before, primarily due to non-recurring charges booked in its retail division. Regardless, Canaccord Adams seemed to help pull
its parent along financially in fiscal 2008, raking in 59 percent of the company's total revenue.
GETTING HIRED
Canaccord’s careers
To snag a job at Canaccord Adams, first log on to www.canaccord.com/careers, where you can search out positions that match your background and
experience. Whether or not you're selected for an interview, the human resources department will keep your resume on file for six months in case the
perfect position happens to come up.
Job openings may include those specific to I-banking (like trading and research) as well as general fields (like MIS and accounting). The site lists some
of the benefits, including medical, dental and life insurance.
Canaccord Adams’ hires the majority of its U.S. investment banking analysts and associates via a fall recruiting process that includes on-campus
interviews at top-tier U.S. institutions and culminating in a Super Saturday in November. Resumes are also accepted from candidates who are students
at universities not being visited during the recruiting process.

CARIS & COMPANY, INC.
853 Camino Del Mar EMPLOYMENT CONTACT

Suite 100
Del Mar, CA 92014 www.cariscompany.com/caris_careers.php
Phone: (858) 704-0300
Fax: (858) 704-0320
www.cariscompany.com
BUSINESSES
Equity Research
Institutional Investors
Investment Banking
THE STATS
Chairman & CEO: Darren J. Caris
No. of Offices: 4
301
Caris & Company, Inc.
THE SCOOP
Coast to coast
Research-oriented boutique Caris & Company was founded in 2002 by CEO Darren Caris, who got his start on Wall Street as a trader at Gruntal and
Co.—in fact, he rose to become one of the firm’s top 10 producers after just two years on the job. A graduate of the University of California at San
Diego, Caris headed back west in 1996 to join Torrey Pine Securities in Del Mar, serving as vice president and building the firm’s institutional sales and
equity trading infrastructure. His efforts launched Torrey Pine into the national spotlight as a market maker in West Coast tech securities like Dell, Intel,
Cisco and Microsoft.
In 1999, Caris moved to San Diego to become a partner of the Granite Financial Group. There he led the capital markets business and was responsible
for overseeing the institutional sales, equity research, retail sales, equity trading, operations and compliance divisions. Caris’s eponymous firm was
launched with the idea of bringing bulge bracket-caliber research and advisory services to Southern California, although these days Caris has four
offices nationwide: firm headquarters in Del Mar, plus outposts in Boston, New York and San Francisco. In true California style, CEO Caris spends his
downtime surfing.
Research pros
Equity research is at the heart of Caris & Company’s operations, with a focus on four industry sectors: consumer goods, health care, technology and
energy. The firm’s research platform covers companies that make up more than 75 percent of the S&P 500, and the average market capitalization of
its research companies is $4.5 billion. Caris is careful to avoid conflicts of interest by drawing a bright line between its coverage and its advisory,
claiming that “Caris & Company is a research boutique first.”
The firm’s institutional investors group serves portfolio managers and buy-side analysts, offering research sales, institutional sales trading and equity
trading. Peter Newman, a former Thomas Weisel Partners principal, heads Caris’ institutional sales and trading division; the esteemed research division
is directed by David S. Moskowitz, who joined in October 2008 after serving as group head of health care research at FBR Capital Markets.
Small bank, big on experience

In addition to its well-respected research products, Caris offers mergers and acquisitions advisory, corporate advisory, valuations, public equity capital
raising, private equity and venture capital services. Its advisory and capital services professionals cater to clients in the technology, biotechnology,
health care, financial, specialty manufacturing and construction industries.
According to the firm, its investment bankers average over 20 years of experience, and it shows. Over the years Caris has worked with such clients as
Cardax Pharmaceuticals, Response Genetics, Nextest Systems Corporation, Omnicell Inc. and SGX Pharmaceuticals; among its most notable public
equity transactions were Spansion’s $567 million IPO, Esperion’s $64 million follow-on offering and Corgentech’s $110 million IPO. And while Caris
has retained its boutique size—perhaps making it an appealing target for acquisition—founder Darren Caris has yet to show any signs of selling. As
he told American Banker a few years after launching his firm, “We’re too small, and we’re too young” to get swallowed up by a bigger commercial bank.
IN THE NEWS
March 2009: Placing the public offering

Caris served as co-placement agent for a registered public offering from PharmAthene, a biodefense firm. The company sold off about $5.5 million in
common stock to institutional investors.
January 2009: New York fills up

Caris kicked off 2009 by welcoming two senior executives to the fold in Manhattan. Gloria Katona, a former Lehman Brothers executive, joined Caris’
New York office as managing director of mid-Atlantic institutional equity sales. Sheilah McFadden left Credit Suisse to become vice president of mid-
Atlantic institutional sales, also in New York.
September 2008: Health care’s head honcho

Caris boosted its investment banking team with the addition of Jeff R. Swarz as senior managing director of health care investment banking. Swarz
began his career as a biotech equity analyst at Goldman Sachs, later moving to Credit Suisse; throughout the late eighties and nineties, he was
consistently rated one of Wall Street’s top 10 biotechnology analysts. He joined Caris’s New York office from Friedman Billings Ramsey, where he served
as a managing director in the investment banking group.

Caris & Company, Inc.
GETTING HIRED
The winning combo

Caris & Company is looking for a few good men and women with “the desire, drive and creativity” to step up to the plate for its clients. Under the
“Caris Careers” link under “About Caris & Company” at www.cariscompany.com, applicants can peruse detailed job listings for each city the firm
serves. Just make a mental note that you might not get a reply immediately (or at all)—Caris cautions that it can't guarantee a response to your
submission. But one important aspect to note that will help you get a response is to “ensure that your experience level” matches the background the
firm is looking for.

CASCADIA CAPITAL LLC
Columbia Center UPPER

701 Fifth Avenue, Suite 2600
Seattle, WA 98104 • Supportive environment
Phone: (206) 436-2500
Fax: (206) 436-2501
www.cascadiacapital.com
DOWNER
• Pay could be improved
BUSINESSES
Corporate Finance
EMPLOYMENT CONTACT
Mergers & Acquisitions Email: jobs@cascadiacapital.com
Strategic Advisory Services See “careers” at www.cascadiacapital.com
THE STATS
Chairman & CEO: Michael Butler
No. of Offices: 1

Cascadia Capital LLC
THE SCOOP
The new A team

Current Cascadia Capital CEO Michael Butler and executive vice president Kevin Cable founded the company in 1999, in the waning days of the late-
1990s mergers and acquisitions boom. The fledgling boutique survived the early aughts and remained independently held; revenue in 2001 was just
$5 million, but five years later, earnings had tripled.
Butler, a Seattle native, had put 15 years on Wall Street with Morgan Stanley and Lehman Brothers. His decision to move back to the Pacific Northwest
was in part a desire to get home—and in part a desire to build a top-shelf investment bank that catered to small and emerging companies. “Small
business is paying for the A team and getting the B team from the big banks on Wall Street,” Butler told Fortune Small Business in 2006. “Those
bankers won’t get out of bed for less than $2 million or $3 million in fees.” By offering lower fees, but the same caliber of service as the bulge bracket,
Butler’s strategy has paid off. Over the years, Cascadia has had a hand in notable deals involving clients like QPass, Nighthawk Radiology Services,
Dotster and Lenel International.
Going green?
Cascadia’s investment banking services come in three flavors: corporate finance, mergers and acquisitions, and strategic advisory services, all of which
cater to mid-market and emerging grow companies in North America. Its industry focus is on the middle market, technology (including internet and
new media and information technology) and sustainable industries—think alternative energy and green technology.
Chairman and CEO Michael Butler heads up the firm’s sustainable industries practice, while fellow Co-Founder Kevin Cable leads the information
technology group. The middle markets practice, which covers everything from retail to health care to defense, is helmed by managing directors
Christian Schiller and Tom Newell and senior vice president Bryan Jaffe.
IN THE NEWS
January 2009: Spotlight on clean technology

Michael Butler joined Marc Cummings of the Pacific Northwest National Laboratory and David Benson of law firm Stoel Rives to assemble a private-
sector task force, appointed by Washington Governor Chris Gregoire, to analyze the state’s preparedness for clean technology development and growth.
One major issue on the table: U.S. President Barack Obama’s proposed stimulus spending on renewable resources and clean tech projects. According
to Butler, Washington’s biofuel, smart grid, solar and energy efficiency sectors stand to gain the most from state stimulus allowances.
Butler—who’s fast becoming one of Washington State’s biggest clean tech champions—is also analyzing the state’s regulations, tax policies and
infrastructure with an eye toward making clean tech-friendly improvements that would boost business in the sector. As part of his task force work, he’s
reaching out to local companies like Boeing, Puget Sound Energy and Powerit, as well as trade organizations like the Washington Technology Industry,
and urging their executives to provide insight that will help the state government organize its priorities.
September 2008: More advising

Advisory assignments kept coming in the final months of the year, including Zynchros’s sale to SXC Health, IT direct marketing reseller Zones Inc.’s
sale to its own CEO and water jet machine manufacturer Flow International Corp.’s acquisition of rival Omax Corp. Cascadia also worked on biodiesel
producer Imperium Renewables’ September 2008 recapitalization, and helped Seattle-based materials company EnerG2 close an $8.5 million round
of Series A financing in November. The round was led by Kirkland, Wash.-based OVP Venture Partners and California’s Firelake Capital Management.
August 2008: Go west, young bankers

In an interview with Xconomy Seattle, Michael Butler revealed that Cascadia’s biggest challenge is one of geography. “Out here you have to educate
people about what an investment bank does,” he explained. “Back east, everyone knows. We’re a facilitator of taking capital and getting it to
companies.” The perks of a Seattle HQ? Some critical distance from what Butler calls “the group-think” and “day-to-day noise” of Wall Street.
Still, recruiting top talent from the hordes of MBAs headed for New York is another concern. Cascadia’s executives keep tabs on rising bankers in San
Francisco and New York, watching for any who have roots or family connections in the Pacific Northwest and launching recruiting efforts accordingly.
In Butler’s words, “It’s all about the people.”

Cascadia Capital LLC
June 2008: Staying busy

A flurry of deals wrapped up the summer of 2008 for Cascadia, as it advised Aculight on its acquisition by Lockheed Martin, Schwab Corp. on its
Acquisition by Sentry and Shelfari on its acquisition by Amazon.com.
GETTING HIRED
Everyone's opinion counts

Cascadia finds new hires by recruiting regionally near its Pacific Northwest headquarters, but sources say its overall presence on school campuses is
"limited." One insider notes that the firm also looks to alumni of current employees' alma maters as well as "experienced hires." Resumes can be
submitted directly to Cascadia via e-mail; the address is jobs@cascadiacapital.com.
For most candidates, the interview process includes "three rounds," the first of which might be a brief "phone screen" for those who live at a distance
from Seattle. Next comes on-site Q&As with "senior personnel," followed by interviews with a "broad" sampling of staff-and this round means some
extreme meeting and greeting. One insider recalls a "full day of interviews with senior management," and another says he met with "almost everyone"
in the office. Yet another candidate says he endured a "total of eight interviews." Cascadia introduces potential employees to as many people as
possible for one simple reason: the firm "must have consensus" about a candidate before an offer is extended. Interview questions, say insiders,
typically "revolve around fit," "attitude," "interest" in the firm, "schooling," "previous work experience" and "personal interests." Cascadia also offers
internships, which insiders call "very important" to have on your resume.
OUR SURVEY SAYS
Social creatures
For the most part, the Cascadia team is “very sociable,” “collegial,” “supportive” and “respectful.” And the atmosphere is an “intellectually
challenging” one. Its “entrepreneurial and somewhat loose” culture—”typical of a small firm”—allows newbies to take responsibility early on in their
careers. Sources say they rarely get tangled in the kinds of red tape that can bog down a bigger company—there are “relatively few” bureaucratic
“processes and procedures” with which to contend. And though the firm is “focused” and “results-oriented,” it's a “team-based” workplace and
insiders describe themselves as a “close-knit group.” In keeping with the firm's collegial environment, managers at Cascadia routinely get high marks
for their management expertise and treatment of junior staff.
Off the Street

Some Seattle-based Cascadians grumble about their pay, which tends to be slightly below New York scale; on the other hand, those who love the Pacific
Northwest cite their office location as a major plus. Perks at the firm include “stock ownership,” "”ull payment of medical insurance costs” and “shared
distributions from equity received from certain mandates.”
The pay may not be in line with New York-based investment banks, but then again, neither are the hours. Insiders at Cascadia say their hours top out
at 70 per week, on average, and some add that there's “ample flexibility” in terms of scheduling. There's “no face time” at the firm, declares a senior
vice president. Most employees work at least one weekend a month, but overall they're happily aware of the fact that their schedules are more bearable
than those on Wall Street.
When it comes to preparing new hires, say current employees, “training is on the job”—and the firm's official training processes could use some
tightening up. Diversity is another area that respondents feel deserves improvement. Cascadia “needs to hire more” women and ethnic minorities,
admits one executive, “but opportunities have been limited.”

COMERICA BANK
Comerica Bank Tower KEY COMPETITORS

1717 Main St.
Dallas, TX 75201 Bank of America
www.comerica.com Citi
BUSINESSES UPPER
Business Banking • Flexible working time
Retail Banking
Wealth & Investment Managementl
DOWNER
• Recent cuts make advancing difficult
THE STATS
Ticker Symbol: CMA (NYSE)
EMPLOYMENT CONTACT
Chairman, President & CEO: Ralph W. Babb Jr. See “career center” section of www.comerica.com
No. of Offices: 520
THE BUZZ
• “Strong in Midwest”
• “Unsophisticated”
• “Lending”
• “Struggling”
307
Comerica Bank
THE SCOOP
Leaving Motor City behind

Comerica’s history begins in Detroit, where the Detroit Savings Fund Institute opened its doors in 1849, with the goal of extending banking services to
the city’s laborers. Six customers deposited a total of $41 on its first day of businesses, but by 1870, the company held significantly more: $1 million
in assets, thanks in large part to the emerging auto industry and a growing worker class.
In 1956, Detroit Savings Fund merged with three other regional banks to form Detroit Bank & Trust, which reorganized under a holding company
following regulatory changes in 1973. The Comerica name debuted in 1982, marking a period of expansion that brought the bank to major markets
in Florida, Illinois and Texas. Additional mergers (with Texas’ Grand Bancshares, Plaza Commerce Bancorp and InBancshares in California and
Manufacturers National Corporation) grew the company in size and in reach. By 2004 Comerica offered nationwide banking to its customers.
As the auto industry faltered in 2007, Comerica began relocating its headquarters to Dallas. The transition is taking place in stages, but is expected
to be complete by early 2010.
The Comerica three-step

Comerica operates through three segments: wealth and institutional management, retail banking and business banking. The wealth and institutional
management business includes institutional and personal trust services, the Comerica Securities brokerage, private banking, investment account
management, retirement services and insurance. The retail bank offers the usual range of services, including consumer lending, mortgages, deposits
and small business banking. Middle-market companies and large corporations turn to Comerica’s business bank, which provides cash management,
credit, international trade finance, loan syndication, leasing, corporate finance and capital markets products services.
And subsidiaries, too

Comerica Inc. is comprised of Comerica Bank and its subsidiaries. These include Comerica Insurance Services; Comerica Securities; Comerica
Leasing Services; Comerica West Inc., which provides banking services to businesses in the Western U.S.; Wilson, Kemp & Associates, which provides
investment account management; World Asset Management Inc.; and W.Y. Campbell & Company, an investment bank specializing in middle market
M&A advisory services.
California, here we come

Comerica’s growth in 2008 was heaviest in California: the bank opened 14 new banking centers in the state, 10 of which were in Southern California.
These included four new offices in Los Angeles and three in the San Diego area. Executive vice president Betty Rengifo Tucker, who oversees
Comerica’s retail operations in the Western U.S., said that she was particularly interested in targeting “concentrations of thriving small businesses, such
as the business districts in Koreatown in Los Angeles, or in the Hillcrest neighborhood of San Diego.”
The Golden State was the recipient of Comerica’s charity in 2008 as well. In November, the bank made a $20,000 grant to Lincoln Elementary School
in Oakland, which enabled the school to reopen after-school enrichment programs that had been the victim of city budget cuts.
IN THE NEWS
March 2009: More cuts

Executives made another 570 job cuts within the first quarter of 2009. The workforce reductions are expected to save at least $35 million annually.
Comerica has also pledged to freeze 2009 salaries for the top 20 percent of its workforce, and is looking for ways to streamline operations and contain
costs by using technology. Despite the worsening economic climate, Comerica opened 28 new banking centers in 2008, but it’s planning to put the
brakes on growth in 2009.
January 2009: Taking precautions

Comerica made yet another move to secure its capital, cutting its dividend from 33 cents per share to 5 cents per share. The cut should preserve
approximately $170 million in capital reserves. As CEO Ralph W. Babb Jr. explained, “Even though we expect credit quality in 2009 to remain
consistent with 2008, prudence dictates we retain capital in this uncertain economic environment.”
Before the cut, Highline Financial had ranked Comerica as the country’s holding company with the sixth-highest dividend payouts.

Comerica Bank
December 2008: Cuts, freezes, confidence

As the economic downturn of 2008 took its toll, Dallas-based Comerica made a series of moves to shore up its position. The bank slashed 5 percent
of its workforce over the course of 2008. “Mounting job losses and an economy headed deeper into recession have dampened business and consumer
confidence,” said chairman and CEO Ralph W. Babb Jr. in a statement. Babb also revealed that nonperforming loans and loan charge-offs doubled
for Comerica during 2008, with significant losses tied to residential development loans in California.
December 2008: A bright spot

Despite the tumultuous year, Comerica had some good news to report. As of December 31, 2008, total assets stood at $67.5 billion, and its Tier 1
capital ratio is estimated at 10.7 percent. Average loans grew 6 percent nationwide in 2008, with the biggest loan growth in Texas (14 percent).
Of Comerica’s three business divisions, its retail bank suffered the most in the fourth quarter of 2008, reporting a $34 million net loss. The wealth and
institutional management group reported $13 million in net income for the quarter, and the business bank led the way with $54 million in net income.
October 2008: Signing up for help

As the federal government unrolled plans to stabilize the financial sector, Comerica announced that it had received approval from the U.S. Treasury
Department to participate in Treasury’s capital purchase program, to the tune of $2.25 billion. Two months later Comerica said it would continue to
participate in the temporary liquidity guarantee program, which provides its customers with a full guarantee, without any dollar limitation, on funds held
in all of Comerica’s noninterest-bearing accounts through the end of 2009. The program, which was designed to restore liquidity to the national
banking system, also provides FDIC guarantee on newly issued senior unsecured debt until the debt matures, or June 30, 2012, whichever is earliest.
One potential hitch: Comerica’s 1998 agreement to pay $66 million over 30 years for naming rights to the Detroit Tigers stadium is now under scrutiny,
as some lawmakers say that banks receiving federal assistance shouldn’t spend such large sums on branding rights.
GETTING HIRED
Blaze your own path—or tread Comerica's

Peruse the “career center” link at www.comerica.com and conduct your own search for jobs across the country—or check out Comerica's list of
“featured jobs,” which draw from a listing of all available positions. Though one insider finds that “candidates with several years of experience are
hired very easily and entry level is very difficult,” another banker maintains that “qualified candidates are subject to internal promotions, which make
it somewhat more difficult to be hired as an external candidate.” Another source notes, “The company has an internal credit program and hires from
within," but "also looks to find experienced personnel from other banks.”
Once the firm expresses interest, expect “a number of phone interviews” prior to a flesh-and-blood one. After they call you in, you may go through
“up to four interviews" or even "a half-day of meetings at the home office.” And anticipate facing questions involving “career goals,” “specific
accomplishments” and assorted job-related scenarios. One insider who went through two round of interviews says he was “hired the same day” as
his second-round Q&A. “My skills and work history were all they were looking for,” he adds.
In general, the firm is “very strong at developing talent,” so if you’re interested in a position with the company, be sure to put your best foot forward.
“Impress interviewers by having a knowledge of the company and read information on the Comerica website,” suggests one insider.
OUR SURVEY SAYS
One of a kind
The company has a “very unique corporate culture,” but it’s one that also tends to “vary from market to market.” In California, for example, the culture
is “fast-paced, results- and customer-driven” with a “stress placed on taking creative and performance-related risks.” Generally, though the firm has
a “conservative” culture with a “high focus on regulations and customer retention,” it also boasts “great people to work with.”
When it comes to compensation, Comerica receives mixed reviews. One insider complains “my bonus is just a little over $5,000” and another says
that the firm's stock option program—which is only available to senior officers—is “not very generous.” And while the company “does provide some
perks,” it's also “pretty tight” when it comes to expenses, insiders say. New employees receive “two weeks of vacation,” “six sick days per year” and
“three personal days.”

Comerica Bank
All about respect

Insiders report being “treated with a good deal of respect” by managers. “Managers are very open and supportive,” says one source. “They want you
to succeed.” A colleague in corporate finance agrees: “There is respect for all within our group from all levels of management."” Yet another says,
“Executive management works hard to know as many people in the organization as possible and understand their roles and contributions to our
success.” Although one naysayer believes, “Management is not supportive of getting the best out of their employees,” at the end of the day, most
respondents describe Comerica as having an “open-door policy.”
Working “many different hours” is pretty common within Comerica. Still, hours typically number around 40 to 50 per week, and some respondents
report setting their own hours. But some Comerica insiders say that the firm's emphasis on “productivity and cost containment” can translate to heavy
workloads and long hours. “With the focus on cost containment, we have an environment that requires long hours, skipped lunches and occasional
weekend days to keep up,” says one source, who reports working 50 to 60 hours a week. A different contact doesn't find the workload so demanding,
not saying, “I have flexible work hours and am measured on production more than on number of hours in the office.” The source adds, “Time can be
taken during normal business hours to participate in volunteer work.” Another source says, “I’ve found the company to be very flexible with employees,
working with hours and scheduling to individual needs as long as the customer is taken care of and the job gets done. This all depends on what field
you are in, of course.” Other sources report schedules hovering between 40 and 50 hours a week. In general, weekend work is not uncommon, with
employees logging in hours on a Saturday or Sunday about once a month.
Follow the gang

Dress tends to be “casual always” with the exception of client contact, but specific departments also have their own dress codes. A vice president in
the firm's asset management group describes the dress code as “formal always,” while her colleague in corporate finance reports “casual always,
except for client contact.” Another contact says, “We do business professional, which is a step up from business casual.” Generally, attire is “business
casual overall," although “some offices prefer to be more formal than not.”
Good opportunities
As for training, Comerica's programs and “educational opportunities are better than at most other firms in this market."” And although “sometimes it
feels like too much,” it's generally “a great benefit to the personal and professional development of those who take advantage of the events.” One
contact notes that there's a “three-week training course in Detroit,” and in the corporate finance group, “Comerica has begun an internal training
program to help further careers.” On the other hand, an insider finds that “one general training course for one or two days per year hardly makes for
a well-trained staff.” On the whole, Comerica “really tries to take care of everyone through training, special groups, outside activities and volunteer
programs.”
Up the ladder?
When it comes to moving up the ladder, “you can advance with the company if you have the proper background, but it is hard now that the company
has made a number of cuts lately,” reports one insider. This “makes it harder than it once was to move up” within the company. Another enthuses
that “the opportunities that Comerica Bank provides for advancement is great!” She adds that “email notices are sent out informing all employees of
opportunities, prior to them being published elsewhere” and “positions of all different levels, departments, and locations are included.”
Committed to maintaining?
Comerica is “very committed to diversity,” asserts one insider. But other sources are mixed as to whether Comerica effectively recruits and retains a
diverse workforce. According to insiders, the firm possesses “a largely female workforce, with largely male senior management. There's been some
improvement by hiring more senior female managers from outside the company, but there's an overall lack of mentoring of current female employees
to bring them up the ranks.” However, another contact observes, “The two top department heads for the company are women, and there are several
women in management roles.”
In terms of ethnic diversity, one insider from the corporate finance division describes the group as “very diverse with several different ethnic
backgrounds represented.” Another source reports that Comerica “takes very seriously the need to be diversified at all levels of the company.”
However, a colleague disagrees, saying, “In California, our employee pool does not match the diversity of the state, particularly with regard to
Hispanics.”

DUFF & PHELPS CORPORATION
55 East 52nd Street, Floor 31 RANKING RECAP

New York, NY 10055
www.duffandphelps.com #3 – Offices
#8 – Hours
BUSINESSES #15 – Compensation
Dispute
Investment Banking
#15 – Selectivity
Legal Management Consulting
Diversity
Tax
Transaction Advisory
Valuation
THE STATS
KEY COMPETITORS
Alix Partners
Ticker Symbol: DUF (NYSE)
Alvarez & Marsal
Chairman & CEO: Noah Gottdiener
Deloitte
Ernst & Young
FTI Consulting
Houlihan Lokey
No. of Offices: 25
Huron Consulting Group
KPMG
Navigant Consulting
Zolfo Cooper
UPPERS
• “Laid-back culture”
• “Senior-level attention”
• “Hours are relatively good for investment banking”
DOWNERS
• “Slightly less brand recognition” than some rivals
• “Below-market pay”
THE BUZZ • “Bureaucratic review format”
EMPLOYMENT CONTACT
www.duffandphelps.jobs
311
Duff & Phelps Corporation
• “Very friendly”
• “Heard bankers were jumping ship”
• “Partnership with Chanin has improved its profile”
• “Are they a law firm?”

THE SCOOP
Beyond research
Headquartered in New York, Duff & Phelps is an independent provider of financial advisory and investment banking services worldwide. It focuses on
offering advice in the areas of valuation, transactions, financial restructuring, dispute and taxation. It has industry expertise in consumer products,
energy and mining, financial services, industrial products, real estate and technology, information, communications and entertainment
Duff & Phelps began in 1932 as an investment research services company with a niche focus on the utilities industry. Over the years, the firm
diversified into other financial services, including investment management, investment banking and credit rating. It also added expertise in other
industries. In 1994, Duff & Phelps sold its credit rating business, and in 2005, it acquired Standard & Poor's Corporate Value Consulting business.
In 2006, it acquired specialty investment bank Chanin Capital Partners, LLC and in 2007, it formed a strategic alliance with Tokyo-based Shinsei Bank,
Ltd. Under the terms of the alliance, Shinsei took a 10 percent stake in Duff & Phelps; in exchange, it offers its Asian clients a range of valuation
services through Duff & Phelps. The year 2008 was one of expansion for Duff & Phelps. The firm made three strategic acquisitions, broadening its
business structure in a variety of different industries.
Today, Duff & Phelps offers valuation, investment banking, transaction advisory, dispute, legal management consulting and tax services. Investment
banking services are provided by Duff & Phelps Securities LLC, the firm’s registered broker-dealer. Duff & Phelps has 25 offices worldwide, and it
employs 1,200 people.
IN THE NEWS
May 2009: Slightly down but looking good

For the first quarter of 2009, Duff & Phelps booked $89.3 million in revenue and $7 million in net income, slight falls versus the respective $93.2
million and $9.1 million it booked for the previous year’s first quarter. Despite the declines, Duff & Phelps management was pleased with the results,
given the tough economic environment. Chairman and CEO Noah Gottdiener noted in an earnings release that “counter- and non-cyclical businesses”
such as restructuring, dispute consulting and portfolio valuation “experienced meaningful growth,” adding that the firm is “well positioned to take
advantage of an M&A recovery while continuing to benefit from the longer-term trends in [its] other businesses.”
May 2009: Big offer

Duff & Phelps raised $97.5 million through a public offering of its common stock. Goldman Sachs acted as lead underwriter on the deal in which
7sevenmillion shares were priced at $14.75 per share. The capital raised will be uses to repay debt and redeem shares in subsidiary Duff & Phelps
Acquisitions LLC.
December 2008: The winning spirit

World Finance named Duff & Phelps the Best Transfer Pricing Team of the year. The award was made even more prestigious because of the fact that
it was determined by the votes of more than 40,000 industry decision-makers who are also readers of World Finance. The title came on the heels of
several accolades that Duff & Phelps received in 2008. The other awards included a nomination for Best Newcomer in the Americas by the
International Tax Review and the inclusion of the leaders of Duff & Phelps' Transfer Pricing practice in the Legal Media Group's Guide to the World's
Leading Transfer Pricing Advisors.
December 2008: Fairness opinion play

According to Thomson Reuters, Duff & Phelps ranked as the third largest fairness opinion advisor in the category of transactions involving a U.S.-based
acquisition targets in 2008. The firm came in behind big players J.P. Morgan and Goldman Sachs, and in front of fellow boutiques such as Houlihan
Lokey. Duff & Phelps booked 45 deals for the year. It also ranked 13th on the tables for deals involving a non-U.S.-based target, with 49 total deals
in that category.
The bank also showed up on Thomson Reuter's charts for M&A transactions. Duff & Phelps placed No. 3 in the category of announced M&A deals
with values of under $50 million. The firm worked on 35 deals in this category with a total value of $261.8 million. In the category of announced deals
under $500 million, Duff & Phelps placed No. 11, with 44 deals that had a total value of $2.8 billion.

September 2008: Earnings on track

Some might say that Duff & Phelps October 2007 initial public offering was ill-timed considering the subsequent turmoil that hit many banks as a result
of the subprime crisis. However, despite the volatility in the market, the bank's earnings have remained relatively stable. As of September 30, 2008,
Duff & Phelps was on track to increase its earnings for a fiscal year that was decidedly difficult for banks. The bank booked revenue of $96.3 million
for the third quarter, an increase of 14.8 percent over its revenue from 2007. For the nine months ending in September 30, 2008, the firm reported
revenue of $287.3 million, an increase of 15.6 percent compared with the previous year.
August 2008: Acquisition time

Duff & Phelps made two major acquisitions. It bought Kane Reece Associates, which provides valuation, management and technical consulting
services. Based out of Westfield, New Jersey, Kane Reece caters to the entertainment, media, and communications industry, serving “blue chip”
clients in nearby New York City. Duff & Phelps also acquired the Lumin Expert Group, which specializes in intellectual property dispute support and
expert testimony. After the acquisition, Lumin's employees in Houston, Texas, were merged with the Duff & Phelps Dispute and Legal Management
Consulting business.
July 2008: Forming an alliance

Duff & Phelps substantially expanded its presence international by entering into an alliance with World Tax Service, a global association consisting of
16 member firms worldwide and an “extensive network” of cooperating firms. At the same time that it unveiled its alliance with World Tax Service,
Duff & Phelps also announced that it would be acquiring the organization's American alliance member, World Tax Service US. (WTS-US). Like Duff
& Phelps, WTS-US is headquartered in New York City. Its services include international and domestic corporate tax structuring, M&A tax advisory,
investment fund structuring and institutional investor representation, and related tax compliance services.
WTS-US now operates as Duff & Phelps, WTS and is part of the firm's Financial Advisory division. WTS-US employees David Neuenhau and Francis
Heverson serve as co-leaders of the office.
June 2008: Expanding in Asia

Duff & Phelps entered the Chinese market, establishing a presence in Shanghai, Hong Kong and Beijing. The firm said it will start its operations in
the country by providing financial reporting and tax valuation, merger and acquisition due diligence, and alternative investments portfolio valuation
services.
April 2008: Buying Dubinsky

Duff & Phelps bought the Maryland-based Dubinsky & Company, which specializes in financial consulting, dispute and litigation support, fraud and
forensic accounting, valuation and expert services.
GETTING HIRED
All schools welcome

Duff & Phelps is “typically very selective, but not as selective as bulge bracket firms,” sources say. However, selectivity is driven by the fact that there
are fewer positions available in at any given time. That means the firm will “interview hundreds of candidates per year for a handful of jobs.”
Duff & Phelps recruits for its investment banking segment from key schools near New York, Chicago and Los Angeles. While some new hires hail from
“the Ivy League,” insiders say, “Traditionally many hires have come from Big 10 schools,” with an emphasis on Illinois, Wisconsin, Indiana and
Michigan. In recent years, as the New York and Los Angeles offices have increased their campus hiring, more hires have come from Northeast schools
like NYU and Cornell, and West Coast schools like USC. The firm also sends representatives to a select number of career fairs and events around the
country; candidates are also sourced “on the Web” via the firm’s careers page.
Technical skills count

Expect two or three interview rounds before receiving an offer. Most preliminary interviews take place “on campus” or “over the phone,” though some
experienced hires may simply participate in “two rounds of interviews at the office.” In some cases, there may be a “third round over the phone with
a managing director.” A current associate says the final in-office round “consisted of five interviews, two with managing directors, two with vice
presidents and one with an associate.” This isn’t uncommon: while on site, candidates end up meeting “almost everyone in the office,” from junior
staff to senior management.

Though candidates are initially hired into specific groups (which shapes the interview process, to some extent), sources say there is some room for
future movement. “I was hired into the financial advisory services group and later moved to M&A,” a contact reports. Interview questions are
“extremely technical,” says one analyst, requiring “a thorough understanding of valuation and corporate finance.” Another contact recalls queries
ranging “from conceptual valuation topics to specific formulas and ‘what-if’ questions.”
Here, there or anywhere

Many Duff & Phelps insiders say they’re unaware of the firm’s internship program, which reveals something about its importance in hiring. To set the
record straight: eight- to 12-week summer internships are available, but according to the firm, “The number of openings available depends on market
demands.”
Participation in the firm’s intern program is “not very important to gain employment,” says one vice president, though another adds that it is “extremely
important to have some financial internship”—it just doesn’t have to be at Duff & Phelps.
OUR SURVEY SAYS
Done and done

Investment banking sources say Duff & Phelps runs “a lean organization” with a “get-it-done” philosophy. This “goal-oriented,” “results-driven” culture
can be “intimidating at first,” but those who thrive in that setting say it’s “fantastic, and allows for leeway in personal life.” “Once you have established
your work ethic, you can leave early and work from home, or choose to work on the weekends rather than stay late if deadlines allow,” one banker
elaborates.
But insiders are quick to note that “professional” doesn’t mean uptight or unfriendly. “I came in from an office at another company that was stiff,
intense and cold,” a lateral hire says. “The balance of D&P's culture was like a breath of fresh air.” In general, the firm “is very flexible,” but “work
must get done accurately and in a timely fashion.” If there’s one complaint at Duff & Phelps, it’s that the firm needs to “increase compensation” for
the majority of its employees.
Raises, please
Middling marks on pay come from insiders who say their compensation is “below the level it should be.” Benefits include “three weeks of vacation,
and meals and transportation home are reimbursable when working overtime.” Employees may also receive “stock options and restricted stock grants,”
but “incremental special perks, like fitness clubs and golf memberships, have largely been eliminated.” Some new hires also report receiving “no
signing bonus,” but chalk that up to “a reflection of the current financial crisis.”
Great experience
“During this financial meltdown I have gotten the opportunity to work on deals that have put me at the center of the financial world,” says one M&A
insider who calls himself “very pleased” with the firm and the department. “The technical rigor that I have come accustomed to has enhanced my
general knowledge base and attention to detail.”
A recent corporate finance hire sounds a similar note, saying, “I have worked on very prestigious projects in my short time with the firm.” Another
corporate finance insider notes that the department “pays well” relative to other groups, but wishes he “was able to foster a better relationship with
some of our MDs.”
Meet your BlackBerry

“Although we spend a lot of hours in the office, the time is used efficiently,” say sources, and thanks to current technology, “work can be performed
from most anywhere.” (The downside: “We are expected to be available and accessible by Blackberry at all times.”) As a result, many people end
up working from home at night or on the weekends—one M&A insider estimates that in addition to office time, there’s “an extra 10 to 20 hours per
week” of off-site time.
Though hours may be slightly less than at bigger banks, they can change on short notice. “My hours have ranged from 70-hour workweeks to 50-
hour weeks based on specific projects and the overall capacity of the office,” one analyst says. Another source reckons “It's a solid 60-hour workweek
on average. Sometimes it's much more, and sometimes it's a bit less.” And thanks (or no thanks) to the recession, “this past year wasn't nearly as
hectic as the prior year in terms of hours worked,” says a corporate finance insider. “However, things can get very busy very quickly, so it’s often
difficult to make plans on evenings, holidays and weekends.”

FBR CAPITAL MARKETS
1001 19th St. North KEY COMPETITORS

Arlington, VA 22209
Phone: (703) 312-9500 Cowen and Company
Fax: (703) 312-9501 Fox-Pitt Kelton
www.fbrcapitalmarkets.com Keefe, Bruyette & Woods
BUSINESSES UPPERS
Asset Management • “Very collegial and fun relative to other investment banks”
FBR Mutual Funds • “Senior managers and peers care about your quality of life
Institutional Brokerage outside the office”
Investment Banking
Managed Funds
Merchant Banking
DOWNERS
Private Wealth • “Can definitely improve on the diversity issue”
Research • “Bankers are paid well below Wall Street averages”

Employer Type: Public Company See “working at FBR” under at www. fbrcapitalmarkets.com
Ticker Symbol: FBCM (Nasdaq)
Chairman & CEO: Richard J. Hendrix
No. of Offices: 9
THE BUZZ
• “Okay in FIG”
• “Respected specialist”
• “Who?”

FBR Capital Markets
THE SCOOP
Changes afoot
In 2008, FBR Capital Markets benefitted—big-time—from the demise of Bear Stearns. It hired a number of industry veterans, expanded its San
Francisco practice and initiated trading on the London Stock Exchange. On the downside, it also posted losses for three quarters straight and enacted
several rounds of job cuts.
Aside from its own challenges, FBR Capital Markets must also face its parent company’s instability. FBR Group’s 2008 returns were so disappointing—
it posted a $169 million net after-tax loss in the third quarter alone—that FBR Capital Markets’ former CEO Eric F. Billings announced that the FBR
Group was exploring the possibility of putting itself, or its subsidiaries, up for sale.
Top bookrunner
Based in Arlington, Va., FBR Capital Markets Corporation offers a full range of investment banking, institutional trading and asset management services.
In addition to headquarters in the Washington, D.C.-metropolitan area, the firm has U.S. offices in Boston, Dallas, Houston, Irvine, New York and San
Francisco. International outposts are maintained in Sydney and London.
At its inception, FBR Capital Markets set out to deliver research on a select group of industries. The firm has since expanded its capabilities, and today
concentrates on eight industries: consumer, diversified industrials, energy and natural resources, financial institutions, health care, insurance, real
estate, and technology, media and telecommunications. FBR Capital Markets complements its advisory, sales and trading offerings with an equity
research team that covers more than 570 companies.
FBR Capital Markets is a subsidiary of Friedman, Billings, Ramsey Group (FBR Group), a real estate investment trust (REIT) that invests for the benefit
of its shareholders in mortgages and mortgage-related securities as well as in a merchant banking portfolio of equities and other long-term assets. The
firm was founded in 1989 with an initial investment of $1 million and fewer than 20 employees. But it grew fast, reaching $1 billion in gross revenue
only 15 years after opening its doors.
I-banking gets its own identity

In 2005, FBR Group made the decision to separate its investment banking business—its longtime star performer—from the rest of the company.
Things became official in June 2007 when the IPO of FBR Capital Markets Corporation went through, creating two separate public companies. The
firm began trading on the Nasdaq Stock Exchange under the symbol FBCM on June 8, 2007. FBR Group remains the majority owner of FBR Capital
Markets.
IN THE NEWS
June 2009: Top pickers

Forbes presented seven FBR analysts with its Blue Chip Analyst Awards, among them Paul Miller (No. 1 earnings estimator in thrifts and mortgage
finance), Alex Rygiel (No. 1 stock picker in construction and engineering) and Matthew Snowling (No. 1 earnings estimator in hotels and leisure).
April 2009: Still rough sailing

FBR Capital Markets brought in $49.9 million in revenue in the first quarter compared with $104.08 million in the first quarter of 2008. The firm also
posted a net loss for the first quarter of $16.17 million compared with a net loss of $10.17 million for the previous year’s first quarter. In a statement,
president and CEO Richard J. Hendrix said, “The equity capital markets environment remained extraordinarily challenging in the first quarter, and we
expect this could continue to be the case throughout 2009.”
February 2009: Seen better days

For full-year 2008, FBR Capital Markets posted $194.37 million in revenue, down from the $484.9 million it posted for 2007. The firm also posted a
net loss of $194.73 million for full-year 2008, compared with net income of $5.24 million in 2007. The company cited severance costs, net investment
losses and stock compensation expenses as reasons for the sharp declines.

FBR Capital Markets
December 2008: So long, and thanks for all the fish

The Washington Post reported that Eric F. Billings was leaving his post as CEO of FBR Capital Markets. Billings remains chairman, however, and will
also retain his post within the FBR Group. Richard J. Hendrix, president of FBR Capital Markets, was named his successor effective January 2009.
Billings, the Post reported, was the last of the FBR founders to retire. “I'm 56 years old, and it's a young man's game,” Billings told the paper.
December 2008: Wave after wave

In December 2008, The Washington Post reported that FBR Capital Markets FBR was laying off some 70 employees—just over 10 percent of its
workforce. “Going forward we will continue to be operating in a market that is not only unprecedented in the extent and severity of its dislocation, but
where the rules of the road and a large part of the competitive landscape have changed, and are continuing to change,” then-CEO Eric F. Billings told
the Post. Previously, in summer 2008, the Post reported that FBR Capital Markets slashed about 100 jobs, decreasing firm headcount to 650 from
758.
November 2008: Another hire

The firm hired Trey Whipple from Morgan Stanley as managing director for its convertible securities team.
October 2008: Heading up investment banking

The firm named Kurt Oehlberg, Sharon Weinstein and Christopher Weyers managing directors for its investment banking group. Oehlberg previously
worked for Rothschild, Weinstein for Wachovia Securities and Weyers for Fortis Securities.
August 2008: Bear’s loss is FBR’s gain

FBR Capital Markets fortified itself with a spate of senior-level hires. In August, it hired John D. La Voie and Brian F. Thom from J.P. Morgan as
managing directors for the financial sponsors, and energy and natural resources groups, respectively. Also, Bear Stearns alum Jorge Solares-Parkhurts
was named managing director within the financial institutions team.
June 2008: London and San Francisco-area expansion

FBR announced that beginning in June 2008, its international subsidiary, Friedman, Billings, Ramsey International, would begin trading on Euronext
and the London Stock Exchange. That announcement was accompanied by the hiring of Blaine Mooney from Deutsche Bank, who was named FBR’s
senior vice president and head of European trading within the institutional equity trading group.
June 2008: Bringing ‘em back from Bear

The firm initiated trading of convertible and equity-linked securities. For that effort, launched in June, it brought in a large number of former Bear
employees: Michael Lloyd, Paul Rosica, Robert Meringolo and Thomas Suigiura, who were senior managing directors; John Wright, a former managing
director; and Ronald K. Schulhof, an associate director. FBR also added Adam Wachter from Morgan Stanley and KBC Financial Products’ Charles
Ng to the convertible trading roster. Lloyd and Rosica direct the group.
The firm also benefitted in 2008 from Bear’s demise by hiring Jon M. Jensen, a former Bear senior managing director, and Michael Derby, former Bear
managing director, for its institutional brokerage. But the feather in FBR’s cap was the hiring of Daniel W. Blood, former Bear Stearns senior managing
director who was named FBR’s Head of Debt Capital Markets.
June 2008: Amazing analysts

Bloomberg named Paul Miller, group head of financial services research, and Rehan Rashid, group head of energy research, to the No. 1 and No. 10
spots, respectively, on its ranking of more than 3,000 analysts.
May 2008: Many lights in the darkness

In spite of the poor returns and layoffs dogging FBR in 2008, Forbes named its analyst Adrienne Tennant, who focuses on the non-food retailers and
wholesalers sector, No. 11 among all security analysts, on account of her stock-picking over the past three years. She was also ranked No. 1 in her
industry sector.
April 2008: One big deal

FBR Capital Markets was named lead placement agent and financial advisor for Thornburg Mortgage’s $135 billion private placement.

FBR Capital Markets
March 2008: Executive sea change

FBR Capital Markets named Bradley Wright executive vice president and CFO. Wright was also appointed to the firm’s executive committee. Like
many other hires in 2008, he joined from Bear Stearns, where he had been senior managing director in charge of finance for private client services.
March 2008: On the peak

The firm acquired East Peak Advisors, a San Francisco-based investment bank. As part of the deal, East Peak founder Daid DeRuff was named senior
managing director and head of technology, media and telecom investment banking for FBR Capital Markets. He was joined by other members of East
Peak, including his co-founder, Brewer Stone, Kurtis Fechtmeyer, M. Christina Laskowski, Scott Stewart, and Noel Torres, who were named to DeRuff’s
technology, media & telecom team.
GETTING HIRED
The right stuff

With the right expertise, personality and inside connections, getting interviewed at FBR seems like a relatively easy task. However, one source notes
that “FBR has more candidates than job openings, so competition for positions is fairly stiff,” which makes it even more difficult to get hired into a
satellite office such as the New York outpost. Given the small size of FBR, the firm is able to be more selective than its Wall Street counterparts, who
typically hire dozens of new analysts each year, making it very hard for qualified applicants to gain employment within the investment banking group.
At FBR, the firm typically “looks for very ambitious and hungry candidates. A top school is important but not essential.” Insiders say the
interviewing/hiring process is less competitive than competitors. However, as FBR continues to work on its branding strategy to improve the stature of
its name, “the prospective applicant pool seems to be more competitive and impressive.”
Meshing with the gang

At this firm, not only do you need industry expertise, but the “right” personality will get you farther than anything else. At FBR, hiring teams are known
for their focus on “people fit.” “Once prerequisite skill sets are determined, FBR will then focus on how well candidates will mesh with the group.”
Insiders advise that making an effort to get to know the firm and its culture, and talking frequently to current employees will help your chances of getting
hired.
Campus recruiting is a big aspect of the hiring process at the firm. FBR typically reaches out to a younger crowd for its analyst class, often heavily
recruiting at local area universities and those in the South, including Georgetown, Duke and UVA. FBR has “a rich pool of candidates locally because
of the top-notch MBA programs nearby, but the firm also recruits at various schools across the country.” The firm also host events, such as informal
dinners the night before “Super Saturday” interviews, to help acquaint recent graduates with younger employees.
Be prepared
Typical candidates will have anywhere from four to 12 interviews, and meet with several members of specific groups at all levels of the organization. It
is a tremendous perk that candidates are given the opportunity to meet the entire management. Accordingly, candidates need to be prepared going
into the interview to handle all different personality types, and be able to answer behavioral- and industry-related questions, such as “Do you
understand rigors of investment banking? How would you value a company? Are you aware of the long hours? And why do you want to work for FBR
rather than a Goldman or Morgan Stanley?”
Inside connections
Having the right contacts will also make it easier to land an interview at FBR. As one insider dutifully notes, “Outside of family and friendship
connections, it's tough to get hired here.” Heavy emphasis is placed on recruiting employees through referrals so knowing someone on the inside will
help you get farther. Additionally, insiders who previously interned with the firm prior to full-time employment have a better chance of getting hired.
FBR is usually more willing to hire one of its own interns over someone with internship experience outside the firm, because interns are typically
assigned the work of a first-year analyst—”models, briefs, morning notes, assisting with stock picking”—and not just on “coffee duties.” Several
insiders note that their “performance as an intern was the determining factor in receiving an offer.”

FBR Capital Markets
OUR SURVEY SAYS
Once you're in, you're in

Although it is competitive to get into FBR's investment banking division, once you're in, you'll be able to enjoy the benefits of a better work/life balance
than those of your peers at other large firms. One insider says, "Overall, I really enjoy working at FBR. I don't feel like I work at a banker factory, and
that makes a big difference.” The firm's friendly atmosphere is present from the moment candidates arrive on FBR turf, as one contact says his
“interviewing group was very friendly.” The culture at the firm is relaxed, and as one insider notes, “it is very collegial and fun relative to other
investment banks.” Others note that the culture is informal and geared toward those younger in age. “The firm's culture is entrepreneurial and the
organizational structure is relatively flat. In general, I would characterize the environment as team-oriented,” notes one insider. FBR has casual Fridays
and regular employee outings.
“Everyone is generally happy to be working at FBR. The mentality seems to be work hard and play harder. Unlike New York banks, people at FBR
have lives outside of work.” “People are not pigeonholed into doing only certain tasks,” notes an inside contact. “Responsibility is given when earned.
Senior managers and peers care about your quality of life outside the office. Everyone understands the nature of investment banking, but also allows
everyone to enjoy nonwork life and have fun as much fun as possible."
One drawback is the lack of diversity. Although the firm is accessible to qualified candidates of all background, the firm is not very diverse currently.
“It's still a growing firm and so it can definitely improve on the diversity issue and attract people from different backgrounds.” Several insiders wish
that the firm would do more to “establish specific programs to recruit and retain women, ethnic minorities, and gay and lesbian candidates at all levels
of the organization.” Another source says the firm needs more “mentoring programs, specifically to recruit, train and socialize women.”
Running the show

Management is held in high regard by insiders, even from the initial interview. One contact says, “The personality match with your superiors is key.
Instances where it clashes can make life tough, especially given the hours you work, but this is where the candidate's impression from the interview is
important.” Upon arrival, first-year analysts are treated particularly well by management. “FBR doesn't have the typical Wall Street culture of making
the first-year analysts' life hell,” notes an insider. The flat management structure also makes for a supportive environment at FBR at all levels of the
organization. “I feel respected for my talents, recognized for my contributions and rewarded appropriately for the job I do,” says one insider.
The management team further supports the firm's culture by ensuring their employees do their job, but also have adequate play time. “Your superiors
are always happy to get you out of the office when the day's work is done and will generally encourage you to leave early if the previous night was
especially late,” notes an insider. According to another contact, “My direct senior manager and head of the group are the reason I do this job.”
A dime for your time

Most employees typically put in 50 to 60 hours a week, which is not typical for competitor firms. However, it does vary by department. “You have a
life while getting paid a decent amount of money. There are face times, but it's not as bad as at other banks. You can leave if you have an occasion,
such as an appointment.” Accordingly, the firm offers the flexibility to work from home when necessary. One insider notes he “generally spends about
nine to 10 hours in the office and works at home later in the evening when necessary.” Another contact, in research, says, “Time demand is driven
by senior analysts and sectors covered.” Another perk is an employee's “ability to leave freely and not have to wait for the person above you to leave
first.” Additionally, most employees typically don't work weekends, with the exception of a day here or there. “Weekend work is common but not
expected. You'll know when you have to come in and you won't be alone. It is generally only required when something needs to be finished by Monday
morning, and will rarely be both [weekend] days.”
Despite high overall employee job satisfaction, FBR is not known for shelling out the big bucks for salaries. One source notes, “The compensation
structure needs to be reevaluated. The bankers are paid well below Wall Street averages.” Another source notes, “With most of the company based
outside of New York, total compensation tends to be at a slight discount to the Street, at least in the investment bank.” FBR does try to make up for
its lack of pay by offering a comprehensive benefits package, an employee referral bonus, a free gym at its headquarters, free breakfast and lunch,
and a new 401(k) matching program. The firm also has a strong charitable culture, allowing employees to contribute to the charity of their choice each
year, with the firm matching contributions up to $300, and matching employee volunteer hours with cash contributions up to the same $300 rate.

FIFTH THIRD BANCORP
Fifth Third Center KEY COMPETITORS

38 Fountain Square Plaza
Cincinnati, OH 45263 LaSalle Bank
Phone: (800) 972-3030 U.S. Bancorp
www.53.com
UPPER
BUSINESSES • “Superior” benefits
Branch Banking
Commercial Banking
Consumer Lending
DOWNER
Investment Advisors • “Internal advancement is slow”

Employer Type: Public Company See “careers” section of www.53.com
Ticker Symbol: FITB (Nasdaq)
Chairman, President, & CEO: Kevin T. Kabat
No. of Offices: 1,300+
THE BUZZ
• “Midwest-focused”
• “Troubled”
• “Regional consumer bank”
• “Who?”
321
Fifth Third Bancorp
THE SCOOP
Midwest contender
Fifth Third Bancorp began its existence in 1858 as the Bank of the Ohio Valley. In 1871, the Bank of the Ohio Valley was acquired by the Third National
Bank, and in 1908, the combined company decided to merge with The Fifth National Bank, creating the Fifth Third National Bank of Cincinnati. The
name was subsequently changed to its current form.
Today, Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of June 2009, it had $116 billion in assets,
and operated through had 16 affiliate companies and 1,306 full-service banking centers in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida,
Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: commercial banking, branch
banking, consumer lending and investment advisors. Fifth Third also has a 49 percent interest in Fifth Third Processing Solutions, LLC.
Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2009, has $180 billion in assets under care, of which it managed
$24 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth
Third's common stock is traded on the Nasdaq National Global Select Market under the symbol "FITB."
Losing Cincinnati
Cincinnati Financial Corporation, once Fifth Third's largest shareholder, has been slowly selling off its stock for the past few years as Fifth Third's profits
have declined. Its first major move came in October 2007, when it sold 5.5 million shares of its Fifth Third stock. The divestiture continued in July
2008, when Cincinnati Financial sold an additional 35 million shares. The July stock sale was in reaction to Cincinnati Financial's displeasure with the
announcement that Fifth Third would be cutting its dividend from 44 cents per quarter to 15 cents per quarter. The final blow came in January 2009,
when Cincinnati Financial announced that it was selling its remaining 12 million shares of Fifth Third when the bank announced that it would be forced
to cut its dividend once again—this time to a penny per quarter.
Legal troubles
As if its financial troubles weren't enough, Fifth Third Bank also ran into some legal troubles in 2008 in the form of two lawsuits. The first was filed by
the law offices of Brodsky & Smith of behalf of U.S. citizens who purchased the common stock of the bank during the period of October 19, 2007 and
June 17, 2008. Brodsky & Smith allege that the “defendants violated federal securities laws by issuing a series of material misrepresentations to the
market, thereby artificially inflating the price of FITB.”
In November 2008, the bank was named in a lawsuit brought against 19 different defendants including Wachovia, Wells Fargo, and Deutsche Bank,
in which LML Patent Corp. alleged an infringement of U.S. Patent No. RE40220. The patent for which LML is suing relates to electronic check
processing methods and systems.
IN THE NEWS
July 2009: TARP repayment on hold for now

Fifth Third Bancorp returned to profit in the second quarter after selling a majority stake in its credit card processing business. The bank posted a net
income of $856 million, or $1.15 a share. In the same quarter a year-earlier, the Cincinnati bank lost $202 million. During the quarter Fifth Third
completed the sale of a 51 percent share in Fifth Third Processing Solutions business to Advent International. CFO Ross Kari said the bank will wait
until the economy improves until it repays cash from the government.
June 2009: Making its quota

Fifth Third Bancorp exchanged 60.1 million common shares and $229.8 million in cash for $696.2 million of depositary shares. The firm said that
the exchange, combined with a $1 billion common stock offering, has surpassed the $1.1 billion common-equity increase the government said it
needed after its stress test earlier in 2009. Fifth Third also said that it anticipates that its joint venture with Advent International will close within the
second quarter 2009. The venture is expected to produce an added $1.2 billion in Tier 1 common equity for Fifth Third.
May 2009: Refinancing nearly $2 billion

Eight weeks after Fifth Third Mortgage Company, a subsidiary of Fifth Third Bank, announced its intention to participate in the government's
Homeowner Affordability and Stability Program (HASP), customers have been refinancing at a record pace. Since the program began, Fifth Third

Fifth Third Bancorp
Mortgage Company has worked with more than 11,000 homeowners to refinance more than $1.95 billion in loans, refinancing more Freddie Mac loans
than any other lender in the country.
April 2009: Tough quarter

For the first quarter of 2009, Fifth Third brought in $781 million in revenue, down from the $826 million it posted in the first quarter of 2008. The
company also posted a net loss of $26 million for the quarter compared with net income of $286 million for the previous year’s first quarter. Explaining
the results, CEO Kevin Kabat said “net interest income and margin were lower in the first quarter, as expected, and bottomed out in January reflecting
the effect of lower market rates on asset yields, which reprice more rapidly than our liabilities.”
March 2009: Majority sale

Fifth Third agreed to sell a 51 percent share in its processing division to private equity firm Advent International. Through the creation of a new joint
venture, Fifth Third will keep 49 percent interest in the new firm, called Fifth Third Processing Solutions LLC. Advent, meanwhile, will give Fifth Third
$561 million, a move that Fifth Third says will significantly boost its balance sheet. Despite receiving $3.45 billion in federal funds, Fifth Third has
continued to reach for additional capital.
March 2009: Going Mobile

Fifth Third Bank launched its mobile banking service, Fifth Third Mobile Banking, which allows customers to use their mobile phones to view account
balances as well as pending and posted transactions. It also allows customers to transfer funds, and find Fifth Third ATMs and branch locations. Those
who enroll can sign up to receive text alerts regarding balance levels and statement availability, among other services.
January 2009: Silver lining among the loss

The bank reported a net loss of $2.2 billion for the year which was “driven primarily by goodwill impairment, credit actions, higher credit costs and
market valuation adjustments.” The earnings report included a non-cash goodwill impairment charge of $965 million, loan losses of $800 million, and
a $729 million provision for excess loan losses. There was some good news for the bank—payments processing revenue and deposit service revenue
were up 3 percent and 2 percent, respectively, while corporate banking revenue grew 14 percent. The bad results continue a five-year downward
spiral for Fifth Third, which has lost over 96 percent of its stock value since 2004.
December 2008: Piece of the pie

Fifth Third Bancorp announced that it had completed the sale of approximately $3.4 billion in preferred shares to the U.S. Department of the Treasury.
The sale was part of the government's Treasury Capital Purchase Program, which a division of the government's larger Troubled Asset Relief Program,
designed to provide a stronger capital foundation for financial firms, and to increase credit availability to consumers and businesses. The agreement
was that 136,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock were sold with a 10-year warrant to purchase up to 43 million shares of
common stock at an exercise price of $11.72.
November 2008: Rotating CFOs

Fifth Third recently filled the open position of chief financial officer with Ross J. Kari, a highly experienced executive who previously served as the CFO
of Safeco Corporation in Seattle. Kevin Kabat, chairman, president and chief executive officer of the firm, named Kari to the position on November 12,
2008. He replaced Dan Poston, who had served as interim CFO since the departure of Chris Marshall in May 2008. Marshall's resignation came after
a tenure lasting less than two years.
The position of CFO has been one which has historically been lacking in longevity at Fifth Third. Before Marshall, the previous CFO, R. Mark Graf
served in the spot for less than a year before he became the “fall guy” for the company's troubles at the time and was let go. With broad experience
in the financial industry, including positions with Wells Fargo, KKR, and the Federal Home Loan Bank of San Francisco, Kari may fare better in the
position.
November 2008: Free bird

Fifth Third announced that it would be acquiring all the deposits of Freedom Bank in Bradenton, Florida, from the Federal Deposit Insurance
Corporation. Freedom Bank was declared insolvent by the FDIC on October 31st and shortly afterwards, the FDIC-approved the assumption of its
deposits by Fifth Third Bank. At the time of its bankruptcy, Freedom Bank had $250 million in deposits.

Fifth Third Bancorp
June 2008: Up and coming down south

Fifth Third moved to increase its presence in the southeast U.S. with its purchase of First Charter Corp., a North Carolina-based regional bank. The
$1.1 billion deal added 59 retail banks in North Carolina and Georgia to Fifth Third's southeast presence.
GETTING HIRED
Learning the ropes

Training is a big priority at Fifth Third, as the company runs several training programs for new hires, including associate programs in finance,
commercial banking, investment advising, retail banking (focusing on branch operations, customer service and office managers), operations and IT.
For GPA and background requirements, as well as open job postings, see the career section of the firm's website (www.53.com). Candidates also can
submit resumes through that site. "We are very selective about the talent we hire," notes a source inside the company. Other sources say the firm is
about average when it comes to selectivity.
As far as the interview process goes, be sure to do your homework. “Interestingly enough, I was not asked very many questions when I interviewed
for the bank—rather, I was given the opportunity to ask all the questions I could.” (One insider even says “I didn't know enough then to ask the right
questions.”) Another contact relates a surprising scenario and says that in one of his interviews, “the vice president in the affiliate warned me about
the sink-or-swim mentality of the bank, and advised me to be careful before accepting an offer.”
OUR SURVEY SAYS
Fluid but not quite laid-back

While the bank is an "extremely fluid" and a “very goal-driven” environment to work in, it also can be “confusing.” On the plus side, “it is good if you
are of an entrepreneurial mindset and have great people skills, because you can for the most part decide your own direction, work how you want to
work and come up with your own unique style of doing business.” But then again, “the lack of structure can be maddening sometimes.” “There is
not usually any accepted process or procedure for getting something done,” explains one insider. “If one exists, it is not documented well or at all and
many of the key players do not know how to do it correctly.” Because of this, networking is key. “The only way to get something accomplished is to
build internal relationships with competent people and then leverage those relationships."
Maybe because of this (or in spite of it) “internal advancement is slow,” and “the bank tends to place new hires from other organizations in better
positions than they were at their organization rather than promote internally.” “For that reason, it's always good to keep your resume on the market,”
one insider advises. But in the meantime, be prepared to dress to the nines. The dress code “is strict and conservative banking style, with few casual
days.”
Lots of benefits
The firm offers “superior” benefits, such as “dependent day care FSAs,” “401(k) matching,” “electronic filing of out-of-pocket expenses,” “stock
options” and “profit sharing.” Compensation receives average ratings from employees—”pay is good, not great or poor.” But this factor may hinge
largely on your negotiation skills. “If you negotiate well, you can get top dollar, believe it or not,” confesses one insider. “Some people get paid way
more than what they would get at one of the Fortune 500.”
Hours, meanwhile, get high marks, as sources report working anywhere from “40 to 50 hours a week” to “50 to 60,” but not much more. “The hours
are great," reports one happy insider. But it's also "good to not be the last to arrive and first to leave.”
As for managers, one insider says, “I've been lucky to work for someone who is not only a good manager but is a good person.” “At Fifth Third, the
manager makes all the difference,” adds one insider. “If you are making a decision on whether to work for the bank, make sure you know who you
are working for.”
In terms of work/life balance, you can generally “set your own schedule and as long as you're making your goals.” Plus, most sources report “rarely”
having to work on the weekends, and vacation time tends to be generous, with the option to buy even more time annually.
Working its way up

In terms of diversity, the company is “great at the lower levels, but at the upper levels it is more typical of a Midwestern good-old boys' club.” Mostly,
however, diversity with respect to women and minorities gets decent marks from contacts. Another source says that the firm “is very focused on
diversity,” but a different contact feels that “the firm doesn't take diversity very seriously.”

FIRST HORIZON NATIONAL CORPORATION
165 Madison Avenue KEY COMPETITORS

Memphis, TN 38103
Phone: (901) 523-4444 Regions Financial
Fax: (901) 523-4030 SunTrust
www.fhnc.com
UPPER
BUSINESSES • “Very supportive team culture”
Banking
Business Banking
Capital Markets
DOWNER
Investing, Insuring & Planning • “Limited” resources
Loans & Lending
EMPLOYMENT CONTACT
THE STATS
See “careers” section of www.fhnc.com
Ticker Symbol: FHN (NYSE)
President & CEO: Bryan Jordan
2008 Net Income: -$192 million
No. of Offices: 200 bank locations, 14 capital markets
locations
THE BUZZ
• “Never heard of them”
325
First Horizon National Corporation
THE SCOOP
What’s on the horizon

First Horizon National Corporation is a national corporation that includes FTN Financial, its capital markets division and one of the nation's top
underwriters of U.S. government agency securities; and First Tennessee Bank, which offer retail and commercial banking services. Historically, First
Horizon's regional banking segment has produced the bulk of its revenue followed by mortgage banking, capital markets and the corporate unit. First
Horizon has been on AARP's list of Best Employers for Workers Over 50 every year since 2003, and Working Mother's 100 Best Companies for Working
Mothers list since 1995.
Est. Memphis, 1864

First Horizon can trace its roots back to 1864, when the Civil War brought Memphis, Tenn., under military control, virtually ceasing trade in the city
and moving business to a standstill. Local resident Frank S. Davis believed the answer to his hometown's woes could be found in the National Banking
Act, which had been passed the year before. This law created a system of national banks chartered and supervised by the federal government, and
Davis was determined to bring a bank to Memphis. The institution he founded, the First National Bank of Memphis, was his city's first national bank
and the predecessor of today's First Horizon National Corporation.
Davis' bank survived the rocky rebuilding of Memphis, as well as two yellow fever epidemics and two world wars. By 1967, it was the largest bank in
the mid-South. It was reorganized in 1971 as a multi-bank holding company and renamed First Tennessee National Corporation. When the company
expanded into Virginia in 2003, it named its branches First Horizon, and in 2004 the company was officially renamed First Horizon National Company
to reflect its reach across the U.S. Today, First Horizon remains a major player in its native Tennessee and the South, but its growth has taken its offices
into more than 40 states and around the country.
IN THE NEWS
July 2009: Not meeting expectations

First Horizon posted a $123.2 million loss for the second quarter 2009 compared with the $19.1 million loss it booked for the same period a year
earlier. Revenue also took a hit, dropping 23 percent to $491.4 million—a lower figure than the $566 million analysts had expected. While the
company’s loan-loss provisions decreased 13 percent to $260 million from the previous quarter, they also increased 18 percent from the year-ago date.
February 2009: Powering your dreams

In the midst of very dire economic times, First Horizon National Corporation rolled out a new tagline with a distinctly positive tone. The bank's subsidiary
First Tennessee Bank promises that it will be “Powering Your Dreams” in 2009, a not-so-subtle indication that the bank is up and running to make
loans, kick-start the economy, and make people's dreams come true.
The positive new slogan is a shift in message for the beleaguered bank, which sold more than 230 retail and wholesale offices to MetLife Bank in the
third quarter of 2008. The sale effectively ended the firm's national mortgage franchise. However, the new attitude may have something to do with
the company's “back to basics” strategy, in which First Horizon plans to focus on Tennessee and the surrounding region as its main avenue of business.
February 2009: No more perks

Executives at First Horizon National Corporation will no longer be living the high life. The bank has made a series of budget cuts designed to pinch
pennies in a tense economic environment. In 2008, the bank sold its corporate jet and closed an executive dining room in its Memphis office. It also
stopped reimbursing its management-level employees for country club dues, a policy which was designed to help high level employees mix with
customers on the golf course. Dave Miller, director of investor relations for First Horizon, told TradingMarkets.com in 2009 that “if you were to combine
some of these initiatives ... we'll probably save a couple of million dollars a year, all told.”
January 2009: Mortgage servicing sacrifice

In an attempt to further minimize its exposure to risky investments, First Tennessee Bank sold its mortgage servicing rights related to $14 billion of
mortgage loans owned or securitized by others (including Fannie Mae and Freddie Mac) and serviced by FHN. The agreement, which was signed on
January 28, 2009, reduced First Tennessee's outstanding balance of first lien lows to approximately $48 billion.

January 2009: At a loss

For two consecutive years, First Horizon National Corporation has failed to book a net income for its year-end earnings statement. The bad news is
that its loss in 2008 was slightly more than its loss in 2007, an indication that things might get worse before they get better. The company logged a
net loss of $192 million for the year in 2008, compared with a net loss of $170.1 million in 2007. Still, the bank is making progress in isolated areas
of business. In its capital markets division, the company booked income of $74.4 million in the fourth quarter of 2008, putting at least one column
solidly in the black. The company credits the Federal Reserve's rate reductions with boosting business in its fixed income sales.
The earnings report also showed that total average deposits remained flat through the year, while consolidated net interest margins declined to 2.96
percent due to deposit competition. Average shareholders' equity were and return on average assets were negative 7.28 percent and negative .56
percent, respectively.
November 2008: Filling the role

The firm announced that it would be filling Bryan Jordan's spot with William C. (B.J.) Losch, who previously had served as the senior vice president
and chief financial officer for the general bank at Wachovia Corporation. Losch, 38 years old, officially took on the position on January 1, 2009. Jordan
became president and CEO.
November 2008: Be accountable

Though First Horizon National was making program cuts long before anyone had ever heard the term “TARP,” its inclusion in the government's Capital
Purchase Program will ensure that the company will have to be extra careful in how it allots its funds in the future. The bank received $866 million in
funds from the government through a preferred stock purchase with the Treasury Department in November 2008 as a part of the first round of
government stimulus. At the time of the capital sale, First Horizon assured the public that it would use its injection of the money to make much needed
loans in the Tennessee region. “Our participation in the Treasury Department's Capital Purchase Program further strengthens our already solid capital
base and gives the company a great deal of flexibility to support our customers and our communities in this uncertain economy,” said CEO Bryan
Jordan.
August 2008: Insider takes over

There was a shake-up in the top brass of First Horizon's investment banking division, FTN Financial when its president, Mark Medford, resigned.
Medford left the company in order to take a position as CEO of Vining Sparks, a Memphis-based investment firm. He was replaced by Frank Gusmus,
who originally was appointed to the position as the interim president, but was given the permanent position in October. Gusmus is a firm insider, having
worked at FTN Financial for more than 25 years.
July 2008: Executive musical chairs

First Horizon CEO Jerry Baker announced that he would be retiring as chief executive but staying on as vice chairman until his official exit in December
2008. Baker was replaced by Bryan Jordan, who had been serving as chief financial officer since 2007.
GETTING HIRED
Step inside
In addition to its online application process (www.fhncareers.com), First Horizon tends to get employees from “the competition and by word of mouth.”
Candidates interested in the company need to do some digging—as one source points out, “They do not advertise this gold mine.” The firm recruits
“across the country” and hires “mostly experienced people.” Specifically, it's after “professional, genuine, respectable individuals.” Insiders report
that First Horizon is relatively choosy when it comes to bringing in new employees. As one source puts it, “Because we have a reputation as one of
the nation's best employers, we can be selective in our hiring.”
One insider calls the interview process comprehensive. The first step is an "”nitial phone screening,” followed by an “online application and resume
review.” Next, candidates sometimes have “two face-to-face interviews,” the second of which is normally with “a department head.” One respondent
reports having “three interviews: with a district manager, operations manager and regional president.” Another contact says he had “a single round of
interviews where I met with the team lead for the area I would be working, his manager, and the department head—each one individually.” An internal
candidate says he went through “a couple of informal interviews, due to the fact I already knew and had worked with the hiring manager.” Another
recalls meeting with a “president and vice president.” Interview questions vary, but are designed to gauge a candidate's personality as much as
financial knowledge. Some examples include: “Who is your biggest fan and why?” and “How does that person describe you?” Recruiters at First
Horizon tend to move quickly. One source says the timeline for hiring is "approximately two to three weeks.” One way for candidates to get their feet

in the door is through an internship. Some are paid, while others are for college credit. In general, internships give students a better idea of what it's
like to work for First Horizon. One former intern reports, “The internship helped me understand how I could fit in here.”
OUR SURVEY SAYS
A solid reputation
There's “teamwork and communications” at play at First Horizon. Almost across the board, insiders say the firm lives up to its reputation and backs
up its advertised “employees first” culture. And “the first thing to know about FHNC is that ethics is serious business. There has always been a deeply
held code of doing things the right way.” One insider raves that his co-workers are “good people to work with,” and calls the firm a “solid company.
It's professional and genuine.” Another agrees that there is a “very supportive team culture. The personnel here are all about your personal success
and development.” Others call it "conservative" but add that it has its own “regional flair.”
Taking care of employees

In terms of perks, the firm offers a “matching 401(k),” “stock options,” “flex dollars,” “cell phone discount” and a “meal allowance while traveling.”
It's a good thing insiders give the firm high marks for its perks, because hours can be long, with “pressure being fairly intense” and weekend work
happening “more than once a month.” And given the time spent in the office, it's probably a good thing that the dress code is fairly lax in some
locations, which allow business casual and casual Fridays without client contact.
While one source calls the level of staffing “poor” and the resources "limited," most insiders have only positive remarks about the firm's culture. And
one contact who's been with the company since 2001 says, “I have been trained in many departments and I have been given all the training and tools
I need.” Then again, not all are happy with the current training system—one insider complains that the “focus is too much on compliance” and “not
enough on education.”
One thing the firm does put a focus on, however, is charity. “There is a $2,000 pool per employee that FHNC will use as matching gift for 50 percent
of any donations to charitable organizations,” one insider reports. Plus, the tech division “yearly collects enough money to grant one—or two,
sometimes—wishes to a Make-A-Wish child. We host a party for the child we are granting the wish for where they find out they are getting their wish
granted.”

FOCUS
1133 20th Street, NW KEY COMPETITORS

Suite 200
Washington, DC 20036 Harris Bankcorp
Fax: (202) 785-9413 Raymond James Financial
www.focusbankers.com
EMPLOYMENT CONTACT
BUSINESSES Email: Ginfo@FOCUSbankers.com
Corporate Development Consulting
Corporate Finance
Strategic Advisory Services
Strategic Partnering & Alliances
Structured & Project Finance
Wealth Transition Advisory Services
THE STATS
CEO: Doug Rogers
No. of Offices: 4
329
FOCUS
THE SCOOP
Middle market managers

FOCUS is a national investment bank that was established in 1982 to serve middle management businesses with revenue between $5 million and $300
million. The firm is based in Washington, D.C., and has additional offices in Atlanta, Chicago and Los Angeles. FOCUS cites its “systematic, open,
and proven transaction process” as the distinguishing factor that makes it unique in the clustered investment banking field.
With longevity comes knowledge, and FOCUS’s 27 years in business proves that it has enough experience to weather any market. FOCUS’
catchphrase—“Seasoned, Systematic, Successful”—is service marked and appears virtually everywhere on its homepage. The firm backs up the latter
part of the phrase by only taking transactions in which it feels has at least a 75 percent change of success. As for the “seasoned” portion of the FOCUS
catchphrase, there is evidence that demonstrates that the company can back that up with fact. FOCUS wants to position itself as the No. 1 company
for middle market deals and has recruited veterans of the business. The firm boasts that all of its partners have “significant C-level experience.” The
managing partners at FOCUS are known to be more hands-on, meaning that they will personally manage all M&A deals.
FOCUS’s services include mergers and acquisitions, strategic advisory, corporate finance including debt and equity financing, strategic partnering and
alliances, corporate development consulting, wealth transition advisory and corporate valuation. The company works with buy- and sell-side corporate
clients, private equity groups, holding companies, and early stage venture capital firms in a wide range of financial sectors, encompassing everything
from aerospace technology to systems integration.
IN THE NEWS
April 2009: Active in IT

FOCUS advised Allin Corporation’s Microsoft IT consulting and solutions division in its sale to Dell. The acquisition involved Allin’s business units
located in Pittsburgh and Philadelphia, and San Jose and Walnut Creek, Calif. Approximately 100 Allin employees joined Dell’s expanding services
business.
Additionally, FOCUS advised on Global Software Corporation’s sale to Harris Computer Systems, a wholly owned subsidiary of Constellation Software
that provides financial management and computer information systems software solutions.
February 2009: First deals of the year

The aerospace sector was central in of one of FOCUS' first completed deals of the year—the sale of Aerospace Products, S.E. (APSE) to Acorn Growth
Companies and Cherokee National Businesses. FOCUS represented APSE in the transaction. APSE is a parts supplier which services aerospace
companies in coordination with U.S. government maintenance requirements. Acorn CEO John Davis credited FOCUS with helping the deal go through,
saying, “John Slater of FOCUS was instrumental in helping the parties work through a number of difficult issues, while preserving the positive personal
relationships with the management team which were critical to the company’s ongoing success post closing.”
FOCUS also completed another government, aerospace, and defense deal when it advised Newtek International on its merger with Zantech IT Services.
Newtek is an IT services firm which provides software engineering services to federal defense and civilian customers. It was acquired by Zantech IT
services, a newly formed information technology services firm which is looking to expand its customer base through acquisition.
January 2009: Into the atmosphere

FOCUS started off 2009 by focusing extended efforts into one of its most active sectors—government, aerospace and defense. On January 5th, the
firm announced that it would be starting a formal government, aerospace, and defense group which would put additional resources into the sector.
The group will be led by Manan Shah and based out of the mid-Atlantic region. FOCUS's new division is a “natural outgrowth” of an already successful
business in this sector which has included merger and acquisition services as well as capital formation services. The firm will also beef up its research
and marketing efforts directed toward government, aerospace and defense, as a result of the new group.
July 2008: Branching out into additional industry segments

The firm decided to beef up its research and marketing efforts directed toward government, aerospace, and defense. But it wasn’t the only industry-
focused team the company formed. The firm announced it would be focusing a team of specialized investment bankers in the following industry
segments: education, energy, digital and Internet media, and information technology.

FOCUS
May 2008: More advising

FOCUS advised Avialec International as it was acquired by KAPCO/VALTEC. The company also helped to secure financing in the form of Series A
Participating Preferred Stock to the software solutions company Agentek.
April 2008: Advising and learning

FOCUS also advised VERTEX Solutions when Adayana acquired VERTEX, a developer of learning systems.
March 2008: Still growing

There were additions and promotions made throughout FOCUS' five national offices in 2008, demonstrating a stable amount of growth even in a
troubled economy. The company beefed up its Chicago office with seven new senior advisors. Also in March, industry veterans W. Robert Gold and
Walter Nielson were tapped to lead the growing Chicago office as co-managers. The firm also made selected new hires in the firm's Atlanta, Los
Angeles, and San Francisco offices.
February 2008: Assisting in India

FOCUS completed a successful cross border deal as the representative of India-based Pradot Technologies. Pradot acquired St. Louis-based
GroupOne Healthsource in a deal that it says “reinforced the trend of foreign buyers buying U.S. Companies through 'Dual Shore' strategy.”
GETTING HIRED
Worth a try
If you want to join the FOCUS team, prospective applicants probably should first grasp the notion that there’s no clear path to employment with the
firm. But that doesn’t mean you can’t give it a shot. Within the firm’s “contact us” section on its website at www.focusbankers.com, you can either
try charming the firm by emailing it directly at info@focusbankers.com—or you can try pasting in your resume and cover letter within its online contact
form (hey, you never know). Alternately, you can snail mail your resume to 1133 20th Street, NW, Suite 200, Washington, D.C. 20036.

FOX-PITT KELTON COCHRAN CARONIA
WALLER (USA) LLC
420 Fifth Avenue, 5th Floor KEY COMPETITORS
New York, NY 10018
Phone: (212) 687-1105 FBR Capital Markets
Fax: (212) 599-2723 Keefe, Bruyette & Woods
www.fpk.com
EMPLOYMENT CONTACT
BUSINESSES Graduate recruitment: graduateinfo.US@fpk.com
Advisory Experienced hires recruitment: careers@fpk.com
Equity Capital Markets www.fpk.com/x/careers.html
Investment Banking
Private Equity
Research
Sales
Sales Trading & Market Making
THE STATS
CEO: Giles Fitzpatrick
No. of Offices: 7

Fox-Pitt Kelton Cochran Caronia Waller (USA) LLC
THE SCOOP
Big names, big deals

Fox-Pitt Kelton Cochran Caronia Waller (FPK) is an investment bank specializing in providing services to financial institutions, and in 2008, the firm
had a banner year. From acting as co-manager for Visa's $19.7 billion IPO to advising Bank of America on its historic acquisition of Merrill Lynch, FPK
went very quickly from being a virtual unknown to becoming an integral part of some of the biggest deals of the decade.
FPK runs a well-informed ship, with over 60 analysts tracking over 200 bank stocks in the U.S., Europe and Asia. The firm also houses a team of 10
emerging capital professionals who deal in all aspects of ECM, including executing IPOs, rights issues, secondaries, block trades, buy-backs and
dribble programs. On the advisory side of things, FPK offers traditional M&A, derivative structures, fairness opinions, financing and strategy. The firm
also has an independent private equity vehicle, called FPK Capital, which was launched in fall 2006.
More than a mouthful

FPK has been a European institution on the financial scene since its inception in 1971, when Oliver Fox-Pitt and Robin Kelton launched the firm from
London. The company gradually added services and expanded in key North America locations, including Hartford, Conn., and New York, N.Y. In
1999, the firm was big enough to catch the attention of Switzerland’s reinsurance giant Swiss Re. Under the guidance of Swiss Re, Fox-Pitt opened
offices in Boston and Hong Kong, and sold its investment management arm, Eldon, to Hiscox Investment Management. In 2006, Fox-Pitt Kelton’s
management team and financier J.C. Flowers & Company bought the company back from Swiss Re.
On September 4, 2007, the newly independent Fox-Pitt Kelton completed its merger with its Chicago-based rival Cochran Caronia Waller. Cochran
Caronia Waller, also a boutique investment bank, focused on the property-casualty, life and health industries. The firm's higher ups now share power
in the combined entity, with former CCW executives George Cochran and Len Caronia acting as co-chairman, and Fox-Pitt Kelton CEO Giles Fitzpatrick
staying on as chief executive of the new company.
Business was booming for Fox-Pitt's capital raising team in 2008. The firm was involved in some of the biggest deals of the year, including acting as
co-manager on Visa's mega-IPO, which raised $19.7 billion on its offering of 406 million shares. The firm also worked as underwriter, advisor, or
manager on the following deals—Natixis €3.7 billion rights issues in September; the $810 billion follow-on offering of MSCI in July; the ₤12.2 billion
rights issue of the Royal Bank of Scotland; a $7.5 billion follow-on offering for a pre-bailed out AIG; and a €5.5 billion rights issue for Société Générale.
IN THE NEWS
May 2009: Research analyst recognition

FPK research analysts Matthew Howlett and Matthew Carletti ranked second and third in StarMine’s 2009 annual list of top U.S. analysts. Additionally,
Roger Smith and Al Savastano both received the Forbes’ Blue Chip Analyst Award for their work with the firm.
September 2008: Bargaining for the big boys

FPK gained worldwide recognition in 2008 by advising on what was easily one of the biggest deals of all time—Bank of America's acquisition of Merrill
Lynch. Along with J.P. Flowers and Bank of America Securities, FPK served as co-advisor to Bank of America on the more than $50 billion all-stock
transaction. The combination of the two banks created a powerhouse that ranked as the largest brokerage in the world with more than $2.5 trillion in
assets.
The Bank of America deal was headed up by John Roddy, the recently hired head of the firm's North American Depository Institutions Advisory
business and John Waller, the firm's president. Waller recently told The Deal about the in-house dynamics going on at the time of the deal. “You had
the sense that this was historic, but you needed to stay focused,” he said. “None of us knew where it would end up. We just knew we would be in a
dramatically different place.”
July 2008: Here comes Roddy

Jon Roddy was hired to head up its North American Depository Institutions Advisory business. Roddy, who is now based out of the firm's New York
office, was also given the title of managing director. His experience comes from over 10 years at many of the marquee name investment banks such
as Lehman Brothers and Citigroup. Roddy became a powerful asset for the firm, when he served as an active member of the team overseeing the
historic deal between Bank of America and Merrill Lynch.

Fox-Pitt Kelton Cochran Caronia Waller (USA) LLC
July 2008: Like a rocket

As a result of the Bank of America/Merrill Lynch deal, FPK rocketed up the Thomson Reuters league tables for 2008. The bank logged an amazing
gain in its activity in category of announced M&A advisory deals in the Americas, shooting it up from 157th place in 2007 to 19th place in 2008. The
firm's total deal value for the category was $53.5 billion for its nine deals. The increase represents an astounding 5,410 percent increase in deal value
from the firm's $972 million the previous year.
The firm also saw a meteoric rise up the Japanese M&A advisory charts, as a result of its advisory on the acquisition of U.S. property and casualty
insurer Philadelphia Consolidated Holding Corporation by Japanese insurer Tokio Marine Holdings. Though the deal was FPK's only deal in the region,
its value of $4.6 billion vaulted it to 20th place on the charts for announced Japanese M&A Advisory deals. In 2007, FPK's total business in Japan
was valued at just $883.6 million and the firm was ranked 30th in Japan.
June 2008: Strategic hires

FPK brought on a few new employees in 2008 to help boost up its services in its strategic advisory and capital raising departments. The first was the
additional of Isolde O'Hanlon. O'Hanlon was appointed as managing director of the firm's U.S. Advisory Group. She comes to the firm with more than
20 years of experience at firms such as JP Morgan Securities.
GETTING HIRED
Ticking all the boxes

According to the firm, if you’re a recent graduate, to apply to FPK you’ll need “an outstanding academic record and degree or equivalent from a leading
university,” as well as “solid analytical and quantitative skills.” You’ll also need “an interest in IT and a working knowledge of Word, Excel, PowerPoint
and the Internet.” The company also wants candidates with proficiency in English and another language, together with relevant work experience. On
the firm’s career website (“careers” at www.fpk.com) you can find email addresses for available jobs in the U.S., Europe and Asia to which you can
send your resume and cover letter.

JMP SECURITIES LLC

Suite 1100
San Francisco, CA 94111 Cowen and Company
Fax: (415) 835-8910 Jefferies
www.jmpsecurities.com Piper Jaffray & Co.
Thomas Weisel Partners
BUSINESSES
EMPLOYMENT CONTACT
Investment Banking
Research See “careers” under “about JMP Securities” at
Sales & Trading www.jmpsecurities.com
THE STATS
Employer Type: Subsidiary of JMP Group Inc.
Chairman & CEO, JMP Group: Joseph A. Jolson
2008 Revenue: $76.59 million*
2008 Net Income: -$10.65 million*
No. of Offices: 4
*JMP Group Inc.
THE BUZZ
• “Strong in technology”
• “Small”
• “A lot of clean tech, tech and health care deals”
335
JMP Securities LLC
THE SCOOP
Parent goes public

JMP Securities is one of two subsidiaries operated by JMP Group Inc. (the other is Harvest Capital Strategies). Founded in 1999, San Francisco-based
JMP Group spent many years insisting it wouldn’t follow other boutiques down the IPO road, but in February 2007, it filed to go public. Its own JMP
Securities, as well as Merrill Lynch and Keefe, Bruyette & Woods, were signed on as joint book runners, and in May 2007, eight million shares were
priced at $11 each. Although many boutique banks met with resistance when their IPOs launched, analysts had a rosier outlook for JMP, citing its
diverse lines of business and strong earnings potential.
Business at JMP Securities is divided between investment banking, equity research, and institutional equity sales and trading. Its industry focus falls
on six sectors: business services, consumer, financial services, health care, real estate and technology. Clients include public and private companies.
The firm’s headquarters are in San Francisco, with branch offices in New York, Chicago and Boston.
Belief in boutiques
Joseph A. Jolson, Carter D. Mack and Gerald L. Tuttle Jr. founded JMP Group in 1999 and opened JMP Securities at the start of 2000. The trio had
previously worked together at Montgomery Securities, which was purchased in 1997 by NationsBank Corp. and became Banc of America Securities
following NationsBank’s acquisition of Bank of America the next year. Following the sale of Montgomery, Jolson, Mack and Tuttle decided to jump ship
and create their own investment bank. They didn't like watching top-quality independent research boutiques get swallowed up by big commercial
banks and figured that the best solution was to create their own firm. Instead of trying to compete for business with bulge bracket banks focused on
large corporate clients, the trio pledged to serve small and mid-sized companies, which were becoming increasingly ignored by Wall Street
conglomerates.
To get the firm off the ground, CEO Jolson employed some unusual business practices. In the early years, he capped all base salaries—including his
own—at $100,000. He also encouraged multitasking: He personally covered several specialty finance companies for JMP Securities' research arm,
while simultaneously getting JMP Asset Management (now Harvest Capital Strategies) running. In 2002, he attracted former Montgomery Securities
partner Craig R. Johnson to help build the firm’s equities business. And, indeed, JMP grew by leaps and bounds, nearly tripling headcount to more
than 200 in the ensuing six years.
JMP also made an early decision to avoid focusing solely on emerging growth opportunities. In contrast to many of its competitors, the firm organized
its research department to cover “old economy” sectors like financial services in addition to more cutting-edge industries like high technology. Today,
Jolson remains CEO of JMP Group and Johnson serves as its president; both men attend to the operation of Harvest Capital Strategies and its asset-
gathering strategy. Co-founder Mack and Mark L. Lehmann serve as co-presidents of JMP Securities; Mack directs investment banking, and Lehmann
oversees equities.
Plenty of deals
JMP underwrote equity offerings for a number of firms in 2008, most recently serving as co-lead manager of Hatteras Financial Corporation’s $180
million follow-on offering in December. JMP also acted as a co-manager on stock offerings for Chimera Investment Corporation ($284.6 million),
SuccessFactors ($104.2 million), CapitalSource ($379.5 million), MFA Mortgage Investments ($319.7 million in May and $265.9 million in January),
KKR Financial Holdings ($408.8 million), Capstead Mortgage Corporation ($133.3 million) and Anworth Mortgage Asset Corporation ($143.9 million),
among others.
The firm co-managed IPOs for Rackspace Hosting ($187.5 million), American Capital Agency Corp. ($200 million) and Hatteras Financial Corp. ($276
million). And on the private placement front in 2008, JMP was the sole placement agent for Americrest Homes ($56.7 million) and Celleration ($30.0
million). JMP also acted as sole placement agent for New York Mortgage Trust’s $60.0 million PIPE (private investment in private equity).
Additionally, the firm advised Mirius Bio Corporation on its $128.9 million September 2008 sale to Roche, HealthCare Pharmacy on its July 2008 sale
to Remedi SeniorCare, 90Degree Software on its March 2008 sale to Microsoft and Hands on Video Relay Services on its $138 million January 2008
sale to GoAmerica.

JMP Securities LLC
IN THE NEWS
July 2009: Expanding convertibles

JMP added four senior professionals in its convertible securities sales and trading operation, expanding the units’ capabilities.
January 2009: Big cheeses

JMP hired Alex Gauna, Peter Martin and Allan Rimland as managing directors. Gauna, a research analyst, focuses on the semiconductor industry; he
joined JMP from UBS. Martin, also a research analyst, joined from Matthes Capital, a hedge fund; he will focus on the health care services and health
care real estate industries. Rimland joined from Wachovia Capital Markets and was named co-head of JMP’s health care services investment banking
practice.
November 2008: You can sell them short

Following the ban on short-selling put in place by the Securities and Exchange Commission, JMP Securities requested to be removed from the list of
firms illegal to short.
May 2008: Doing the research

JMP Securities prides itself on its research, which it calls the backbone of its company. To that end it holds an annual research conference, and its
analysts regularly turn up on industry best-of lists. In 2008, Forbes honored Kristine Koerber, William Marks and James Wilson, JMP researchers
named among the top stock pickers covering their respective industries.
GETTING HIRED
Meet the challenge

At www.jmpsecurities.com under the “careers” link, prospective job candidates can read about JMP's mission. JMP says it's looking for extremely
motivated people who can thrive in the firm's “challenging, dynamic environment" and who will mesh with its senior executives. JMP lays out its
standards on its company website: “Every JMP employee is encouraged to take initiative and exceed expectations.”
The California-based JMP does some regional recruiting, scouting schools like the University of California-Berkeley's Haas School of Business, UCLA's
Anderson School of Management, Stanford University, Claremont College and Pomona College. In more recent years, it has also looked further afield
at campuses such as Georgetown's McDonough School of Business, the Wharton School of the University of Pennsylvania, the University of Chicago
Graduate School of Business and Notre Dame.
Candidates who can't find a JMP recruiter on their campus are advised to submit a cover letter and resume directly to the firm
(resumes@jmpsecurities.com). Materials should not be sent by regular mail, and phone calls are strictly verboten. Most important of all, an emailed
resume should be sent correctly: the first word of the subject line must be “Resume,” or the email will not be opened.

KEYCORP
127 Public Square KEY COMPETITORS

Cleveland, OH 44114
www.key.com Fox-Pitt Kelton
Sandler O’Neill + Partners
Bank of America
BUSINESSES Citizens Bank
U.S. Bancorp
Consumer Banking
Investment Management Services UPPERS
Technology
• “There is truly a team spirit here”
• “Very diverse”
THE STATS
Employer Type: Public Company DOWNERS
Ticker Symbol: KEY (NYSE)
Chairman & CEO: Henry L. Meyer III • “A little too corporate”
2008 Revenue: $3.8 billion • “Unable to compete with New York or middle-market firms”
No. of Offices: 980
EMPLOYMENT CONTACT
www.key.com/careers
THE BUZZ
• “Strong in research and middle market”
• “Weaker regional bank”
• “Up and coming”
• “Stodgy”

KeyCorp
THE SCOOP
Loyal to Cleveland
Cleveland’s KeyCorp has a long history with the city, as it counts among its predecessors the Society for Savings of Cleveland, which was established
in 1849. In modern times, the Society for Savings became the Society Corp. of Cleveland, which merged with Albany’s Key Bank in 1994 to form
KeyCorp. Its most recent boost was the $575 million acquisition of Union State Bank Holding Company in January 2008, which added $3 billion in
assets and a number of New York branches to Key’s holdings. As of December 31, 2008, Key reported $105 billion in assets, and in addition to a
network of 1,478 ATMs Key has just over 980 full service branches in 14 states, with approximately 17,600 employees. On the 2009 Fortune 500 list,
Cleveland’s hometown bank came in at No. 382.
Business falls into four, well, key groups: consumer banking, which is the nation’s 10th-largest home equity lender; corporate and investment banking;
investment management services, which provides a range of asset management, capital markets and investment banking services; and technology,
which provides e-banking services to Key’s network of ATMs, branches and websites. In fact, Key was the first nationwide bank to link branch, ATM,
phone and online banking transactions to provide instant account information to customers.
Inside the businesses

Key Consumer Banking calls itself a “community-focused retail bank,” and to that end, it works in 26 geographic districts nationwide. Individuals and
small businesses turn to Key’s retail division for mortgage and home equity loans, education loans, deposit accounts and other traditional banking
services.
Investment management services are carried out through two subsidiaries, Victory Capital Management (which operates in Cleveland, Cincinnati and
New York City, managing the Victory family of mutual funds); and KeyBanc Capital Markets, which provides institutional investors, financial institutions
and middle-market corporate clients with capital raising services, strategic advice and customized financial solutions.
Last but not least, the corporate and investment banking division provides specialized financing and services through a handful of internal groups.
KeyBank Real Estate Capital, as the name implies, provides construction and interim loans, equity and long-term mortgages for most property types
nationwide. This group is made up of 450 professionals in 25 offices; on an average year, they finance about $6 billion of commercial real estate.
Cash and treasury services are provided by the Key Global Treasury Management Group, which works with international partners and cutting-edge tech
systems to help companies control their cash flows and functions. Key Equipment Finance works with everyone from small businesses to large
corporations to provide equipment leasing solutions; it also manages an equipment portfolio of approximately $12.6 billion.
IN THE NEWS
January 2009: In the red

For the fourth quarter of 2008, KeyCorp posted a net loss of $524 million on revenue of $1.05 billion, compared to earnings of $25 million on revenue
of $1.24 billion in the fourth quarter of 2007. According to the bank, the change in its fortunes had two explanations: first, it was forced to add $594
million to its loan loss reserves because of the tanking economy; and second, an annual review required the bank to restate its balance sheet value,
which resulted in an after-tax charge of $420 million.
Revenue for the full year 2008 was $3.8 billion, compared to $5 billion the year before, and the loss for the year totaled $1.5 billion (compared to
earnings of $919 million in 2007).
January 2009: Shuffle, shuffle

As part of its cost-trimming moves, KeyCorp consolidated its Northwest Ohio and Michigan regional districts into one business unit, containing 71
branch offices and 500 employees. James Hoffman, president of the Northwest Ohio region, was tapped to lead the new unit. (According to a press
release, Michigan president William Koehler was off to Cleveland to work on “a new corporate initiative.”)
On the West Coast, Key shuttered a call center in Tacoma, Wash., eliminating 200 jobs there. However, the bank said 140 of those jobs would be
added to its remaining call centers in Cleveland and Buffalo, N.Y., with each center getting 70 new workers.

KeyCorp
December 2008: JPMorgan’s loss is KeyCorp’s gain

Former J. P. Morgan chief financial officer Peter Hancock joined forces with Key, becoming vice chair and head of the Key National Banking
organization (the umbrella for Key’s corporate finance, capital markets, asset management, investment banking, commercial real estate, cash and risk
management services, lease finance and consumer finance businesses).
October 2008: Keep it flowing

Key received $2.5 billion under the U.S. Treasury’s troubled asset relief program (TARP), lifting its capital ratio from 12.31 percent to 14.59 percent.
It also agreed to lower its prime lending rate from 4.5 percent to 4 percent, and assured worried consumers that despite the frozen credit markets, it
was still lending: $5.7 billion in fourth quarter 2008 alone, mostly loans to individuals and small and mid-sized businesses, bringing the bank’s total
loan portfolio to $77 billion.
KeyCorp Chairman and CEO Henry Meyer had stern words for those who accused banks of dragging their heels in the loan market. “We make money
by lending money,” he told the Cleveland Plain Dealer. “To say we’re not lending would be putting up a ‘for sale’ sign. To not lend money would be
crazy.”
September 2008: Key players

Citigroup veteran Hugh Donlon joined Key as president of its Northeast region, which includes operations in Maine, Vermont, New York and Florida.
Donlon had previously spent 23 years at Citi, rising to become managing director of its U.S. business banking group and leading Citi’s branch expansion
program in New Jersey. Based in Key’s Albany, N.Y., office, Donlon will report to KeyCorp vice chair Beth Mooney.
June 2008: Dividend slash

In order to fortify its balance sheet, KeyCorp cut its dividend by 50 percent and revealed plans to raise $1.5 billion in fresh capital. Following the
announcement, KeyCorp’s stock price fell 24 percent to its lowest level in 17 years.
May 2008: Not immune

KeyCorp did not have much exposure to the collateralized debt obligations and mortgage-backed securities that decimated larger national and
international banks, but it did have a hefty portfolio of commercial property and construction loans. The credit crisis and slowdown in the real estate
market meant serious losses in these loan holdings; Key announced that its uncollectible debts may be 1.3 percent of average total loans—or even
more.
GETTING HIRED
Bringing 'em in
KeyCorp gets leads on employees from recruiters, but it also has a more official means of reeling in potential candidates. KeyCorp conducts four formal
college recruiting programs. The analyst program, within the corporate/investment banking division, includes training on financial analysis and
rotations in various lines of business, such as portfolio management, global treasury management and commercial banking. Analyst candidates should
have a degree in finance or accounting, a 3.3 GPA, relevant internships, strong communication, analytical and interpersonal skills, and knowledge of
Microsoft Word, Excel and PowerPoint. The finance management associate program focuses on the treasury, finance/planning and forecasting groups,
with associates rotating through these departments. Candidates should have a strong background in finance or accounting, relevant internship
experience, and strong communication, analytical and interpersonal skills. The corporate and investment banking analyst program focuses on the
areas of real estate capital, global treasury management, fixed income, bank capital markets, commercial banking, syndicated finance, equity capital
markets, equipment finance and portfolio management. It requires a BA or BS degree in accounting or finance with a minimum GPA of 3.3, strong
analytical skills and relevant work or internship experience.
Prepare yourself
Once you're in, the first round of questions asked may consist of your “educational background,” “work experience” and “all-around personality.” One
interviewee says “you must ask a great deal of your own questions.” During the second interview, expect “more of a focus on seeing if your personality
will mix well with the others working there.” If they like what they see (and hear), you'll have a drug test and then "attend two weeks of training.” “The
first week of training was standing in another branch for a full week and just watching what everyone was doing,” says one contact. “The second week
consisted of computer training and becoming comfortable with the system,” he adds, although “I ended up learning most of what I knew on the job.”

KeyCorp
OUR SURVEY SAYS
A bad twist?
It seems as though the firm has taken a bit of a turn for the worst lately in terms of the company culture. KeyCorp “is a Cleveland-centric bank,” says
one insider. “If you live in Cleveland, you'll love this place—but if you have worked at other firms, you'll hate it.” The investment banking unit is “top-
heavy, has mediocre relationships and is unable to compete with New York or middle market firms.” Employees also confide that Key “is only able to
work with small companies in struggling industries. Their lending teams have poor judgment and are currently stuck with a loan portfolio that will sink
the bank.” One insider recommends that potential employees “stay away until the stench goes away.”
On one hand, some sources enjoy working at KeyCorp. “This is the best job I've ever had,” enthuses one contact. “It's a great job and a great
corporation,” says another. “Key has always been good to its employees,’ adds one insider. “Its philosophy is 'employees are customers, too,' and
should be treated well.” Though one respondent calls Key “entrepreneurial,” another says it is “a little too corporate, but the benefits far outweigh the
boring banker image.” A few respondents note the accountability standards at the bank, saying there's an expectation of “high performance—always
looking for continuous improvement.” Agrees another, “The main thing is what did you do today to increase revenue.”
Indeed, some insiders have strong feelings regarding some of the firm's practices. "There is no overtime pay for working Saturdays,” says one. “You
are required to take off equivalent time, excluding overtime.” “My branch required employees to be involved with the community which consists of
Chamber of Commerce meetings once a month from 6 p.m. to 10 p.m., which were required, but completely unpaid—either monetarily or with
equivalent time off.” And “you are also required to cover any other branch that is short within a 50 mile radius.”
Depends on who you ask

In terms of benefits, the firm offers “good insurance,” “401(k),” “stock options,” “a stock purchase plan,” “great vacation and holiday pay” and “even
a pension plan.” And they're “reasonable about reimbursement”—although they're “not a culture to allow pricey expense reporting.” Insiders are
generally satisfied with their paychecks, with one source noting that “compensation is directly related to profits earned for the bank, so basically you
eat what you kill.”
In terms of hours worked in the office, one employee says, “If there is a crisis, you will be expected to give up your lunch hour without pay and overtime
is not paid you are given time off.” Although weekly hours “depend on the position,” usually management is “reasonable about flexibility of hours.”
Typically, employees work 40 to 60 hours per week, though not in the standard 9 a.m. to 6 p.m. setup. Many employees do put in some time outside
of the office. Says one source, “I'm a sales rep and am able to work from home.” Another comments, “I frequently take work home with me, which
creates on average an additional five hours of work per week.” And an education finance consultant reports, "I travel a great deal, but it is worth it by
allowing me to have a home office."
Professional all around

Management types who seek to wreak havoc with underlings don't have a prayer at the firm. “Managers who are abusive will not last long at Key,”
warns one insider. “Generally, employees are treated well.” Others say that although managers are “smart,” “organized” and “reasonable,” there's
“not much vision or creativity.”
There isn't much room for creativity when it comes to the dress code, either, since employees are expected to abide by the ”formal always” rules.
“Sometimes it varies by manager, but most will want formal dress,” says one insider. “I'm in the Midwest, and it's a bank. Enough said.”
Offices, which mostly consist of a “small cubicle environment,” get mediocre marks from employees. Though “spaces are all reasonable and
comfortable,” they're “not exactly first class.”
From all walks of life

However, insiders are mostly impressed with the company on the diversity front, calling KeyCorp “very diverse.” “It appears that they do not
discriminate on race, age, sexual orientation, etc.” Says one contact, “Some departments are more diverse; my department is heavily Caucasian.”
Generally, sources tell us the firm “would probably want more diversity.” But KeyCorp also has employee-led diversity councils and an executive-run
board of inclusion. The purpose of the board is to help recruit and retain a diverse workforce. Furthermore, Key partners with various organizations,
including the National Black MBA Association, the National Society of Hispanic MBAs and INROADS to help with minority recruiting. Despite Key's
efforts, one source still thinks that minorities at Key face a “glass ceiling.” On the other hand, insiders report that “much of upper management is
female” and “there are numerous women in very high positions.” “Diversity is very important and valued by the management team,” according to one
source. “They invest in diversity initiatives and take it very seriously.”

LEERINK SWANN LLC
1 Federal St., 37th Floor KEY COMPETITORS

Boston, MA 02110
Phone: (617) 248-1601; (800) 808-7525 Canaccord Adams
Fax: (617) 918-4900
www.leerink.com
EMPLOYMENT CONTACT
leerink.com/careers.aspx
BUSINESSES
Equity Research
Institutional Sales & Trading
Investment Banking
Private & Corporate Client Services
Strategic Advisory Services
THE STATS
CEO: Jeffrey A. (Jeff) Leerink
No. of Offices: 3
THE BUZZ
• “Good health care shop”

Leerink Swann LLC
THE SCOOP
Healthy business
Beantown’s Leerink Swann is a specialist boutique that focuses exclusively on the health care industry. The firm was founded by now-CEO Jeff Leerink
in 1995; by 1999, it had landed a spot on Inc. magazine’s America’s 500 Fastest-Growing Private Companies list. Today, Leerink has offices in Boston,
New York and San Francisco; its service lines include equity research, private and corporate client services, institutional sales and trading, strategic
advisory and investment banking. Leerink’s investment banking professionals offer services related to mergers and acquisitions, public offerings,
private placements and private investments in public equity (PIPE) offerings.
Backing the firm’s health care expertise is its MEDACorp network, a brain trust of more than 25,000 physicians, researchers and other health care
experts in North America, Europe and Asia. Leerink professionals work closely with MEDACorp members—who are paid consulting fees for their
services—to advise the firm’s clients. The network is pitched as an opportunity for members to network with clients’ senior executives and health care
industry insiders who have the capability to support clinical trials and other research efforts.
To crack down on conflicts of interest—and to maintain its standards for consulting—Leerink regularly audits network members, and denies
membership to employees of publicly traded companies and government employees.
Providing it all
Leerink Swann Strategic Advisors provides a range of advisory services, working in close collaboration with the firm’s investment banking group; these
services include portfolio management and product search processes, like identifying licensing opportunities; corporate strategy development; product
and therapeutic area strategy for clinical development, marketing and positioning; and M&A-driven growth and transaction strategies.
A single stake
Leerink has been privately held since its inception, but in 2007, it sold a $35 million minority stake to Los Angeles-based private equity firm Lovell
Minnick and fellow i-banking boutique March Group. Representatives from both investing firms now sit on Leerink’s board of directors. CEO Jeff
Leerink said at the time that the capital would fund expansion efforts, though as of early 2009 the firm has yet to open any additional offices.
IN THE NEWS
February 2009: Offerings and advice

Leerink was retained by Princeton, N.J., pharmaceutical development company Pharmasset Inc. to serve as sole placement agent for a $455 million
registered direct offering of 4.678 million shares.
January 2009: Morgan Stanley’s loss is Leerink’s gain

There’s a new executive in the investment banking group at Leerink: William Reiland joined as managing director. In this role, Reiland will be
responsible for overseeing originating, structuring and marketing royalty monetizations, as well as mezzanine financings and private equity transactions.
Reiland, a 15-year veteran of Morgan Stanley, had most recently worked as managing director of Morgan Stanley’s $3 billion internal private equity
investment group. Over the course of his career he’s advised on approximately 70 health care financing transactions worth a collective $25 billion.
Reiland reports to David Ogens, senior managing director and head of the investment banking division. Ogens joined in 2005 after a lengthy career
at Goldman Sachs.
December 2008: Tops, again

For the second year in a row, Leerink took the No. 1 spot in Institutional Investor’s All-America Institutional Sales Team Healthcare Survey of chief
investment officers, portfolio managers, buy-side analysts, research directors and other investment professionals. Leerink’s sales team also came in
No. 2 in the biotechnology survey category, and the firm’s no stranger to Institutional Investor kudos—for the past seven years it’s been dubbed Best
of the Boutiques in multiple health care categories.
December 2008: Advising and placement agent

United Therapeutics turned to Leerink for advisory services in conjunction with its $150 million licensing of Tadalafil (better known as Cialis) to Lilly.
Leerink took a role as sole placement agent for Momenta Pharmaceuticals $25 million registered direct offering, and served as sole agent for Helicos
BioSciences’ $19 million private investment in public equity (PIPE) offering.

Leerink Swann LLC
October 2008: Strategy shapes up

Michael Jenkins, formerly a partner with New York advisory firm Trinsum, was appointed senior managing director and head of Leerink Swann Strategic
Advisors. At Trinsum (which was formed by the merger of management consultancy Marakon and financial advisory firm Integrated Finance Limited),
Jenkins spent 15 years advising clients in the health care and financial services sectors on issues like strategy development and execution,
organizational effectiveness, acquisition evaluation and integration. CEO Jeff Leerink said Jenkins would be integral to plans for building out the
strategic advisory practice; his new career came just in time, as Trinsum went belly-up in January 2009.
September 2008: In the deal zone

Leerink served as exclusive financial advisor to Cellzome Inc. on its deal to license kinase technology to pharma giant GlaxoSmithKline. Leerink also
advised VisiGen on its $75 million sale to Invitrogen Corp.
July 2008: Follow that star

Leerink has been advising Seattle’s Northstar Neuroscience, a medical device company that develops therapeutic treatments for neurological injuries
and diseases. Northstar received an unsolicited takeover bid from San Diego-based Tang Capital; Leerink was called upon to advise on a defense and
to help Northstar evaluate strategic alternatives.
GETTING HIRED
Passionate about health care?

At www.leerink.com, applicants can search job listings that span a number of divisions. According to the firm, it’s looking for employees with
“backgrounds in and passions for medical, scientific and/or business disciplines.” To land a spot as an investment banking associate, candidates
should also have “prior experience as a financial analyst in investment banking,” an MBA degree “with outstanding academic credentials,” and “strong
financial modeling and analytical skills.” It also doesn’t hurt to be “personable,” “highly motivated,” “energetic” and “capable of managing multiple
tasks within a short window of time.” If you don’t think the firm is currently listing your perfect job, Leerink still encourages those who are “passionate
about the health care industry” to contact them anyway at human.resources@leerink.com.

LLOYDS BANKING GROUP PLC
25 Gresham Street KEY COMPETITORS

London, EC2V 7HN
United Kingdom Barclays
Phone: +44 (0) 20 7626 1500 HSBC
www.lloydsbankinggroup.com Royal Bank of Scotland

Insurance See “our people” at www.lloydsbankinggroup.com
Retail
Wealth & International
Wholesale
THE STATS
Ticker Symbol: LYG (NYSE)
CEO: Eric Daniels
2008 Net Income: £807 million*
No. of Offices: 2,000+
*Statutory profit before tax for Lloyds TSB
THE BUZZ
• “Old school”
• “Not a well known North American presence
345
Lloyds Banking Group PLC
THE SCOOP
Dropping the TSB

London-based Lloyds Banking Group operates through four main business units: retail, wholesale, insurance, and wealth and international. Its retail
division caters to an estimated 30 million personal customers, operating through brand names such as Lloyds TSB, Halifax and Bank of Scotland. The
wholesale unit mainly operates through Bank of Scotland in Scotland, and Lloyds TSB in England and Wales, while insurance does business mainly
under Scottish Widows. Wealth and international has three main subdivisions: private banking, asset management and international banking; the unit
operates under several brand names in more than 36 countries worldwide.
Formerly known as Lloyds TSB, Lloyds Banking Group was formed in January 2009 after Lloyds TSB acquired mortgage giant HBOS (Halifax Bank of
Scotland). The previous incarnation of Lloyds was also created from a huge merger. In 1995, Lloyds Bank and TSB Group combined to form Lloyds
TSB, then the second-biggest U.K. bank by market cap (after HSBC). Of course, Lloyds can trace its history much further back—it was established
as the private bank of Taylors & Lloyds in Birmingham in 1765. Over the next 200 years, the bank grew through mergers and organic expansion to
become one of the biggest banks in the U.K.
The history of the savings bank movement (where the TSB came from) goes back to 1810 when the Revd Henry Duncan founded the world’s first self-
supporting savings bank in Ruthwell, Dumfriesshire. The savings banks remained local organizations until the 1970s when the banks amalgamated
into regional institutions. TSB Group plc was formed in 1986 following flotation on the Stock Exchange.
In 1999, four years after Lloyds TSB was created, all TSB and Lloyds Bank branches in England and Wales were rebranded with the identity of the
new entity (Lloyds TSB). A year later, the bank paid £7 billion pounds to acquire Scottish Widows, an Edinburgh-based mutual life-assurance company,
further strengthening Lloyds TSB’s grip in the U.K. market. Also in 2000, Lloyds TSB established its asset finance division after its £627 million pound
purchase of Chartered Trust from Standard Chartered Bank.
Lloyds TSB sold its credit card business Goldfish to Morgan Stanley in 2005 for £1 billion pounds and sold its Abbey Life insurance business to German
banking giant Deutsche Bank for a cash consideration of £977 million in 2007. Lloyds also made headway in the U.K. banking market when it became
the first among its peers to offer Sharia-compliant business accounts.
In September 2008, only two days after the infamous fall of Lehman Brothers, it was revealed that Britain’s Lloyds TSB was in takeover talks with HBOS
plc; investors became weary of HBOS’s funding capability after the Lehman collapse, sending the U.K.’s largest mortgage lender’s shares plunging.
Two months later, the acquisition and participation in the U.K. government’s recapitalization scheme were both agreed upon by Lloyds Banking Group’s
shareholders (HBOS shareholders approved of the takeover a few weeks later). The acquisition was officially completed on January 16, 2009, at which
point Lloyds TSB changed its name to Lloyds Banking Group.
IN THE NEWS
July 2009: A new chairman, and friend of the government

Lloyds Banking Group named Winfried F. W. Bischoff, a former chairman of Citigroup and adviser to the British government, to succeed Victor Blank
as chairman as of September 15, 2009. Bischoff recently co-chaired a panel that released a report favoring “broad-based banking models.”
May 2009: Permission to claw back

Lloyds Banking Group unveiled an executive package that lets the bank claw back a bonus if it decides that the executive did not meet the performance
on which the bonus was established. The new remuneration package is made up of one-third salary, one-third annual incentive and one-third long-
term incentive. According to Lloyds, the annual incentive award is deferred over three years and subject to claw back if the conditions under which
the award is given are not found to be sustainable. And the LTIP (long-term incentive plan) is given in shares over the course of three years. Previously,
executive directors had announced that they would not take a bonus for 2008 performance, and base salaries for 2009 were frozen at 2008 levels.
May 2009: Cuts across the board

Unite, the union, speculated that Lloyds Banking Group had plans in place to cut 985 jobs throughout the firm. Lloyds Banking Group did not confirm
the cuts, but Unite said the layoffs were the result of a company-wide discussion regarding cost-cutting steps in the wake of Lloyds’ acquisition of
HBOS. Unite said the layoffs would occur across the company’s banking division, but the timing and location of cuts were not revealed. According to
Lloyds, it remains committed to communicating any changes to impacted colleagues and their Union representatives first.

May 2009: Stepping down

Lloyds Banking Group Chairman Victor Blank said he would resign by the firm’s annual general meeting in 2010, a decision that came as the bank
faced a tough financial situation after purchasing HBOS in late 2008. Senior Independent Director Lord Alexander Leitch was named as deputy
chairman, and the firm began to search for a successor to Blank.
April 2009: Cuts from Clerical

Lloyds Banking Group announced that it will combine its Scottish Widows and Clerical Medical divisions, resulting in 305 redundancies in its sales and
support teams. Ultimately, Lloyds Banking Group is planning to shutter its Clerical brand, a division the firm acquired when it took over owner HBOS.
Lloyds Banking Group announced that under the merger, pension products would be supplied by Scottish Widows, and other onshore and offshore
investment products would be offered by Clerical Medical.
March 2009: How to make a lot of money really fast

According to press reports, the Lloyds Banking Group was considering putting some of its insurance businesses up for sale. Lloyds had already
announced plans to cut costs by £1.5 billion pounds per annum by the end of 2011 (£200 million of which reportedly would result from combining
the life insurance and investment businesses of Lloyds TSB and HBOS). Some analysts said it wouldn’t be surprising if Lloyds sold off at least one of
its life insurance businesses to repay the government and decrease its shareholding.
March 2009: Scheming

Lloyds Banking Group announced that it intended to participate in the U.K. government’s Asset Protection Scheme (APS), an agreement subject to
approval by the firm’s shareholders. The proposed scheme, under the terms announced in March 2009, involved the government insuring
approximately £260 billion of Lloyds (and HBOS’) higher-risk assets to strengthen Lloyds’ capital position. It also involves Lloyds issuing the government
class B shares that will ultimately convert into ordinary shares, increasing the government’s holding in Lloyds to over 60 percent. The announcement
followed the release of HBOS posting a £10.8 billion loss for 2008. Lloyds shareholders will be asked to vote on participation in APS, but the final detail
of how the scheme will work was still under discussion as of August 2009.
March 2009: More Tier 1

Lloyds announced that it had invited all holders of certain Tier 2 securities to exchange them for senior notes. The exchange of notes would enable
Lloyds Banking Group to strengthen its capital base through the creation of additional tier 1 capital. The move was not an out of the ordinary one—
the Royal Bank of Scotland and UBS AG had recently offered their bondholders similar deals.
March 2009: Payback time

Lloyds announced its intention to replace the £4 billion of HM Treasury preference shares through a placing and compensatory open offer. Lloyds
Shareholders were offered the opportunity to participate in the Placing, pro rata to their shareholding, at an offer price of 38.43 pence per share, with
HM Treasury underwriting the rump. Following the subscription period, 87 percent of the shares were taken up by ordinary shareholders, with the
remaining 13 percent placed on the open market, meaning that the government’s stake in Lloyds remained unchanged at 43.4 per cent. The
successful placing also meant that the dividend blocker of the HM Treasury preference shares was removed, allowing Lloyds’ board to recommence
dividend payments when market conditions and Lloyds’ financial performance improves.
January 2009: No. 1 gay-friendly firm

Lloyds was ranked the No. 1 employer in the U.K. for lesbian, gay and bisexuals by the campaign group Stonewall, which annually ranks the 100 best
firms for GLBT people. Lloyds placed first out of a total of 317 businesses surveyed in the latest rankings.
October 2008: The credit crunch

At perhaps the height of the financial crisis in 2008, Lloyds announced its intended participation in the government’s recapitalisation scheme, raising
a total of £17 billion (Lloyds TSB took £5.5billion, HBOS £11.5 billion). As a result of the recapitalisation and Lloyds’ subsequent placing and open
offer to ordinary shareholders and the market, Her Majesty’s Treasury became the owner of 43.4 per cent of Lloyds’ ordinary share capital and £4 billion
of its preference shares. Lloyds Banking Group redeemed the £4 billion of preference shares in June 2009 following a placing and compensatory open
offer.

GETTING HIRED
Top of its class

Lloyds actively recruits new hires from some of the largest and most prestigious universities in the U.K., including Cambridge, Bath, Edinburgh and
Durham. Insiders agree it is easier to land a job at Lloyds Banking Group after having a summer internship, but it is far from required, as many current
graduates and employees did not complete one. However, those that did join as an intern spoke highly of the experience. One contact says his
internship involved working on the management of private banking client’s portfolios, commenting that the work was diverse. The experience, he adds,
“certainly helped me in getting back into the organisation, as I knew how the bank operated.”
While some insiders maintain that Lloyds is not an overly selective firm, the company say it has an extremely robust selection process that includes a
full day at an assessment center. Sources say the interview and selection process is relatively comprehensive, and potential hires are subject to
psychometric testing and competency based interviewing. A contact describes his hiring experience as a “very straightforward process.” “There will
usually only be one interview for internal candidates,” says another insider. “The number of interviews for external candidates depends on the grade
of the appointment.” There are a number of ways to land one of the vacancies that Lloyds has open for graduates. Applications are taken online from
September for graduates, industrial placements and interns.
So many options
There are a number of different training programs, including a graduate leadership program, a summer vacation internship program and a 12-month
industrial placement programme.
In the graduate leadership program, you will spend two years developing your technical expertise, leadership and management skills in selected
assignments. The program, recently revised, now has a greater emphasis on senior support, giving participants access to a senior manager and a
dedicated graduate development specialist. Your career journey will include formal training, one-on-one reviews and placements where you can
employ your management capabilities. Some of the placements also include study towards a professional qualification. The specific streams of the
program are general management, finance, corporate markets, human resources and IT.
Doing well during the 10-week, paid summer internship could see you fast-tracked to the leadership program when you graduate. These programs
tend to begin in June, but check the firm’s website for specific dates.
The year-long industrial placement program is for those in the penultimate year of college. The program will give you excellent exposure to real work
and responsibility in all Lloyds Banking Group’s major business functions.
Applications can be filled out online by clicking any of the “apply now” links on the Lloyds Banking Group career pages and completing the online
application. Applications for 2010 programs will begin in September 2009, although candidates were able to register their interest from in June.
Deadlines for programs vary, so make sure you carefully research the application dates for the program you are applying to.
OUR SURVEY SAYS
Think of England
On the company culture front, Lloyds “is a very, very English bank—or so it would like to be perceived as such.” Because of this, “it is very, very slow
to adapt to change—one proof that it still does not have an investment banking arm.” The company’s employees “behave like wannabe bankers,”
says one source. “For example, they will use glorified terms to describe simple situations, but at the end will not have any substance in whatever they
were presenting.”
Despite the somewhat uneven culture, Lloyds does look poised to endure. “Lloyds survived the collateralized debt obligation backslash only because
it did not have the infrastructure and capability to generate more of this product,” explains one contact. In this regard, “Lloyds is a very, very quaint
English retail bank in essence, and you go there to work only if you want a career in retail or wholesale banking.”

M&T BANK
One M&T Plaza KEY COMPETITORS

Buffalo, NY 14203
Phone: (716) 842-4200 HSBC
Fax: (716) 842-4374 PNC Financial
www.mtb.com
UPPERS
BUSINESSES • “Very flexible in terms of work hours”
Business Banking • “Tremendous focus on efficiency”
Commercial Lending
Consumer Lending
Investment Group
DOWNERS
Residential Mortgage • “Work is needed” for retaining minorities
Retail Banking • "Slow to adopt new technologies"

Employer Type: Public Company www.mtb.com/employment
Ticker Symbol: MTB (NYSE)
Chairman & CEO: Robert G. Wilmers
No. of Offices: 800
THE BUZZ
• “Behind in technology”
• “Local reach and commitment”
• “Who?”
349
M&T Bank
THE SCOOP
Buffalo’s best
M&T Bank has been headquartered in Buffalo, N.Y., since 1856 when the Manufacturers and Traders Bank opened for business. Today, M&T trades
on the New York Stock Exchange under its own name and symbol, MTB, which represents its holding company’s current title—M&T Bank Corporation.
From its base in Buffalo, M&T has extended its reach through New York, Maryland, Pennsylvania, Virginia, West Virginia, Delaware, New Jersey and
Washington, D.C. With 800 branches, more than 1,800 ATMs and approximately $70 billion in assets as of June 30, 2009, M&T has become one of
the top regional banks in the U.S.
M&T offers commercial and retail banking services to individuals, businesses, institutions and governments agencies, and also provides mortgage
banking, investment advisory, securities trading, mutual fund sales, brokerage services, asset management, leasing, trust services, community
development loans and reinsurance. The company’s philanthropic activities are carried out through the M&T Charitable Foundation.
IN THE NEWS
July 2009: Another profitable quarter

After completing its acquisition of Baltimore-based Provident Bankshares (M&T’s third-largest acquisition ever) and paying $33 million in special FDIC
assessments, M&T Bank Corp. posted a profit for the second quarter of 2009. Even so, M&T’s profit dropped 75 percent versus the same period a
year earlier to $40.5 million. Revenue also decreased, falling 68 percent to $51.2 million from the previous year’s same quarter.
January 2009: Hanging tough

M&T Bank's results for fiscal 2008 were considerably better than many of its competitors, which were hit hard by the turmoil in the markets crisis.
The firm logged a net income of $556 million for the year, down from $654 million in 2007. Net income in the fourth quarter actually increased to
$102 million from $65 million during the same period in 2007. Rene Jones, the firm's CFO, said that M&T benefited from a “flight to quality by
depositors,” resulting in deposit growth 6 percent for the year (2008 over 2007). Despite the market's credit problems, the bank also experienced a
growth of 15 percent in commercial loans and commercial real estate loans during 2008.
December 2008: Play ball?

M&T Bank found itself in the midst of controversy regarding the government's Troubled Asset Relief Program (TARP) when the Congress called out
banks that had spent money in order to lend their names to big name sports stadiums. M&T Bank has been the sponsor of the playing field of the
NFL's Baltimore Ravens for six years. Other banks which were criticized included Citibank, Bank of America, J.P. Morgan, PNC Financial Services
Group and Wells Fargo.
In a February 2008 interview with Bloomberg.com, Dennis Kucinich, chairman of the Domestic Policy Subcommittee of the Oversight and Government
Reform Committee, criticized banks that used their TARP money for anything other than lending. He said, “If you are in trouble financially, you don’t
worry about putting your name on a baseball stadium. It’s that simple.”
December 2008: Moving into Maryland

M&T Bank Corporation expanded its regional reach by acquiring the Maryland-based bank Provident Bankshares Corporation. The acquisition was
completed via a stock-for-stock transaction worth approximately $274 million. As a result of the merger, M&T gained Provident's $6.4 billion in assets
as well as 143 additional branches and 198 ATMs in the Maryland and Virginia region. The bank also took on $4.3 billion of loans from Provident's
loan portfolio and $4.6 billion in deposits, giving M&T the second largest deposit share in Maryland and tripling its presence in Virginia.
November 2008: Taking TARP?

A Time magazine article featuring M&T’s logo pointed out that industry analysts feared that if some banks weren’t approved to receive capital under
the U.S. government’s TARP program, consumers might “flee the banks, taking deposits and forcing the firms to liquidate or be sold.” The article
(“Banks Left Out of TARP Bailout Could Face Extinction”) also pointed out that M&T was making money and “probably” one of the banks that “may
not need assistance,” but added that “the consensus is that the TARP program is a good deal, so any firm that decides to opt out may raise concerns
among investors and customers.” Ultimately, M&T accepted $600 million under TARP.

M&T Bank
August 2008: Bonds, municipal bonds

M&T added 15 municipal bond specialists from the company Ferris, Baker Watts, Inc. to its investment banking group in Baltimore.
July 2008: Northern exposure

Though M&T bank is often known as a regional bank, it became an international entity in 2008 when it opened its first non-domestic office. The
company announced plans to open a commercial banking office in Ontario to further expand its business beyond the border. M&T Bank hopes to take
advantage of the U.S.-Canadian trade relationship, as roughly 30 percent of all of the two countries' trades cross the border in the Buffalo region. John
McLeod will be the principal officer for the Canadian office.
July 2008: Bulking up in Baltimore

Before M&T Bank acquired Provident, it made a smaller acquisition in the Baltimore area. M&T Securities acquired Peremel & Company, a brokerage
business formerly owned by PNC Investments. Peremel had assets of more than $700 million and approximately 6,000 clients at the time of the
acquisition. Peremel's employees were added to the team already in place in M&T Securities' Baltimore office.
April 2008: A teachable moment

Through its community reinvestment program, M&T participates in the revitalization of low- and moderate-income neighborhoods within its footprint.
The program is regulated by the Community Reinvestment Act (CRA), which Congress passed in 1977 to encourage banks to play an active role in
local development. M&T provides strategic direction and technical assistance to the communities in which it works, and also provides access to loan
products and grants. Since 1982, M&T has earned the Federal Reserve Bank’s highest rating on each of its periodic CRA exams.
Employees from the company showed their commitment to the community by taking part in the American Bankers Association Education Foundation's
“National Teach Children to Save Day.” M&T deployed employees to 19 schools in three different states in order to participate in the educational
program.
GETTING HIRED
Plenty of opportunities
Recruiters at M&T “look for fit more than anything else,” according to insiders. “The firm is fairly” (or “moderately”) selective for most positions, with
the exception of its executive associate program, which is described as “very selective.”
M&T seeks candidates at a number of schools, including University of Virginia, University of Maryland, Duke, Harvard, University of Michigan,
University at Buffalo, University of Rochester, Georgetown, University of Chicago, Cornell, Penn and Carnegie Mellon. “If your educational background
is from a top-tier undergrad school or one of the recruited MBA programs, and your work experience shows loyalty to one employer with substantial
experience, the process runs smoothly,” a source says. Adds another, “If you make it out of the initial on-campus interview process, they do a good
job of giving you opportunities to interview with multiple groups in multiple locations.”
Do you fit?
Don't expect many brainteasers during the M&T recruiting process. "Once you've made it to the interview, there appears to be an understanding that
you can do or learn the job," an employee explains. “The interviews were more for personality and fit." Most candidates will go through "a minimum
of two rounds of interviews, and typically three or more.” For students, the process begins with "an initial screening interview done on campus where
a high-level executive from the bank interviews you." Those who pass that round move on to a second round "in the business area of your choice" for
on-site interviews.
“On location, you will interview with a minimum of three people from your area of interest,” says a source. “If you choose two potential areas of interest
to interview with, you could potentially have three to eight interviews the whole day.” Executive associate applicants may have as many as “12
interviews with various levels of vice presidents within their area of interest,” plus HR.
It's “a fairly intimate application process” that focuses heavily on “fit and situational questions.” Each round of interviews involves meeting “the most
senior level people in the target division,” with questions like “tell me about a time when you led a team,” “where do you see yourself in five years?”
and “describe your background.” Candidates should also “know M&T.” Interviewers might ask recruits to “tell [them] a little bit more about the
company.”

M&T Bank
One good option

A summer internship at M&T can be a “great opportunity to help secure a full-time position,” insiders say, “but it is not a detriment if you do not intern
with the company.” The "summer program is selective,” and “summer employees who do well have first choice of open positions.” But there are
“more full-time opportunities than summer internship opportunities, so there's room for many additional hires.” Another source breaks down the
numbers: “There are typically 10 to 12 summer executive associates and 25 full-time hires annually.” Still, a former intern says, “there is no better
way to determine mutual fit than to work somewhere for 10 or 12 weeks before making a full-time commitment.” Another agrees, saying, “It allows
you to better assess M&T and vice versa. You are a known entity so that will give you much more visibility and access in the hiring process.” A current
insider who interned recently notes, ”got paid roughly $18,000 for 10 weeks of work or so. The internship was in Buffalo, so those wages were much
better than one would get in New York City on a relative basis.”
OUR SURVEY SAYS
Sense of pride
The M&T culture is “collegial, with a strong sense of pride in the company.” Respondents call their bank “very down-to-earth,” even “old-school” and
“pragmatic, with tremendous focus on efficiency.” The corporate headquarters “takes on the almost-Midwestern personality that is prevalent in
Buffalo.” In other words, this can mean a “conservative and traditional" feel, though “people are generally pretty nice,” especially at company
headquarters. “Other locations have more fragmented cultures,” a source reports. Another describes the bank as being distinctly divided between
“Western New York and the Mid-Atlantic.”
M&T's middle-of-the-road size is a benefit for some. “I like the size of the company,” one insider explains. “I felt it was big but not too big, and that
I would have a lot of responsibility and visibility right away.” The firm is "data-driven,” and “analysis is important to all decisions.” The result is “lots
of committees—very few decisions are made by a single executive.” The conservative business model is “slow to adopt new technologies” and
“cautious” when it comes to capital spending. Many insiders wish M&T was willing to “invest in better technology to lessen the administrative and
sometimes very manual burdens on employees.” Others say that “management should do a better job of explaining how officer promotions work,
outlining the key objectives an employee needs to meet in order to move to the next level.”
Lots of access
Unlike some larger firms, M&T offers “great visibility to senior management.” One source says, “I'm on a first-name basis with two of the three top
executives at the bank, and have excellent access and relationship with the head of the investment banking division.” “I work very closely with one of
the executive VPs,” says another contact. “Despite a wide difference in tenure and rank, I am treated like an equal. My input is requested and listened
to.” However, some extraneous layers of bureaucracy can mean that it's “tough for managers to get things done.”
If there are any complaints about management, it's that there can be “generational differences-management sticks to tried-and-true ways.” M&T's
training doesn't get very high marks: "Once you are done with the orientation process, additional training is few and far between,” an insider complains.
“It is tough to learn in a vacuum.” Another says that “openness to training would be useful.”
Fair and flexible

M&T's corporate culture “places a priority on getting the job done but is very flexible in terms of work hours,” sources say. “People stay late to finish
important projects, but late nights are not the norm,” an insider adds, although some people use evening hours “to entertain clients or network.” A
senior associate says, “On a relative basis, compared to peers on the Street, the working hours at M&T are fantastic, with no 'face time' requirements."
Most employees report averaging 40 to 50 hours a week—”at times more, but generally hours are very manageable.” There's a lot of flexibility to work
from home on the weekends," notes one insider. Overall, “work/life balance does not seem to be a problem.”
Company perks include a “mortgage discount,” “banking services discounts and discounts at major retailers.” There's also an employee stock
purchase program, though one source notes that M&T's stock “isn't doing so well" lately. Several locations provide “new mothers nursing facilities”
and “gyms,” and some sources report a “generous signing bonus and relocation allowance.” The executive associate program carries its own benefits.
One source explains, “Upon promotion to assistant vice president, those who come in via the EA program usually receive stock options.” As for base
pay, insiders say that “MBA pay is high by M&T standards but not high for MBAs.”
Lagging behind
Cutting-edge isn't the phrase insiders use to describe M&T's physical infrastructure. “Systems are older, more antiquated,” and the décor is classic
“bland cubicles,” sources say. “M&T doesn't like to invest in depreciating assets, so office equipment can be dated,” another source agrees. Besides
furniture woes, many M&Ters wish the firm had better tech. “I think we're behind our peers in technology investment, both internal and customer-

M&T Bank
facing systems,” one source opines. “I'm not saying we should 'open our wallets,' but I think there's room for improvement here.” As for the dress
code, "relationship managers usually dress formally. If you're in other parts of the bank, business casual is the norm. No jeans allowed, though."
Suggested improvements
M&T's “intentions are good” when it comes to diversity, but “work is needed on retention” of minority employees. “The bank has recently started a
women's networking group for MBA hires to increase advancement of women, which is a good start,” one contact says. Oftentimes “MBAs are given
a same-sex mentor. I think there are opportunities for women, but at the same time, much of the upper levels are comprised of white men.” Another
source thinks M&T could improve matters by “increasing recruitment efforts” at prestigious national conferences like “the National Hispanic MBA
Association and the National Black MBA Association.”

MCGLADREY CAPITAL MARKETS LLC
575 Anton Boulevard, 11th Floor KEY COMPETITORS

Costa Mesa, CA 92626
www.mcgladreycm.com RBC Capital Markets
William Blair
BUSINESSES
UPPERS
Capital Raising
Divestitures • "Close-knit" crew
Fairness Opinions • “Great management support”
Recapitalizations
Restructurings
DOWNERS
• “No formal training program”
• “It's like a frat house—boys only”
THE STATS
Employer Type: Subsidiary of a Public Company
President: Hector J. Cuellar
EMPLOYMENT CONTACT
No. of Employees: 90 See “careers” under “about us” at www.mcgladreycm.com
No. of Offices: 4

McGladrey Capital Markets LLC
THE SCOOP
By any other name

RSM EquiCo officially became McGladrey Capital Markets on September 29, 2008. The investment bank's name change was the culmination of a four
year transformation period during which president Hector J. Cuellar worked to develop RSM EquiCo into an internationally recognized force in the world
of investment banking. Cuellar said that the bank also “recognized the need to develop industry specialization, expand beyond our exclusive focus on
sell-side mergers and acquisitions” and that the changes have been successful beyond expectations. “The evolution of our business has been so
impactful we felt a name change was in order,” Cuellar concluded.
The name change also represents a closer relationship with the bank's parent company RSM McGladrey, Inc., which is a member firm of RSM
International and a wholly owned indirect subsidiary of tax giant H&R Block. McGladrey Capital Markets is headquartered in Costa Mesa, Calif., with
additional offices in Chicago, Boston and London.
Sectors and deals

McGladrey Capital Markets caters to privately-owned mid-market businesses and mid-cap public companies, offering services like M&A and divestiture
advisory, capital raising, fairness opinions, recapitalizations and restructurings. The firm is a registered broker-dealer and provides global investment
banking services with an emphasis on the North American middle market.
Business at McGladrey Capital Markets covers a number of industries, including aerospace and defense, basic industries, business services, chemical,
energy services, engineering, construction and building materials, food and beverage, global financial services, government services, health care,
recreation and leisure, rubber and plastics, technology, and media, entertainment and gaming.
Boost in private equity

Nearly 46 percent of McGladrey's deals involve private equity firms. That's why the company has a devoted private equity focus team which deals
exclusively with the firm's PE clients. The attention to the industry paid off in 2008. In its year-end report, McGladrey reported that it had increased
its private equity group clients fourfold.
IN THE NEWS
January 2009: Key negotiations

McGladrey kicked off 2009 with a deal in the aerospace and aviation sectors it led negotiations and acted as financial advisor to Helicomb, a military
aircraft manufacturer that was acquired by Synchronous Aerospace.
January 2009: Keeping on chart for success

McGladrey continued its ascent up the league tables in 2008, despite market circumstances that caused a 30.4 decline overall in worldwide M&A
advisory for the year. The firm was ranked No. 14 in U.S. M&A deal volume, according to FactSet Mergerstat's charts, and finished second for deals
under $250 million. The firm performed especially well in consumer products, chemicals, and plastics and advanced materials, ranking first in each
category for deals under $250 million. Overall, the firm completed 45 deals worth a total of $1.51 billion.
December 2008: Cooking up a deal

The firm worked on a deal between its client Tom Cat Bakery, a New York City bread maker acquired by Ancor Capital Partners and Merit Capital Partners.
McGladrey also acted as exclusive financial advisor to the Japanese company Saiden Chemical Industry, acquired by the Canadian firm Halltech Inc.
July 2008: Aviation actions

McGladrey Capital Markets stepped into government affairs to address problems in the aerospace and airline industry. Hector Cuellar, president of
McGladrey, spoke publicly about the problems in the airline industry for the first time at the Farnborough International Airshow in England. Cuellar
called U.S. officials, saying “Government action is long overdue. Congress must act promptly to prevent further industry deterioration and the
corresponding deleterious effects on the nation.”
Cuellar has good reason to be interested in the affairs of the airline industry. The sector provides significant income for the company and Cuellar himself
has been involved in several aviation reorganizations. He also has been an expert witness in the bankruptcy proceedings of marquee names such as

MarkAir and United Airlines. He suggested a government intervention which would re-write regulation laws regarding pricing structure, labor policies,
and bankruptcy laws in order to save the failing industry.
June 2008: Engineering a sale

McGladrey advised Numet Engineering on its sale to ODIM Inc., a transaction valued at approximately $21 million. The company led the negotiations
and acted as advisor to DesignPac on their sale to 1-800-FLOWERS.COM for $38.25 million.
May 2008: Pumping it out

McGladrey initiated a $150 million purchase of oil pump manufacturer Concentric to Haldex AB. In addition to leading the negotiations, the firm also
acted as Haldex’s advisor.
May 2008: Restructuring business

McGladrey expanded its business by adding a restructuring division to its investment banking team. The bank seeks to take advantage of a struggling
economy by offering expert advice to middle-market firms that have underperforming assets or are in financial straits. McGladrey's new team promised
to “work with both debtors and creditors to develop tailored solutions suitable for virtually any financial or operating situation.” The new practice will
be managed by Jay Sherwood. Sherwood said that restructuring is a perfect offering for the company at this time as “capital market shifts and
economic turbulence can challenge even the best run companies.”
February 2008: Latino leadership

Hector Cuellar earned accolades from Latino Leaders magazine in 2008 when he was named one of the Top 25 Latinos in Finance. The list tracks the
accomplishments of Latinos the business world and includes top executives at businesses such as Bank of America and CalPERS. Cuellar's leadership
has been impressive over his four years as president of McGladrey Capital Markets. During his tenure as president, the company has completed more
than 150 M&A transactions, tripled its average deal size, and nearly doubled its number of cross-border transactions.
GETTING HIRED
Be prepared to show your stuff

McGladrey Capital Markets looks for “individuals with investment banking or other financial services experience.” The firm can be “very picky regarding
experience within the industry,” requiring people to have “essential experience in accounting, market research and sales.” Also, “it's big on cultural
fit.” Although it can “help to know someone on the inside," some still “fight tooth and nail to get a foot in the door.” According to one insider,
“McGladrey looks for slightly different skill sets in the junior staff than most bulge brackets. Hard skills like modeling are less emphasized, while the
ability to interact with clients and buyers seems to be more important.” On the VP level, McGladrey looks for “people who can both execute and
originate.” The firm looks for "proven producers for senior level positions and motivated individuals at the junior level.”
Since McGladrey’s headquarters are in Southern California, “two big alma maters are USC and UCLA.” But your school colors don't matter much,
since the firm “does not recruit on campus.” RSM hires “primarily through references, headhunters and internet job postings.” The firm also places
“ads in the newspaper” and on online job boards. McGladrey counts on “other investment banks” and ”Internal references” for talent.
Meeting the team

The interview process varies by position. Many candidates receive "numerous callbacks" and will meet with a variety of people from “analysts all the
way up to the president.” One contact recalls three rounds of interviews: “one informal one with the head of my office, another one with the head of
the firm and a half-day interview with three different people.” The firm has "a team approach to hiring,” with candidates typically “rotating among
about seven or eight people.” Each meeting is "roughly an hour.” To “build consensus,” sometimes the firm will introduce the candidate to “up to 10
people.” Interviews with senior management tend to be "relationship-based." Some say questions are “all over the place in regards to fit and industry
specific topics.” Candidates with no prior banking experience are “not asked anything too detailed.” Many are asked about “educational and work
background,” as well as "current events in financial markets and M&A.” All interviews seek to assess “both on personality and technical knowledge.”
Ad hoc internships
McGladrey offers internships, but “on an unofficial basis.” The program is essentially “ad hoc hiring based on who someone may know at the firm.”
The roles are often filled by “children of top executives.” For this reason, participation is “not critical, but it certainly helps with future employment.”
Interns “prepare presentations and marketing documents, and potential lists of targets.” It can be an “important opportunity to gain real-life experience

in this environment.” A contact says, “An internship helps you get hired full time only if you go into it knowing modeling and financial analysis, research
and Excel. It's not a good training ground for those unfamiliar with finance.” Some feel the program offers “no advantage over non-intern applicants.”
OUR SURVEY SAYS
Down a notch in intensity

McGladrey is an “entrepreneurial” firm with “open-door policies” and “Wall Street-level professionalism.” The “boutique environment” is one in which
analysts “take on a variety of projects spanning several different industries.” They also “engage with C-level executives at great companies.” The firm
is "small enough to where an individual can make a difference.” McGladrey’s “close-knit” crew "supports each other to drive towards goals.” At this
"collegial" firm, “there is a solid work/life balance," and "quality, consistency and diligence are very important.” There is a “lack of obvious silos,” and
much “openness throughout the ranks.” Though there is “not quite the intensity of large bulge bracket firms,” bankers are still “competitive.”
Advancement is “very meritocracy-based,” and there is “a high degree of responsibility placed on junior and midlevel staff.” In fact, “senior leadership
encourages voicing differences in opinion, and encourages employees to actively manage their own careers by making offers to supervisors regarding
advancement.” At times, “success is harder earned than it should be,” but the consensus is that McGladrey is an “easygoing firm compared to the
rest of investment banking,” which creates a "very positive working environment.” Some say it can feel "very top heavy.”
Not cutting it
Although “compensation is meritocracy,” most McGladrey insiders are not happy with their pay packages. “Pay is subpar compared to other banks.”
Most feel as though the “pay needs to be improved in order to keep and attract quality talent.” Bonuses are “tied to deal fees once you are expected
to help generate fee income.” This can be "quite discouraging” if your deals don't close, because it feels as though there is a “disconnect between
bonus and effort.” A contact says, "The comp structure at the associate level does not work. It seems unfair to link compensation to deals closed
when the associate has less direct impact on whether a deal closes than the VP running things.” Bottom line: “If you want to get rich and retire at 35,
this isn't the place to do it.”
Besides not being thrilled about the bonus structure, McGladrey employees “aren't offered much” in the way of perks. There is a “less than enticing”
employee stock purchase program through which employees get a 10 percent discount on the parent company's stock. The firm offers “discounts at
local gyms” and has a “free gym in the building.” Meals can be ordered after 7 p.m. on your company card, and bankers can take advantage of
“garage parking” and “education reimbursement.”
Flexible, if you earn it

Some McGladrey bankers “work long hours,” but most agree that they are “not as bad as at bulge bracket firms.” Hours fluctuate “based on how
many deals you have on your plate,” but typically, “people leave around 6 or 7 p.m.,” which is “very early by investment banking standards.” There
is a “reasonable amount of pressure to produce," but there is “absolutely no pressure for face time,” and “the firm is pretty accommodating if you need
to take off early here and there.” What's more, bankers rarely come into the office on weekends, although coming in “does score you points with any
senior bankers who happen to come in over the weekend.” “Most weekends are spent doing some type of work from home,” because McGladrey
offers employees that “flexibility.” In fact, there is “no real need to even stay too late during the week if you bring your laptop home.” This kind of
flexibility is granted on the assumption that "the work gets done.” A contact says, “If you want to take advantage of your flexible schedule, you must
deliver quality and on-time work.”
Most managers score high

McGladrey “tries hard to grow its young bankers.” As such, the firm's "senior leadership listens and tries to do the right thing.” Junior bankers enjoy
"excellent management support and mentorship.” A contact says, "Coming from a larger firm, it's nice having constant interactions with my managers. I
feel like I can go to them with any questions at any time.” And “VPs and MDs are very respectful and mindful of your workload.” There are, of course,
exceptions. “Some managers are arrogant know-it-alls who merely want you to do their bidding,” yet others “value outside opinion and try to give you input
on deals.” Sometimes there is “favoritism,” and “some people are held to a much higher level of accountability than others.” But overall, although
“managers can be demanding,” they are “open for questions and available to help,” and most subordinates enjoy “excellent collaboration” with their
superiors.
Fend for yourself

McGladrey has “no formal training program,” which is why the firm tends to “stay away from folks directly out of undergrad.” One source says, “Since
there is no class of analysts and associates that start at the firm, we don't really have a focused and coherent training program. It's really more learn-
as-you-go.” The firm does offer “ad hoc training sessions on various topics,” but most insiders say, “Training is not a strongpoint of the firm.” This

makes it “pretty tough to be successful without prior experience.” Especially since “no one goes out of their way to make sure you know what you
need.” Training is “becoming more formalized,” although it's “still rudimentary” and “nothing that actually helps you learn M&A.”
Comfy about sums it up

McGladrey's offices are “not uncomfortable, but definitely not luxurious.” They “could use some enhancements.” Insiders say it'd be nice if the
facilities were “less suburban-like,” with “more art and upgraded hardware.” Bankers work from "pretty standard cubes" in the firm's “modern offices”
in Southern California.
The typical dress code at McGladrey is "suits minus ties.” On “Fridays and "short days preceding holidays,” some people wear jeans or “short sleeve
polos.” The rule of thumb is to "dress professionally when the time or situation calls for it,” which normally means "suits for clients.” Things are
sometimes “a little more formal in the Costa Mesa headquarters.”
The skinny on diversity

McGladrey gets mixed marks on diversity. Although “the firm is trying” when it comes to improving the number of female employees, McGladrey is a
“typical male-dominant environment.” Others say, “The percentage of women in the firm reflects the ratio of women who want to focus their careers
on investment banking." McGladrey has "a handful of female employees,” and "several in high places.” There is "no bias or discrimination toward
women, only toward those who do not have or want to acquire what it takes to succeed in a challenging environment.”
When it comes to ethnic minorities, the firm “does not discriminate.” There is “lots of ethnic diversity.” You can find “employees of all ethnicities” at
McGladrey. “It is definitely not all white men working here,” although an insider points out, “There are lots of Republicans.” That doesn't seem to
scare away gay and lesbian employees. The firm has numerous homosexuals,” and insiders say, “It's never been a problem for them or any of their
colleagues.” A contact adds, “The overwhelming amount of people who work here would not care about a person's sexual preferences, and if they
did, they wouldn't show it at work."
Running the gamut

“For what I make, the hours are not too bad,” admits one senior analyst, adding, “On average, I'm out of here by 7 p.m. or so and I do not have to
typically come in on weekends. As long as they stay this way, I'm fine.” Another insider says “It could be worse in terms of hours.” Many insiders
report working anywhere from 40 to 70 hours a week. One contact who says he is “on the road most of the time,” working “60 hours a week
voluntarily,” adds, “I enjoy this.” Plus, there's “not a whole lot of face time needed in my office. If you get your work done in a timely manner and it
is of good quality, you aren't expected to be in the office until late in the evening every day.” But there's usually an ebb and flow—”work hours vary
depending on the need of the projects being worked on.”
Mismatched management?
The “great management support is very much appreciated,” says one insider. Another says “we have experienced managers that have been there and
know how difficult the job is.” But again, insiders report a wide variety of experiences within the firm. Some say there is “no respect from managers”
and also “management through intimidation.” It may just be a pattern of unevenness. “Some vice presidents and managing directors are great to
work with, while others are terrible,” says one contact.
Time for a cleanup

“Small cubes” in offices that are “under construction” may be the least of the firm's problems. One contact working in the Chicago office says “the
building is nice” but “the office is a dump that's way too crowded.” But it's not all bad—one source working in Southern California says the offices
were “just remodeled” and are “very professional” in a “great location.”
Change of clothes
The firm's dress code has undergone a few changes lately—it “used to be formal always” before changing sometime in 2006 to business casual dress
(with casual Fridays). Although contact with clients requires kicking up the apparel choices a notch or two, “most of the companies are very small”
and “suits are rarely required.” On casual Fridays, “Dockers and golf shirts” are a perfectly acceptable choice of attire.
Be your own teacher

In regards to training, insiders describe McGladrey's philosophy as “pretty much learn on the job” and “sink or swim.” “There is no formal training
program,” grumbles one source. But the firm also has a tendency to “hire mostly trained people” One insider who reports getting some initial training
calls it “good” but adds, “I'd like to see other areas covered in training,” even though “time restraints may not allow it.”

Could aim for more

McGladrey's diversity with respect to women is “very good,” but even though “there are successful women here,” it could be substantially better. One
female insider paints a blunt picture of the culture: “It's like a frat house—boys only—unless you are super pretty or willing to flash a bit of flesh.”
In terms of ethnic diversity, “There are successful minorities here,” says one insider. Others say the firm “seems quite diverse” and “the door is open
to qualified prospects.” Still, the firm could improve their methods for tracking down diverse candidates, insiders say. “The opportunity to attract and
retain women and minorities could be accomplished better by targeting specific vertical recruiting methods geared towards locating women with strong
personalities and higher educated minorities,” one insider says. The firm's reception of gays and lesbians receives high marks as well. Although
several insiders say they do not know who is gay within the firm, one respondent notes, “It's never been an issue.”

PNC FINANCIAL SERVICES GROUP, INC.
One PNC Plaza KEY COMPETITORS

249 Fifth Avenue
Pittsburgh, PA 15222-2707 Bank of America
Phone: (412) 762-2000 TD Bank
Fax: (412) 762-7829 Wells Fargo
www.pnc.com
UPPERS
BUSINESSES • “Collegial environment”
Asset Management • "People are friendly”
Corporate & Institutional Banking
PNC Global Investment Servicing
Retail Banking
DOWNERS
• Some managers "don't want to delegate or offer feedback”
• Offices "need a little updating"
THE STATS
Ticker Symbol: PNC (NYSE)
EMPLOYMENT CONTACT
Chairman & CEO: James E. Rohr See “careers” under “About PNC” section of www.pnc.com
THE BUZZ
• “Strong super-regional”
• “Addresses the consumers needs; constantly evolving and
advancing”
• “Stodgy bank”

PNC Financial Services Group, Inc.
THE SCOOP
Strong as steel
The Pittsburgh Trust & Savings Company was founded in 1852, making it that city’s oldest bank. After a century of growth and mergers, PT&S was
known as the Pittsburgh National Bank and played an important role in the growth of Pittsburgh industry. In 1982, Pennsylvania rewrote its banking
laws to permit statewide banking; Pittsburgh National joined with Provident National in what was, at the time, the biggest bank merger in U.S. history.
The convenience of the two entities’ shared initials made naming easy, giving birth to PNC Financial Corporation.
Four years later, the bank stepped outside state borders, merging with Kentucky-based Citizens Fidelity. In the 1990s, PNC spread across its home
state and advanced into Ohio, Kentucky and New Jersey. A number of strategic acquisitions brought PNC’s business to Florida, Massachusetts,
Maryland and Virginia. In 2005, it added Harris Williams, a leading middle-market M&A advisor, as a wholly owned PNC subsidiary. Harris Williams,
named Middle Market Investment Bank of the Year by Investment Dealer’s Digest in January 2008, operates from its own offices in Richmond, Va.;
Boston; San Francisco; Philadelphia; and Minneapolis. In 2008, PNC acquired rival bank National City Corp for $5.2 billion.
Weathering the storm

PNC Financial Services suffered setbacks in 2008 but seemed ultimately to emerge ahead of its rivals. The bank received $7.6 billion in government
assistance, which it used in part to buy rival National City Corporation—a purchase that further enhanced PNC’s geographic reach and capital base.
The firm did shed jobs in 2008 and early 2009, to reduce redundancies as a result of its acquisition of National City and as a result of losses sustained
during the fourth quarter of 2008. But, unlike so many other financial institutions, the Pittsburgh-based powerhouse wound up 2008 in the black.
By the end of 2008, PNC held assets of $291 billion with total deposits of $193 billion. Its retail banking division serves over 6 million individual and
small business clients. Also included in retail banking is a wealth management group. The PNC corporate and institutional banking division includes
asset-based lending, real estate lending and financing, credit, treasury management and capital markets products and services aimed at the middle
market. Its PNC Global Investment Servicing division (formerly known as PFPC) oversees $2.3 trillion in total assets and provides processing,
technology and business solutions to the global investment industry. PNC’s asset management division is handled by its 34 percent stake in
BlackRock, one of America’s largest publicly traded investment management firms with $1.31 trillion in managed assets.
Well regarded in many circles

Since 2004, PNC has been named one of Training Magazine’s Top 100 Companies for Employee Training. In 2007, the bank also was ranked among
Fortune’s Most Admired Companies and made the BusinessWeek 50. DiversityInc included PNC on its 2008 list of 25 Noteworthy Companies, while
Working Mother has included PNC on its list of 100 Best Companies for working mothers every year since 2003. In 2008, BusinessWeek called it one
of the Best Places to Launch a Career, while Fortune named it among its Most Admired Companies. Finally, in 2008 CRO magazine ranked it at No.
37 among the 100 Best Corporate Citizens—and third-best among all banks.
The green giant

PNC has been called “the green giant” in the banking world—since 1997, it has built 40 environmentally friendly buildings, all in accordance with U.S.
Green Building Council standards, more than any other bank. All new PNC branches are built to green standards, which are based on site
development, water savings, energy efficiency, materials selection and indoor environmental quality. PNC reaps savings from environmentally friendly
construction, thanks to more efficient lighting systems, heating units and windows. In addition to saving on electricity, gas and water costs, PNC says
that employees who work in green offices are more productive and less likely to leave the bank for another job. For its commitment to green buildings,
the Allegheny Group of the Sierra Club awarded it an Exemplary Corporate Citizen Award in 2007.
IN THE NEWS
May 2009: Raising capital

PNC Financial Services said it raised $600 million of common equity by selling off 15 million common shares. The lender was told by the U.S.
government that it needed to raise the capital after undergoing a mandatory financial “stress test.” PNC confirmed the sale just a few weeks after it
said that it planned for a stock market offering. Along with PNC, nine other U.S. banks were told by the government that they needed to raise a
collective $74.6 billion in capital.

February 2009: Fallout from disappointment

Following disappointing results from the fourth quarter of 2008, PNC announced it would slash 5,800 jobs, the Los Angeles Times reported. About
500 of these will come from 61 branches in Western Pennsylvania, according to the Pittsburgh Tribune-Review. Layoffs should be completed by 2011.
February 2009: Mixed results

For 2008, PNC reported net income of $882 million, down from $1.47 billion a year earlier. The company was quick to point out that, if not for the
cost of acquiring National City Corporation, net income would have been $1.3 billion.
Spread over the year, those results reflect uneven returns. In the first quarter the firm posted $377 million in net income, down about $80 million from
the same period a year earlier. Its high point came in the second quarter, with net income of $505 million—an improvement on the $377 million it
posted during the same period in 2007. In the third quarter of 2008 it earned $248 million, returns that were off by some $159 million from the third
quarter a year earlier. But the real sting came in the fourth quarter of 2008, when the firm posted a net loss of $248 million, compared with net income
of $178 million from the same period a year earlier.
December 2008: A government injection

PNC Financial Bank benefitted from the sale of $7.6 billion of stocks and warrants to the U.S. Treasury. In a statement, the bank acknowledged that
its $5.2 billion purchase of rival National City Corporation would not have been possible without government funds. But The New York Times spun the
sale in a different light; Treasury officials “prodded” the bank into acquiring National City, the paper said.
December 2008: New president at investment servicing unit

Nancy B. Wolcott was named president of PNC Global Investment Servicing. Wolcott was previously executive vice president and COO of global
investment servicing.
December 2008: Boon vs. boondoggle

PNC Financial’s acquisition of the Cleveland-based National City Corporation officially closed on New Year’s Eve 2008. According to The New York
Times, National City “has long been a traditional lender in slow-growing states like Ohio and Michigan, and undertook a disastrous adventure into
Florida near the height of the housing market.” The bank was the first of its kind to reopen in Cleveland following the Great Depression. It was hit
especially hard by losses stemming from subprime mortgages; according to the Pittsburgh Tribune-Review, it lost $6 billion in 2007. The New York
Times reported that, prior to its acquisition, National City had sought government bailout money; the government rejected its application. As part of
the deal, PNC said that it will begin converting National City branches in the second half of 2009. National City stock was also removed from the New
York Stock Exchange. Finally, National City chairman, president and CEO Peter E. Raskind was named PNC vice chairman; one director of National
City joined the PNC board.
The sale cost PNC $5.2 billion, something of a deal; the deal, priced at $2.23 per share, was nearly 19 percent below National City stock’s closing
price. As such, the Times called the acquisition a “take-under.”
Indeed, some within the industry wondered at the sale. “In our opinion, NCC was in essence forced into finding an acquirer at a panic price,” Kevin
St. Pierre, an analyst at Sanford C. Bernstein, told Reuters. He called the deal a “boon” for PNC shareholders and a “boondoggle” for NCC
shareholders. Citigroup analyst Keith Horowitz said, “It is possible there was a change in management’s outlook or a push from the government, though
we have no confirmation of either scenario.”
October 2008: Imminent cuts

About 4,000 National City jobs were cut following the announcement of the acquisition of the firm, the Times said, speculating that “overlap between
National City and PNC could mean the elimination of thousands more.”
The acquisition brought PNC’s core deposit base to $180 billion, making it the fifth-largest U.S. bank by deposits. “At a time when core funding is
key, we see our deposit strength as an important success factor,” said CEO James E. Rohr. The purchase also makes PNC fourth among U.S. banks
in number of branches.
J.P. Morgan, Citigroup and Sandler O’Neill + Partners served as financial advisers to PNC, while Goldman Sachs was financial adviser to National City.
June 2008: We didn’t go to Harvard

PNC Financial Services was one of a number of financial institutions—among them JPMorgan Chase and SunTrust—to cut back loans to less-selective
four-year colleges, for-profit educational institutions and community colleges. The trend does not bode well for “the nation’s neediest students,” said

The New York Times. “The difficulty borrowing may deter them from attending school or prompt them to take a semester off. When they get student
loans, they will wind up with less attractive terms and may run a greater risk of default if they have to switch lenders in the middle of their college
years,” the Times said.
February 2008: Taking it to the Poles

PNC Financial Services’ affiliate PFPC (now known as PNC Global Investment Servicing) opened an office in Wroclaw, Poland. The office complements
PFPC’s expansion into the European investment industry; it already has offices in Dublin, Navan and Wexford, Ireland, and in Luxembourg.
GETTING HIRED
Get close
Some insiders think Pittsburgh-based PNC “can't be as selective as a firm in New York"”simply because of its location. Others think the firm is “very
selective,” and a corporate finance analyst believes “some lines of business are more difficult to be hired into than others.” “Selectivity is fairly high,”
says another source, “although you can set yourself apart by building close relationships with the recruiters.”
Candidates who “graduate from a well-known school” in PNC's footprint are said to have an advantage. Recruiting takes place on a number of
campuses, including University of Pittsburgh, Penn State, University of Pennsylvania, Georgetown and Hampton. “The firm goes as far west as Notre
Dame and maybe the University of Michigan,” adds an insider. “It goes as far south as Atlanta.”
Screening them out

PNC's booths at campus career fairs “serve as a screening process,” and “follow-up interviews are conducted on campus.” Second-round interviews
are held at PNC's headquarters in Pittsburgh. “PNC will take care of your housing and transportation arrangements,” an analyst says. “I was driven
in a private car from the airport to the hotel, put up in a luxurious hotel, and was driven to the airport after my interviews ended around 4 p.m. on the
following day,” recalls one respondent.
On the interview front, “the mood of the interview depends on the personality of the manager.” But there are a few consistencies in the process—
expect at least “four interviews” that may take place with “human resources” and managers from different departments. For one investment banking
analyst, the process lasted “four or five hours.” “I met with all my current team members,” he says, “and the questions were mostly behavioral.”
Specifically, PNC is looking for evidence of “leadership and teamwork,” as well as “times you have succeeded, how you responded to a failure, a time
when you took initiative and most importantly, a time when your integrity was tested.” They may also ask “about your flexibility in relation to the type
of work environment and work to be done, such as mundane tasks or projects.” One respondent recalls that “the only interview question that I can
and will always remember is ‘what would I like written on my tombstone?’” And watch out for this last one, warns a credit analyst. “Do not talk about
a time when you wanted to a cheat on a test or told on someone who cheated, that's not what they're looking for. They want to know how you will
respond, even under pressure, to make sure your personal ethics are not easily thrown away.” After completing the interview process, most candidates
"can expect to be contacted within a month regarding the decision.” Though, this isn’t always the case. One insider recalls that his “first interview
was an exploratory one—one year from my actual hire date.” He explains, “When an opening appropriate for my level became available, I was
interviewed by the hiring manager and received an offer within a week.”
Enter the pipeline

Internships at PNC mean “real work with real deadlines,” plus related “networking opportunities” with employees and executives. A former intern in
Pittsburgh adds, “We also fielded one of the fiercest kickball teams in the city.” “The internship experience exceeded all of my expectations,” a current
analyst says. “The work I did was primarily research and analytics, in combination with systems testing and report writing. The internship proved
extremely helpful in getting hired full time. My current job is an extension of my intern responsibilities.” Agrees another analyst, “I found it easier to
get hired in my particular position because my resume was floating around.” In fact, some say the internship program “is designed to be a direct
pipeline into the organization.”
In addition to cash, former interns report receiving “free housing as well.” Many appreciate the weekly firmwide intern activities designed “to build
camaraderie and learn more about other areas of the bank.” PNC also works with “other local companies” to arrange “after-work functions with interns
all over Pittsburgh.” Throughout the firm, PNC interns' work involves “various projects" that “range in difficulty”—but never “mindless busy work.”
Several people who took part in the internship program during college say they returned to campus as seniors with a job offer already in hand.

OUR SURVEY SAYS
Ask and you shall receive

It’s a “collegial environment” over at PNC. “When I began at the company, I asked a lot of questions and not once was there any hesitation or
reluctance to help me exceed,” explains one analyst. The culture is one of “open communication,” insiders say. Others say PNC's ”corporate culture
is very conservative,” though insiders generally say that “people are very nice and welcoming.” “The company operates from a core set of values, and
every employee is evaluated on how well they live the values,” notes one PNC insider. Indeed, there's “a focus on producing exceptional work,” but
employees still “have fun.” The firm's emphasis on "teamwork and community" means cordial relationships with "peers, managers, and even the
security at the front desk."
“I would characterize our culture as very un-bureaucratic,” an analyst says. “Just about everyone's door is always open.” “It's a low-stress
environment,” another source agrees. Most find that PNC is “a great learning experience" because “people are friendly and always willing to answer
questions and help with problems that may arise.” Despite the “hardworking” atmosphere, “most employees are laid-back.” And “every employee
has a voice and is encouraged to get involved.”
Diversity at the firm is supported by members of an employee resource group “who meet and offer their suggestions to the CEO.” One woman says
that “at least some of their recommendations are implemented” annually. Others say that there are “a lot of women in managerial, senior or executive
positions throughout the bank,” and one source points out that PNC “provides benefits for domestic partners.” However, in terms of ethnic minorities,
a few respondents say that the firm "doesn't seem to be very diverse.” A PNC veteran says there's “a lack of effective diversity strategies.” Another
insider believes the firm could make a better investment in “building long-term relationships with smaller organizations that target minority and women's
groups.”
A sweet balance
One source speaks for many when he says, “I'm happy with my job but would like an increase in salary.” While compensation woes are common,
respondents do enjoy perks like a “top-notch 401(k) plan” with a 100 percent match (up to 6 percent of salary), “discounted bank products,”
“company stock at discount” and a “pension plan.” PNC also "supports volunteering—employees are provided up to 40 paid hours of volunteer time
each year for volunteer activities at child care centers related to PNC Grow up Great, the company's signature cause,” and allows employees to set
aside a portion of their pretax earnings for “transportation and health care” costs. The firm also offers “discounted pricing on several services and
retail products.” The bank also “provides tuition reimbursement on a per semester basis.”
The “work/life balance at PNC is very good,” with sources saying they work a maximum of 50 to 60 hours a week. “People typically work from 8 a.m.
or 8:30 a.m. to about 5:30 p.m.,” a corporate finance insider offers. “Even high-level management seems to keep within a 40 to 60 hour workweek.”
Even in investment banking, one analyst puts his hours at 50 to 60 per week-and the only regular weekend work is “a few hours to straighten things
out for the week” on Sundays. Of course, the load can “depend on deadlines and workflow,” but at PNC the emphasis is "on work completion and
not time spent at the office.” Another contact notes, “I have a little discretion as to when I want to come in. I can come in a half-hour early, take a
short lunch and leave early.” On a typical day, “your boss expects you to leave at 5 p.m.”
Dress appropriately
PNC's offices “need a little updating,” say insiders. There are “cubicles everywhere”—or, as one Pittsburgh-based respondent puts it, “bland cubicles
and bad chairs.” Space is "limited," and one woman says the firm can be “stingy with small and silly, yet very frustrating, things like making color
copies or buying office supplies." She adds, “I know several departments that guard the key to the supply closet. When this happen, and the CEO is
getting tremendous bonuses, it is very frustrating for employees.”
At least there's some comfort to be found in the PNC dress code, which has its own in-house term: “business appropriate.” “This really just means
you dress depending on the situation,” an insider explains. “The standard dress is business casual, but if you are on a client meeting then you may
need to adjust accordingly. Know your calendar and you will be fine.” The business appropriate code tends to be “more formal for client facing roles”
in general, and whenever “vendors or suppliers are present.” For men, typical daily wear involves “slacks and an Oxford shirt or golf shirt,” and for
client meetings, it's “suits or sport coats.”
Big praise for the big shots

Management is rated highly by sources, who describe bosses with glowing positives like “exceptional” and “awesome.” “Everyone has been extremely
helpful with my transition from school to work,” says a corporate finance rookie. “I have yet to see a manager treat any subordinate here in a way that
is at all disrespectful or uncomfortable,” a woman remarks. While there may be a few managers who "don't want to delegate or offer feedback," the
majority are “excellent” and willing to provide junior employees with “great assignments” and “challenging work.” They also maintain “very good
relationships” within the firm's “fun and productive environment.” “The management team tries to promote teamwork," says one respondent.
"Company executives instruct people to address them by their first names.”

PNC's training, too, is “topnotch” and “highly regarded in the industry.” “The firm really puts emphasis on training its young employees,” sources say,
with programs of varying lengths depending on the position. Some initial training programs involve “8 a.m. to 5 p.m. classroom-type courses taught
by experienced professionals or hired consultants.” There are also “numerous and extensive” ongoing training classes, and one underwriter says he
takes part in at least “two to four trainings a year, each lasting one to three days.” Other continuing education options include “monthly brown-bag
lunches that cover a wide range of topics.”
Climbing the corporate ladder within the firm is also strongly encouraged—but you'll need to work for it. “Opportunities for advancement are high but
are dependent upon your eagerness to learn,” admits one insider. Plus, “seniority is not key for advancement.”
What the future holds

As for the company’s immediate financial outlook, “we don't look for quick fixes to affect long-term strategy,” asserts one insider. Because of this, PNC
has “weathered the current financial storm and has a bright outlook as they look to expand in areas that their competition isn’t covering.”

STEPHENS INC.
111 Center Street KEY COMPETITORS

Little Rock, AR 72201
www.stephens.com Morgan Keegan
William Blair
BUSINESSES
UPPER
Capital Management
Institutional Sales & Trading • “Stephens takes care of its employees”
Insurance
Investment Banking
Private Equity
DOWNER
Public Finance • “Somewhat good ole boy” culture
Research
Wealth Management
EMPLOYMENT CONTACT
THE STATS See “careers” at www.stephens.com

Chairman, President & CEO: Warren A. Stephens
No. of Employees: 980+
No. of Offices: 28
THE BUZZ

Stephens Inc.
THE SCOOP
Finance whizzes
Little Rock, Ark.-based Stephens Inc. operates through eight main units: investment banking, public finance, private equity, research, capital
management, insurance, wealth management, and institutional sales and trading.
Stephens’ investment banking team focuses on small- and middle-market mergers and acquisitions advisory. Its industry expertise includes aerospace
and defense, building products and construction services, business services, consumer and retail, financial services, health care and life sciences,
information technology, power and energy solutions, telecommunications and media, and transportation and logistics.
Stephens has been active in public finance since its beginning in 1933. Its financing efforts typically involve governments, schools, utilities, housing
authorities, not-for-profit organizations, industrial development and health care organizations.
Though certain aspects of Stephens' business may have slowed in 2008, its private equity division continued to make investments in new companies.
The company took four new companies into its portfolio in 2008. The companies came from a variety of different industries and locations. The
investments included Highmark School Development, a facilities provider for new and existing charter schools, Megtec Systems, a manufacturer of
industrial and environmental control equipment, and TAS Commercial Concrete, a Houston-based concrete services firm. The firm also added
Marketplace Events, a developer of consumer home shows, to its portfolio in 2008. Marketplace showed its commitment to growth in 2008 by securing
a three year partnership with Ty Pennington, the popular and high-profile host of Extreme Makeover Home edition.
The firm’s award-winning equity research division covers about 300 stocks in the aerospace and defense, consumer, financial services, health care,
industrial, IT, technology and transportation sectors. Its analysts have been honored in Institutional Investor’s All-American Research poll and The Wall
Street Journal’s annual Best on the Street ranking.
Stephens Capital Management (SCM) has been a registered investment advisor since 1982, and currently supervises portfolios of equity and fixed-
income assets worth over $3 billion. Through Stephens Insurance, the firm provides personal and business insurance solutions. The firm also offers
wealth management (including a full-service private client group), and institutional sales and trading.
Private matters
As the Wall Street investment banks collapsed in 2008, boutique outfit Stephens’ business held steady from its perch in Arkansas. Executive vice
president Brad Eichler credits the firm's continued success to its status as a family-owned private bank. In July 2008, Eichler told Investment Dealers’
Digest that although “the markets have been inhospitable to many investment banks ... as a focused, independent privately owned firm, Stephens has
been fortunate not to have to struggle with these challenges.”
Regardless of its private status, Stephens has been at least nominally affected by the market slowdown. With big deals slowing due to the credit crisis,
Stephens was missing from Thomson Reuter’s ranking of the top-25 M&A dealmakers by volume. A year earlier, Stephens placed 24th in announced
M&A volume, thanks to its advisory on big deals like Apax Partner's $1.8 billion acquisition of HUB International.
Family values
In 1933, at the height of the Great Depression, W.R. (Witt) Stephens formed a firm to buy up cheap Arkansas bonds. Stephens paid 10 cents on the
dollar for the devalued bonds, held them until the state’s economy came back to life a few years later, and sold them at a handsome profit. Witt’s
brother Jack joined the family business in 1946 and served as CEO from 1956 to 1986. He also joined Witt in investment ventures through a family
holding company now known as SF Holding Corp. Upon his retirement, Jack handed the reins to his son Warren A. Stephens, who has remained at
the helm since then.
Jack Stephens died in 2005, triggering a reorganization within the family. Witt, Jr. and Elizabeth Stephens Campbell sold their interest in Stephens
Inc., the investment bank, to their cousin Warren (who now holds 100 percent of its stock).
Latin American flair

Stephens conducts in Latin American business through Stephens Cori Capital Advisors, which provides services including mergers and acquisitions,
debt and equity capital raising, family-owned company strategic advisory, restructuring, private equity advisory and independent valuations. The
company has significant reach into the Latino and Hispanic American business communities, having completed more than $4 billion in M&A
transactions and raised $2 billion in capital since its inception.

Stephens Inc.
IN THE NEWS
August 2009: Ahead of the opposition

Despite an economy that’s left many of its competitors penniless, Stephens Inc. is poised to stay ahead of the game. A Forbes profile of the company
revealed that it’s leveraged 2-to-1 as opposed to many of its rivals’ 30-to-1 ratio and has more than 50 percent of its assets in government securities.
The proof of the bank’s prowess can be seen in the growth of its staff. Within the year past year, Stephens increased the number of its investment
bankers from 84 to 100, and seeks to increase its retail brokers from 100 to 200. Additionally, the firm opened a Houston office and is considering
the purchase of a bank and a trust business.
May 2009: Gaining energy

Stephens hired six investment professionals from Energy Capital Solution of Dallas and Houston, creating an energy investment banking group.
April 2009: Learning to tread lightly

Stephens Inc. takes the direct opposite tactic of many fast-moving investment banks, adhering instead to its basic tenet: “The goal is to be in business
the next day.” In a profile of the company, The Wall Street Journal reported that president Warren Stephens is proud to stick to the mantra as a
“legitimate goal”—especially in the face of the crumbling investment banking front.
March 2009: Taking from Jefferies

Stephens hired Kenneth Wasik away from Jefferies & Co., where he worked as head of the investment bank’s consumer products group. As a managing
director in Stephens corporate finance department, Wasik will focus on origination, underwriting and M&A advisory in the consumer industry.
November 2008: Hiring Herber

Stephens hired Jennifer Herber, formerly an executive director in the consumer retail group at JPMorgan Chase and a director in M&A at Peter J.
Solomon Company. Herber joined Stephens as a managing director in its corporate finance department. She’ll be based in New York, and will focus
on underwriting and M&A deals in the specialty retail and consumer sectors.
July 2008: Investing in the Southwest

While other firms cut back in 2008, Stephens continued to add employees to its investment banking division. The firm added seven new positions in
its Dallas office in an effort to strengthen its Southwestern presence. COO Curt Bradbury said that the firm “remains committed to increasing resources
and hiring high-quality bankers.” The new hires all came from Bluffview Capital, a fellow Dallas-based investment bank. Jennifer Bishop and Phyllis
Riggins were named as managing directors of the media investment banking group while Kerry North was appointed as the managing director in the
M&A group. The new employees bring the headcount in the Dallas office to 26.
Michael Stuart, one of the new hires in the Dallas office, is leading the company's restarted real estate investment banking platform, which will help
arrange public and private capital and offer advisory services on mergers and acquisitions, private equity placements and debt and equity capital
formation. The bank hopes to seize upon the current market environment in order to drum business in its reborn real estate platform. Brad Eichler,
executive vice president and co-head of investment banking, said, “Now is an opportune time to commit to this practice.”
GETTING HIRED
Bring the energy

Candidates that will turn the heads of the firm's recruiters tend to be “high-energy individuals who have strong interpersonal, accounting and finance
skills,” according to Stephens. The general “careers” section of Stephens' website provides an online inquiry form directed to the company's human
resources department, and indicates that candidates can contact the company directly at its Little Rock address or at resume@stephens.com.
The interview process seems to be on par with the banking world. According to one insider, “First-round interviews are held on campus with an
associate.” The contact adds, “After passing that round, I was invited to a Super Saturday at the headquarters.” Expect a nice reception on interview
weekend. One source reports that “Friday night involved a five-course dinner in the board room on the top floor [of the firm's headquarters] with an
open bar, and mingling with the senior vice presidents and managing directors.” Dinner was followed by a social gathering “to mingle with everyone
else in the department, including employees from other offices in different cities.”

Stephens Inc.
The Saturday interviews “started at 8 a.m.,” offers one contact, “and there were eight of them, with people ranging in rank from associate to MD to the
head of the department.”
The source adds that the firm is “mainly after personality and fit, but a few simple finance questions were asked.” Another contact reports that the
firm “won't ask you anything too finance-y,” but it “might ask questions like 'How do you run a DCF?' and 'How do you value a company?'” Another
question candidates might get is “Why do you want to live in Little Rock?”
OUR SURVEY SAYS
Southern flavor
Stephens harbors a culture that's “definitely Southern.” And it may have quite a lot to do with the fact that “most employees come from the South,”
so you should "be prepared for the culture if you are not from around there." And the culture also “emphasizes a generalist approach—analysts are
expected to work on a wide variety of assignments, rather than being forced into a particular industry and product.”
Employee morale is quite high at Stephens, and it “being the largest full-service investment bank headquartered in the South as well as family owned”
only helps to boost this morale. “Stephens takes care of its employees,” says one insider. “Even under bad market conditions, Stephens pays its
employees extremely well—more than I would have expected after talking to my friends on Wall Street.” Explains another contact, “If you enjoy doing
things outdoors, being in Little Rock puts you within 20 minutes of hiking, biking, water sports, hunting—you name it.” And because “Little Rock is
much cheaper than New York,” boasts one insider, it's feasible to get an "extremely nice and large apartment for $1,000 a month that that would cost
$3,000 to $4,000 in New York City.”
However, one former insider calls Stephens' culture “somewhat good ole boy,” explaining that “some people were hired because they were smart, while
others were hired because their fathers were golfing buddies at Augusta with the higher-ups.” The contact concedes, though, that “the corporate
culture fosters learning at all costs.” Stephens also fosters loyalty, say insiders. “By looking to promote junior bankers from within,” observes a source,
“they have an extremely loyal employee base. It's not uncommon for bankers to have come to Stephens right out of college and stay there until they
retire, after having made millions.”
Keep the formalities

The hours at Stephens are fairly typical for investment banking; first-year analysts “can expect to work between 70 and 100 hours per week,” says an
insider, “with the average non-holiday workweek to be about 80 hours, including weekends. As for diversity at Stephens, it could use improving, say
respondents. (Though, according to Stephens, it employs over 100 minorities.)
The dress code is “business formal, but you get used to it after a while.” But this means wearing formal attire “every day until 8 p.m., excluding the
weekends.” “Business casual on Fridays is observed in the summers between Memorial Day and Labor Day,” notes a banker, adding, “If traveling to
a client who is business casual, you are allowed to be business casual as well."
Staying power
Sources praise some of the perks the firm provides, and one source points out a major perk that not many investment banks can claim to have these
days, saying, “Since the bank is owned by Warren Stephens, it can readily survive bad times without mass layoffs.”

STIFEL FINANCIAL CORP.
501 N. Broadway KEY COMPETITORS

St. Louis, MO 63102
Fax: (314) 342-2097 Raymond James Financial
www.stifel.com
UPPERS
BUSINESSES • "Extremely professional and collegial"
Banking • "Business casual dress code"
Capital Markets
Private Client
DOWNER
• "There aren't a lot of women around”
THE STATS • Occasional 60- to 70-hour workweek
Ticker Symbol: SF (NYSE)
Chairman & CEO: Ronald J. Kruszewski
EMPLOYMENT CONTACT
2008 Revenue: $888.85 million Follow the careers link at www.stifel.com
No. of Offices: 250
THE BUZZ
• “Experts, sophisticated”
• “Lower tier”
• “Regional investment bank”

Stifel Financial Corp.
THE SCOOP
A steady powerhouse
Stifel Financial offers securities-related financial services through its wholly owned operating subsidiaries: Stifel, Nicolaus & Company, Incorporated;
Stifel Nicolaus Limited; Century Securities Associates, Inc.; and Stifel Bank & Trust (formerly FirstService Bank). Through these subsidiaries, Stifel
provides brokerage, trading, investment banking, advisory services and other financial services to customers in the U.S and Europe. Its business is
divided into three units: banking, private client and capital markets (equity and fixed income sales and trading, investment banking and research).
Investment banking is handled by Stifel, Nicolaus & Company, Incorporated (Stifel Nicolaus), which was founded in 1890 and is one of the largest
middle-market investment banks in the U.S. As of mid-2009, Stifel Financial had about 4,000 employees, including 1,500 financial advisors managing
more than $60 billion in client assets. It’s also home to one of the nation’s largest domestic equity research programs, with over 700 companies under
coverage. Although the firm’s headquarters are in St. Louis, its capital markets efforts are based in Baltimore.
A great ‘08
If 2008 was the year of the bust, Stifel Nicolaus never got the memo. Instead, the St. Louis-based firm opened more than a dozen new offices, acquired
another financial advisory for its docket, and racked up accolades and revenue.
During the year, the firm opened 14 new private client offices throughout the U.S. Three of the firm’s new outposts—Phoenix, Ariz.; Seattle, Wash.;
and Medford, Ore.—represented the firm’s first forays into those states. Stifel also opened offices in Brevard, N.C.; Florence, S.C.; Frontenac, Mo.;
Harwich, Mass.; Memphis, Tenn.; Oconomowoc, Wis.; Ramsey, N.J..; and Springfield, Ill. Additionally, it doubled its number of offices in California
with openings in Lincoln Hills, Monterey, Oxnard and Westlake Village.
In StarMine’s 2008 U.S. rankings, Stifel’s equity research group landed the No. 1 spots in stock picking and earnings estimate accuracy. In the
Financial Times/StarMine’s 2008 survey, published in May, Stifel analysts won 14 awards and ranked eight among more than 235 companies.
Most important, the company posted steady, positive returns, with quarterly revenue that consistently hovered around $200 million.
Plenty of M&A
Stifel recently worked on a number of significant deals, including advising Iowa Telecom on its $82 million purchase of Sherburne Tele Systems, Syms
Corp. on its $65 million acquisition of Filene’s Basement, Valley National Bancorp on its $167 million purchase of Greater Community Bancorp, Dorel
Industries on its $190 million purchase of Cannondale Bicycle Corp. and MTC technologies on its $450 million sale to BAE Systems. The firm also
co-managed several common stock deals, including the $65.3 million offering for Hersha Hospitality Trust, the $156.2 million offering for BioMed
Realty Trust Inc. and the $276 million offering for Hatteras Financial.
IN THE NEWS
March 2009: Acquiring branches from UBS

Stifel agreed to acquire up to 55 branches from the UBS Wealth Management Americas branch network. The 55 offices are located in 24 states
throughout the U.S., and employ approximately 320 financial advisors, who have approximately $15 billion in assets under management.
January 2009: Buying Butler

Stifel closed on its $12 million acquisition of Butler Wick & Company, a financial advisory firm with 175 employees spread across 23 offices in three
states.
Butler Wick was founded in 1926 and is headquartered in Youngstown, Ohio.
September 2008: Issuing shares

Stifel issued 1.2 million common shares of its stock, one million of which were offered by Stifel, with the remainder offered by the Western and Southern
Life Insurance Company.

Stifel Financial Corp.
July 2008: The feather in its cap

Stifel acted as exclusive M&A advisor to Boston-based Bunker Hill Capital upon the sale of Specialty Coating Systems, an Indianapolis-based company,
to private investment firm Berwind Corp. The $200 million deal closed in mid-July 2008, after only a few weeks, according to The Deal magazine. That
same month, the magazine named the transaction a private equity “deal of the year.”
July 2008: Going public in Michigan

Stifel opened a new office for its public finance group in East Lansing, Mich. For that effort, it poached four Wachovia Securities bankers: Brenda L.
Voutyras, named senior vice president; Robert P. Regan, first vice president; Annette M. Schoenheider, vice president; and Gregory J. Baracy, Jr.,
associate.
June 2008: Energy gathering

Stifel added a nine-banker energy team whose senior hires—Patrick Keeley, Chris Shebby, Kerry McKeon and Julien Smythe—came from the energy
and natural resources group at FBR Capital Markets. The new hires are a boon for Stifel; while at FBR, these four bankers completed 87 transactions
worth more than $18 billion.
March 2008: Public stock offerings

Following a shelf registration with the SEC, the firm issued 2.2 million shares of common stock, 1.6 million of which were offered by BankAtlantic
Bancorp, and 300,000 were offered by the Western and Southern Life Insurance Company. Stifel itself issued 300,000 more. The shares were priced
at $40 apiece.
February 2007: Ryan Beck on board

Stifel closed a deal with BankAtlantic Bancorp to buy one of its wholly owned subsidiaries, Ryan Beck Holdings. Through its principal subsidiary, Ryan
Beck & Co., the New Jersey-based Ryan Beck provided financial advice to individuals, institutions and corporate clients. Its private client group
included approximately 400 financial advisors (most of them located in the mid-Atlantic region), and over $19 billion in client assets. Under the terms
of the transaction, Ryan Beck’s 1,000-plus employees and 40 offices operated as a Stifel subsidiary and were integrated into Stifel Nicolaus over the
course of 2007.
The combination of Ryan Beck and Stifel’s private client group brought together Ryan Beck’s 395 financial advisors with Stifel’s 564 advisors. At the
close of the acquisition, Ryan Beck chairman and CEO Ben A. Plotkin was invited to join the Stifel board of directors.
GETTING HIRED
A laid-back team
In terms of company culture, Stifel is “a meritocracy that is relatively laissez-faire.” Insiders also call the atmosphere at Stifel Nicolaus “extremely
professional and collegial” and “team-oriented.” “For the most part, everyone gets along and tries to help the firm succeed as a whole.” One even
goes so far to call the firm "by far the best company that I have ever worked for.”
Compensation and perks receive positive feedback as well. One insider calls the stock in the company offered to employees a “good upside.” Sources
also revel in a “business casual dress code” with casual Fridays. “We usually also go casual between Memorial Day and Labor Day,” says one insider.
Expect to stay busy

Though hours are “reasonable,” many employees arrive early or stay late, insiders say. There are also “busy periods like earnings season, where you're
in the office much longer each day than the rest of the time.” One insider puts his hours at “60 to 70” per week and says he comes in “about once
a month” on weekends.
When it comes to Stifel's gender diversity, one insider admits "there aren't a lot of women around, but I don't think our firm is opposed to the idea."
Ethnic diversity could also be improved. “We have some diversity in our office, but not a lot,” says another insider, who adds, “Still, I think we are very
open to hiring qualified diverse individuals.”

SUNTRUST BANKS, INC.
303 Peachtree Street NE RANKING RECAP

Atlanta, GA 30308
www.suntrust.com #6 – Hours
#10 – Training
BUSINESSES #11 – Business Outlook
Commercial Banking
#14 – Culture
Mortgage
Retail Banking
#15 – Offices
Wealth & Investment Management
Diversity
THE STATS #14 – Diversity With Respect To Ethnic Minorities
Employer Type: Public Company #14 – Best for Diversity
Ticker Symbol: STI (NYSE)
Chairman & CEO: James M. Wells III
2008 Revenue: $9.21 billion KEY COMPETITORS
Bank of America
BB&T
Citi
Regions
Wells Fargo
UPPERS
• “Great location”
• “The people are fun”
• “Banker’s hours”
DOWNERS
• “Pay is low compared to other banks”
• “Bureaucratic red tape”
• “Technology is outdated”
THE BUZZ
• “Stable”
suntrust.com/careers
• “Stodgy”
• “Competitor”
• “Regional”
373
SunTrust Banks, Inc.
THE SCOOP
Deep in the heart of Georgia

Atlanta-based SunTrust Banks, Inc., a holding company for more than 50 geographically focused banking units, operates under a decentralized
management structure whereby local managers are responsible for business generation and community involvement. SunTrust is one of the nation's
largest banking organizations, with $179.1 billion in assets as of March 2009.
SunTrust offers consumer banking, commercial leasing, mortgage banking, credit-related insurance, asset management, brokerage and investment
banking services to consumer, commercial, corporate and institutional clients. Through its network of companies, SunTrust has a significant presence
in the southeastern U.S., with more than 1,700 branches primarily in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee,
Virginia and Washington, D.C.
SunTrust’s investment banking arm, SunTrust Robinson Humphrey, launched in 1894 as the Robinson-Humphrey Company. In 2001, impressed with
its investment banking record, SunTrust acquired the firm. And in 2007, SunTrust integrated its corporate banking, investment banking and capital
markets units, packaging them as SunTrust Robinson Humphrey. Today, the unit offers capital raising, strategic advisory, risk management,
investments, and treasury and payments services.
IN THE NEWS
July 2009: The recession continues

SunTrust booked a $164.4 million for the second quarter 2009, a significant slide versus the $530 million in net income the firm booked for the same
period a year earlier. Chairman and CEO James M. Wells said in a news release, "Clearly, recession-related costs continue to impact our results.”
June 2009: Raising equity

SunTrust completed an offering of 124.2 million shares of its common stock, raising a total of $1.56 billion. The move came after the U.S. government
requested TARP-participating banks to raise equity.
April 2009: Two in a row

SunTrust Banks posted a loss of $875.4 million for the first quarter 2009. It was the bank’s second consecutive quarterly loss, and a big plunge from
the $281.6 million profit the firm posted in first quarter 2008. However, revenue for the quarter increased, coming in at $2.24 billion compared with
$2.06 billion in the same period in 2008. Higher mortgage lending and an increase in deposits helped the firm’s income statement.
March 2009: Extending credit through the storm

As part of its relief package from the government, SunTrust increased its efforts to prevent foreclosure for more than 18,000 clients. Those changes include
longer-term repayment schedules, credit counseling, and modifications to mortgages, among other things. And though many banks were criticized for
cutting loans during the credit freeze, SunTrust announced that it had increased outstanding loans by 4.5 percent, or $5.4 billion, during 2008.
January 2009: Down in the fourth

SunTrust took a nosedive in the fourth quarter of 2008, hurt by non-performing loans and mortgage-related losses stemming from declining interest
rates. Its stock price dropped 65 percent in that quarter, and management slashed shareholder dividends to 10 cents a share. The firm lost a total
of $379.2 million during the quarter. The fourth quarter also included $582 million in write-offs of non-performing loans.
Overall net income available to common shareholders in 2008 was $746.9 million, down from $1.6 billion a year earlier. But its 2008 total revenue was
still strong, at $9.21 billion. “The fact that SunTrust is not alone in paying the price of a deteriorating economy on our business and our clients does
not make today's results any less painful to report,” said CEO James Wells in a news release.
January 2009: Gift from Uncle Sam, part two

SunTrust Banks received more relief from the U.S. government’s TARP program, taking another $1.5 billion.

December 2008: A new president for a new era

Among moves announced is the appointment of William H. Rogers as president of SunTrust Banks, a post previously held by CEO James Wells. Rogers
was previously corporate executive vice president in charge of the bank’s wholesale, mortgage, and wealth and investment management businesses.
November 2008: Gift from Uncle Sam

SunTrust Banks received a $3.5 billion boost from the U.S. government under its TARP program.
November 2008: Bold moves on poor returns

In response to its poor results, the bank cut dividends twice in six months: first in November, to 54 from 77 cents a share, and then in January 2009,
following fourth-quarter results, to 10 from 54 cents a share. Those cuts represent an 87 percent decrease from the 77 cents per share it paid at the
beginning of 2008.
The bank also announced that it wouldn’t give any raises for its 4,000 managers in 2009, with the exception of “modest promotional increases where
significant new responsibility was added,” it said in a statement. Moreover, on account of disappointing results in 2008, no bonuses were paid out in 2009.
August 2008: Acquiring deposits

SunTrust acquired $225 million in FDIC-insured deposits from now-defunct First Priority Bank of Bradenton, Florida. SunTrust took on banking
services for First Priority’s 4,000 customers and said it would try to find positions within its organization for the bank’s 50 employees. First Priority was
the eighth bank to fail in 2008, according to The New York Times.
May 2008: Weak, but stronger than many

SunTrust completed its acquisition of GB&T Bancshares, which brought another $1.5 billion in deposits to its coffers, and added 17 banking offices
in North and Central Georgia to its stable of branches.
April 2008: Disappointing results

The bank announced that its net income for the first quarter had decreased to $283.6 million from the $513.9 million it earned in the previous year.
It recovered in the second quarter, reporting net income of $535.3 million. That number, however, is due in part to the sale of 10 million of its shares
of Coca-Cola. It also shed its exposure to high-risk securities in the second quarter, lowering its exposure to less than $800 million.
In the third quarter of 2008, the company reported net income of $307.3 million, down from $412.6 million during the same period a year earlier.
GETTING HIRED
Selectively varied
Selectivity “depends on what line of business” you apply to. A portfolio manager believes “commercial lending/real estate is more selective than many
of the other lines of business.” Insiders say that the investment banking division, which is relatively small compared to other SunTrust units, is also
“highly selective.” And given the economic environment, sources say overall hiring is growing more competitive. “In the current market, it’s very
difficult to get hired at our firm,” warns one contact. Another notes that the “recruiting trips” and “number of offers” extended have both been reduced.
“Only top talent is being considered.” Nevertheless, connections could help you land an offer.
Hiring from the SunTrust belt

The bank, whose “strong Southern culture” is reflected in its recruiting, searches for new blood at “top-tier colleges in the southeast.” The firm visits
schools such as UNC Chapel Hill, UVA, Wake Forest, University of Georgia, Georgia Tech, Emory, Clemson and Vanderbilt. According to one insider,
“The bank doesn't really bother at any Ivies, top liberal arts schools or other schools that excel at squash.” On-campus recruitment is quite competitive,
with SunTrust receiving “massive amounts of resumes.” Sources say SunTrust management works hard to select applicants who are qualified and
whose personalities “mesh with the atmosphere of the department” for which they are being hired.
If chosen, applicants can expect a multi-step interview process that may include a phone screen, on-campus interviews and a “Super Day” held in
Atlanta. Number of interviews and interview length vary depending upon position. One employee recalls “a two-day process that consisted of socials,
information sessions and various rounds of interviews, both one-on-ones and many-on-ones.” Another contact remembers an on-campus interview

“with two directors,” followed by an on-site interview “in six different rooms.” One analyst’s final round consisted of a trip to the Atlanta headquarters
“with approximately 30 other candidates” competing for seven positions. Over two days, he endured 12 interviews lasting a half-hour each.
Interview questions vary, from those that “aim to look at how a person thinks through a problem” to how perspective hires “interact with others.” Some
questions are “very broad,” but sources say to be ready for “detailed, finance-oriented,” “technical” and “job-focused” inquiries. Insiders say
interviewers in the final round each look “for a different skill set and quality.”
Let the SunTrust shine in

Although an internship “definitely opens the door to a full-time opportunity,” employees say that “it’s also possible to get hired without” having
completed one. “Interns who are viewed favorably” are offered full-time positions, but a source points out that “no one hired into my program had
participated in an internship at SunTrust”, so it’s not a requirement to get the job.
Nevertheless, in an increasingly competitive environment, internships at SunTrust may become that much more important to landing a job. “Our bank has
slashed new hires by an estimated 60 percent,” says one insider. “Interns who did well” have “the best chance of getting hired. The experience provides
“significant exposure to one’s future team.” What’s more, the program is a good preview of life as a full timer. One analyst recalls, “I analyzed financial
statements, learned the business behind currency risk management and supported superior associates.” Another analyst says, “As an intern, I did the exact
same work as what I do now as a full-time employee.” Indeed, there’s not much photocopying and coffee making as a SunTrust intern, but there is plenty of
“real work.”
OUR SURVEY SAYS
A conservative, Southern team

In general, employees agree that the SunTrust firm culture is “conservative,” though culture varies greatly “depending on region”—some have a “great”
atmosphere while others are “lacking.” A “Southern culture mentality” still exists in many regions, and the Atlanta headquarters “definitely has a
Southern vibe.” Though the environment can be “maddeningly conservative at times,” it’s also “very polite and helpful.” In other words, “none of my
co-workers would ever throw me under the bus,” says one employee.
That sentiment is echoed by a member of the commercial lending group who says that the firm is “very respectful” and has a “non-cutthroat banking
atmosphere yet to be matched at almost any other banking institution.” Corporate culture is also described as “welcoming, understanding, hard-
working and efficient”—“a good mixture of competition and team work.” At SunTrust, “there is a strong feeling that you learn by performing,” explains
a source, “and there are countless people who will bend over backwards to help you learn what needs to be done.” According to one portfolio manager,
“Everyone is very diplomatic but upfront with each other, and you’ll have the opportunity to enjoy work and get to know the employees you work with.”
Those who call the corporate culture “intense and demanding” say it’s tempered by “respect.” A member of the real estate lending group calls the
firm “very career development-oriented,” while another happy insider says, “We have the support of management, and the ability to express our ideas.”
Yet, given the present economic situation, some insiders say they’re feeling the heat. “There are lots of policies and procedures to follow,” notes an
insider. “Things have definitely tightened with the failing economy.”
Managers and subordinates: shoulder to shoulder

SunTrust analysts work in “a good environment with desks in the same bullpen.” Partly, that may be due to the high level of respect and openness
that employees feel from their superiors. “Senior management is very accessible,” says one source; “all my managers are fair and helpful,” says
another. According to one contact, “management's attitude towards analysts is extremely good, better than I would have expected.” That respect
extends beyond the trading floor: respondents point out that they are “treated very well on a personal and professional level” and that “most people
through the entire bank” are “very understanding of circumstances and work load.” An analyst in leveraged finance recalls that supervisors “were very
supportive of my decision to apply to school and actually care about me as a person.” Managers are “very understanding whenever I need to prioritize
their work below other stuff.” Perhaps that’s because managers work “in the midst of everyone else on the trading floor.” They get to know
subordinates by “speak[ing] every day,” holding “weekly update meetings,” and attending “happy hours after work.”
Respect between all members of the bank translates into opportunities to learn on the job, with “senior bankers” who “act as mentors, often working hand
in hand with junior personnel.” And the firm’s relatively small size “allows direct access to managing directors when completing projects, a major benefit.”
However, one contact observes that although senior managers “have good intentions and want to get to know everyone who works under them, it is
not rare that” they “may not know the names of all subordinates.” And respect might not necessarily add up to “appropriate attention or
acknowledgement.” An employee in sales says that it “varies manager to manager. Some are great, others are not.” Another contact admits that
“some managers I worked with initially are jerks, but the two guys I’m dedicated to covering are really awesome guys.”

“Supervisors are extremely supporting and willing to help anytime,” say employees, but don’t act as though they know it all. According to one analyst
in credit risk management, “my views are taken into consideration on projects of all scale.” An n employee in commercial lending agrees,
acknowledging the “high level of respect among managers and subordinates” and an overall “desire for collaboration and openness.” Indeed,
managers make the effort to “speak with you as an equal,” says one insider, “regardless of the differences between rank.”
Working 9 to 5 (or 8 to 6, or 7 to 3 …)
Like culture, hours at SunTrust vary from group to group. In general, those on the commercial side of the bank work between 40 and 50 hours per
week, while those on the investment banking side work between 60 and 70. “There is flexibility around work hours with the ability to arrive late or
leave early when necessary,” says a commercial banking source. “I think the general guideline is that we work the hours necessary to meet and exceed
our goals.” An investment banking analyst, meanwhile, “normally work about 11 hours a day” and takes a “45 minute to an hour lunch break.” As
for weekend work, commercial employees “rarely” see the inside of the office on Saturdays and Sundays, while investment banking sources say they
“often” work weekends. As for what “often” means, some say they work weekends once or twice a month “when large projects come up.” “But luckily,
you can anticipate when those will be and plan ahead.” Also luckily, “face time is not the yard-stick by which an employee is evaluated.”
Hours in trading are different from both commercial and investment banking. On the trading floor, hours are “market-driven” (you work mainly when
the market’s open). Also in trading, there’s “no overtime” and “no [working on] weekends.” In sales, one source who works about 65 hours per week
says, “Between assisting clients, booking trades, and additional projects and presentations, there’s no downtime.” Another salesperson, who works
slightly fewer hours per week, notes that despite 12-hour days, “I never have to come into the office on the weekend, and my superiors are very
understanding when I need to take time off.”
Three weeks of vacation, plus all bank holidays

Compensation leaves something to be desired, with yearly and signing bonuses “slightly below industry average.” One insider points out that living
expenses in Atlanta are “much lower” than elsewhere, particularly New York City, “and should be taken into account.” As of early 2009, compensation
has also been affected by the economic environment, with reductions of “50 to 65 percent at the analyst level.” The firm may also award a quarterly
incentive bonus, “depending on position in company and performance.” On average, employees in commercial and real estate lending take home
less than their colleagues in portfolio or asset management and corporate finance.
The firm provides health and dental benefits, “significant reimbursements during the associate training program,” and matches employees’ 401(k)
plans (up to 5 percent per year). Fifteen days of paid vacation “plus all bank holidays” is pretty much the norm; one source notes that “there is no
strict tracking of vacation time,” while another says that “vacation time is relatively reasonable.” One contact adds that “with approval and a passing
grade, many financial tests and certificates are reimbursed,” and notes that the firm provides “mileage reimbursements.”
Holiday parties, happy hours, free food and drink around the office, and a car service (when working late nights) may also be provided. Although the
bulk of SunTrust’s employees do not have student loans, most that do say they spend between 1 and 10 percent of their take-home pay on them.
“Extremely useful and easy to get”

In terms of training, incoming analysts can expect a formal program that lasts from four weeks to six months. Though most employees are pleased
with their training, some caution that the web-based aspect of the program is “clumsy and not very effective.” The firm brings in “doctorate level
teachers for crash courses in accounting, corporate finance and modeling.” Depending on your background, training might be “monotonous” and
“repetitive.” One commercial banking source who holds an MBA says that though training “was great,” “it was focused on non-business majors.” He
adds, “I was not challenged at all in the course work, though it was great to gain additional certificates. Other classmates with business degrees from
decent schools also felt they were not challenged. I often found myself tutoring non business majors.”
After the formal training period is over, “training on the job is extremely useful and easy to get,” “as most people are open to helping you learn things
that you didn’t learn in school.” Additionally, “the close proximity of people on the trading floor—and the helpful attitudes of colleagues—makes it easy
to learn the trade quickly.” Insiders say that this on-the-job mentorship—“there are countless people who will bend over backwards to help you learn
what needs to be done”—promotes a “team mentality.”
As spacious as spacious gets, for a trading floor

The physical environment at SunTrust’s Baltimore office is “nothing special.” An insider in the Baltimore office derides the furniture as “drab” and
says that “open space could be cleaned out or less cluttered.” “As spacious as spacious gets on a trading floor” is how one trader in Atlanta describes
his surroundings, adding that “décor is rather plain but views of downtown are rather nice.”
One insider in Sarasota complains of “old branches, bad furniture” and says that “everything looks outdated.” But an Atlanta-based sales employee’s
office has “great views and all the systems needed to conduct business”; a member of that office’s corporate finance team works “in an open area
similar to a trading desk.” “As an entry-level employee,” says one analyst in the Atlanta office, “I was pleasantly surprised to be given an office.” In

Ft. Lauderdale, “the offices are older. The building is in good repair, but there is no luxury.” A portfolio manager in Greenville, S.C. praises the
“excellent office environment, as far as setup and people.”
How green is SunTrust?

The firm’s commitment to green initiatives is lukewarm, according to insiders, who cite “power saving” and paper conservation among other “small
measures” that have “been a focus over the last year.” Another analyst adds, “All printing has been set to automatically print double sided,” which
“actually has a large effect due to the amount of paper we go through each day.” And on the individual level, “employees habitually turn off office
lights when leaving for the day.” According to one source in the Ft. Lauderdale office, “AC is not run on the weekends in my office,” and “the Bank
is moving toward electronic filing systems and archives to save on paper. Scanners have been set up in almost all locations.”
Employees are willing to make sacrifices to make their workplaces more green, by going without disposable plates, napkins and silverware, and
reducing lighting when there is sufficient sunlight. They also say they’d be more than fine with turning down the heat and the AC during off-peak hours,
like nights and weekends.
No one’s rocking Gucci

As for dress, that depends on the department. Most regions have casual Fridays, but expect business casual the rest of the week, meaning you’ll be
wearing “slacks and a nice shirt” or a “shirt and tie.” Business formal (a suit) is expected for “client contact,” while “‘back office’ employees” tend to
dress “more casual.” Says one source, “Senior bankers wear suits and ties, but no one is really rocking Hermes or Gucci.”
Hanging in there
Given the present economic situation, SunTrust has implemented a number of measures to cut costs. Most significant, employees say, the firm has
downsized its workforce and reduced the number of on-site office perks, such as free coffee, meals, happy hours, and other events—which has
“affected employee morale.” To a lesser extent, the bank has cut back on business travel, and has scaled back holiday celebrations in 2008 and early
2009. To save jobs at SunTrust, some employees say that they’re willing to work extra hours or give up the company’s 401(k) matching benefit, but
few would part with vacation days. Indeed, employees are hoping it won’t come to that.
“The company is definitely invested in each of its employees,” says an insider, and “really tries to retain” everyone it can. And although “banking is
an industry in disarray,” the firm “is generally conservative and has been weathering well.”
Some employees point out that the firm has increased lending to make itself more competitive in the present environment. “The company has taken
the opportunity to expand as other companies reduce lending and struggle to maintain client relationships,” says an analyst. One insider says that “as
far as banks go, I think our business outlook is good, but I'm not sure if any bank is in a great position right now.” Others are more conservative, calling
the firm’s business outlook “neutral to good, relative to many other firms in our industry.”
But an employee in commercial lending says, “SunTrust is a strong bank given the economy. The problem is that marketing is not getting the message
out to people about what we have to offer. We are a regional bank that might be left behind in the future as many other larger banks will eventually
move us out of the market by giving better services and having better technology. Technology has been a significant problem internally and externally
as customers and peers complain about it compared to other banks.” SunTrust is a “20th century bank in a 21st century world,” believes another.
One member of the commercial lending group expresses similar worries, observing that “our bank is being victimized by the conduct of the bigger,
national banks. Stock price is undervalued, and we are far better capitalized than most other regional and even national banks on a ratio level.”
But another contact thinks that SunTrust is well-positioned to compete with other firms: “The fall of traditional Wall Street players has allowed us to
step up to the table with companies that may not have otherwise given us consideration,” he says. “We are able to use our balance sheet which is a
huge advantage in the current economic climate. The firm is trying to use this situation to get in with new clients.”
The lowdown on diversity

SunTrust gets above-average marks for diversity with respect to women. Many sources say the firm “does not treat women any differently than men in the
workplace,” noting that “there are several women in upper-management.” Others, though, while acknowledging that “the firm does not discriminate against
women,” say “it still seems to be a man's world” and add that “the majority of management is male.” Other employees say that “the firm is very open to hiring
women,” but note that investment banking and the trading floor are both “male-dominated.” One female analyst says that “SunTrust has made me feel very
comfortable” and employees are “very respectful.” “Women are seen directly as equals in our company,” says another insider, adding that one “of the heads
of the corporate and investment banking group is a woman.” Overall, according to SunTrust, 68 percent of its employees are female.
Although the bank “makes an effort to recruit at historically black universities,” and “respects and hires from diverse pools,” others say that “the corporate
and investment world is primarily Caucasian.” “There is very little racial diversity at our office,” agrees one contact.

When it comes to GLBT diversity, SunTrust maintains a “neutral stance,” and treats homosexual employees “with the same respect and consideration as
others.” It is also “a large and active sponsor of gay pride events.” Although some sources say they “don't know of any gays or lesbians” who work at SunTrust,
one contact says, “There are some openly homosexual people here. These employees are treated with the same respect and consideration as others, and
are not ostracized in any way.”

SUSQUEHANNA INTERNATIONAL GROUP, LLP
(SIG)
401 City Avenue KEY COMPETITORS
Suite 220
Bala Cynwyd, PA 19004 Citadel
www.sig.com Interactive Brokers Group LLC
BUSINESSES UPPER
Institutional Sales • “Entrepreneurial spirit”
Investment Banking
Market Making
Private Equity
DOWNER
Research • "Not the place it was in the high-flying days of the tech
Trading boom"

Employer Type: Private Company See “working here” at www.sig.com
Managing Director: Jeffrey Yass
No. of Offices: 15 offices (North America, Asia Pacific &
Europe)
THE BUZZ
• “Great trading platform”
• “OK research”
• “Unique, hard-charging”
• “Chop shop”

Susquehanna International Group, LLP (SIG)
THE SCOOP
Services for all

Founded 20 years ago, Susquehanna International Group offers investment banking services and provides execution services for Nasdaq and listed
stocks, ETFs, ADRs, options and program trading through its institutional brokerage affiliate, Susquehanna Financial Group, LLLP (SFG). The
investment banking team is made up of mostly corporate finance and equity capital markets (ECM) professionals. Corporate clients are provided with
differentiated banking services, including public equity, mergers and acquisitions advisory services, private placements, PIPEs, registered direct
offerings and financial advisory services. SFG also offers equity research to institutional investment managers and prides itself on providing
independent analysis. And in 2006, SIG created a new private equity platform consisting of multiple strategies.
Sticking around
The firm prides itself on its low turnover rate, lack of pigeonholed job descriptions and absence of “corporate constraints,” but it’s recognized for even
more. Best known for its impressive trading capabilities, the Susquehanna International Group of companies (SIG) offers investment banking, research,
institutional brokerage and market making services to institutional and corporate clients. The firm is a member of numerous local, national and
international stock exchanges, including the New York Stock Exchange, Nasdaq and all of the U.S. option exchanges. SIG is headquartered outside
of Philadelphia and, in addition to its domestic presence, has offices in Europe, Asia and Australia. A December 2007 article in the Philadelphia
Inquirer focused on the diversity of businesses in the region and noted that SIG is one of the area’s “highly specialized firms.”
Traditional meets modern

What distinguishes the firm's investment banking services from competitors is the way SFG integrates traditional banking services with SIG's extensive
trading operations in equities, ETFs and derivatives. SIG has extensive algorithmic trading capabilities, and trades over 80 million shares on a daily
basis. SIG handles roughly one out of every seven stock options traded in the world. The firm is also a market maker for more than 3,000 Nasdaq
stocks. SIG is also one of the biggest U.S. option market makers and a specialist in more index options than any other market maker. The firm is a
big player in other securities areas as well, including ADRs, international securities, exchange traded funds (ETFs), OTC equity, currency and fixed-
income derivatives.
Card sharks
In the high stakes world of investment banking, everything is a gamble. The founders and senior traders at SIG take this philosophy very seriously,
integrating poker playing into the fabric of the firm's social culture. In addition to its famous internal poker tournaments, SIG has also used poker as
a way to recruit employees in the past. The firm held three “Texas Hold 'Em” throughout 2008 in New York, San Francisco and Los Angeles. The
events were open to clients and employees. One of SIG's most famous employees is Bill Chen, a World Series of Poker star, who works in its quantitative
trading department.
IN THE NEWS
June 2009: Two more faces in research

Susquehanna hired two experienced research analysts: Charles Minervino, who recently worked for Goldman Sachs and was a finalist in The Wall Street
Journal’s annual Best of the Street survey of the industry’s top analysts; and Jonathan Casteleyn, who most recently worked for Wachovia Capital
Markets and previously worked for Banc of America Securities. Earlier in the year, the firm hired another research star, picking up Jeffrey Fidacaro, a
former vice president and senior IT hardware analyst at Merrill Lynch.
July 2008: Teaming up with Goldman

Susquehanna Growth Equity, LLLP and Goldman Sachs teamed up to invest in Derivix, a provider of institutional strength options pricing and analytics
solutions. The firms provided Series A funding for Derivix that will be used to allow the company to continue product innovation, expand its sales team
and acquire new customers. Vincenzo La Ruffa, vice president of SGE said, “Derivix’s commitment to remaining broker-neutral while delivering
unparalleled tools and support is a true testament to the company’s focus. We were very impressed from the start with the rich front end and powerful
pricing model driving Derivix’s platform, as well as the company, its products and its team.”

April 2008: Progress in private equity

Susquehanna International Group's private equity subsidiary made gains when one of its portfolio companies made a significant acquisition. HMP
Communications Holdings acquired Princeton Media Associates, a medical education company which focuses on providing the latest information for
healthcare professionals. HMP Communications CEO Paul Mackler said that “this is a truly transformational acquisition” and explained that the merger
will bring HMP Communication's education subsidiary North American Center for Continuing Medical Education (NACCME) into the business of
managed care through PMA's Managed Care-First Report brand. SIG Growth Equity Fund was a co-investor with Alta Communications in the
acquisition.
April 2008: Beefing up research

SIG added two experienced members to its research team in an effort to expand its equity research division. Former employee Malindi Davies rejoined
the equity research team to cover online retailing and internet stocks. The firm also hired Ding Ding, a Chinese native who previously served as the
senior biotech analyst at the Maxim Group. Ding brought her knowledge of the region as well as her extensive experience to her position with the
Chinese Equities Research team. Like many of SIG's hires, Ding has several advanced degrees, including a PhD in pharmacology and neuroscience
from SUNY and an MBA in finance from the Wharton School at the University of Pennsylvania.
GETTING HIRED
Polish your personality

Get a sense for SIG's ideal traits in a candidate (such as "the ability to work well under pressure,” using “critical and nonlinear reasoning” and being
able to communicate “effectively with other team members") by checking out the firm's “working here” section at www.sig.com, where the company
also posts a full recruiting schedule. SIG recruits at a number of top schools including the Ivies, Carnegie Mellon, MIT, Caltech and others. For students
not enrolled at these schools, the company accepts online applications. Prospective employees of all levels (graduates and experienced hires) can
also use the web site to search for jobs by location, experience level, employment category, department and keyword. Postings include a job summary
and list of qualifications.
Get focused
No need to worry about not finding a position that will match your skills—SIG makes sure to list several “areas of focus" within the “working here”
section of its website. The firm offers career paths in three primary areas—trading, technology and research—as well as in administration, accounting,
and human resources and recruiting. Assistant traders start off their tenure with SIG through the formal trader training program, which is "widely
recognized for its comprehensive curriculum." The training begins with a two-week orientation during which students attend classes in options theory,
risk management, behavioral economics, decision science and game theory. Following this initial phase, trainees take after-work sessions while gaining
practical experience for approximately a year to 18 months. After this apprenticeship, trainees are invited to a final 10-week course that combines
theory with application.
The focus on education isn't limited to initial training at SIG. According to the firm, “Education is of paramount importance at SIG.” Indeed, the
company has an entire department devoted to education, staffed with “experienced senior traders who devote their full attention to educating and
training.” Susquehanna also invites top academics to conduct seminars on topics such as derivative valuation, probability and game theory. Employees
can supplement classroom training with out-of-class studying in the library or online interactive instruction. Furthermore, staff members are
encouraged to take advantage of the experience of their peers through the firm's mentoring program.
Rise to the occasion

While the firm admits it “spares no effort in pursuing candidates who meet our job requirements,” you'll have to survive the interviews first. “The
interview process is one of the most rigorous on the Street,” says one contact. “You will be grilled, and each round of questions gets progressively
harder and harder.” Insiders say that the interview process at SIG usually lasts two or three rounds. Current students can expect an initial 30-minute,
on-campus interview, while others may have a series of phone interviews before final rounds. While one source says the firm asks “lots of personality
and 'Why do you want to be a trader?' type questions,” another advises, "Just know probability.” Also be aware that "the focus is largely placed on
gambling, as it is central to the SIG trading philosophy."
Overall, it seems that as the rounds progress, the interviews become increasingly quantitative. For example, one contact who interviewed for an
assistant trader position reported an “initial round over the phone with a member of the recruiting team” where he was “asked about general
information from [his] resume and then some basic probability questions.” The second round was another phone interview with a recruiter, but it was
a “much more quantitative round” and the source's final round “included much more math.” That interview involved members of the recruiting team
and a managing director. Throughout the experience, the candidate found SIG to be “more concerned with skill set than experience in industry or

grades,” and he “ended up accepting their offer because I was challenged by everyone I met and liked the emphasis on education and in-house
training.”
Know when to hold 'em

In October of 2007, SIG's university recruiting department held its annual poker invitational tournament for potential job candidates in order to get a
firsthand look at their critical thinking abilities through their betting habits. Participants were applicants for SIG's development programs in business
and technology, and quite a few of the day's invitees secured job offers. The free 10-hour tournament paid the top finisher $25,000 in cash, $15,000
for second, and $10,000 for third.
Summer work
Interested candidates can also try their luck as interns. In the summer of 2007, SIG rolled out a new, more formalized program, hiring 60 interns
across many business and technology areas. The 11-week program combines practical work experience, workshops, classroom training and social
events, providing students entering their final year (or term) a thorough introduction to the organization. As part of the new program, SIG introduced
a full spring semester on-campus campaign focused on interviewing for the summer spots.
SIG has a history of including co-ops as part of its recruiting strategy, and recently begun adding more schools to its roster. Many full-time hires began
as co-ops, including the heads of some of the most high-profile desks and areas within the firm.
OUR SURVEY SAYS
Mostly satisfied
The firm's culture, for the most part, receives high marks from insiders. SIG's web site describes the firm's culture as “a flat corporate structure, absent
of hierarchies.” A recruiter in the firm's Bala Cynwyd headquarters echoes this characterization, saying the firm has "as few levels of management as
are necessary to run a business efficiently.” As a consequence, the source finds the structure at SIG fosters “open communication and accessibility.”
In addition, says the contact, “Merit-based advancement and an entrepreneurial spirit allow for creativity and success in terms of responsibility
assumed at a very young age.” SIG also claims to maintain a work environment that “allows employees to excel without being bogged down by red
tape, job descriptions or other 'corporate' constraints. This unrestrained atmosphere has attracted some of the smartest, most competitive and creative
people to our doors.” And according to the firm, those people stay at SIG, as “turnover is very low.” But there are views from both sides—one insider
admits the company is “not the place it was in the high-flying days of the tech boom.”
Dress at the firm is “casual” and one source who went in for an interview remembers, “The environment was so laid-back and casual, I had no idea
the interviewer was a managing director until he left the room and someone told me. He was wearing jeans and a plaid shirt.”
Get the education

“There is great opportunity for learning,” reports one contact. SIG has an education department that makes sure traders, tech support staff and
analysts keep abreast of the latest developments in their field. Senior traders take the lead in educating the staff, supplemented by professors brought
in to teach seminars on derivative valuation, financial engineering or game theory. Assistant traders are also enrolled in a two-week orientation on
complex financial frameworks, after which they attend after-work sessions on similar topics, culminating in a 10-week course at Susquehanna
headquarters.

TD SECURITIES
31 West 52nd Street RANKING RECAP

New York, NY 10019
Fax: (212) 827-7248 #6 – Offices
TD Bank Tower #10 – Business Outlook
66 Wellington Street W #12 – Culture
Toronto, Ontario M5K 1A2 #12 – Hours
Canada #13 – Compensation
Phone: (416) 982-6160 #13 – Overall Satisfaction
Fax: (416) 307-0338 #14 – Best to Work For
www.tdsecurities.com #14 – Treatment by Managers
#15 – Training
Diversity
BUSINESSES #5 – Diversity With Respect To Women
Debt Capital Markets
Foreign Exchange & Money Markets
Institutional Equities
Investment Banking
KEY COMPETITORS
THE STATS Bank of America • BMO Capital Markets • CIBC • Citigroup •
J.P. Morgan • RBC Capital Markets • Scotiabank • Wells
Employer Type: Subsidiary of TD Bank Financial Group
Fargo
Chairman, CEO & President: Robert E. Dorrance
2008 Revenue: $14.37 billion*
2008 Net Income : $3.81 billion* UPPERS
No. of Offices: 14 • “A lot of responsibility as an analyst”
• “Slightly better hours” than competitors
*TD Bank Financial Group
DOWNERS
• “Limited (but growing) reputation in the U.S.”
• “Lack of mentoring”
EMPLOYMENT CONTACT
Lauren Todaro
THE BUZZ Recruitment Specialist, USA
TD Securities (USA) LLC
• “Strong, good talent”
31 West 52nd Street
• “Average Canadian commercial bank”
New York, NY 10019
• “Solid Canadian bank”
Phone: (212) 827-7000
• “Small player”
Email: recruiter@tdsecurities.com
www.tdsecurities.com/careers

TD Securities
THE SCOOP
One of the biggest

With its feet planted firmly on Canadian soil and its headquarters in Toronto, TD Securities is the wholesale banking arm of TD Bank Financial Group
(TDBFG), the second largest bank in Canada. TDBFG is comprised of Toronto-Dominion Bank and its subsidiaries. TD Securities has offices in 13
cities, including Toronto, Calgary, Montreal, Vancouver, New York, Chicago, Houston, Mexico City, London, Dublin, Hong Kong, Singapore and Sydney.
TD Securities is best known in Canada, where it regularly enjoys critical acclaim and annual showings on the country’s investment banking league
tables.
Key business lines include investment banking, equities, and rates and FX. Through these lines, the firm offers a host of specialized services, including
securities underwriting, sales and trading, equity research, M&A advisory, foreign exchange and real estate advisory. The firm works closely with TD
Bank and its brokerage subsidiary, TD Waterhouse. TD Bank's other subsidiaries include TD Canada Trust (retail banking), TD Commercial Banking,
TD Asset Management and TD Banknorth. TD Banknorth and TD Ameritrade were formed in 2005, and perhaps among the more significant
acquisitions that helped the firm better penetrate the U.S. market. In 2008, TD Banknorth merged with New Jersey’s Commerce Bank to form TD
Bank NA, giving TD an increasing presence in the States; it also opened 59 new retail locations throughout North America during the year. By market
capitalization, TD Bank ranked as the seventh-largest North American bank in 2008, and as of January 31, 2009, it had C$585 billion in assets.
Providing it all
As part of TD Bank's wholesale banking segment, TD Securities provides investment banking products and services to corporate and government
clients throughout Canada, the U.S., Europe, Asia and Australia. Services include bond and equity analysis, mergers and acquisitions support, risk
management, capital raising and foreign exchange. The firm's investment bankers deliver these offerings out of particular industry groups, including
communications and media, diversified industries, financial institutions, oil and gas, technology, and utilities and power. The institutional equities group
(known as TD Newcrest) delivers equity research in addition to underwriting, sales and trading, and distribution. The firm also has a debt capital
markets team that trades and sells various fixed income products and derivatives. The bank's foreign exchange group is a major player in the Canadian
derivatives market. But the firm’s presence in the rest of the world is changing—in December 2008, the firm delisted TD stock from the Tokyo Stock
Exchange on account of low turnover.
IN THE NEWS
January 2009: Sayonara and so long

TD Securities announced the closure of its Tokyo office (17 people worked in the office). At the same time, in another attempt to cut costs, the firm
announced that it would move some of its sales and trading operations to Singapore from Sydney. Some 70 people staff the firm’s Sydney office.
January 2009: Hopping securities

In 2008, according to The Australian, the firm was the second-largest seller of so-called kangaroo bonds—securities sold by foreign companies that
are listed in Australian dollars. Nevertheless, the company will centralize its debt capital markets, sales and trading operations in Singapore.
December 2008: Solid performance

TD Securities’ parent firm, TD Bank Financial Group, performed well in 2008, considering the economic climate. Unlike many other major financial
institutions, it did not suffer exposures to the subprime mortgage market. In fact, by the end of 2008, it was only one of seven banks listed on the New
York Stock Exchange to receive an AAA rating from Moody’s.
December 2008: Putting it on the tables

On its 2008 M&A league tables, Thomson Reuters ranked TD Securities No. 17 for any Americas completed deals, with 23 deals worth $40.5 billion,
and No. 20 in U.S. completed deals, with 9 deals worth $26.2 billion.
But the firm showed most strongly in its home market. It ranked No. 2 in any Canadian completed M&A deals, beating out J.P. Morgan, BMO Capital
Markets and CIBC World Markets, among others. The firm did not do as well for any Canadian announced deals, however; Thomson Reuters gave TD
Securities a ranking of No. 15 on that list, a nine-point drop from its No. 6 ranking in 2007. TD Securities was not ranked in the top 25 in announced
U.S. or Americas deals.

TD Securities
December 2008: Coulda been huge

TD Securities advised the consortium of financial firms that were slated to buy BCE, the firm that owns Bell Canada, a $50 billion deal that would have
been the largest leveraged buyout in history. If it had been executed, the deal would have garnered some $61.2 million in fees for TD Securities and
co-advisors Citigroup, Deutsche Bank, RBS and Morgan Stanley. According to The New York Times, the buyout fell apart largely on account of KPMG’s
finding that BCE would be insolvent if the transaction went through.
July 2008: “Who we are and how we operate”

The firm announced that it would take a fine of C$96 million stemming from improperly priced derivatives in its London office. In a statement, TD
Securities said, “This situation is associated with the activities of an individual who is no longer with the company.” Clark, president and CEO of TD
Bank Financial Group, expressed disappointment and regret. The company added that it is cooperating fully with regulatory authorities.
"It's got to be disappointing for management at TD because they have prided themselves on having not had these issues, where many of their peers
have had absolutely devastating related issues," Brad Smith of Blackmont Capital told The Toronto Star. Indeed, the resulting after-tax loss stemming
from the debacle represented less than 2 percent of the bank’s 2008 adjusted earnings. But “this incident simply does not reflect who we are and
how we operate,” Clark said in the company’s annual review.
In what seems a related move, John Gisborne, vice chairman of TD Securities’ credit products group, quit in July 2008. Gisborne had been with the
firm for a decade. In a statement, the company said that Gisborne left on account of “personal reasons.” But The Globe & Mail pointed out that it
was a trader on Gisborne’s London team who had mispriced the securities. Gisborne’s departure, the paper contended, can be interpreted thus: TD
Securities is “making a point of holding its people accountable for what happens on their watch.”
April 2008: Keeping busy

TD Securities co-led, with Cormark Securities, the sale of shares of Sprott Asset Management, a Toronto-based hedge fund that made its public debut.
And with Genuity Capital Markets, it acted as underwriter to raise C$400 million for Vitera, formerly known as Saskatchewan Wheat Pool.
GETTING HIRED
A smaller target
“I didn't attend a target university, so it was a bit more difficult to land an interview,” says a source. “TD has narrowed its target schools, so anyone
attending other schools will find that it is difficult to get a foot in the door.” Unsurprisingly, insiders say TD Securities is “big on recruiting student at
Canadian universities,” especially McGill, Western Ontario and Waterloo, as well as Ivey (Western Ontario’s business school), Laurier and the University
of Toronto. “Depending on the undergraduate institution, the level of selectivity varies, with preference given to those from Ivy, core or Canadian
schools,” an employee elaborates. In the U.S., frequently-visited schools include NYU, Boston College, Cornell, Columbia and George Washington.
Although recruiting involves a “typical investment banking screening process,” with consideration given to “academic standing and school attended
as well as extracurricular activities,” employees say that “it has become increasingly competitive and difficult over the last three years to receive an
offer.” Aside from TD’s high standards, positions are also “limited because analyst-to-associates are pretty common.”
Calculated questions
“New employees are hired into specific groups, so candidates normally interview with most, if not all, of the current team members.” The process
starts with “one round of interviews on campus.” This means a conversation “with a director,” recalls a current insider. “It was a partial fit interview
and a partial technical interview. I was asked to value a company.” Next there’s “Super Day” at TD headquarters (Toronto for Canadian applicants,
New York for Americans). There, candidates meet “people from various departments,” ranging from “associates to managing directors, with one or
two HR interviews.” Expect anywhere from four to six interviews, most lasting “half an hour.”
For those doing their final round in New York, warns a source, “It's important to communicate that TD is the place for you, given all the options in New
York City. Also, it helps to have a quantitative background, because a surprise calculation might come your way.” Across the board, candidates can
expect “standard finance questions” like “How do you value a company?” Adds an associate, “One question I specifically remember is ‘If you start up
a company and use $1 to buy a machine with $1 of debt, how does that flow through your financial statements?’” Another source says that during
the Super Saturday, “directors ask finance- and accounting-related questions such as how to value a company, how to adjust for accounting principles
and how to calculate EBITDA. The HR employee asked about my resume and volunteer experiences.”

TD Securities
Internship optional
“As of late, summer internships have been very common as TD has instituted a more formal recruiting effort,” says a source. But while others agree
the internship is “an excellent route to a full-time position,” it’s “not mandatory.” “Summer interns usually get a job offer” but “not always,” so
depending on the firm’s hiring needs and the intern’s performance, it may be “an advantage to anyone who can get an internship.”
A former intern reports that “pay was in line with investment banking summer positions at other firms.” As for the work itself, that ran the gamut “from
one-time projects to supervised transaction work, as needs dictated.”
OUR SURVEY SAYS
Pretty friendly, eh?

Call it the Canadian influence: TD insiders say their culture “promotes teamwork and is pretty relaxed,” not to mention “less cutthroat than [that at]
other Wall Street firms.” “You are encouraged to express your views and opinions, and your colleagues will listen and respect you,” elaborates a source
in New York. Of course, there is some competition, “but in a healthy way,” and even though it’s not dog-eat-dog, it does “help to differentiate yourself
in some way” if you want to gain responsibility.
At TD, says one insider, “You are given enough rope to either just get by or to hang yourself. In other words, if you are willing to step up to the plate
and work extremely hard, your chances of working on good deals and being promoted are good. If you want to just get by, you will likely end up being
the analyst constantly staffed on mundane research projects and comp assignments.” If there’s a downside, it’s that the culture can feel
“disorganized,” with a “somewhat confused strategy.” “Communication is something to be improved upon,” reveals one insider. “One day we are
seeking one type of business, and then a different one the next. This constantly changing strategy makes it difficult to focus our efforts. Also, at times
there is very little follow-up given with regard to our efforts, be it a pitch, comp set, etc. We finalize an assignment and then hear nothing back.”
Another source points out that some of the internal uncertainties are likely caused by “the market and the Commerce acquisition,” but at least some
responsibility rests with “upper management and a lack of communication.”
The size of the sea

Sounding a similar note, a leveraged finance insider says his department needs to “increase communication and be more careful when interviewing
for our team. Also, you don't need to promote someone just because they have been around long enough. They need to develop leadership skills
from within.” The source adds, “Unlike other groups, leveraged finance puts too much emphasis on technical skills, and not enough on fit.”
At least, says another analyst in the leveraged finance department, “I received a small raise this past winter, which was not given to analysts of other
groups at TD.” That’s echoed by a risk management analyst, whose base salary also increased in 2008—“which was exciting, given the market.” “The
economic downturn has limited opportunities,” admits a source in corporate finance. “But we're still working hard every day to find new ideas for our
clients.” However, regardless of the department, TD bankers know their firm’s strength—and its weakness: they’re “big fish in Canada, small fish in
the U.S.”
Surrounded by brainpower
“New analysts and associates attend modeling classes upon starting,” says an insider. “We also received classes to prepare for the series 7 and 63.”
While sources give good marks to their “initial six-week training session,” some wish for “more opportunities for advanced, job-specific training and
continuing education.” Luckily the “best training at TD is on-the-job training,” and “smart colleagues and managers help” with that.
Relationships between managers and subordinates “really depend on your managing direct and superiors,” though one associate declares, “You get
treated with respect no matter what your level of experience. Senior bankers take their time to teach and advise, and they will listen to original ideas
and thoughts.” Mileage may vary, however. “I have never been disrespected by my supervisors,” one source says. “They appreciate my work and
my contributions to the desk. Though, some senior guys can be a bit difficult.”
While some say interactions with managers come easy enough, others suggest the open-door policy is less realistic “than what anyone would lead you
to believe.” However, relationships among those on the same level, especially “among junior bankers,” are said to be “very collegial.”
A bit below Street

With respect to salaries, the firm “pays what the Street pays.” But “bonuses are definitely below-market for the U.S.” and “more in line with what
Canadian banks pay in Canada.” Plus, in 2008, “bonuses were down 35 to 40 percent, for obvious reasons.”

TD Securities
There is good news. One contact says, “I do think life is much better at TD versus other banks.” Another remarks, “As an associate, I get four weeks
of paid vacation, which is more than some people I know,” and “people actually want you to take it.”
“Standard benefits” include “free dinner [a $20 allowance] and a car home when you stay late,” as well as a “good health plan,” “discounted gym
memberships, 401(k) with matching and pre-tax spending accounts for transit.” The bank may also provide “education assistance” for those
completing their MBAs. And “certain high-performing employees get taken care of appropriately” at bonus time.
Humane society
Hours “are very decent, about 60 to 65 per week, unless you’re on a deal.” If so, expect “80-plus hours, easy.” Insiders say, “Hours are long when
they need to be but are generally humane, allowing employees to balance work with family and other interests.” And while many do work weekends,
it’s “voluntary” and often related to “some catch-up reading.”
Many contacts say the recession has changed the weight of their workload. “Our hours range significantly. We spend many of the long nights
researching new business ideas or developments in the industry,” says a leveraged finance source. “We probably spend about 80 percent of our time
pitching, and putting together and updating comps. But much of this is because of the recession and general lack of trust in the loan market.” “Hours
have been impacted by the economic slowdown,” another source agrees. “In 2006, I worked an average of 70 to 80 hours per week. Now I work
about 50 to 60.”
Looking spiffy
Most TD insiders give their offices the thumbs up, citing “recent upgrades” that have “improved the space significantly.” Even the trading floor “was
remodeled recently,” they say. The dress code is “business casual” most days, which means “suit without tie every day except Fridays,” when “pants
and a button down shirt” may suffice. Some groups “have casual Fridays,” which might include the option of “wearing jeans if you donate to a
predetermined company cause.” Of course, it’s “suit with tie always when interacting with clients.”
Environmental programs have been rolled out “throughout the bank” after management “sought recommendations from employees to improve its
green initiatives.” The firm is now committed to “encouraging recycling, double-sided printing, trying not to print everything and the use of mugs or
water bottles instead of paper cups.”
Sold on diversity
“Strong efforts in recruiting and hiring have resulted in good balance among new hires,” say sources, who add that “diversity is one of TD’s strongest
selling points.” This means the bank gets high marks for its openness to GLBT employees, ethnic minorities and women. In practice, diversity varies
from location to location, and employees know there’s still progress to be made. “Women are well represented at lower and mid levels of management,”
reports a contact. “However, there are very few women promoted above the managing director level.” At least in New York, there are signs of change.
“A good number of senior positions in the NYC office are held by women.”
TD strides forward
Although budgets for bonuses, travel and office parties were curbed in 2008, most employees say there have been no drastic cost-cutting measures
at TD—and only “moderate layoffs.” As a result, people are feeling confident. “TD has high morale due to evading the credit crisis,” explains an
insider. “The bank has always been conservative and is growing selectively. Our increased presence in the U.S. looks very promising.” Another adds,
“We're well capitalized, have excellent retail banking and have no need for any sort of bailout.”
Of course, notes a banker, “We're not immune to economic conditions, but we seem to be less exposed than some of our competitors. Our relatively
strong financial position, coupled with continued expansion into the U.S, retail and commercial banking space, offers some real opportunities to grow
our investment banking platform.” Having “stayed away from all the damage,” says a contact, TD remains in a good place. Unlike so many others,
“We’re still open for business.”

THINKEQUITY LLC

San Francisco, CA 94111-2702
Phone: (415) 249-2900 Burrill & Company
www.thinkequity.com Canaccord Adams
FBR Capital Markets
BUSINESSES
UPPER
Institutional Brokerage
Investment Banking • “Merit-based” rewards for employees
Research
ThinkWealth Management
DOWNER
• Has become “stagnant and corporate”
THE STATS
Employer Type: Subsidiary of Panmure Gordon & Co.
Chairman & CEO: Greg Wright
EMPLOYMENT CONTACT
No. of Employees: 180 See “careers” at www.thinkequity.com
No. of Offices: 6
389
ThinkEquity LLC
THE SCOOP
Sticking to its guns

When he launched ThinkEquity in 2001, Michael Moe intended to create a bold firm devoted to finding companies with massive growth potential. Moe
stepped down as CEO in 2008, but the firm still appears to be adhering to its founding principles, recently launching a new health care team, for
example, even though investment banks are leaving the biotech sector in droves on account of liquidity concerns.
Five arms for growth

ThinkEquity has its sights set on five main sectors that it believes are the most primed for growth: health care and life sciences; technology (specifically
software and semiconductors), media and Internet; consumer and business services; and greentech and emerging technologies. Each sector is broken
down into subcategories that further narrow the focus of what ThinkEquity considers “up and coming.”
ThinkEquity works with clients ranging from institutional investors, corporate clients, venture capitalists, entrepreneurs and financial sponsors. Its
services include targeted research, investment banking, wealth management and asset management. In March 2007, ThinkEquity became a wholly
owned subsidiary of London stockbrokerage Panmure Gordon & Co.
Flying high-net-worth
Extending its mission statement to focus on growth sectors, ThinkEquity has branched out its business to include one of the fastest growing and most
profitable areas of business available today: managing the finances of high-net-worth clients. The wealth management portion of ThinkEquity called
ThinkWealth caters exclusively to high-net-worth families, partnerships and nonprofit organizations. ThinkWealth was launched in 2004 and covers a
wide range of services, including asset allocation, portfolio construction, investment advisory services, consolidated reporting, equity and fixed income
trading, cash management, and hedging and monetization of concentrated equity positions.
One special quality that ThinkEquity offers its high-net-worth clients is a peer-to-peer networking forum called Visible Path. Visible Path is a relationship
capital management platform that helps ThinkEquity’s partners, staff, close advisors and VIP clients to network with each other under the veil of virtual
privacy.
Transatlantic merger
ThinkEquity went from being a boutique start-up to an international multi-service operation when it was purchased by Panmure Gordon Company in
March 2007. Panmure was attracted to ThinkEquity’s meteoric growth over the six years it had been in business, including its revenue jump from
$12.2 million in 2002 to $64 million in 2006. The buying price for the U.S. firm was $62.3 million, plus $27 million for the assumption and repayment
of debt and liabilities.
The merger provided a powerful partner for ThinkEquity. Panmure Gordon was established in 1876 and is one of the oldest stockbrokers in London.
As of the time of the merger, it had a capitalization of £116 million ($229 million) and was the stockbroker to approximately 85 companies. In the
U.S., the company will be known as ThinkEquity, a Panmure Gordon company, and will assume the name of Panmure Gordon in the U.K. and Europe.
IN THE NEWS
May 2009: Table management

ThinkEquity and Stifel Nicolaus & Company, Incorporated co-managed online reservation provider OpenTable Inc.’s initial public offering. The IPO of
three million shares of common stock were priced at $20 per share. In total, 1.57 million shares were being offered by OpenTable, and 1.43 million
shares were offered by selling stockholders. The offering’s bookrunning manager was Bank of America Merrill Lynch, and the IPO’s senior co-manager
was Allen & Company LLC.
January 2009: With risk comes reward?

ThinkEquity is forming a new health care team composed of analysts and bankers in order to take advantage of the frothy biotechnology sector, Reuters
reported. ThinkEquity’s timing is certainly bold. As a result of market swings, the bulk of investment banks have left the biotech sector behind. For
example, in November 2008, Susquehanna Financial Group fired 30 people, including its health care analysts. Moreover, of the 400 public biotech
companies in the U.S., about three-quarters of them “have less than one year of cash, and 120 of those have less than six months of cash,” life-science
bank Burill & Company told Reuters.

ThinkEquity LLC
November 2008: A few staff changes here and there

Bill Foley returned to ThinkEquity’s parent firm Panmure Gordon. Foley heads distribution of the firm’s U.K. research to U.S. accounts. The company
also hired a new analyst covering the semiconductor industry: Vijay Rakesh.
October 2008: Getting Wright

ThinkEquity announced it had hired Greg Wright as its new CEO. He was previously the firm’s managing partner and COO. Prior to joining ThinkEquity,
Wright was managing director of Merrill Lynch, where he helped to build its European corporate finance group. At the same time, Deborah Quazzo,
president and co-founder of ThinkEquity’s U.S. business, resigned “to pursue other interests.” These shakeups followed on the heels of Michael Moe,
chairman of ThinkEquity, announcing his resignation in September 2008 “to pursue other interests and to spend more time with his family,” according
to the firm.
June 2008: More advising

ThinkEquity led the placement on 2.5 million shares of the Harris & Harris Group nanotechnology investment company. ThinkEquity also advised
RuleBurst, a Sydney, Australia-based policy modeling software company, on its sale to Oracle Corporation.
April 2008: The age of computers

ThinkEquity advised AppStream, a provider of desktop applications, on its acquisition by Symantec Corporation. The terms of the deal were not
disclosed. It also advised IncuBoity Software, a privately held company, on its sale to Rockwell Automation.
GETTING HIRED
Think it over
The firm’s “careers” section of its website is rather sparse. Other than touting itself as “one of the fastest growing full service investment banks in the
United States,” and telling prospective hires that it strives “to cultivate an environment in which creativity, excellence and integrity are not just ideals,
but the simple truths that characterize everything we do,” the firm provides this address to which you can send a resume:
thinkjobs@thinkpanmure.com.
OUR SURVEY SAYS
A different direction?
As far as the company culture goes, ThinkEquity may be heading down a different path than it was previously. The firm “used to be very entrepreneurial
and reward its employees based on merit,” but times have since changed, insiders say. “With the recent loss of leadership, it has become very stagnant
and corporate,” one contact admits.

UNION BANK, N.A.
400 California Street KEY COMPETITORS

Fax: (415) 765-2220 Citi
www.unionbank.com Wells Fargo

Commercial Financial Services www.unionbank.com/careers
Personal Banking
Small Business Banking
Wealth Management
THE STATS
Ticker Symbol: UB (NYSE)
President & CEO: Masaaki Tanaka
No. of Offices: 336
THE BUZZ
• “Solid regional”
• “Who?”

Union Bank, N.A.
THE SCOOP
Golden State giant

Union Bank works in the consumer, small business, middle market, real estate, corporate, correspondent and trade finance markets, and also provides
investment and financial management, trust services, private banking, insurance and global custody services. Its industry focus is concentrated mainly
on the communications, media, entertainment, energy, public utilities and retail sectors.
There are four major business lines at Union Bank. Personal banking offers checking, savings, home equity, retirement planning, online banking and
estate planning to retail customers. The wealth management division provides investments, brokerage, trust administration, business services and
insurance. Small business services include cash management, business financing, merchant card services and Internet banking—Union Bank also
provides specialized small business services to nonprofit organizations and companies owned by women and minorities.
Finally, the commercial financial services division provides business insurance, employee benefits, international trade and foreign exchange services,
cash management and loans, and financing for mergers, acquisitions and other business operations.
The long and winding road

Follow a maze of Japanese and Californian mergers to arrive at what is known as Union Bank, whose roots date back to 1864, when the Bank of
California—the first incorporated commercial bank in the West—opened for business. Across the Pacific, in 1880, the Yokohama Specie Bank was
created in Japan. Many decades later, in 1953, it renamed itself Bank of Tokyo and launched a San Francisco subsidiary called the Bank of Tokyo
California (BOTC). Five years later, a Los Angeles-based bank called Union Bank & Trust Company shortened its name to Union Bank, which created
a one-bank holding company called Union Bancorp in 1967.
Meanwhile, BOTC grew beyond San Francisco in 1975 when it acquired Southern California First National Bank of San Diego and renamed it California
First. In 1984, the Bank of California became a wholly owned subsidiary of Japan’s Mitsubishi Bank Ltd., and in 1988, Union Bancorp was purchased
by California First (but kept the Union Bank name). In 1996, the Bank of California and Union Bank combined their businesses under the Union Bank
of California name. Union Bank became the new holding company’s primary subsidiary, and Union Bank of California Corporation (often referred to
UnionBanCal) listed on the New York Stock Exchange in 1999. That same year, Mitsubishi Bank and the Bank of Tokyo held a merger of their own,
forming Bank of Tokyo-Mitsubishi (BTM). In 2006, BTM merged with UFJ Bank, becoming the Bank of Tokyo-Mitsubishi UFJ. Mitsubishi Financial
Group completed its purchase of the remaining 33.6 percent of Union Bank of California in November 2008. A month later, the firm shortended its
name to, simply, Union Bank.
IN THE NEWS
April 2009: Looking up

The bank reported total revenue of $737 million for first quarter 2009, a 12 percent increase compared with the same period in 2008. Net interest
income, meanwhile, saw a 21 percent boost. The firm cited a $3.1 billion increase in interest bearing deposits one of the reasons for the positive
numbers.
February 2009: Down and up

Within full-year 2008, net income came in at $269 million—a 55 percent drop that the firm attributed partially to credit losses. Total revenue for the
year, meanwhile, increased 12 percent to $2.8 billion, which the company credited to an increase in loans and interest-bearing deposits.
January 2009: Tanaka on board

Union Bank President and Chief Executive Officer Masaaku Tanaka joined the Financial Services Roundtable’s board of directors. Tanaka is the first
Japanese executive to serve on the Washington, D.C.-based organization, which represents 100 of the biggest financial services companies in the U.S.
December 2008: Name change

The Union Bank of California dropped its long term moniker in 2008 in exchange for a more succinct title—just plain old Union Bank. The change
may have been a result of the acquisition of the company by Mitsubishi Financial Services, and also of Mitsubishi's plans to expand the company's
operations. CEO Masaaki Tanaka said, “While we have had a three-state charter—California, Oregon and Washington—for more than 100 years, we
also have offices in several major U.S. and international markets where we’ve been expanding our footprint in commercial real estate, energy and
utilities lending, and commercial banking.” The change went into effect December 18, 2008.

Union Bank, N.A.
November 2008: Property of Mitsubishi

As of November 4, 2008, Union Bank of California became a wholly owned subsidiary of Mitsubishi UFC Financial Corporation. The bank purchased
the remaining 33.6 percent of the bank for $3.5 billion in a deal that was approved by 98 percent of the UnionBanCal shareholders. Union Bank's
new parent company showed that it had a vested interest in expanding its banking operations in the U.S. by purchasing a 21 percent stake in the
former investment bank Morgan Stanley in September 2008. As of November 2008, UnionBanCal Corporation had assets of $62.6 billion, making it
one of the top 25 banks in the U.S.
November 2008: See ya, CBS

Union Bank found itself embattled in a lawsuit with CBS after a money snafu resulted in $72.3 million in disputed funds. The $72.3 million was sent
directly to CBS after it requested the withdrawal of funds from Reserve Primary, a mutual fund which suffered huge losses in 2008. Reserve Primary
“broke the buck”, dropping below $1 due to losses related to the bankruptcy of Lehman Brothers. The fund issued a redemption receipt to CBS, which
Union Bank disputes as “an advance” which should have gone to the bank instead of to the broadcaster.
September 2008: Appealing to the wine crowd

Union Bank opened an office in Napa Valley in order to make a specific appeal to the wine industry services. The products and services offered to
customers of Napa Valley include loans and other credit products, which will help growers, wineries, suppliers and distributors afford equipment
purchases, acquisitions, and import and export activities. The office is managed by James A. Barrett, who joined Union Bank in May 2008 as a member
of a four-person team focused on the wine industry.
July 2008: New chairman

Kyoto Omori took the chairman reins of UnionBanCal and Union Bank, N.A. Former chairman Norimichi Kanari served only one year as chairman
before stepping down from the position. Omori, the deputy president of Mitsubishi UFJ Financial Group will serve as a non-resident chairman. “Kyota's
global banking experience and knowledge will be invaluable to our board of directors and our executive management team,” said CEO Masaaki Tanaka.
No explanation was given for why Kanari was stepping down. Tanaka said, “We have been fortunate to have Norimichi Kanari serve in a number of
capacities for both BTMU and UnionBanCal Corporation over the years.”
GETTING HIRED
The standard process

On the bank’s “careers” section of its website (www.unionbank.com), candidates can search through the hundreds of available positions listed in the
"find a job" section, read the extensive descriptions (that include all information you would ever need about your potential new job) and apply online
by emailing their resume directly to the firm. If the firm is interested in pursuing your application, you will be contacted by a corporate staffing recruiter
to set up an interview. College students are also invited to apply for summer internships, and the firm operates an extensive college recruitment effort
seeking qualified and competent entry-level candidates.
There are lots of reasons to work for Union Bank. For one, the firm "values continuous learning," and backs up that statement with "comprehensive
training and development programs" aimed at cultivating a highly competent employee base. Also, the benefit package is quite comprehensive,
encompassing medical, dental/vision, life and accident insurance, disability, employee assistance (counseling, legal assistance, etc.) and several free
banking services.
The firm also offers a competitive retirement plan, including a 401(k) plan in which employees participate immediately upon joining the firm, and other
optional benefits such as supplemental life insurance for dependents and the ability to "buy" additional vacation time. Lastly, the firm values a diverse
workforce and has been praised by Fortune magazine as one of "America's 50 Best Companies for Diversity."

WEBSTER FINANCIAL CORPORATION
Webster Plaza WFD730 UPPERS

Waterbury, CT 06702
Phone: (800) 325-2424 • “The work is pretty intellectually stimulating”
www.websteronline.com • "Respectful" management
BUSINESSES DOWNERS
Commercial Banking • “Minorities appear to be lacking”
Consumer Finance • “Not much training”
Retail Banking
Wealth & Investment Services
EMPLOYMENT CONTACT
Follow the "work for us" link at websteronline.com
THE STATS
Ticker Symbol: WBS (NYSE)
Chairman & CEO: James “Jim” C. Smith
2008 Net Income: -$321 million
THE BUZZ
• “Tiny player”
395
Webster Financial Corporation
THE SCOOP
Yankee banking
Webster Financial Corporation is the holding company for Connecticut-based Webster Bank, the largest independent bank headquartered in New
England. Webster’s four lines of business are retail banking, commercial banking, consumer finance, and wealth and investment services.
Webster was founded in 1935 by Harold Webster Smith, then just 24 years old. Smith borrowed from his relatives to open First Federal Savings of
Waterbury, a lending institution dedicated to providing home loans at low rates to Connecticut citizens. It soon focused on expanding its commercial
business, and in the process grew beyond Connecticut.
Today, the Webster footprint extends to the suburbs of Boston, through southern Massachusetts and Rhode Island, and into New York. The bank
offered its first shares to the public in 1986. First Federal was renamed Webster Bank in honor of its founder in 1995. Ten years later, in March 2005,
Webster acquired the Wisconsin-based State Bank of Howards Grove, which it now operates under the name HSA Bank. In October 2006, Webster
closed its stock-for-stock acquisition of Connecticut savings bank NewMil Bancorp, in a deal valued at $172.5 million.
How Webster works

Retail banking has historically been Webster’s biggest line of business. This segment serves about 400,000 consumer households and 60,000 small
business customers in New England and New York; its distribution network includes 484 ATM locations, 181 banking offices and online banking
services. Retail also includes HSA Bank and home equity loans, mortgage lending and investment products offered through Webster Investment
Services.
The consumer finance division provides first mortgages, home equity loans and direct installment lending programs through Webster Bank and its
wholly-owned subsidiary, People’s Mortgage Corporation (PMC).
Wealth and investment services are two business units operating as one division. Webster Financial Advisors (WFA) targets high-net-worth individuals,
nonprofits and business clients. Webster Investment Services (WIS), a registered investment advisor, offers securities, brokerage and advisory services.
IN THE NEWS
June 2009: Cut down

Standard & Poor’s cut Webster’s credit rating—along with 17 other banks’—mostly due to recession-related worries. Webster’s rating was lowered to
BBB- from BBB, and the rating of its main subsidiary, Webster Bank N.A., fell to BBB/A-2 from BBB+/A-2. S&P also listed its outlooks for both as
“negative.” With the cut, Webster’s rating fell to where it was in January 2006.
June 2009: A new offer

In an attempt to shore up capital, Webster Financial announced a trust preferred securities exchange offer and issued a ratio for its new offer. The
firm said that for each $1,000 liquidation amount of trust preferred, 82.0755 shares will be issued. Barclays Capital and J.P. Morgan Securities acted
as Webster’s financial advisors for the offer.
January 2009: Tough times

Though Webster Financial still boasts $17.5 billion in assets, it suffered crushing losses in 2008 that will haunt its balance sheet for a long time to
come. The firm booked a net loss of $321 million for fiscal 2008, compared with the previous year's net gain of $96.7 million. Its woes included a
$4.2 million charge related to job cuts, write-downs of $263.2 million on non-performing assets and a loss $4.2 million on sales of securities. Webster
Financial's stock also lost nearly 85 percent of its value during 2008. As a result of its poor performance in 2008, the firm cut its dividend from $.30
per share to $.01 per share.
January 2009: Cutting back

The firm announced that it would be eliminating 200 jobs, mostly in the state of Connecticut. Approximately 100 people will be laid off from the bank,
while the remaining 100 jobs will be phased out through attrition and the elimination of certain positions.
The 2009 job cuts are an extension of a plan the company launched in 2008 called the “OneWebster” initiative. The bank completed a company-
wide review of business practices that set a goal to save $40 million in costs. The plan went into effect in June 2008 and was expected to be fully
implemented within 24 months. The initial round of cutbacks included 240 job cuts in the second two quarters 2008. The OneWebster initiative was

executed by a team of 200 current Webster employees who analyzed the company, and made recommendations as to how to streamline operations
and improve responsiveness.
November 2008: Modifying foreclosures

In a response to public outcry, Webster Bank announced that it would be suspending home foreclosures for 90 days. The bank also announced that
it would expand its mortgage assistance program, in an attempt to help customers restructure their loans and avoid foreclosure. Customers applying
for Webster Bank's mortgage assistance programs must fulfill several criteria before receiving aid. They must occupy the mortgaged home as their
primary residence and provide evidence that they will be able to sustain a restructured payment plan.
November 2008: Needing more funds

Webster was forced to seek more capital as credit conditions deteriorated over the course of 2008. Webster took $400 million in the federal
government's Troubled Asset Relief Program (TARP) with a firm promise to the communities that it would use the money for its intended purpose—
lending. Webster CEO Jim Smith went on record at a meeting of the MetroHartford Alliance, promising the state of Connecticut that “every dollar of
that $400 million will get out into the communities."
Smith's comments on the TARP money were partly in response to comments made by U.S. Representative Barney Frank, who criticized banks that
were using the funds for purposes other than its intended aim. Frank said, “Any use of these funds for any purpose other than lending—for bonuses,
for severance pay, for dividends, for acquisitions of other institutions, etc.— is a violation of the terms of the act.” Smith's comments at the
MetroHartford Alliance were a slight revision of statements he had made to industry analysts in November promising that he “absolutely” planned to
spend some of the money on acquisitions.
July 2008: Shedding services

In order to offset its losses, Webster Financial Corporation was forced to sell off its risk services division. Webster Risk Services was sold to PMA Capital
for $5.9 million in cash. Earlier in the year, Webster Financial Corporation announced that it would be selling its insurance division, Webster Insurance
to USI Holdings Corporation. At the time of the sale, Webster Insurance was one of the largest middle-market insurance brokerage firms in New
England specializing in commercial property & casual and employee benefits insurance. The sale involved the execution of a joint marketing agreement
between Webster and USI that would provide “expanded products and services to their respective clients.”
June 2008: Finding funds

The company offered 225,000 shares of preferred stock in order to raise funds to further shore up capital. The offering was received well, with
proceeds totaling $250 million. CEO James Smith said, “The successful public sale of capital reflects the confidence investors place in Webster's
balance sheet strength and growth potential.”
April 2008: No more COO

Webster announced that William Bromage, its president and chief operating officer since 2000, would retire in June 2008. Instead of replacing
Bromage, the company will eliminate the position of president and COO altogether, explaining that as Webster “narrows its strategic focus,” the position
is no longer necessary.
GETTING HIRED
Best foot forward

Being presentable and articulate may be the key to getting hired at Webster. "As long as you have the skills and demeanor, getting hired here is not
difficult," admits one insider. And once you're in, the firm, like many regional banks, is known as an employee-friendly place to work. Webster's careers
web site notes its "Six Commitments" to employees, which include building financial security, professional growth, the ability to contribute and be
recognized, a healthy lifestyle environment, the opportunity to support the local community, and an overall great working environment. In terms of
professional growth, the company offers internal training programs specific to different positions and lines of business, and partners with external
providers. The firm also uses several methods to bring in the candidates such as "talking with colleagues from other institutions" and using "recruiting
firms."

Go to the top
For college students, Webster offers both full-time positions and internships, with internships usually leading to regular employment for top performers.
Although the company considers applicants from all fields of study, it typically recruits students in one of four majors: finance/accounting, marketing,
computer science and liberal arts. For each concentration, the firm provides a list of departments that match up with the particular skill set and
knowledge base. For example, according to Webster, a good fit for a marketing major might be product management, retail banking or, of course,
marketing. The company participates in campus recruiting through career fairs, open houses and online job postings. It provides a simple application
page through the career site.
The firm allows potential candidates to search for jobs online by location, and to read extensive descriptions, qualifications and responsibilities of each
of the various positions that are currently available. The firm's interview process usually starts with an on-campus interview; second-round interviews
are granted to those individuals who appear to be a good fit for the culture and needs of the bank. On-site interviews are the final step in the process,
and often include contact with members of Webster's leadership. By the time one contact was extended an offer, he had spoken with a "hiring manager,
treasurer, HR manager and team member."
OUR SURVEY SAYS
All clear
In the realm of Webster culture, there's "fairly open communication with management," and it's "not too hierarchical." One insider enthuses that "the
work is pretty intellectually stimulating and keeps me busy." Others laud the "employee stock purchase plan" (under which employees receive a 15
percent discounted rate), "a five percent match on 401(k)" and "a strong Health Savings Account medical plan." And there aren't too many complaints
when it comes to pay. "I get compensated relatively well."
Hours get positive feedback from employees, too. Working "45 to 55 hours per week" is the norm, and there's "no billing pressure." Even though one
insider admits to several instances of working on weekends and "late into the night," he adds that it's "not a common occurrence." Notes another,
"Right now, I work about one weekend a month, but that’s not the norm. Usually it’s only a couple of times per year."
The enjoyable and the not-so-enjoyable

Management is "excellent, treats subordinates "very well" and is "respectful" when it comes to the needs of employees. One employee calls his manager
a "very good teacher who is enjoyable to work for." Still, "they can be demanding at times," admits another contact.
Office space could stand to be a little snazzier, insiders say. "Office decor is pretty plain and uninspiring," grumbles one staffer. The firm "needs to
create a more appealing atmosphere." "The corporate headquarters offices are old and in need a serious refurbishing." Some insiders say this affects
all aspects of the firm: "If you want Webster to be a first-class institution, the appearance needs to reflect that, so employees will be proud of their office
space. It will promote more loyalty and production."
Put away the cummerbund

The dress code is "business casual," meaning "slacks or khakis and a dress shirt," but "no tie" is required. And though employees "are not allowed to
wear jeans or shorts"—"except for client contact"—it's still a laid-back place.
Unfortunately, Webster might be a little too laid-back when it comes to training. One insider admits simply, "There's not much training offered in my
area."
A level playing field?

In the diversity sphere, the firm may be wise to concentrate more on the big picture, some insiders say. "While there may be diversity in the branches,
the corporate areas do not appear to have much minority diversity." Though one insider notes, "I don't believe they discriminate in hiring," the company
"doesn't really seek out a diverse workforce, either." Women within the firm may be slightly better off than minorities, however. Sources tell us that,
"There are a decent amount of women in positions”—”women are respected, and promoted based on skills and experience"—”but minorities appear
to be lacking." Adds another insider, " To boost diversity, "Webster should look more into MBA programs for minority applicants to fill more corporate
positions," one contact suggests.

WR HAMBRECHT + CO
539 Bryant Street, Suite 100 UPPER

Phone: (415) 551-8600 • “Relaxed,” “easygoing” culture
Fax: (415) 551-8686 • “My ideas are integral to the projects we work on"
www.wrhambrecht.com
DOWNER
BUSINESSES • “Currently understaffed”
Asset Management • “Managers get their work done by intimidation”
Capital Markets
Investment Banking
Research
EMPLOYMENT CONTACT
See “employment” under “about us” at ww.wrhambrecht.com
THE STATS
Chairman & CEO: William R. Hambrecht
No. of Offices: 4
THE BUZZ
• “Regional investment bank”
• “Auction IPOS”
399
WR Hambrecht + Co
THE SCOOP
The Open source

Headquartered in high-tech heaven San Francisco, WR Hambrecht + Co. uses technology and online auction process to give its clients access to
financial markets. The firm’s proprietary OpenIPO auction, patterned after Dutch auctions, is designed to level the playing field in IPOs by allowing
individuals and institutional investors alike to place online bids for shares. In the end, the auction determines the price that everyone pays. Another
Hambrecht technology, OpenBook, takes a similar approach to corporate bonds, providing transparent, real-time price information. OpenFollowOn is
the logical next step, giving investors interactive bidding and real-time pricing for follow-on equity offerings.
Founded in 1998 by William R. Hambrecht, WR Hambrecht + Co. operates on the principle that online technology is the easiest way to create open,
fair markets. By allowing investors and market forces to price IPOs, the argument goes, a true “market price” can be found—with less behind-the-
scenes dealing by investment bankers. The firm serves the technology, health care, financial services, consumer/retail and telecommunications
sectors. It provides a full range of underwriting, advisory, equity research, sales and trading, brokerage and private equity offerings online and off. In
addition to its San Francisco headquarters, Hambrecht has offices in Boston, New York and Philadelphia.
The firm was created after William Hambrecht retired from Hambrecht & Quist, which he co-founded in 1968. It is backed by American Century,
Crimson Ventures, epartners, Fidelity Ventures, Novell, and Park Avenue Equity Capital Partners, LP.
Disrupting the peace

The public relations department at WR Hambrecht & Co. has given the company a strange slogan: “A disruptive investment firm for people who think
for themselves.” The word “disruptive” here refers not to a group of young hooligans throwing stones, but to a theory of economics posited by Harvard
Business professor Clay Christensen. Christensen asserts in his books, The Innovators Dilemma and The Innovators Solution, that disruption in the
market can be a powerful force for growth. He goes on to explain that “disruptors” can make waves by targeting new, ignored or over-served clients,
creating an entirely new market. Christensen points to companies such as Kodak, Sears, Sony and McDonald's as examples to back up his theory.
WR Hambrecht & Co. puts itself in the category of “disruptive” companies due to its pioneering of the OpenIPO auction platform. The company hosts
a forum called “The Disruption Forum,” in which the ideas of Bill Hambrecht and Clay Christensen are discussed and elaborated upon by “people who
think for themselves.”
Nothing ventured, nothing gained

In the area of venture capital, WR Hambrecht & Co. focuses its investments on emerging technology. In its 10-year history, the company has invested
over $100 million in 63 companies including Giganet, greatfood.com, Stonyfield Farm, Tom's of Maine and Ravenswood. The firm currently has
venture capital investments in 11 companies, including The Active Network, Aristotle, Collabnet, Europebyair.com, MontaVista Software, Vizu, Niman
Ranch, TeraOp, Trivium and Turin Networks.
Shrugging off doomsday

The market's precipitous fall in September 2008 was just one more harbinger of bad times ahead for companies like WR Hambrecht & Co. Even more
troubling than the collapse of large investment banks, however, was the absence of venture-backed companies going public in the second quarter
2008. The market saw no initial public offerings for the quarter for the first time since 1978.
Despite the dire data and the National Venture Capital Association's warning of a “capital markets crisis”, Hambrecht is taking the news in stride. In
September 2008, CEO William Hambrecht was quoted on Inc.com as saying, “This is going to work itself out on its own.” Hambrecht also rejected
the suggestion of revising Sarbanes-Oxley as a way to encourage IPOs. He predicts that venture capital companies will eventually be forced to begin
launching IPOs again in order to pay off investors. “There's going to be tremendous pressure in the coming years to liquefy venture portfolios,”
Hambrecht concluded.
Friends in high places

For many years, William “Bill” Hambrecht has enjoyed dinners and family get-togethers with his friend Nancy—California Representative Nancy Pelosi,
that is. When Pelosi, a Democrat, was sworn in as the first female Speaker of the House in 2007, the San Francisco Chronicle noted that her contacts
in the close-knit San Francisco business community suddenly had a very important friend in Washington. Bill Hambrecht—who helped take Apple,
Adobe, Netscape and Amazon public in the 1990s when he ran Hambrecht & Quist—has been described as one of the most powerful links between
Silicon Valley and the Democratic Party. Besides being a major political donor, Hambrecht has been invited to speak at White House conferences on
the new economy.

WR Hambrecht + Co
IN THE NEWS
May 2009: Getting “disruptive”

A New York Times profile of WR Hambrecht + Co. founder William R. Hambrecht showcased the firm’s innovation over the years. Hambrecht expressed
surprise at the fact that an auction for OpenIPO “works better on the bigger deals,” adding that “as the market gets more efficient working its way
down,” WR Hambrecht “will get more efficient doing smaller auctions.” Hambrecht also noted that “Goldman Sachs, Credit Suisse and Morgan Stanley
aren’t interested in $50 million and $100 million deals anymore. They want to keep the half-a-billion and billion-dollar deals that make them money.”
IPOs aren’t the only game WR Hambrecht is working to master. Hambrecht also co-founded and helped give financial backing to the United Football
League, which will compete with the National Football League. Hambrecht told the Times he sees the UFL “as a tremendous opportunity to be very
disruptive in the media market.”
August 2008: Giving it a try

Despite the optimism of its CEO, WR Hambrecht & Co. experienced the enormity of the market's failures in 2008 when it acted as co-manager of an
IPO that launched well under expectations. When Rackspace Hosting, Inc., went public on the New York Stock Exchange, Wall Street insiders hoped
that it would fetch a price of $17 per share. However, the company's offering fell far short, finishing the day at approximately $10 per share. The IPO
raised $187 million in a modified Dutch auction, but failed to stimulate excitement for a new wave of tech stocks going public.
GETTING HIRED
Roll over, competition

W.R. Hambrecht + Co.'s homepage employs the image of none other than pioneer of rock 'n' roll Chuck Berry to drive home its point across about
being a different kind of firm ("if disruption were a musician, it would be Chuck Berry," the site asserts). So if you're "disruptive," as the site asks, check
out the firm's current openings. In each listing, the firm posts the responsibilities and skills necessary to succeed, and even lists "attitude/work ethic"
qualifications the successful candidate will need to meet.
As selective as they want to be

There's a few ways to get into the firm, but knowing someone who's already there certainly helps matters. WR Hambrecht + Co "has grown more
selective in recent years," but the firm "does not rule out applicants based on college like some firms do." Moreover, one source says, "We do not
recruit on many campuses," explaining that any campus recruiting is centered on the alma maters of the firm's current employees. Even so, one source
cites "most Ivies as well as Stanford and UC Berkeley" as typical schools at which the firm recruits. Still, she does admit, "We also receive and consider
many incoming resumes from other schools." Other insiders say the firm goes to Penn, Harvard, Dartmouth, MIT, Georgetown and NYU, among others,
to find employees. With respect to what the firm is looking for in a candidate, a junior banker explains that "culture is the biggest obstacle for a
candidate. You need to fit in and work well with the people."
Round after round

Generally, candidates can expect two to three rounds of interviews. One source indicates that junior bankers handle the first round of on-campus
interviews ("It's usually a phone screen for laterals for the first round"), which are followed by meetings with five to 10 senior bankers for the "intense"
second and final round. Still, one analyst in the corporate finance department characterizes the hiring process as "very decentralized," with "each
office typically [handling] its own hiring." The contact adds, "If a managing director in New York needs more junior support, he will often handle the
search himself with the help of his junior bankers." Another veteran employee in the firm notes that, not surprisingly, having "contacts in the company
helps to a great extent" in landing a job.
OUR SURVEY SAYS
The West Coast lifestyle

According to an insider who's been with the firm for several years, the firm's culture is "very entrepreneurial and easygoing, as we're focused on
technology and based in San Francisco." He adds that while "a lot is expected," "face time isn't a requirement for success." Additionally, he stresses
that "people are given lots of responsibility quickly and more if they do well with it." The view from the rank and file is a little less optimistic. "The

WR Hambrecht + Co
culture is far more relaxed than at major banks," notes an analyst, "but that is changing as the firm grows." The source adds, "The firm is currently
understaffed, especially at the junior level, which can make hours miserable at times."
Another insider notes that the firm's West Coast technology foundation allows for "a less formal setting than bulge brackets given that everyone is more
laid-back and easygoing." He adds that analysts get "great exposure," and they "participate in a lot of client meetings, get a lot of responsibility and
have direct interaction with senior management." The consensus was that the "hours and lifestyle" are "pretty desirable for an investment banking
position," although one analyst notes that while she normally works until 7 p.m., "on bad weeks, I consistently stay until 2 a.m."
Cool on training, but plenty perky

Training could be better, say insiders. "We really need some work in this [area]," says a source out of New York. "Right now there's no time and no
resources to train new employees. It's a listen-in-and-figure-it-out-as-you-go situation here." An insider in San Francisco explains that the firm has "a
two-week training program for analysts, and a one-week training program for summer interns. After that, most of the training is on the job, since you'll
have to learn the style and resources of particular industry verticals or product groups." One contact says the training is improving. "The training
program has been greatly enhanced," he explains, "but was relatively low key until lately."
The firm offers the same perks as the largest investment banks on the Street, such as meal allowances and free transportation if working late, a 401(k)
plan, and discounts on movie tickets and other entertainment events. In addition, the firm "has season tickets to the 49ers and the [San Francisco]
Giants, which are shared regularly with members of the investment banking team." One employee brags that he "got tickets to one post-season Giants
game, and three games in the regular season." He adds, "And these are third row seats right next to the third-base line."
Managers get mixed reviews

Sources have varying opinions about management. "I have no problem talking to my superiors," says one analyst. "They're very open to our
suggestions." Another analyst has even stronger things to say: "I'm treated really well. If I have a lot of work, managers help me out so I won't end up
staying too late." Even when this analyst does stay late, he gets help. "I've pulled all-nighters with MDs in the firm." He adds that his direct superior
is "great, and really honest, personable, direct and understanding."
But not everyone feels this way. "The management style is 'shoot from the hip,'" explains one source. Another contact thinks, "Managers get their
work done by intimidation and not motivation." Despite the varying opinions, insiders seem to agree that "there's a strong culture of mutual respect
here," and several stress that the small size of the firm is an incredible advantage. One young banker says, "I'm the only first-year analyst working in
my sector and that makes me a serious asset to my team. I love the fact that I have ownership of my sector and that my ideas are integral to the
projects we work on."

About the Editor
Derek Loosvelt has a BS in economics from the Wharton School at the University of Pennsylvania and an MFA in creative writing from The New School.
He is a writer and editor, and has worked for Brill’s Content and Inside.com. Previously, he worked in investment banking at CIBC and Duff & Phelps.

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TOP 50 BANKING EMPLOYERS, 2010 EDITION

“The best place on the web to prepare for a job search.”

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“To get the unvarnished scoop, check out Vault.”

Library of Congress CIP Data is available.

Printed in the United States of America

OVERVIEW OF THE BANKING INDUSTRY 3

The State of the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

THE VAULT PRESTIGE RANKINGS 11

The Vault 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

THE VAULT QUALITY OF LIFE RANKINGS 17

Best 15 Firms to Work For . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Overall Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Treatment by Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Business Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Green Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Diversity with Respect to Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

Diversity With Respect To Ethnic Minorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Diversity with Respect to Gays & Lesbians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

2. The Blackstone Group L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

3. Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51

4. J.P. Morgan Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56

5. Lazard Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62

6. Greenhill & Co., Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

7. Credit Suisse's Investment Banking Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71

8. Evercore Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77

9. Deutsche Bank AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

10. Rothschild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

11. Barclays Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91

12. Perella Weinberg Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96

13. Moelis & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100

14. UBS Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106

15. Houlihan Lokey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113

16. Jefferies & Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118

17. Citi Institutional Clients Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124

18. HSBC North America Holdings Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

19. Wells Fargo & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135

20. Allen & Company LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142

21. Bank of America Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

22. Macquarie Group (U.S.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152

23. Piper Jaffray Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156

24. Oppenhiemer & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160

25. RBC Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163

26. Nomura Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168

27. Royal Bank of Scotland Group plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173

28. Chase Commercial Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178

29. Dresdner Kleinwort* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

30. BNP Paribas SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186

31. Thomas Weisel Partners Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190

32. Deloitte Corporate Finance LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195

33. Canadian Imperial Bank of Commerce (Wholesale Banking Division) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198

34. Centerview Partners LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203

35. Keefe, Bruyette & Woods, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209

36. Robert W. Baird & Co. (Baird) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213

37. Broadpoint Gleacher Securities Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218

38. William Blair & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222

39. The Bank of New York Mellon Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228

40. Cowen and Company, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .233

41. Citi Consumer Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238

viii © 2009 Vault.com Inc.

42. Brown Brothers Harriman & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244

43. Raymond James Financial, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248

44. Sandler O'Neill + Partners, L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253