The Bear Stearns collapse has finally trickled down to the college set: JPMorgan, which acquired the flailing investment firm last month, has begun rescinding about half of Bear Stearns job and internship offers made last fall, the Daily Pennsylvanian reports.
Certain branches such as investment banking—which overlaps heavily with JPMorgan's existing operations—will see heavy cuts, while other areas with "little to no overlap with JPMorgan," like commodity and prime brokerage, are most likely safe.
JPMorgan, benevolent organization that it is, isn't completely leaving students out to dry, though. Those losing internships have been offered others at nonprofit organizations with salaries equal to those negotiated with Bear Stearns. For those losing full-time positions, the firm has offered free career help, with signing bonuses and relocation fees.
"Obviously, it's a lousy situation," said the University of Pennsylvania 's career services director. "No one wants to accept a job in October and find out in April that they don't have it."