One of the news items that caught the attention of
GlobalRiskJobs this weekend was a story in the FT about
Bank of America pulling its job offers to foreign MBA students. In a field like risk management this is big news given the high number of professionals who have trained in advanced degree programs overseas. The Troubled Asset Relief Program prevents financial institutions that have received federal bailout money from applying for H1-B visas for highly skilled immigrants if they have recently made US workers redundant. Given that just about all of the big banks have already cut loose thousands of workers, it would appear this provision will have far-reaching impact in the coming months. Is this a "Buy American" initiative in an industry that, unlike manufacturing, hasn't seen much of that sentiment? Could this be dangerous for certain highly-skilled math and finance fields where the best and most qualified professionals are needed now more than ever? I guess it's symbolic that the Bank of America was the first to announce details of the pullback, but expect more news of this type to follow. And a story in today's Washington Post examines more
evidence of budding jingoism in the midst of the global financial crisis. A US House panel is criticizing the Obama administration for not policing deals where TARP banks lent money overseas. The populist sentiment seems to be that banks getting federal funds should deploy those funds to help the domestic economy.
The links:
- Is Paul Volcker urging a return to Glass Steagall? It sure seemed like the Former Fed Chairman wanted to turn back the regulatory clock in a speech last week. BreakingViews' Hugo Dixon doesn't agree. He believes that improving risk management and tightening regulation across the financial industry is a better approach.
- BofA accused of obstructing Cuomo bonus probe. Yes, the comp saga continues...
- Robert Schiller examines the role of government in this FT piece about controlling the "animal spirits".
- The Nationalization debate continues...Alan Blinder gives his take in the NYT...BofA's Ken Lewis talks his own book in the WSJ as he seeks to set the record straight...Goldman's Blankfein thinks it's a bad idea as well...Senators McCain and Shelby preached tough love for the banks.
- Geithner needs help! The NYT reports that politics, among other things, has slowed the building of a team to deal with all the aspects of the crisis.
- And of course, the AIG firestorm continues. The WSJ reported this weekend who some of the major counterparties were that received federal money via AIG. BofA, Goldman, Deutsche, Merrill, Calyon, Barclays...
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2 comments:
Matt -- I have 15 years in Fortune 50 hi-tech mgmt with a strong focus on risk/compliance. Last Dec I was asked to train a brand-new H1B import. Since then I was summarily laid off without any severance or benefit continuation. Additionally my pay was cut a total of 25% since last summer. As a contract worker my former employer evades the WARN act by firing very large numbers of American born contractors (primarily in IT). The banking industry is notorious for evading labor law by their use of contract labor. And these same contractors are used to maintain hiring retention numbers that the banks contractually promised in order to receive multi-million dollar ($20-50M) grants and tax offsets from the States of New York and New Jersey economic development authorities. Additionally as a former hiring manager, I have to say that my experience with offshore labor - irrespective of degree attainment - is that they cannot hold a candle to skills and knowledge of American employees. Additionally, in a field as location sensitive as compliance,
During the great depression one of the first acts to stem unemployment included the forced the repatriation of all foreign workers (including Mexicans). As WWII began we then locked up those that we couldn't send home.
The H1B and L1 program is all but dead for the foreseable future and seeing as how globalization contributed to this economic catastrophe we now find ourselves in, we will be extremely lucky if we can extricate ourselves with just a recall of the H1B and L1 programs -- but I fear that the economic downfall that is befalling the globe will eventually result in war... terrorism at best and WWIII at worst.
Thus, if I was one of the many H1B workers out there, I would look for a new job in their homeland now. I wouldn't want to be a H1B worker in a foreign country with rising unemployment and resentment from hereon in... it is just too dangerous for them and their kin. And this isn't a personal threat -- just an observation given the recent (sometimes deadly) violence perpetrated against immigrants in the tri-state area. There are lots of angry people out there.
In the 1950's-1970's it was all about "Buy American".... it ain't a bad idea for Americans to start producing something again. In fact, it is a threat to our national security and economic future to continue to rely on being a service economy. What if there was WWIII and the supply/trade routes are cut off? If Korea launches a warhead (and it looks like they might) -- do you think China would back them in a confrontation? China is already baiting our military in international waters and is manipulating their currency. Am I the only person who sees this relationship deteriorating completely?
No one is going to argue with you about this on LinkedIn now except Indians scared of loosing their H1B's in droves. Look at what happened in Hyperbad today. If you think our job fairs are crowded -- theirs are outright mayhem.
Hi patriot!
As I wrote in the Linkedin discussion. Protectionism and nationalism can not solve any problem now. If the USA needs no more foreign brain, then the brain is going elsewhere, let's say in Canada. And I am not an Indian.
Let's not forget that the greatest country in the world, became such because it managed to attract the greatest people. This is one example about what did an immigrant for the USA and the whole world http://en.wikipedia.org/wiki/John_Vincent_Atanasoff
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