Banks hiring fewer grads

As a result of the financial meltdown two Charlotte-based banks are pulling back their hiring of college graduates this year.

Bank of America Corp. and Wachovia Corp. typically hire between 10 and 15 students for 20 to 25 positions said Tim Stiles associate director and business administration career advisor for University Career Services.

This year however those numbers are expected to decrease.

Bank of America came to campus recruiting for about eight to nine positions this fall" Stiles said.

""Like other financial services firms" we are not immune to the present economic climate said spokeswoman for Bank of America Nicole Nastacie in an e-mail. In light of the economic environment" we will continue to evaluate and make the appropriate hiring decisions based on the business needs.""

Wachovia" which was recently acquired by Wells Fargo will not be hiring at all due to a company-wide hiring freeze.

Wachovia cancelled many of its second-round interviews with students in the fall and several interns did not receive job offers" Stiles said.

""We're going to wait and see how the deck gets shuffled after the merger"" Stiles said.

On Jan. 1, Bank of America completed its acquisition of Merrill Lynch & Co., Inc. As a result, the company expects to cut 30,000 to 35,000 positions during the next three years, leaving little room for entry-level students to start.

While Bank of America expects to cut its workforce, Wachovia is just trying to remain in business.

This deal enables us to keep Wachovia intact and preserve the value of an integrated company without government support"" said Wachovia President and Chief Executive Robert Steel in a release.

Wachovia was more exposed to the housing market, which is one of the reasons it fared worse than other financial institutions, said Paolo Fulghieri, a finance professor in the Kenan-Flagler Business School.

In the early 2000s, inflated housing prices allowed homebuyers to take out home equity loans. Many lenders also eased their lending standards, which allowed unqualified homebuyers to take out loans that they couldn't repay.

When homeowners began defaulting on loans and the housing bubble popped, it created a chain reaction of collapses in the economy.

The best way to describe it is a really dry forest" Fulghieri said. There was a lot of dry wood in the economy" and the housing collapse was the spark.""

Stiles said he does not want students to get discouraged.

""There are still jobs coming in for college students"" he said. It just may not be the job of their dreams. There are jobs out there if you're willing to compromise.

""We're not giving up on people if they don't give up on us.""



Contact the State & National Editor at stntdesk@unc.edu.