In the wake of the tragic death of Leo Lukenas, a 35-year-old Bank of America associate who reportedly logged 100-hour workweeks, two of Wall Street's largest financial institutions-JPMorgan Chase and Bank of America-are taking significant steps to address the grueling work hours of their junior employees. Lukenas, a former Green Beret, died from acute coronary artery thrombus in May, shortly after working on a high-pressure $2 billion merger deal. His death has reignited debates over the extreme demands placed on junior bankers in the investment banking industry.
Bank of America, which has come under intense scrutiny following Lukenas' death, is implementing a new timekeeping tool designed to monitor the work hours of its junior bankers more closely. This tool, set to launch next week, will require junior investment bankers in the U.S. to log their hours daily, rather than weekly, and to specify which deals they are working on and under which managers. This move is part of the bank's broader efforts to enforce an 80-hour weekly cap that was originally established in 2013, following the death of a 21-year-old intern, Moritz Erhardt, at its London office.
JPMorgan Chase, the nation's largest lender, is also introducing new limits, capping junior bankers' work hours at 80 per week. This marks the first time the bank has imposed such restrictions, although exceptions may be made for live deals. The bank has long required junior bankers to self-report their hours through time sheets and guarantees them a weekend off every three months. The new cap aligns with New York State's limits for medical residents, reflecting a broader recognition of the need to protect employees' health and well-being.
The changes come after The Wall Street Journal published an exposé detailing how Bank of America managers allegedly encouraged junior bankers to underreport their hours, even when they exceeded the 80-hour limit. The report revealed a culture of excessive work hours that often led to serious health issues, with some staffers reportedly hospitalized for stress-related conditions. A Bank of America spokesperson stated that the bank's practices are clear and that disciplinary actions have been taken when violations have been discovered.
JPMorgan CEO Jamie Dimon addressed the issue in May, shortly after Lukenas' death, stating that the bank was examining what lessons could be learned from the tragedy. While there is no direct evidence linking Lukenas' work hours to his death, studies have shown a correlation between acute stress and conditions like thrombosis, raising concerns about the potential health risks of such demanding work schedules.
The response from these banking giants signals a potential shift in an industry long known for its demanding culture. For decades, junior bankers have been expected to work extreme hours, often exceeding 100 hours per week, as a way to prove their dedication and value. These grueling schedules have been viewed as a rite of passage, with high salaries and the promise of lucrative careers serving as incentives for enduring the punishing workloads.
However, the recent actions by Bank of America and JPMorgan suggest that the industry may be reevaluating the costs of this approach. The introduction of stricter work hour limits and more rigorous tracking systems could lead to a broader cultural shift, with a greater emphasis on employee health and work-life balance.
Yet, the challenge remains in changing the deeply ingrained attitudes within the industry. As the Wall Street Journal's investigation highlighted, even with new rules in place, there is a risk that the culture of overwork could persist if not accompanied by a serious change of heart throughout the sector. For many junior bankers, the pressure to succeed and the fear of falling behind may still drive them to push beyond the imposed limits.
