No Foreign MBA’s for Bank of America

From Megan McArdle:

Apparently Congress’ “buy American” clause in the bailout funds is having its desired effect: Bank of America has rescinded its job offers to foreign MBAs. I suspect that Bank of America is at least as motivated by a need to reduce headcount as it is by fear of Congress. But cutting your recruitment based on country of origin, rather than skills and fit, does not seem like the most efficient way to do it.

As a committed free trader–and an MBA who went through the mass layoffs of the last recession–my sympathy is all with the MBAs. These are people who mostly aren’t eligible for scholarships or subsidized student loans; they’ve borrowed or spent close to $100,000 in America to get their degree, many of them in hopes of staying here. They’re intelligent, highly skilled, and promise to be net contributors to the tax system . . . so America kicks them in the teeth and sends them home without a job.

This means B of A will lose some of the best MBA graduates. It will only hurt them in the long-run. This could also have a negative impact on U.S. MBA programs if foreigners stop applying.


7 Responses to “No Foreign MBA’s for Bank of America”

  1. 1 Rafael Barrera March 11, 2009 at 6:11 PM

    Wow. I cannot believe what I just read. I would agree. It will only hurt B of A in the long run. I cannot see it hurtng mba programs though becuase foreigners will always apply by the scores. I mean if accepted thay are taking a chance coming to america anyways so why not tske another chance in our economy.

  2. 2 Rachel Sturm March 12, 2009 at 7:12 AM

    While I understand that Congress is trying to keep what jobs that are avalible for US citizens, it seems agienst our contries policy of “equality for all” to tell MBA’s that they cannot work at B of A just because they are not yet a “true” american citizen. This will hurt not only B of A who is putting this policy into practice, but any other company that does as well. Taking away forgien workers in this country (expesoly during a recession) will only hurt us more, rather then help.

  3. 3 Keith Cullison March 19, 2009 at 11:41 AM

    This move has many potential setbacks and benefits at the same time. While it is unfortunate that we are rescinding these job offers, it may be an important step to temporarily help secure American jobs, when we need it the most. At the same time though, as Dr. Balassi pointed out, this decision may need to be revisited and changed if we start to lose highly skilled applicants to other countries in significant amounts.

  4. 4 Leonardo Sanchez ECON 101 April 29, 2009 at 2:52 PM

    Yes this will hurt B and A a bit much but policy over rules any basic rules like international helpers we have that come to

    help. The question is will this hurt us more in the short run or help us in the long run? Either way people will get hurt during

    the transitions from the MBA programs that Bank of America is alos apart of!

  5. 5 mrrodenas May 11, 2009 at 4:38 PM

    This is a tought one! I cannot say the B of A did not give a good reason for it, though, since H1-B sponsorship is expensive, and most times it translates into green card sponsorship. LAst time I checked the latter was going for around $6000. OUUCHH! Anyhow, in a free market it does not make sense to turn down the best and the brightest, whatever their nationality might be. Discrimination only comes back to hurt the firms that discriminate, and the profit motive should take care of limiting such discrimination. However, we studied that customer preferences and government policies could limit the profit motive. In this case it seems like B of A is using the bail-out funds as if they were government endorsed policies to justify discrimination. Tough, very tough issue. Cannot believe we have not heard more about it in the media.

  6. 6 Hyo Kim May 11, 2009 at 7:57 PM

    Well,. it would be good for American Citizen to get more opportunity, but it also could be the reason which declines foreigners to spend money(tutition fee) in the states.

  7. 7 Tracy Thomas May 12, 2009 at 12:38 PM

    I think this is a the wrong choice for B of A to make. I think it comes down to basic business pratices. If I were B of A I would want the best employees to come work for me. I wouldn’t care where they were from as long as they were the best at what they do. I think that B of A will lose a lot of talented work. These people want to work, they want to be the best because they know that’s the only way they can compete in America as a foreigner. I would think that these are the type of people B of A would want to employ. At the end of the day they’ll be paying taxes just like the rest of us !

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