Skirting Bailout Rules, Banks Send Foreign Hires Abroad

By Harry Kimball,  Newser Staff
Posted Apr 15, 2009 8:35 AM CDT
Goldman Sachs & Co. Chief Executive Officer and Chairman Lloyd C. Blankfein testifies on Capitol Hill in Washington, Wednesday, Feb. 11, 2009, before the House Financial Services Committee.   (AP Photo/Haraz N. Ghanbari)
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(Newser) – Banks who have taken TARP funds from the government are getting creative about the immigration restrictions that come with the bailout, the Wall Street Journal reports. Financial institutions relying on government assistance cannot hire foreign workers unless they prove that they have exhausted the supply of native talent. So they’re sending the foreign students they recruit at US colleges and grad schools to overseas offices.

Banks are not particularly happy about the situation, and some have been forced to rescind offers to graduating students because of the law. “At this time in our economy,” said Goldman’s CEO, “do we really want to tell individuals who will help companies to grow and innovate—ultimately creating more jobs—that they should go work elsewhere?” The number of recruits affected is small, between 1% and 3% at large banks.