JPMorgan Chase, the largest US bank by assets, has appointed a veteran banker to oversee its junior banker programme, responding to renewed concerns about working conditions for young employees in the investment banking industry.

In a memo sent to employees earlier this month, the bank announced the creation of a new role: global investment banking associate and analyst leader. Ryland McClendon, who has been with JPMorgan for nearly 14 years, has been named to this position.

The memo, reported earlier by CNBC, states that McClendon "will help to support their wellbeing and success, as well as equip and enable them to deliver for our business, clients and each other".

This move comes in the wake of a tragic incident in May, when a junior banker at Bank of America, who was also a US special forces veteran, died due to a blood clot. The event reignited discussions about the need for healthier working environments in the industry.

Jamie Dimon, chief executive officer of JPMorgan, addressed the issue at a recent investor event, referring to it as "that unfortunate death" and indicating that the bank was examining potential lessons to be learned.

Investment banking has long been associated with gruelling 100-hour work weeks and high-stress deal pitches. In response to these concerns, JPMorgan has recently implemented an 80-hour cap on junior bankers' working week, although this limit does not apply when employees are working on live deals.

"The banking industry has grappled with workload concerns among junior staff for years," said a financial analyst familiar with the matter. "Some firms have adopted measures such as increasing pay, holding workshops and forbidding work on Saturdays."

This is not the first time the industry has attempted to improve working conditions. Similar efforts were made following the death of a Bank of America Merrill Lynch intern in London in 2013, and in 2021 when a group of first-year investment banking analysts at Goldman Sachs compiled a slide deck documenting their arduous hours.

While many senior investment bankers describe a work culture that has improved over the years, the high fees paid to banks are often based on the expectation of round-the-clock availability to clients, creating a potential conflict with calls for easier working conditions.

As dealmaking is expected to recover in the coming months, the industry will be closely watching how JPMorgan's new role impacts the wellbeing of its junior staff.

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