TARP rules force BofA to withdraw offers to new MBAs

In addition to changing the way many banks do business, TARP is poised to transform the way that they hire employees. Because of hiring restrictions tied to TARP funds, Bank of America (BAC) recently became the first U.S. bank to withdraw job offers that it made to MBA students. Other banks are expected to follow suit.

The Grassley-Sanders amendment states that if companies receiving benefits let workers go, then they cannot apply for H-1B visas to hire highly skilled immigrants. This restriction, which lasts for a year, will translate into thousands of financial services jobs that will no longer be available for immigrant business school students.