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"It's the biggest change to hit banking in a long time," one I-banking insider recently told Vault.com. Could this banker be talking about Glass-Steagall repeal? Perhaps, he's referring to the explosion of Internet IPOs or the rush of recent MBA's to dot.coms? No, this banker was talking about his investment bank's decision to adopt a business casual dress code for the entire summer. Perhaps "biggest change" seems like a bit of an exaggeration, but bankers can't say enough about business casual dress policies at their firms. While most of corporate America adopted the Dockers and button-down shirt uniform as early as 1996, the navy blue suit world of investment banking was more reluctant to change.

One insider recently hypothesized why some banking firms, and specifically, some senior bankers, were slow to adopt business casual policies. "I think these older guys think clients expect bankers to look a certain way. They think that blue suits and wingtips make you look like a banker," one insider explained. "And now, especially in my sector [technology], we have clients that are younger than some associates. These guys [new clients] don't have a lot of the old stereotypes."

"Firms had to change to business casual, at least on Fridays," says another banker. "Employees want it. They expect it." Many i-bankers Vault.com spoke with felt the switch to a business casual dress policy was common sense. "First of all, it makes sense," according to one associate at a bulge-bracket firm. "In my group [tech] most of our clients can wear whatever they want to work. The only time I wear a suit is in the office-never at a client's [office]. If we show up to [the client site] in suits, we look ridiculous." This banker went on to say that he didn't understand why "it's such a difficult thing for some people to accept."

Though many banks have embraced business casual on Fridays, and sometimes, for the whole summer, some departments have yet to make the switch to the new dress code. One investment banking analyst who spoke with Vault.com works in a department that does not have casual summers (in a firm where all other departments are casual throughout the summer). The head of this analyst's group felt that business casual attire does not promote the right image for bankers. "The only thing I had been looking forward to all year, casual summer," the analyst lamented, "was taken away from us because the Fun Squasher felt it would be unprofessional." ~ As further evidence of the reluctance to accept a casual environment, a recent discussion on Vault.com's message boards involved a candidate who was interviewing at an Internet startup. After the first interview (to which the candidate wore a suit), he wondered whether or not he should dress down and posted a message, asking for advice. The overwhelming advice was to continue wearing a suituntil he was offered the job. One employee of an Internet startup eventually wrote in saying that it was indeed acceptable for interviewees to come into a second interview in appropriate, business casual attire. He also noted that changing your dress showed a willingness and ability to adapt to a dynamic environment, an attribute highly valued at Internet companies.

"What a lot of people don't understand is that many clients today don't care about the make of your suit or the stripes on your tie. No one is saying you should walk in with torn jeans, but the idea of appropriate dress has changed," says one investment banking insider.

According to most insiders, the decision to go business casual is still determined on a departmental basis. One insider at Merrill Lynch said adopting a business casual policy at his firm is "definitely at the discretion of the department heads." Unsurprisingly, West Coasters, used to working with Silicon Valley casual dress titans, have embraced the business casual notions far faster than their East Coast counterparts. "There are no all-casual groups (that is, casual all week in the winter as well as the summer) in New York, but there are rumors that they exist in the branch offices," according to the Merrill Lynch insider. "I have seen Palo Alto for myself and they definitely have all casual all the time. I came back east and nobody believed my tall tales of the West." ~ Replacing the old code with the new

"When I first started, an associate took me aside and sort of told me the 'rules' of the dress code," one investment banking analyst explained to Vault.com. "He told me that only senior people wear suspenders, [that I should] never wear double breasted or three piece suits, and [I should] only wear white and blue conservative shirts with conservative ties. And so I have followed that principle." While the new dress codes permit more flexibility, many say the business casual dress code is still a rather strict code. "No jeans, collared shirts are required, no sneakers, no tank tops?there are a lot of rules. I had to buy a lot of new clothes for business casual days," says one industry insider. "The firm makes it clear that this [dress code] is business casual, not casual," according to another insider.

The implications

Almost everyone who spoke with Vault.com sang the praises of business casual. "I'm happier when I walk into work on Fridays," says one banker. "I feel like I'm transitioning to the weekend on Friday morning." One banker even expressed that the dress code subtly reminded people of their lives outside of the office. "When you're already dressed casually on Friday, you start making phone calls around three in the afternoon. You start planning out your Friday night." In a business where long weekend hours are the norm, this represents a serious shift. "The suit is a uniform," said one banker. "In one way, I can understand why people would not want to go casual. I don't think it's true, but I could see how somebody might worry that it [casual attire] could turn their bankers into slackers." Others completely disagree. "I'm productive because I'm happier. It is so amazing to wake up on Friday and realize I don't have to put on a suit," says one analyst. Some others also cited the practical benefits of business casual attire, such as the reduction of dry cleaning costs. "I can't tell you what casual Friday is saving me on panty hose," noted one female banker.

SUMMARY OF INVESTMENT BANKING DRESS CODES:

Investment Bank	Fridays All Year	Fridays in Summer only	All Summer Days
Bear Stearns	X
Donaldson Lufkin & Jenrette	X		X
Lehman Brothers	X
Merrill Lynch & Co.	X		X
Morgan Stanley Dean Witter	X
Salomon Smith Barney		X

NOTE: The above information, provided to Vault.com by company insiders, relates to general dress code practices at these firms in New York City. As mentioned above, departments within each firm have some discretion to determine policies which might differ.

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