Bank of America has become the first financial institution in the US to withdraw job offers that it has made to international students, since the new H-1B rules have been passed. The Financial Times has reported that BofA has withdrawn job offers that it has made to as many as 50 international MBA students attending business schools in the US. 
The new rules state that companies receiving funds under the Troubled Asset Recovery Program cannot sponsor an international student under the H-1B quota if they have made an American worker redundant. BofA has received $45 billion in TARP funds and therefore falls under the new H-1B regulation.

Most international students studying business in the US traditionally find jobs in the banking sector. With the passage of this new legislation, it has become much harder for international business students to find employment in the US as many financial institutions fall under the TARP regulation. This is driving away talent from the United States to other economies of the world. Also, some educators fear that international student enrollment in the US may begin to decline due to these stricter regulations. David Schmittlein, dean of MIT’s Sloan School of Management in Boston says, “There might be an inclination for people from around the world to vote with their feet,”. link

Do you think that the stricter H-1B regulations will help the US economy in the long run? On the one hand, it is leaving jobs open for American citizens. On the other hand, it is driving away human talent from US shores which is a bad thing for any economy. Comment below.