David French and Anirban S

(Reuters) – Investment banks that rushed to meet clients last year after COVID-19 vaccines were made available have had to cancel their plans at the beginning of 2022, as Omicron variant rages.

Bankers say the impact on dealmaking will not be as severe as 2020, when the pandemic started and global mergers and acquisitions (M&A) activity fell to a three-year low. They anticipate the surge in dealmaking to last for a short time and are used to being able to put together deals online via platforms like Zoom.

Some worry, however, that they will lose the opportunity to build relationships with senior executives. It is difficult for bankers to get new jobs, since many big corporations are reviewing strategic decisions at the beginning.

My motto was always, “If I’m not there with my clients, somebody else is.” However, this time is different. If people want to travel, and they are comfortable doing it, and they take precautions, I’m allowing people,” said Drew Goldman, global head of investment banking coverage & advisory at Deutsche Bank AG (NYSE:).

Wall Street and most corporations in America have told employees that they are not allowed to go to the office for COVID-19, which has broken new daily records. Although vaccines can prevent death and hospitalizations from occurring, Omicron has seen an increase in infections.

Omicron also impacted other sectors, such as healthcare and airlines. Omicron has also impacted other industries, including healthcare and retail. The World Bank cut Tuesday its economic growth forecasts in China, the Euro zone and USA and warned of new coronavirus variations and other threats to the recovery and development in these countries.

JPMorgan Chase & Co (NYSE:), Goldman Sachs Group Inc (NYSE:), Morgan Stanley (NYSE:) And other large banks have encouraged employees to work remotely to reduce the spread of the virus. Some of these, like Citigroup Inc (NYSE:) went further by instituting a policy of “no jabs no job” to force employees to be fully vaccinated. Employees who do not receive the full vaccine are exempted or provided accommodation.

According to six interviews, the banks have cancelled many meetings in person with bankers. Interviews with six bankers revealed that the issue was discussed on the condition that the clients and the bankers aren’t identified. Some bankers also cancelled meetings at their discretion.

It’s a significant change from last year’s call for bank executives, which included JPMorgan’s Jamie Dimon, Goldman Sachs’ David Solomon, and Morgan Stanley’s James Gorman to encourage bankers to take private jets as needed to travel to and meet clients.

Banks often hosted extravagant dinners or wine-tasting meet-and-greets to their clients. Staff were often rewarded with bonuses depending on how many clients they had met.

The investment paid off. The value of M&A globally topped $5 trillion for the first time ever in 2021, according to Dealogic.

The impact on bankers in their early 20s is even more severe than the one that occurred when the pandemic hit 2020. Young bankers are the most affected. They learn and make connections by traveling and working with older colleagues. It is difficult for them to move from being footsoldiers into rainmakers due to social distance restrictions.

Due to Omicron’s fast pace bankers expect to be back at work and out on the roads by February.

Deutsche’s Goldman said that “we have the opportunity to kind of return to more normalcy,” in the coming weeks.