THE EFINANCIALCAREERS INTERVIEW: Author who says Goldman Sachs years were, 'worst of her life'

We have been granted a (long) interview with Bethany McLean, co-author of All The Devils Are Here: The Hidden History of the Financial Crisis, and a former analyst at Goldman Sachs. McLean has said that her years at Goldman were the worst of her life and that her hair changed colour as a result. Among other things, we ask her why.

1) How long did you work at Goldman?

Three years.

2) What did you do there?

I was an analyst (Goldman and other investment banks hire people directly out of college into what's known as a two year "analyst" program) in the mergers and acquisitions department for two years, and then I spent a third year working for the Whitehall Funds, which was Goldman's real estate principal investing area.

3) You've described your time there as some of the worst years of your life. This doesn't make it sound very appealing. Why was this?

The quote, although accurate, is a tiny bit out of context!

I went on to say that I'm also very glad I did it. Goldman was hard for me because it's not a warm and fuzzy culture, and it forced me to grow up a lot.

You have to learn not only finance, but also how to begin solving a problem when you don't know what you're doing, how to speak up and present yourself professionally, how to cope with intimidation, and how to be accurate, all under the pressures of no time and no sleep and in an unforgiving culture.

I'm really grateful to Goldman for teaching me these lessons when I was still quite young. They've been extraordinarily valuable lessons. I wouldn't want to live through those years again, and I was indeed miserable, but I blame my misery when I was at the firm on my own immaturity.

4) How would you describe Goldman's culture from your time there?

Tough. I remember someone telling me that it was not acceptable to have a tan in the summer because it meant you weren't working hard enough. As an analyst, you felt guilty and inept if you were putting in weeks that were sub 100 hours. There wasn't a lot of tolerance for mistakes or for self-presentation that didn't fit into a very narrowly defined mold.

5) What made you go into banking?

I was a math and English major, and I didn't know what else to do! Seriously, my parents had made it very clear to me that after college, I was 100% on my own. (And good for them.) I had no clue what investment banking was, but it seemed like a way to use my math skills in the real world.

6) From your experience, what kind of person is best suited to a career in n M&A?

I'm probably the wrong person to ask. The world has changed so much in the almost 20 years since I worked at GS. I suspect there is more room for diversity today.

7) If you were leaving university now, which career would you choose?

Journalism! I ended up in the perfect career for me, and I'm very grateful for that, because there was a lot of luck involved.

But I also wouldn't do it any differently than I did. Working at Goldman for those three years was an invaluable experience, and it has made me a much better journalist. If you're like I was as a college graduate, and quite inexperienced and naïve about the world and unsure about what you want to do in the long term, you can do a lot worse than being an analyst at an investment bank. They won't be wasted years no matter what you do in the future.

8) If you had to work in an investment bank, which bank would you choose?

I can't answer that. Again, the world has changed so much. Investment banking at Goldman Sachs doesn't occupy the place at the firm that it once did. Even if it did, I'm still not sure. Goldman is the preeminent investment bank, and as a result, you get to see a lot when you work there. But if you work at a smaller/less successful firm, you probably have to learn to be scrappier, and that can be a really good lesson as well.

9) How do you see headcount and pay in investment banks evolving over the next few years?

Depends on the economy and partly the political environment, and if I could answer those questions, I'd be a seer!

10) What advice would you give to a junior working in an investment bank who's struggling with the hours?

Get over it. Seriously, you put a lot in, but you get a lot out, not only in terms of pay, but also in terms of resume building for whatever else you want to do.

I also think that both junior and senior people in finance have an exaggerated sense of how hard they work. I work as many hours as a journalist as I did in investment banking (although it's true that I do it on my own schedule.)

But lots of people in our society work just as hard as bankers for a lot less in terms of monetary rewards. Tell the junior people to talk to a friend who's doing a surgery residence about hard work - and that's hard work where people's lives are on the line, and they get paid peanuts!