A senior banker expresses his irritation with juniors

22 July 2011

2 minute read

A senior banker expresses his irritation with juniors

Earlier this week, the new editor of Financial News reported that he'd been chatting to the head of investment banking at two European banks who went out of their way to inform him just how mediocre most of their employees are.

To compound this, senior bankers elsewhere in the world have since suggested disgruntlement with jumped-up juniors.

Firstly, Mike Hurst, managing director at Bendigo and Adelaide Bank (not exactly an investment bank, but it does have a financial markets function, has popped up in the Australian, complaining about irritating 20 year olds.

Specifically, Hurst says:

'You sit in front of these 26- and 27-year-olds earning half a million dollars and they're asking you questions: 'This is what's going to happen in the next three months - what are you going to do about it and what number do I plug into my spreadsheet..

''There's no attention to what's the strategy or how long it takes to play out [or] what does it mean in terms of value to the organisation. 'It's a frustration - I just sit there, take it, and hear what they've got to say and walk out shaking my head.'

Meanwhile, possibly disenamoured of MBAs who think the qualification is everything, is John Taft, the Chairman of the Securities Industry and Financial Markets Association in the US.

He told CNBC that

the "paper value of an MBA might be overstated," and that, "For it to be useful, it needs to form part of a wider package of skills and attributes, and more than a mere credential next to your name."

In the words of CNBC, Taft thinks, 'staff reductions will likely affect all levels-even those with years of experience and expensive MBA degree.'

Hurst advocates banking as a low-profit utility industry. In the event that this comes to pass, eager 20 year olds and MBAs will probably not want to work in financial services anyway.

AUTHORSarah Butcher

Global Editor

8 comments

GH
GH
23 July 2011
His comments have been taken slightly out of context. He is complaining about research analysts at investment banks who he has to spruik his performance to, who have been putting sell recomendations on his company. He's not talking about his employees.
Trust me, no one at that age at that bank gets paid half a mil a year. He probably barely gets paid that much!
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27
27-year-old Junior
23 July 2011
Is it not to some extent the responsibility of a senior banker to mentor and develop his or her subordinates, making it a part of the culture/process to pay "attention to what's the strategy or how long it takes to play out [or] what does it mean in terms of value to the organisation."?
Is that not the way to make your shop better? By attracting, developing, "molding" and retaining the best people?
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Fr
FromLondon
23 July 2011
@Tim
I agree and you made a good point but 1) they are far too many MBAs in the place 2) top schools take huge intake up to 1000 students sometimes to fill up their bank account and unfortunately this tends to lower the reputation and the prestige of an MBA.......
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Ro
Rob
22 July 2011
Seems like everyone hates MBA students. I'm considering doing one but not sure of the value it will add. I get the feeling it's all for the brand name and to build a network. I see positive and negatives for it but like Tim said it's for a number of skills and depends what you will do with it and from where you get your degree.
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Ti
Tim
22 July 2011
FromLondon...I think you are missing the point of an MBA. It's not all about building great analytical skills. That's what you have MSc and Phds for! The value of an MBA is in the network, the soft skills and for many the ability to change job function/sector/location. The value of the network relative to the other factors is proportionate to the prestige/ranking of the school, hence why top programmes are so coveted. Arguably, as with law degrees (ask someone who has gone to Yale law school what they tell you on the first day), getting in is the most valuable part of the experience.
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