GUEST COMMENT: It makes a big difference if you've got a first class degree when you work in financial services

I can still remember the anger of my fellow rates traders as they poured over the CVs.

We barely recognised any of the candidates' universities, and those we did could hardly be called impressive. We were one of the most profitable desks inside our bulge bracket bank, how then was it possible for HR to make such a seemingly underwhelming selection of first round interviewees?

Truth be told, our desk had a reputation for being elitist. Not only did all eight traders have an MSc or more, but every single guy (naturally) had a first class honours degree from undergraduate institutions that made up a roll-call of the world's very best universities (think Princeton, Oxford, Ecole Polytechnique, Cambridge, LSE).

An emphasis on growing the desk organically (cheaper that way) sustained this ivory tower- like culture, with interns hired first and foremost on the basis of their academic attainment. I recall a post-interview selection meeting in which the performances of that day's candidates were being discussed. Asked to make a final decision on an interviewee, a senior salesperson commented on how "mediocre" the candidate was citing his upper second class honours degree as evidence - rejected.

Why the emphasis on First class honours and Masters degrees? Like so much of the banking world, this was more about prestige and perceived pedigree than it was to do with efficacy. A quick look about the floor told you there was a very weak correlation between prior academic achievement and P&L. Sure, you needed someone smart enough to be able to cope with the intricacies of derivatives' pricing, but of far greater importance were attitude, enthusiasm and motivation.

Our desk's 'policy' with regards to Firsts made little sense. There's no reason to believe that the gentlemen with the 2.1 would not have made a fantastic trader. However, in the absence of an observable counterfactual - we never got to see the rejected guy's performance because he didn't get a job - and in the presence of a deeply entrenched culture of elitism, there's no reason to believe that the 'policy' will end.