What has been a worry has finally manifested into a potential crisis: Investment banks can no longer count on recruiting top students from top schools, according to a DealBook story today. In 2008, 28 percent of Harvard grads went into finance, compared with just 17 percent last year.
The blog quotes a Goldman recruiter who says the bank is at risk of losing its status among grads, as well as a Columbia professor who noted that students are gravitating towards fields “where they could work and profit without bringing their morality under the microscope.” The story states:
College students who were once attracted to prestigious banks like moths to bonfires are increasingly turning to other industries in search of success. Insiders say that harsh testimonials of industry life can deter would-be financiers from even applying for jobs at the most selective firms.
Lower salaries and capped bonuses add to the on-campus pressure from protesters to reconsider Wall Street jobs. Simultaneously, the tech industry is booming – as is its reputation for creating great working environments. A recent survey of 6,700 young professionals ranked Google, Apple and Facebook as the most coveted workplaces; JPMorgan Chase was the highest-ranking bank on the survey and came in at a paltry 41st place.
Business students aren't the only ones turning away from financial services. An estimated 55,000 bankers are eager to flee the field. [Fortune]
The comps of CEOs of companies owned by Berkshire Hathaway rivals the pay for Wall Street execs. [Bloomberg]
Dimon’s memo says swooping in on Goldman clients is in poor taste. [NY Times]
An interactive montage of Goldman criticism follows the NY Times op-ed. [DealBook]
Wells Fargo paid its CEO $17.9 million for 2011. [Fortune]
Silver Lake is planning a $75 million fund aimed at pre-IPO tech firms. [Forbes]
Six whistle-blowers are getting $46.5 million in the $25 billion national foreclosure settlement. [Bloomberg]
Royal Bank of Canada bought Mesirow’s correspondent clearing and custody business. [On Wall Street]
BlueMountain has taken control of Credit Agricole’s structured credit business. [Financial Times]
Critics are calling for the ouster of the chief regulator of Fannie Mae and Freddie Mac. [CNN Money]