Wednesday’s Headlines: An Insider's Look at the Business School Application Process

In an insider look at the daunting MBA application process, The Wall Street Journal tackled the question: How do people decide when, whether and where to go to business school? The paper talked to applicants and Chad Troutwine, founder of applications consulting firm Veritas Prep.

One applicant, an Ernst and Young senior consultant, shared his apprehension, saying, “What really interests me is entrepreneurship, but do you need to get an MBA if you want to be an entrepreneur?” Troutwine pointed out that there is no career path that requires an MBA – yet business school can be a great laboratory for testing out new business ideas.

Other insights include:

• Schools accept to boost their yield – students are often shocked to get accepted by their first choice, but rejected by what they considered a safety school. The schools figure: “She's not going to come, why waste one of our valuable acceptance letters?” Troutwine explains.
• Applicants need to show not only why they are unique, but why they are a good fit for business school.
• Schools often provide useful feedback about rejects – if you ask.

Other News:

This year Lloyds will cut 1,600 jobs and RBS will cut 300. [Reuters]

Nomura is cutting 30 managers from its fixed income unit. [Bloomberg]

Twitter and blogs go nuts over resigned Goldman exec’s letter to the New York Times. [NY Times]

Paulson banking analyst is starting his own hedge fund. [DealBook]

Regulators sued three firms and fined a Goldman unit related to handling of customer accounts. [WSJ]

J.P. Morgan ceased efforts to raise a new $750 million real-estate fund on lack of investor interest. [WSJ]

Man Group is starting a computer-driven hedge fund to invest in commodities. [Financial Times]

Private equity swarms in Indonesia. [WSJ]

The number of new hedge funds created last year was the highest since 2007. [Reuters]

BB&T has retooled its takeover strategy for BankAtlantic in an effort to appease a judge. [Dealbook]

The SEC charged five people for insider trading related to $1.8 million in profits on tips gleaned in an AA meeting. [WSJ]

American Funds will promo its managers on YouTube. [Investment News]