You know the stock advice: Work three to five years, get some experience, figure out what you want to do, then apply to business school with a stoked resume. But a new book is challenging this notion, and the author/researcher claims that this path costs bankers an average of $112,466 by age 30 for the crime of working a mere two years after finishing an undergraduate degree. Businessweek reviews Ronald Yeaple’s MBA Myths Unlocked, which contends:
The upshot of their argument is that by delaying graduate business education, students forgo several years of higher post-MBA salaries, while driving up the opportunity cost of attending the program. At the same time, pre-MBA work experience does not command the kind of premium with recruiters that would make waiting worthwhile, something that Yeaple cautions may not be true at top-tier business schools where graduates fetch the highest salaries.
To counter this, the story points out that recruiters often require real-world work experience and pay a premium for it. Meanwhile, newer programs at Harvard and the University of Rochester are making it easier for younger applicants “to get a foot in the door,” and the percent of GMAT test takers under the age of 25 has risen to 44 percent worldwide from 37 percent five years ago.
Goldman’s Q1 earnings fell 23 percent on its repayment to Buffett. [DealBook]
TD Ameritrade's fiscal Q2 earnings slumped 20 percent on a “difficult” operating environment. [WSJ]
JPMorgan Chase’s Dimon earned 67 times the average compensation for investment bankers and traders at his firm. [Bloomberg]
HSBC considers issuing a maiden offshore yuan bond. [WSJ]
Barclays’s corporate coverage and deal-making teams are now a “corporate finance mergers and acquisitions group.” [NY Times]
Standard Chartered’s private equity unit will complete deals worth up to $100 million this year. [Reuters]
Chinese wealth manager Noah Holdings hopes to raise a $2.85 billion real estate fund. [Reuters]
Swiss hedge funds face stricter regulation. [Financial Times]
A jobs bill provision means hedge funds may move into marketing to the masses. [WSJ]
Japan will contribute $60 billion to the IMF. [WSJ]
Genworth launches a service that matches advisory firms with sellers and arranging financing. [Investment News]
Edelman Financial made a surprise move to sell to a Lee Equity Partners for $265 million. [Investment News]