Wall Street, a once-bustling sector sporting some of the most glamorous and sought-after positions in finance, has lost much of its luster in the eyes of current and prospective employees.
Investment bankers have begun voluntarily walking away from Wall Street because the prestige and the money, while still generous, no longer compensate for the brutal hours and the lack of work/life balance, according to The Wall Street Journal. Unlike in previous years when bankers would walk away with a firm plan in hand, many are now willing to leave with no other career path lined up.
The biggest reason is most likely money. Around 20% of Wall Street execs won’t get a bonus this year, and those who do are certain to see a smaller check, according to a new study.
Job security may also be a factor. Bloomberg LP, which feeds Wall Street decision-making via its $20,000-a-year terminal product, grew its main business by an anemic 1,000 terminals in the first nine months, mainly, the company says, because Wall Street is cutting jobs on the sell-side, where those at high-profile firms such as Goldman Sachs, UBS, Credit Suisse and Morgan Stanley labor. The good news is the buy side is growing by 2.7%, says Bloomberg.
The lesson: Finance gurus may want to target more stable, though more boring sectors like insurance, pension funds and perhaps hedge funds and private equity.
Probe Widened (WSJ)
Prosecutors have issued an additional nine subpoenas in connection with the alleged manipulation of the London interbank offered rate. A total of 16 banks are being investigated for their role in the scandal.
Getting Defensive (Reuters)
Former UBS trader Kweku Adoboli took the stand in his own defense on Friday, tearing up while explaining to the jury that his unauthorized trades were done only for the benefit of the bank. Adoboli was also charged with two additional counts of false accounting.
Spanish Recession Deepening (WSJ)
Think the U.S. unemployment rate is bad? Well it’s nothing compared to Spain, which reported an astounding 25% jobless rate.
Calculated Move (NY Times)
Citigroup Chairman Michael O’Neill didn’t push former chief executive Vikram Pandit out on a whim. He had reportedly been planning the move for months.
Citi Fined (Reuters)
Mark Mahaney, often regarded as one of the top technology analysts in the country, was fired from Citigroup on Friday for his role in the botched Facebook IPO. Mahaney reportedly failed to properly supervise a junior employee who emailed confidential information about the social network’s financials before the launch. Massachusetts fined Citi $2 million.
How the West was Done (Dealbreaker)
UBS flew a group of HR employees to the west coast last week to make major cuts – reportedly 50% headcount reductions – to its investment banking divisions in L.A. and San Fran.
Buzz Around the Office
From This Angle it Looks Like…(Yahoo)
No matter which side of the aisle you sit on, we can all agree that these photos, featuring presidential candidates in their most awkward moments, are simply hilarious.
List of the Day: Avoiding Layoffs
If layoffs are imminent at your firm, don’t just sit back and hope to be one of the lucky ones. Be proactive.
- Focus your time on the tasks that make you valuable to the company.
- Stay positive. It’s easier to let go those with poor morale.
- Communicate all your accomplishments to your boss.
(Source: AOL Jobs)