Where’s the love? Bankers’ infatuation with their employer on the decline
Despite all the recent news clippings, plenty of people still want to work on Wall Street. Goldman Sachs accepted just 4% of the 43,000 people who applied to its 2014 analyst program, for example. Morgan Stanley made offers to just 2% of its 90,000 applicants. But while the lines are still long to get in, fewer people are intoxicated over working in banking it appears.
A recent survey from Financial News found that just 14% of investment bankers, traders and other financial professionals “love” their job, down from 24% a year ago – a substantial drop. And that’s not to say that a disproportionate hate working in banking – that number didn’t appear to budge. It’s just that more staffers now think their employer is just “OK.”
The survey didn’t get into the reason why, but it’s easy to make some logical guesses. Compensation not matching up with working hours is one, as is the evolving culture on Wall Street that disincentives risk. Maybe the job just isn’t as much of a rush for some people?
Somewhat unsurprisingly, women are more eager than men to ditch banking for a new career. More than 20% of female respondents said they are looking to leave the industry, double the level for men.
The results mesh with our own recent survey data, which found that nearly 88% of women believe gender discrimination exists within financial services. Nearly half (46%) said it’s present at their own firm.
Here are the types of questions you will definitely be asked if you try to get an entry-level trading role in a bank.
You want to work in M&A. You are up against the eternal question for all who would work in financial services: should you do a CFA, or should you do an MBA? Or should you do both? Or should you do neither?
The SEC is examining the manner in which private equity firms pay their operating partners, who are deployed at companies that they acquire. The costs related to their compensation remain opaque – to both the SEC and the investors who indirectly pay their salary.
J.P. Morgan is growing its investment bank, but not in its usual places. The U.S. bank is expanding its presence in the Middle East, hiring big-name bankers from Rothschild, Standard Chartered and others.
Former Wall Street trader Turney Duff is back with more salacious highlights from his career, including making it rain at Madison Square Garden and offering up $25,000 to anyone who would name their newborn son “Tammy.”
Goldman Sachs bankers reportedly took executives from Libya's sovereign wealth fund on a lavish trip to Morocco that included "heavy drinking and girls,” according to court testimony. The Libyan Investment Authority is suing Goldman for allegedly mishandling its investments.
The names of the other banks that may have been targeted by Russian hackers who reportedly breached J.P. Morgan are out. They include Citigroup, ADP and E-Trade, among others. The companies believe they were not breached.
Buzz Around the Office
An accountant claims that he was fired from his job after excessively complaining to Comcast about inaccuracies with his bill. His company does business with Comcast, which may have used its leverage to have one of its frustrated customers shown the door. Wonder how he can pay his bill without a job?
Quote of the Day: “I asked them where the due diligence was and they responded 'due what?' They said that they did not ask for any due diligence—there was no need to since Goldman had advised them to do these trades. They completely trusted Goldman,” – a lawyer consulting with the Libyan Investment Authority