I'll even write the first response.
Posted on 04/11/2009 8:15:31 PM PDT by Eric Blair 2084
The turning point for Stephan Jung came in February, around the time bonus checks were slashed. A veteran of UBS, one of many banks tarnished by the financial crisis, Mr. Jung realized that the old Wall Street would not be bouncing back any time soon. It was time to head for the new.
“After 10 years, I did not see a future for myself,” said Mr. Jung, 42, who quit to parlay his sales expertise into a career at Aladdin Capital, a small but rising investment firm run by others who had also left some of the most venerable names in finance.
There is an air of exodus on Wall Street — and not just among those being fired. As Washington cracks down on compensation and tightens regulation of banks, a brain drain is occurring at some of the biggest ones. They are some of the same banks blamed for setting off the worst downturn since the Depression.
Top bankers have been leaving Goldman Sachs, Morgan Stanley, Citigroup and others in rising numbers to join banks that do not face tighter regulation, including foreign banks, or start-up companies eager to build themselves into tomorrow’s financial powerhouses. Others are leaving because of culture clashes at merging companies, like Bank of America and Merrill Lynch, and still others are simply retiring early.
This is certainly a concern for the banks losing top talent. But other financial experts believe it is the beginning of a broader and necessary reshaping of Wall Street, too long dominated by a handful of major players that helped to fuel the financial crisis. The country may be better off if the banking industry is less concentrated, they say.
(Excerpt) Read more at nytimes.com ...
I'll even write the first response.
The thirst for revenge over 'greedy bankers', and calls for a return to a 'back-to-basics' approach in banking risks undoing the financial innovation that underpins our long-term growth prospects.
By Danny Gabay, Economic Agenda
Last Updated: 12:13AM BST 12 Apr 2009
Like the Luddites after the industrial revolution, or those who opposed the spread of the railways in the US and the UK, the campaign against modern banking does have some justice on its side. Rewards for top bankers were grossly inflated and, as it turns out, largely unwarranted given the industry's failure to predict, prevent or ease the global recession that we have now entered, at huge cost to the livelihoods of ordinary people. One only has to think of dark satanic mills or robber barons to see the connection.
But if the Luddites or those who opposed the railroads had won the day, we would all be far less wealthy now. The same is true with the financial services industry today. Like it or not, we are going to need its help to get out of this mess.
Business cycles are often led by technological innovations. True innovation, whether it is the steam engine, the railways, electricity, information and communication technology or, most recently, the raft of supposedly risk-reducing derivative-based diversification strategies through financial markets, implies that we can all expect to be wealthier in future than we were in the past.
[snip]
2009 and 2010 will see record amounts of people leave the major firms. Count me one of them, I left last Thursday to start my own independent firm.
Simply put, a major brokerage or banking firm offers very little for the finance professional these days. Meanwhile, the idiots that are running the show are cutting pay, and being as pushy as I’ve ever seen in my career.
Now, let’s see what the Lawyers do to us...
Yep. They had a brand...a name....trust....they supposedly stood for something.
Turns out they stood for nothing. Can’t blame you for jumping ship.
It’s hard to explain crap that was not your fault to your clients.
Yes, one factor was the big name, that implied knowledge, security, experience and trust. All of those at one point many years ago might have been true, but over time they were cover to steal money from people. Many firms made 6 times as much on the other side, as the retail side. That leverage, and sinister motive did them in. Every single one of them.
Also, in the past, before technology and advancements to the NYSE and NASDAQ, a big firm actually had something to offer a broker.
As the years went by, you were being insulted by management when they called you “very smart”. What they meant by that is you’d figured out they were selling crap, and you knew it.
Give it a year or two, and the biggest brokerage firms in the country will all be the independents. Reps are sick of being manipulated and lied to, and right now would rather be the boss, and take the chances of starting over, the RIGHT WAY.
I feel very sorry for people that have been at places like Merrill, Smith Barney since the late 90s.
I will say, and maybe I don’t know enough, Ed Jones is maybe one of the only places that has done it mostly right over the years. I have never worked there, but if I started all over again many, many years ago, that should have been the place. The big knock on Ed Jones, is that they expanded way too much, and created a rep pool that was at least 1/2 struggling reps. They should have only opened a new office in a place where the current rep would assist the new guy, and be big enough on their own to not need more biz.
Respectfully submitted, and all IMHO.
Can’t do the RIA thing. I guess I am as guilty as the lazy peasants in the inner city who want Gubmint to take care of them and provide basic services.
I like the fact that they take care of admin stuff, lights, copiers, technology.
Of course, you realize that we have hijacked this thread and pre-empted the usual torches and pitchforks mob.
They have no idea what we are talking about and won’t comment here.
Yes, I see the pitchfork crowd, find it quite amusing. So called free thinkers falling for the typical media stunts, hook line and sinker.
Finance is tough biz. Running a small biz is hard too, but anyone that has handled the chaos of finance the last 10 yrs should find the picking of the copier, paying taxes, light bills, and paying for their own mail budget a piece of cake.
I just bought my own all in one copier fax machine thingy today, 3 phones, 3 computers, an office full of furniture.
The good news is, my costs are 35% less today, than they would have been about 2-3 yrs ago. The bad economy is a benefit to me in this endeavor. My location would never have been available before, it is spectacular... The cost savings on my 3 yr lease and office furniture might be as much as 70k.
I got a very warm reception on the idea from my clients when I informed them, so I’m not starting from scratch by any means.
As if naming a business “UBS” wasn’t enough of a hint...
It’s a Swiss thing, you wouldn’t understand. BS is not in their vocabulary.
Hiding US taxpayer money under a US sanctioned treaty is.
“Simply put, a major brokerage or banking firm offers very little for the finance professional these days.”
Considering the job done by America’s Finest on Wall Street over the past 5-years (i.e., “who cares if they can pay the loan back, everyone else is doing it”), was it really reasonable to not expect some type of reaction?
Shall we mourn the loss of the "brains" who caused this mess in the first place?
Sort of like when there was a company named "Wang" back in the 90s?
most of this “brain drain” are ivy-league liberals
I’ve spoken to people in investment banking and you should hear what these so-called “capitalists” have to say: Economies grow because of government, My proudest achievement was instituting “diversity” programs in our firm, etc.
Are you thinking of the Wu Tang Financial Dave Chapelle skit?
It was hysterical if you haven’t seen it.
So true. Now they can give up their $400,000/year evil capitalist job and go get one of those many green jobs that pay double. Dumbasses.
If I ever saw “My proudest achievement was instituting “diversity” programs in our firm, etc.” on a resume, I would throw it directly in the trash can.
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