Why do IBanks hire MBAs?

With a background in undergraduate statistics and financial modeling, I am considering masters in similar (stats or econometrics). However, given my work experience, there is also a fair chance I can get into UCT's MBA program (University of Cape Town). The question I have, though, is why do investment banks prefer, specifically, to hire MBAs? Are they buying into the alumni network of the school? Are MBA graduates better prepared for industry research/coverage, or valuing companies, or preparing pitches for M&A deals, etc?

Hence my question: why do investment banks hire MBAs?

 
<span class=keyword_link><a href=//www.wallstreetoasis.com/finance-dictionary/what-is-a-hedge-fund-HF>HF</a></span>:
MBA's learn a lot of soft skills that will be usefull when dealing with clients
I think that's overrated. By the time they will get to actually deal with clients, they will have forgotten all the "soft skills" taught in business school. The reason you do an MBA is to expand your network and leverage the school's brand in order to get a better job. There are people with MBA who suck at soft skills as there are people without an MBA who clients love so...
 
<span class=keyword_link><a href=/resources/skills/finance/federal-open-market-committee-fomc>fomc</a></span>:
<span class=keyword_link><a href=//www.wallstreetoasis.com/finance-dictionary/what-is-a-hedge-fund-HF>HF</a></span>:
MBA's learn a lot of soft skills that will be usefull when dealing with clients
I think that's overrated. By the time they will get to actually deal with clients, they will have forgotten all the "soft skills" taught in business school. The reason you do an MBA is to expand your network and leverage the school's brand in order to get a better job. There are people with MBA who suck at soft skills as there are people without an MBA who clients love so...

Sure, but on average MBAs will be better with clients than non-MBAs, don't you think? So much of an MBA program IS networking and dealing with people, be it in a group of your peers or with industry people, pitching yourself, your ideas, etc.

A lot of the skills learned are not just the ones taught in a negiotiations or organizational behavior class. It's the environment in which you live for 2 years that "teaches" you the stuff.

 
wadtk:
It's like in office space. They're "people persons." They couldn't tell the difference between a p-value and an R-squared value. I think M. Fin, Fin. Eng. and stats people would be most valuable to banks.

People in MBA programs do have to take things like stats, you know.

But, yeah, you definitely want quant nerds interacting with your potential clients. The stench of eight nights of WOW, a case of Mountain Dew, and a few dozen bags of Cheetos really brings the clients in.

There's a reason quants tend to be chained to their desks and extroverts tend to make deals.

 
NorthEastIdiot:
wadtk:
It's like in office space. They're "people persons." They couldn't tell the difference between a p-value and an R-squared value. I think M. Fin, Fin. Eng. and stats people would be most valuable to banks.

People in MBA programs do have to take things like stats, you know.

Yeah, but its the equivalent to AP Stats from High School. At least from what I've seen and heard.

 
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