How was banking like in the early to mid 2000s?
I found threads on how banking was in the 80s/90s but not 2000s. Have you witnessed it personally (unlikely) or heard stories on how it differs from today?
I am really nostalgic for that period of time and somehow envinsion that it was a great time with the social media aspect still in its very early phase.
Ah, the early to mid-2000s, a time when the world of investment banking had a different sheen to it. Based on the most helpful WSO content, it's often referred to as a golden age for investment banking. Here's what the threads suggest about that era:
Compensation and Prestige: Bankers were compensated handsomely and held in high regard, seen as the elites of society. The allure of investment banking was more pronounced, and it carried a certain glamour that many feel has somewhat faded today.
Recruitment and Interviews: The recruitment process, while lacking the online component, was still systematic. If you were from a target school, you went through the tests, interviews, and then hopefully received an offer. The main differences noted were that recruitment dates were later, and summer analyst classes were smaller, which gave more people a shot at landing a position.
Technology and Processes: Online applications were not as prevalent, and there were no online interviews. Some processes were still manual, like handwritten loan applications in the mid-90s, as mentioned in a thread about residential lending.
Industry Structure: The late 1990s and early 2000s saw significant changes in the industry structure, especially with the repeal of Glass-Steagall, which blurred the lines between investment and commercial banks.
Cultural Shifts: The period before the explosion of social media meant that the work environment and networking were different. Direct mail was an effective marketing tool just before the tech boom.
Reflections on the Era: Despite the nostalgia, some professionals from that time note that many of the complaints heard today were the same back then. The idea of a 'golden age' is often seen through rose-tinted glasses.
It's fascinating to look back and imagine what it was like before the digital age took over every aspect of our lives, including banking. The threads on WSO provide a glimpse into that world, and it's clear that while some things have changed, the core of investment banking has remained consistent.
Sources: How did banks recruit in 2000?, Mid 90's was the wildest lending I've seen, Barclays vs Citi NYC, Investment Banking Evolution
Based on the most helpful WSO content, the early to mid-2000s in banking are often referred to with a sense of nostalgia, with many considering it a golden age for investment banking. Here's what has been shared about that era:
It's important to note that while there's a romanticized view of the past, many of the challenges in banking have remained consistent over the years. The perception of the early 2000s as a great time might also be influenced by the fact that social media was not as pervasive, potentially contributing to a different work culture and public perception.
Sources: How did banks recruit in 2000?, Mid 90's was the wildest lending I've seen, Barclays vs Citi NYC, Investment Banking Evolution
Bump
Thursday night is the night that we ball. Go top down, models and bottles.
People worked much harder (like rougher than even 10 years ago before the lifestyle initiatives such as Saturday off took over). Mid level / seniors didn’t care about whether you were on vacation or honeymoon. Could get away with lot more (in holiday parties). Black cars more common if you wanted to go home late night. Got paid more (relatively) but then got crushed in 2008ish like 0 bonus years and mostly laid off. Recruiting in top places sounded fairly challenging (target heavy). Just passing on what I heard from those who started around then. Not sure if something to be excited about.
(Ignore my title, I'm a D4 who just left the industry having started in 2010 so I caught the tail end of the pre-crisis culture and had a lot of former colleagues who worked as junior bankers in the early/mid 2000s)
Yep, pretty much this.
Lifestyle was much, much more brutal, particularly if you were a junior banker. The nature of the work you did was worse - a lot more menial bullshit (e.g. manually spreading comps for every company in your space instead of using FactSet/CapIQ) and useless analysis for pitches . There was more facetime and overall hours were worse. On many days, senior bankers would come back from pitches at 5pm and would start feeding you work then after twiddling your thumbs all day.
Worst of all, seniors were incredibly abusive and it'd be common to be yelled at and belittled in ways which just woulnd't fly today. People in the industry were a lot more arrogant before the '08 crash as well and were frankly a pain to be around. I will say, some of the BSD "star banker" types were pretty impressive and larger than life vs. the people around today. Those types of environments still exist but it's become much less common. There weren't as many good alternatives to banking back then so people just sucked it up and accepted it. It was also harder to land roles in IB (fewer seats, more focus on targets) so there was a higher "prestige" attached to banking roles.
On the flip side, comp was much higher and the CoL was much lower, even in NYC. You could live like a king and save money even when you were relatively junior. I also heard the job was more "fun" in a lot of ways (didn't personally experience this). With bank profits throught he roof, there wasn't nearly as much of a focus on expenses and what you did with clients - you almost got carte blanche. Working in the junior pit was way more deranged (in a good way) - lots of gallows humor and much less politically correct than today's environment. While the Analyst life was brutal, I really do miss the banter...
great answer thanks!
Dolorum error suscipit dolores enim blanditiis temporibus et. Natus dolores dicta exercitationem ea commodi ut doloremque.
Quas sint error non expedita sed rem. Error et et eum et debitis beatae et. Aut quas et non totam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...