Banking Industry has "structurally changed"
"Banks, insurers and asset managers in Western Europe have been hardest hit, announcing about 105,000 dismissals this year, 66 percent more than the region’s losses in 2008 at the depths of the financial crisis, Bloomberg data show. The 50,000 job cuts in North America this year are more than twice last year’s and fewer than the 175,000 in 2008. "
"This is something very different,” said Huw Jenkins, a former head of investment banking at UBS AG (UBSN) who’s now a London- based managing partner at Brazil’s Banco BTG Pactual SA. “This is a structural change. The industry is shrinking.”"
I want to go to business school after my military service is over. In fact, I've been planning on going to b-school and subsequently working in banking since I was 20 years old (I'm 24 now).
Will it be impossible to land a spot in investment banking in 6 years? What other careers are even a possibility at this point? No opportunities in the NBA and no i-banking jobs? I'm screwed.
yea and so did my cock.
so your cock structurally changed and shrunk just like the industry itself?
Hahahaahaha
My dad forwarded me that. Pretty depressing, but if you noticed all the guys they talked about were senior level guys (except one associate if my memory serves me correctly). I think everyone on WSO would rather have made the switch to PE, HF, CF, or anything with less hours by that point.
http://dealbook.nytimes.com/2011/11/21/wall-st-layoffs-take-heavy-toll-…
SECfinance, I hope you're right. any anecdote from you're own workplace?
"This is something very different” ... “This is a structural change. The industry is shrinking.”
hate to admit it, but our favorite poster IP predicted this
structural change = some businesses are being cut and the revenue stream has not yet been replaced, causing some peope to lose their jobs because the companies are cutting expenses.
Right now the structure is 'changing' and no one really knows exactly what the the landscape will look like for the forseeable future.
It's a good time to go in, especially in roles that aren't too specific or that have broad applicability (macro research / M&A, respectively).
Unfortunately, the US financial industry does need to shrink, there will still be cycle booms but a downward secular trend. As an industry, financial rewards will not be spread around to as many...there will always be the outliers at the top though. I think the expected value of compensation from the financial industry will decrease while the entrepreneurial/tech start-up expected value will increase, as this industry has a sustainable competitive advantage in the US and developed world. If you love the markets, or you hate the idea of start-ups or other professions, and you are prepared to accept higher competition for lower average pay (relative to a high base), then as a career it still makes sense. But if you have any inclination to tech or other professions, then I would consider shifting your career development accordingly (I would if I weren't already too invested, and probably will anyway over time.)
The explosive growth of a particular space in the tech sector will not offset the financial industry in the long term big picture.
I don't think GRPN is very indicative of the high technology sector's sustainable future. If you think about it, the reason that GRPN isn't sustainable is because we're so good at innovation.
If there are fewer bankers.... is my bonus gonna start gettin huge?
Wherever this industry goes, if you get into a Top MBA program, you'll find yourself landing jobs in the most lucrative industries at the point
You know that saying that if your neighbor loses his job it's a recession, but if you lose yours, then it's a depression? That's sort of what's at play here.
An industry cannot expand indefinitely, and the pool of workers cannot expand or contract indefinitely. There are cycles where banks are hiring and cycles where they aren't. They overreact to economic cycles, and it sometimes takes a while for employment to ramp back up.
I don't think the job cuts are by any means permanent.
Boutique banking...
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