How to change the negative perception of bankers?
I have spoken to people in their 50s that are business owners and a lot of them seem to have a really bad view on investment bankers. For example, they're very hesitant to speak with an investment banker. I believe most people are very misinformed about the value add that we to offer.
Is this really the effect of 08'? How can you change their perception? It's definitely difficult to change someones perception during one conversation, but what are ways to slowly do it?
b
I feel as though these people don't really know what investment bankers actually are and probably think of commerical bankers (e.g. people that try to get as much money out of them as possible via debt). Or,if they do, they probably just don't think what we do justifies how much we get paid
The world of capital markets and M&A is pretty complex to understand and most business owners don’t have to think about it as they’re focused on their tangible businesses. That being said, they probably don’t trust bankers because they already know we make a cut from the middle which causes a lack of trust in the services we provide. I think it’ll be beneficial to use terms and analogies within the realm of the business owner because most high finance talk is fluff. This will help your client understand how he/she is gonna benefit and start trusting you. Alternatively, take them out for models and bottles they’ll get the vibe.
Sadly yes I still believe it is the effect of 2008. I posted on another thread about the comments on the Goldman survey article posted on Twitter, where a lot of people were genuinely saying things along the lines of "am I supposed to feel bad for the bankers who crashed the economy". Like analysts now were in fucking elementary school back then. But it goes back to the George Carlin quote: "think of how dumb the average American is, and then realize that half of em are dumber than that". Just like how most of us can't articulate the exact ins and outs of what goes on in other industries, such as technology, entertainment, you name it, that's how 99% of the general public feels about the finance industry. They either think you're doing shady 2008 shit, day trading stocks, or giving out CD's to old ladies. To be honest, I don't think the perception will ever significantly change. There's just too much ignorance among the general public (not saying we're better than them because we know what goes on, like I said there are obviously industries that you and I don't know jack shit about). It's better to just ignore it, because if you spend your time trying to convince ordinary people or even business owners how you're not some evil capitalist pig, it's largely going to be a fool's errand.
Most people are projecting envy towards bankers. Imagine working hard-labor for 30 years to only make less than 80k. Meanwhile some hot-shot college student is bringing in $140k and crying about how much their life sucks.
Ofcourse those folks are going to dislike bankers.
Also, people fear/hate on what they don't understand. Capital Markets, the stock market, the various nuances to investment banking are far too complicated for many people to grasp. Therefore, they project their insecurities on others and attack bankers for collapsing the economy even though they can't differentiate S&T from IB.
It's because they know the incentives are messed up and the job of an investment banker it to sell whether or not the buyer benefits
a
Agree with most of what you said. Bankers exist in large part so that shareholders can blame someone if they disagree with a merger or acquisition plan. The board and management of a company have a fiduciary duty, and the bank doesn’t. So when a founder wants a payday and sells their company for $X, they can claim their fiduciary duty was completed as they hired an independent advisor to oversee the process. IB is a very well paid scapegoat in the bigger picture of things.
Why wouldn't you have a negative opinion of IB kids? It's no secret the majority come from very privileged backgrounds and that they value prestige and money over everything else. No other explanation for why you all subject yourself to that.
"We"
"Intern in IB"
dude you're literally like what, 12 months ahead of an intern? sure they can't say "we" yet but don't think your dick is big just because it's bigger than the smallest one in the room
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