Investment Bankers - Career Mistakes

The 11 Biggest Career Blunders Bankers Make

Here's a list of the 11 biggest career blunders bankers make.

  1. Believing your own hype - a sure way to court disaster.

It's fine to bullshit your friends that you are the greatest thing the markets have ever seen, but bringing your delusions into the workplace is usually fatal.

  1. Threatening to resign unless you get a bigger bonus.

Rarely works, and only then if you are on top of your game and your firm is (temporarily) desperate to keep you. Even then, your boss will have a long memory and will eventually make you pay.

  1. Thinking that you can take your foot off the accelerator. You are only as good as your last successful trade / deal. The moment you rest on your laurels to reflect on how well you have done, is the moment it all begins to slip away. Smart firms always hire insecure bankers who have a constant need to prove themselves.

  2. Having a sexual relationship with a work colleague. It is distracting while it lasts, and can become a nightmare when it ends (as it usually will - and badly!).

  3. Going out on the razzle during the week. Keep off the drink during the week (even if you are taking a client out). It's tough enough to compete these days, without coming to work looking like a sack of potatoes and wanting to curl up in the corner and die.

  4. Failing to admit a mistake. Always hold your hands up and take responsibility for errors. Never blame others, and don't attempt to cover anything up (you'll only make it far worse for yourself).

  5. Underestimating the Compliance Department. Don't try and be clever and cut corners. The rules are there for a reason. And the folks in Compliance are never as stupid as you think they are.

  6. Speaking for the sake of it. Never open your mouth at meetings unless you are sure of your ground and are in full possession of the facts. Your boss will probably tolerate a smart arse, but showing the world that you are a buffoon is never a good career move.

  7. Being overly ambitious. Don't try to run before you can walk. Take the time to build up your experience, and gain the respect of your colleagues. Gain promotion because of your abilities / experience in the job, and not because you have played political games and stabbed rivals in the back. Otherwise, you will eventually get found out.

  8. Looking down on subordinates. Always treat less senior colleagues well as you are moving up the corporate ladder. There will be occasions when you'll need their support to help you achieve your personal work goals. And remember, you could easily be knocked off your perch and be back among the mere mortals again some day, so don't burn any bridges.

  9. Moving on to a rival firm just for the money. It's rarely a smart thing to do, and will usually end in tears. It's more enjoyable earning less working in a firm with talented people and a strong franchise, than following the money and ending up with a bunch of losers on a depressing road that ultimately leads nowhere

 
PIGS:
WTF? plz go read some machiavelli

After spending over 20 years on the Street as a trader, salesman and Banker, thought I'd share some reality.

I now place Investment Bankers. What experience do you have?

Some read, others do.

Susan
 

Susan, good article especially since most of those can be applied to any industry.

BTW, I was wondering if you knew who originally wrote it, HITC doesn't seem to credit their bloggers.

More is good, all is better
 
Argonaut:
Susan, good article especially since most of those can be applied to any industry.

BTW, I was wondering if you knew who originally wrote it, HITC doesn't seem to credit their bloggers.

Argonaut,

Thank you. Unfortunately, I do not know who authored the article. You may want to query HITC.

Have a great 4th.

Susan
 

I spent over 20 years on the Street. I posted the article to help junior level bankers avoid some pitfalls.

I had a similar situation to yours early in my career as a muni bond trader. Hope all works out for you.

Susan
 

Susan, have a great 4th as well.

What are your personal observations on how to balance these points?

I mean acting like you are a god's gift to the world is bad, but on the other hand not understanding your own value and not being invested in your own brand is bad too. What would you say is the best way to find the happy medium?

And as far as the bonus situation goes - obviously empty threats just make you seem weak. But what about getting a bigger bonus with a threat and then anyway leaving for a place that will compensate you appropriately without forcing you to resort to bully tactics?

etc etc

More is good, all is better
 

As I have never posted an article on the site before, please let me know if there is a way to respond to you without enabling all to view my comment.

I'm currently an IB Executive Recruiter and post opportunities on the site sometimes.

Susan
 
monkeyc6:
As I have never posted an article on the site before, please let me know if there is a way to respond to you without enabling all to view my comment.

why?

I think everyone could benefit from a little discussion

 

Yes, if you click on Argonaut's name it will take you to his profile, in the top middle of his profile it gives you the option to send a message. Might be easier to have Argo send you a message so you can just reply.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 
D M:
Yes, if you click on Argonaut's name it will take you to his profile, in the top middle of his profile it gives you the option to send a message. Might be easier to have Argo send you a message so you can just reply.

Thank you.

Susan
 

(inbox is in the very top right corner of the webpage)

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

"Gain promotion because of your abilities / experience in the job, and not because you have played political games and stabbed rivals in the back. Otherwise, you will eventually get found out"

I am not sure about this one... I believe the best is a combination of both; having great abilities and being a master at internal politics.

absolutearbitrageur.blogspot.com
 

Fun article.

It's ok to indulge yourself with alcohol during the week. The drink comes handy when you take a client out and you are about to make a stupid deal that will either screw the client or your firm. Drink sons, you can later blame your stupidity on the vodka.

No one would remember the Good Samaritan if he'd only had good intentions; he had money as well.
 
Yohoo:
Fun article.

It's ok to indulge yourself with alcohol during the week. The drink comes handy when you take a client out and you are about to make a stupid deal that will either screw the client or your firm. Drink sons, you can later blame your stupidity on the vodka.

Blame it on the aaaaaaalcohol

anyways, good post i will definitely remember this for my career path

 

"11. Moving on to a rival firm just for the money. It's rarely a smart thing to do, and will usually end in tears. It's more enjoyable earning less working in a firm with talented people and a strong franchise, than following the money and ending up with a bunch of losers on a depressing road that ultimately leads nowhere"

And what if they offer you 2-3x times what you earn to work with an equally talented team in a similar role?

 

The point is to not move only for money. A similar role that offers better compensation, a talented and collegial team, better deal flow, great learning environment, etc.....definitely reasons to move

Susan
 
Best Response

11 is wrong. Wall St ALWAYS over-values other people's employees and not taking advantage of this is a mistake. This is not an issue when you are younger but once you get a few years under your belt good moves are very important to maximizing ur compensation in this business. I think that everybody should poke their head out and take a discreet look for another job every few years no matter what...

9 i also disagree with...people underestimate what they can do. If i waited until I was sure I was ready for every step up in my career i'd still be a trade entry clerk. Get the best job you can and figure out how to do it once you get there...every time i have felt i was "in over my head" it ended up being that i was absolutely qualified for the job but didnt know it yet. be ambitious.

 
Bondarb:
#11 is wrong. Wall St ALWAYS over-values other people's employees and not taking advantage of this is a mistake. This is not an issue when you are younger but once you get a few years under your belt good moves are very important to maximizing ur compensation in this business. I think that everybody should poke their head out and take a discreet look for another job every few years no matter what...

9 i also disagree with...people underestimate what they can do. If i waited until I was sure I was ready for every step up in my career i'd still be a trade entry clerk. Get the best job you can and figure out how to do it once you get there...every time i have felt i was "in over my head" it ended up being that i was absolutely qualified for the job but didnt know it yet. be ambitious.

YES. Couldn't agree more. I think good moves shouldn't be about cash alone, but with more cash comes more responsibility and higher expectations, which pushes the envelope and keeps you at top performance.

 

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