The Future of Wall Street

[db west]

[URL]http://dealbook.nytimes.com/2011/11/21/wall-st-layoffs-take-heavy-toll-on-younger-workers/[/url]
I just finished reading this interesting article on Deal Book about the state of the financial services industry.  As a college junior pursuing a career on Wall Street, I was just curious as to where NT finance heads see Wall St going from hear.  I always hear mixed messages, the headlines will mention huge layoffs and a lot of the HR people that I talk to on Wall St at various firms will say that hiring is about the same if not increasing.  Also, how do you feel that Dodd Frank will effect the bonuses and financial services going forward?

 

[throwedindagame]

Originally Posted by DB WEST

http://dealbook.nytimes.com/2011/11/21/wall-st-layoffs-take-heavy-toll-on-younger-workers/http://dealbook.nytimes.com/2011/11/21/wall-st-layoffs-take-heavy-toll-on-younger-workers/
I just finished reading this interesting article on Deal Book about the state of the financial services industry.  As a college junior pursuing a career on Wall Street, I was just curious as to where NT finance heads see Wall St going from hear.  I always hear mixed messages, the headlines will mention huge layoffs and a lot of the HR people that I talk to on Wall St at various firms will say that hiring is about the same if not increasing.  Also, how do you feel that Dodd Frank will effect the bonuses and financial services going forward?

Outsiders talking about Wall Street, what else is new.

To address your compensation concern, I will be frank because I don't give a%$%! about political correctness on the internet.

First, I can only speak towards investment banking at bulgebracket banks. Trading, research, etc....ask somebody else.

People still get big bonuses
I don't expect numbers at my firm to be much lower than last year, especiallyat the junior levels. However, I can’t speak towards the broader industry.
Some firms have had pretty #@!+++ deal flow this year so that will reallyeffect the senior guys (unless they have guaranteed bonuses)

At the end of the day regardless of firm, most people will make more on wallstreet then off of wall street. If you want to make more, it usually impliestaking entrepreneurial risk.
Compensations should be the least of your worries.

Layoffs,

Depends on firm. Some firms are notorious for over hiringduring bull markets.  I’d say theindustry has experienced some contraction. I would not expect a hiring frenzyfor a while, but companies always need to raise capital and banks have beencranking out deals all year. Just avoid hyper-cyclical groups like M&A orCapital Markets if you’re scared.

Recruiting

I'd say, the FT recruiting reports are a bit skewed. The reductionin Full-time recruiting this season is partly due to a paradigm shift in FThiring practices. Most firms are shifting towards the JP Morgan model where youhire enough Summer Analyst to fill your class. Invariably, some interns willnot get offers and some will not accept offers. You concurrently run anaccelerated interview process to hire interns from other firms in lateAug/early September.

What does this mean? If you do not get a summer internshipat Investment Bank, and you want to be a full time banker………Good luck.

In regards to summer analyst, I don’t think the classes haveshrank all that much YOY since the “crash

 

[hankmoody]

Wapll St isn't going anywhere. Maybe boutique hiring trends downward for a bit. In the past, I have been told that hiring was optimistic, meAning biggeer classes. Maybe there will be some blowback from that.

 

[crcballer55]

Originally Posted by ThrowedInDaGame

Originally Posted by DB WEST

http://dealbook.nytimes.com/2011/11/21/wall-st-layoffs-take-heavy-toll-on-younger-workers/http://dealbook.nytimes.com/2011/11/21/wall-st-layoffs-take-heavy-toll-on-younger-workers/
I just finished reading this interesting article on Deal Book about the state of the financial services industry.  As a college junior pursuing a career on Wall Street, I was just curious as to where NT finance heads see Wall St going from hear.  I always hear mixed messages, the headlines will mention huge layoffs and a lot of the HR people that I talk to on Wall St at various firms will say that hiring is about the same if not increasing.  Also, how do you feel that Dodd Frank will effect the bonuses and financial services going forward?

Outsiders talking about Wall Street, what else is new.

To address your compensation concern, I will be frank because I don't give a%$%! about political correctness on the internet.

First, I can only speak towards investment banking at bulgebracket banks. Trading, research, etc....ask somebody else.

People still get big bonuses
I don't expect numbers at my firm to be much lower than last year, especiallyat the junior levels. However, I can’t speak towards the broader industry.
Some firms have had pretty #@!+++ deal flow this year so that will reallyeffect the senior guys (unless they have guaranteed bonuses)

At the end of the day regardless of firm, most people will make more on wallstreet then off of wall street. If you want to make more, it usually impliestaking entrepreneurial risk.
Compensations should be the least of your worries.

Layoffs,

Depends on firm. Some firms are notorious for over hiringduring bull markets.  I’d say theindustry has experienced some contraction. I would not expect a hiring frenzyfor a while, but companies always need to raise capital and banks have beencranking out deals all year. Just avoid hyper-cyclical groups like M&A orCapital Markets if you’re scared.

Recruiting

I'd say, the FT recruiting reports are a bit skewed. The reductionin Full-time recruiting this season is partly due to a paradigm shift in FThiring practices. Most firms are shifting towards the JP Morgan model where youhire enough Summer Analyst to fill your class. Invariably, some interns willnot get offers and some will not accept offers. You concurrently run anaccelerated interview process to hire interns from other firms in lateAug/early September.

What does this mean? If you do not get a summer internshipat Investment Bank, and you want to be a full time banker………Good luck.

In regards to summer analyst, I don’t think the classes haveshrank all that much YOY since the “crash

 

[db west]

Ok thanks for the insight guys. I'm afraid I may have just made my chances of getting an S&T job a lot harder, though. I turned down an accelerated superday with two BB banks because they were after my exploding offer for GE's FMP program. I really wish I had just taken the risk. I guess I'll just have to network hardcore to get a job on Wall Street next year.

 

[devildog1776]

THERE WILL ALWAYS BE A MARKET.....


BUT WHO KNOWS HOW WELL THAT MARKET WILL PERFORM UNDER DRASTIC CHANGES IN THE COMING FUTURE...

WALL ST WILL ALWAYS BE AROUND GO FOR IT...