Why Those Credit Suisse Executives Seem So Junior

[HeSaidSheSaid]

in this business, greed is not good! greed (money, fame) could kill you.

 

[maxinger]

well. trading simply requires you to
buy low, sell high,
sell high, buy low,
simple maths like + and -
and ESP 6th sense.

so don't need to be very old or educated.

 

[El Trado]

Depends for which jobs; http://www.businessinsider.com/harvard-princeton-and-yale-2011-1

Want A Great Job? Don't Go To Second-Tier Schools Like Columbia And MIT

But as said, later in the career it might not matter so much

 

[JSOP]

Depends for which jobs; http://www.businessinsider.com/harvard-princeton-and-yale-2011-1

Want A Great Job? Don't Go To Second-Tier Schools Like Columbia And MIT

But as said, later in the career it might not matter so much

MIT and Columbia are not second-tier!! LOL MIT is like Harvard in Technology. Columbia is Ivy League.

 

[RedSun]

Lack of good bonus structure deters the best and brightest from Risk jobs. They will just leave for a pay for performance type job.

That has changed over the past decade or so. There are fewer and fewer S&T jobs at Wall Street banks. So talent spreads to bank treasury, risk management etc. Those are similar types of jobs like accounting and consulting where a lot of MBAs land.

The pays for risk management jobs have certainly grown relatively. Certainly most of them won't be paid in 7 figures. But the base is high and job security is better than the front office sales person. The demand for good risk management folks is high.

 

[RedSun]

Some are just very good at navigating the corporate maze and climbing the corporate ladder. They know the right person to "network" with, the right thing to say, the right thing to do at the right time with the right person. And they are able to pull off spectacular results at the right time in front of the right person. All those investment firms, they are like the "American Idol", as much as they value academic credentials, they look more for the "wow factor", the "midas touch", this magic factor. If you've got it, you can make money grow (or at least seem to be able to) in a relatively short time, you are the man/woman. When you have this "wow factor" or the "midas touch", the sky is the limit how high you can climb. And when there are no positions for them to promote you to, they will even create one for you. Since past performance is never an indication of the future. You are only good until you are not especially when you've never been good except at "networking".

Brian Chin certainly fits this pattern. Read it for yourself his employment performance and history. https://www.efinancialcareers.com/news/2021/04/brian-chin-credit-suisse

Yes, agreed.

I looked at the background of other Chief Risk Officers at other Wall Street firms. Some have advanced degrees at Carnegie Mellon, long-time controller background or other solid background.

For investment banking, not only you need market knowledge and technical background, you also need the market intelligence and market connections. Most say each investment bank did not know of their respective positions with Archegos. That is not true. Investment banks know each other well from job candidates and from lateral connections. During 2008 financial crisis, they all knew what each other was doing. And a lot of other banks hated Lehman and they all wanted to trash Lehman. Some of the top banks did or do talk to each other.

But it seems Credit Suisse executives did not have the market insights and market intelligence. They also did not have the depth of the market coverage. So they did not know what was going and what other banks were doing. When they wanted to act, they did not have the right market depth to sell Mr. Hwang's positions.

 

[El Trado]

MIT and Columbia are not second-tier!! LOL MIT is like Harvard in Technology. Columbia is Ivy League.

Did you read the article?

You might get a fulfilling career going to MIT or Columbia, but most likely not in the top echelon of investment banking....

 

[RedSun]

Did you read the article?

You might get a fulfilling career going to MIT or Columbia, but most likely not in the top echelon of investment banking....

As long as they are those top 15 schools, I do not think each individual name matters.

 

[Fain]

That has changed over the past decade or so. There are fewer and fewer S&T jobs at Wall Street banks. So talent spreads to bank treasury, risk management etc. Those are similar types of jobs like accounting and consulting where a lot of MBAs land.

The pays for risk management jobs have certainly grown relatively. Certainly most of them won't be paid in 7 figures. But the base is high and job security is better than the front office sales person. The demand for good risk management folks is high.

Base is high compared to middle office jobs. But compared to trading and deal-making positions it doesn't compare really at all. For example, a banker/financier can work on 2 deals on the cap raising side and make the annual salary of a risk officer.

Treasury, Compliance, Risk are rising for base pay but will you truly be happy working those type of jobs?

 

[RedSun]

Base is high compared to middle office jobs. But compared to trading and deal-making positions it doesn't compare really at all. For example, a banker/financier can work on 2 deals on the cap raising side and make the annual salary of a risk officer.

Treasury, Compliance, Risk are rising for base pay but will you truly be happy working those type of jobs?

You would be surprised. A lot people are happy. Of course some people always have the ambitions...