Goldman clients have begun calling the bank pretending to be Miss Piggy. So says the Financial Times, which also says that the firm’s clients are cognizant of the fact that the Goldman bankers they deal with are individuals of superior intelligence.
“They are highly competent,” an unnamed senior executive at a ‘large European industrial company’ told the FT. “If you deal with Goldman you always have to keep that in mind and then you can’t complain if the more intelligent guys are sitting on the other side of the table.”
This may be a problem in itself. Justin Fox, editorial director of the Harvard Business Review says banks were fine historically because they only attracted the bottom third of the class – modest folk with limited ambitions. And then:
“….the combination of bigger paychecks and higher college and grad school tuition began driving the best students into finance…the culture of an organization composed entirely of people who are really, really smart and know they are really, really smart may be bound to turn toxic eventually.”
Separately, the photograph below, originally included in a New York Times article on how students are being deterred from banking careers, illustrates an interesting reason why the best students may decide against banking careers in future: women won't like them if they do.
Hypocrisy as a business model. (Epicurean Dealmaker)
Hector Sants becomes the latest person to resign from the FSA. (Evening Standard)
Hector Sants is a little bland. (Ian Fraser)
Hector Sants is a man of integrity. (The Guardian)
Actually, it is JPMorgan that people most want to get out of. (Fortune)
Stephen Hester says the government should sell its RBS stake quickly [thereby enabling the bank to start paying well again]. (Telegraph)
Nomura has made Paul Norris, its global head of markets research, redundant. Equity and fixed income research will now be run by Hideyuki Takahashi, global head of research, out of Japan. (Financial News)
George Osborne looking evil. (GeorgeOsborneLookingEvil)