The New York Times today has an article entitled Crisis Reshaping Wall Street as Big Banks Lose Top Talent, which spotlights the decisions some on Wall Street are making to leave the big investment banks..
This is a discussion I've been having with friends (both online and off) for much of the past year.
For those in the New York technology industry, the financial markets have been both boon and bane. They create a strong market to sell into, but they also make it much harder (and more expensive) for startups to recruit technology talent. In Silicon Valley, the decisions are between startups or the former startups who've grown up a bit. In Silicon Alley, we've had to compete with Goldman, Morgan Stanley and others who offer salaries and benefits with which startups are unable to compete.
Of course, it's not just IT and MBA students who go to Wall Street. For more than 20 years, the top graduates of law schools and various undergrad and graduate school programs have been recruited by the top investment banks.
So, if there is a shift, is that a bad thing? Personally, I think it will be healthy for the Street and certainly for other industries.
If I were starting my career today, finance would not be near the top of my list. There are so many fields undergoing transformational change where young people can make a huge impact, such as health care, energy or technology. For those who love finance, there are great opportunities with smaller firms where entrepreneurial skills can be applied. And, of course, there are public sector roles where the smart young leaders can help reshape our society.
What would be the negative impact of a brain drain on Wall Street? I think the Street can survive without the invention of new financial instruments for a few years. Meanwhile, getting the best and brightest to focus on solving the challenges of energy, healthcare, infrastructure and information technology will have a big positive impact on society.
