I’ve met some investment bankers along the way and here’s my take on what will happen to them over the next 2-5 years. As you know, many of them are now ‘on the street’ (and not Wall Street, either). Just like other people who now find themselves unemployed, these Brooks Brother-wearing studs and studdettes are getting meager unemployment benefits and wondering “WTF?” They’re in grief, maybe denial. You might even see them down at Starbucks staring off into space wondering what’s next, trying to figure out how to replace their 6-figure salaries and matching bonuses.
Sure, a small percentage of them, those on the top floors with big offices, helped get us into this mess. But the vast percentage toiled countless hours doing hard analytical work which, contrary to what you read, was generally used to make the right kind of financial decisions. Make no mistake, these are wicked smart people.
To my point. Investment banking is shedding jobs like automakers, textile workers and newspaper reporters. The people in these other industries will migrate to other industries and a great percentage will be re-trained in new skills, either at a vocational school or in an on-the-job training program. What about these investment banker types? What will they do?
One thing is clear. Over the last two decades, some of our best and the brightest—generally speaking—went into investment banking. From 40,000 feet, these people understand business, they are extremely hard working (like 24 hours around the clock-type hard working), and they can apply business school logic to markets, industries and niches.
My prediction is that many of them, after they realize that their financial skills are no longer needed by now smaller investment banks, will start their own companies or buy poorly run ones.
Soon we will see a new class of entrepreneurs, these ex I-bankers, who will create new businesses with just as much passion as current entrepreneurs but a more healthy background in finance and general business skills.
This could morph itself into the greatest spate of new companies and entrepreneurial activity since, well, Bill Gates and Steve Jobs.
You heard it here first.
This should be great news to all those 60-70 year-old retired business people who lost their retirement accounts. If I were 28 again, I’d be signing up Grandpa as an advisor, particularly for operations and sales.








No user commented in " What Will Happen to All Those Out of Work Investment Bankers? "
G.L.
I hope your thinking is correct. However, I am wondering how entrepreneurial these financial people are. As an entrepreneur, you know it takes a certain type of risk taking, roll-up-your-sleeves, begin at the bottom,type of person. They chose to be “Masters of the Universe” on Wall Street for a reason.
Here is a disparaging article about Millennials and entrepreneurship http://preview.tinyurl.com/5twv4a. Having gone through DreamIt Ventures (http://www.dreamitventures.com) with a group of brilliant Millenial entrepreneurs I completely disagree with Berglas’ assessment. The Millenials choosing entrepreneurial endeavors and creating entrepreneurial energy will transform the world.
Eric…certainly you might be right. Also, some I have met have a fair amount of arrogance about their book learning, which might hinder them. Plus, as you know, contrary to what many think about startups, it is not glamorous work. It is just blasted hard to win customers. In my book, DIGYOURJOB, I have an entire chapter on the 100 things or attributes one should have to be one.
All I AM saying is that there is a lot of brainpower that will need to find a place to park. After a sufficient period of grieving…I think they will jump in…some will fail, sure. But if this was an index fund you could buy, I would buy it…IF I had any spare cash.
Good thought on your comment, I appreciate it.
@Eric – re the Forbes article. A great piece of copy writing by the good Doctor aimed at his target high next worth coaching market. Maybe Dan can comment on his branding approach
……before I get started on this, I want it to be understood that I am old as dirt and too old to be a Successful Entrepreneur but I’m not too old to know when I’ve been used and most (not all) of these now almost poor bankers are little more than users. Since I come from The Great Depression Generation it bugs me to think that my husband of 60 years and I have worked and saved for so many years and these poor babies have fiddled around and lost most of the money that our generation has contributed to their good living…..and now expect us to feel sorry for them. NOT IN MY LIFE TIME! A day or two ago I watched one poor fellow who decided that since he could no longer be a banker, he would just have to lower himself and become, of all things, a school teacher (even though it would mean a much simpler life style than he was accustomed to). I nearly barfed because if he teaches the way he banked, our generations to come do not have a chance in the world. My husband was a teacher for most of his adult life and I was a newspaper advertising supervisor and then reporter-photographer. We both did the work we did because we liked interacting with people, certainly not for the high pay….he taught them how to do things the right way and I made sure that people found out what they did the wrong way (much to their dismay). Said teacher needs my attention so I will get off my soap box for today.
Corky
Investment bankers are very employable in other types of business or financial jobs. The people who really will suffer are the traders – they might as well start retraining as auto mechanics