How does someone become a Wall Street executive?

[NNN0LHI]

Is their a training program or something? Do you have to be a CPA? Got to know someone?

How does Wall Street go about hiring its executives? Does anyone know?

Don

[Crazy Dave]

1. I think you have to be born into it

The rich kid club kind of thing. They all look after their own.

[Aviation Pro]

10. Otherwise known as the lucky sperm club....

....

[bluestate10]

16. Not true. I know three people that have gone to work there.

All were normal people that had skills that WS needed.

[Warpy]

23. That applies to low level brokers

but you don't break through the upper reaches of the corporate pyramid unless you've got the pedigree. That means upper middle class, country club, prep school, and the right university and B-school.

Some talented brokers have gone on to found their own companies and have managed to get rich quick, especially during the deregulated feeding frenzy of the last few decades. They founded their own companies because they realized they'd always be shut out of the most lucrative parts of the corporate structure.

[pnwmom]

34. A retired CEO of Merrill Lynch was a grad of Penn State.

William Schreyer, who eventually gave millions to his alma mater. You're making sweeping statements based on nothing more than suspicion.

http://people.famouswhy.com/william_schreyer/

William Schreyer had studied at Williamsport High School, Williamsport, PA (in 1945) and then he attended the Business Administration, Pennsylvania State University (in 1948).

[RUMMYisFROSTED]

51. A little googling revealed that his father ran the local Merrill Lynch office.

Birth is not eliminated in this case.

[Warpy]

53. Better do more research about his dad.

He had the pedigree even in the 1940s when the New Deal was in effect and you could actually find Horatio Alger stories now and then.

You'd also do well to find out how Penn State ranks.

[bluestate10]

56. One friend from college went into investment banking.

One of the other people that I mentioned went to a Goldman Sachs trading desk. None of the jobs were brokerage jobs.

[Yupster]

26. I don't think that's right

The head of Lehman Brothers Richard Fuld worked for the company for 40 years.

After getting out of the Air Force, he got a job as a commercial paper trader with Lehman Brothers which is a pretty low job in the trading area. Over 30 years he worked his way up to CEO when American Express divested it to independance as a company again in the 90's.

Jim Weddle, the CEO of Edward Jones started out is a broker in one of the company's single broker rural offices. He worked his way to regional manager, then partner, then managing partner.

I'm sure there are examples as you say, but overall, the idea in the brokerage world is you start as a slaesman, and your numbers speak for themselves after that.

[Stevenmarc]

2. If you have to ask....well

[HCE SuiGeneris]

3. No scruples. No moral compass. A compunction to extort and dis-enfranchise anyone you know.

These are mandatory traits.

[Orrex]

4. First you have to slaughter a black cat during the first new moon after the solstice

Preferably with a dagger wrought of orichalcum.

[prodigals0n]

5. Lie. Cheat. Steal. Repeat. nt

[Catherina]

55. You literally stole my answer, the exact wording too. n/t

[valerief]

6. Genepool. It's all genepool. nt

[pnwmom]

37. Wrong. There are training programs for college graduates.

I know because my sister was in one -- and our grandfather was a milkman. She ended up deciding to change career directions (into something less sales oriented), but she knows people who launched high level finance careers who started at the same level she did.

[sharesunited]

7. Three representative bios.

Ivy league education (with school days connections), and daily immersion in varied aspects of the corporate culture (including any successful stint in sales to be weighted heavily).

http://en.wikipedia.org/wiki/Lloyd_Blankfein

http://en.wikipedia.org/wiki/Jamie_Dimon

http://en.wikipedia.org/wiki/John_J._Mack

[pnwmom]

38. Not representative -- random.

William Schreyer, former CEO of Merrill Lynch, attended public high school and went to Penn State -- to which he has donated millions. I'm sure it would be easy to find two more execs like him, to match your three, but it would be a waste of time. You're sure an Ivy league education is required, I'm sure it isn't.

[sharesunited]

41. Here's one from your column:

http://en.wikipedia.org/wiki/Richard_Parsons_(businessman)

[Nye Bevan]

8. Let's take Sandy Weill (former CEO of Citigroup) as an example.

Weill was born in the Bensonhurst section of Brooklyn, New York to two Polish-Jewish immigrants. In his younger years, he attended P.S. 200 in the Bensonhurst section of Brooklyn. He also attended Peekskill Military Academy in Peekskill, New York, then enrolled at Cornell where he was active in the Air Force ROTC and the Alpha Epsilon Pi Fraternity. Weill received a Bachelor of Arts degree in Government from Cornell University in 1955.

....

Sandy Weill, shortly after graduating from Cornell University, got his first job on Wall Street in 1955 - as a runner for Bear Stearns. In 1956, Weill became a licensed broker at Bear Stearns. Rather than making phone calls or personal visits to solicit clients, Weill found he was far more comfortable sitting at his desk, poring through companies' financial statements and disclosures made to the U.S. Securities and Exchange Commission. For weeks his only client was his mother, Etta, until Joan persuaded an ex-boyfriend to open a brokerage account.



http://en.wikipedia.org/wiki/Sandy_Weill

So he had fairly humble beginnings. A willingness to work hard, combined with some good luck, always helps.

[Crazy Dave]

24. It used to be that way but no more

I too have met a few much older gentlemen in my lifetime who literally worked their way from the loading docks to CEO or partner in the company where they worked for 30 years.

These days very few corporations promote from within and the person now working on the loading docks or working in the mail room will never see the board room.

[pnwmom]

36. The training programs at these firms, which do exist,

hire college grads -- and no, they don't start their trainees on a dock or in the mail room.

[Hannah Bell]

28. he grew up in bensonhurst & went to a private high school, them an ivy.

his sister went to smith college, another (women's) ivy.

so it wasn't weill doing the "hard work" to make that happen.

his father owned his own business; first in the garment industry, then as a steel importer.

the "stock runner" phase lasted just long enough for him to pass the exam to get a broker's license, with the blessing of bear stearns. it reportedly took less a year. he was 22 at the time.

he met his wife through a "matchmaking aunt" in long island who lived next to her. his father-in-law spent $5000 on their wedding -- in 1955 -- that's $39K in 2009 dollars. and weill married when he was 21.

not saying he was a slacker, just that it's likely there are connections that go unmentioned in the 'rags to riches' take found in popular bios.

[no_hypocrisy]

9. Your father either:

a) makes a phonecall, or

b) makes you a VP after you've been thrown out of your prep school for the fourth time.

[bemildred]

11. Luck, who you know, and the requisite "personal qualities". nt

[pnwmom]

46. Or majoring in economics, finance, or math,

graduating from college with a high GPA, and enrolling in a 2 year training program and passing a number of qualifying exams.

[TBF]

12. Good undergrad to meet connections, top 10 business school -

those are keys if you want to have a chance to interview at the top banks.

[TomClash]

13. You apply

You're asking a broad question. Do you mean investment banking? Trading? Private banking? There is generally an "analysts' program" which is essentially a training program. Then you either move up or out or on to B School.

Why do you want to know?

[bluestate10]

20. Correct. Banks have the skills that are needed on their websites.

Although my guess is the poster will have stiff competition for the jobs. Other options are wiser.

[NNN0LHI]

21. I was just wondering how you get your foot in the door

Your suggestion about the analysts program helped a lot. I found this which seems to explain the program at this one company pretty well. Thanks for the info.

Don

http://www.ifc.org/ifcext/careers.nsf/Content/InvestmentAnalyst

Investment analysts are an integral part of a project team and are given high levels of responsibility and broad exposure to the many aspects of international project and corporate finance.

IFC recruits investment analysts globally on two-year term contracts extendable to a maximum of four years. Upon completion of their contracts, investment analysts typically leave to pursue a graduate degree or additional work experience, while a select number are promoted directly to Investment Officer positions. Due to the high level of responsibility and the unique nature of their work, IFC’s investment analysts are accepted by leading graduate programs worldwide. In some cases, upon completion of their graduate degrees, analysts return to IFC as investment officers.

[TomClash]

31. You're welcome

Happy to help.

[bluestate10]

14. I have known three people that went to Wall Street.

Investment houses look for specific training in some areas of Finance, Computer Science, surprisingly Engineering and some sciences. If you have desired training, apply. Of the three people that I know that went there, one person cold applied and got hired, one person got hired out of college, and the third had connections. Websites for the companies have information on skill-sets and experience levels that they are looking for.

You can look into regional investment banks. Most regions of the country have them, hotbeds are Boston, North Carolina and Saint Louis and San Francisco.

Or. You can take advantage of the web and start your own company on a shoestring (not investment company, because that requires licensing), but you can setup online shops and stores to sell all manner of products. You can sell home-crafts that friends or relatives make. Check out a site called ETSY.com. I have not needed the site, but I hear it is an effective way to start a commercial site inexpensively.

[Odin2005]

15. Be lucky enough to have a rich daddy.

[Mark Maker]

17. I know, lets ask Chelsea Clinton

NEW YORK — Former first daughter Chelsea Clinton has joined Avenue Capital Group, a $12 billion hedge fund manager whose founder has contributed to many Democratic Party campaigns, a person familiar with the matter said Friday.
Avenue which focuses on distressed securities investing was co-founded by Marc Lasry. Morgan Stanley this week bought a minority stake in Avenue.

She seems to be putting that prerequisite Philosophy degree to excellent use.

[treestar]

18. Get into an Ivy League School

Be a graduate of one of them, which often also means you are part of an established family. Maybe a few can rise on brains alone, but they'd have to be the type of brain that got them into a high flown school.

Actually, just study the biographical information on those who are slammed around here for being one - Geithner, etc.

[Cleita]

19. Why would you want to?

It's like deliberately going into the darkness.

[NNN0LHI]

32. Wouldn't be for me. I am over the hill already

Now if I was younger and just starting out again it might be a different story? Sure sounds better than hot, dangerous and unappreciated factory work between lay offs.

Might consider trying to groom one of my grandsons for it though. Imagine a job where it always works out so heads you win, tails they lose. And it works every time. And its legal to boot. Quite a racket, eh?

Don

[Cleita]

42. Herein lies the problem. It is a racket and some day

people who have been robbed by Wall Street are going to get fed up and I believe heads will then start rolling. Are you sure you want your grandson to be one of them? Really, there is nothing wrong with honest work even though it doesn't pay as much.

[pnwmom]

47. Some people thrive in sales, others do not.

I don't think it's something you can groom a grandson for. My sister entered one of the training programs and did well enough but decided it wasn't for her.

Just encourage -- or help -- your grandson to attend college and find his own strengths, and you'll have done your part.

[Xicano]

39. +10

Exactly. I would rather go to sleep at night with a clear conscious knowing that my job hasn't harmed people or thrown them out of their home.

Give me a blue-collar job over that any day.

[aikoaiko]

22. They hire up or poach from other businesses.

It helps to go the right school and social organizations, but you also have to demonstrate at lower levels that you can make tough decisions that make the company money.

You can move up from humble beginnings, but you have to work extra hard.

Once you are in the executive class and you do well, other executives will hire you to make them look good.

[hobbit709]

25. You have to be a psychopath with ambition.

[LiberalEsto]

27. One of my husband's brothers was a Wall Street CEO

They came from a poor family with a lot of kids, and grew up in a NYC housing project. The older ones all went to Catholic schools and most won academic scholarships, although this particular brother went to college on a basketball scholarship. They're all extremely intelligent. Their father worked as a bookkeeper/accountant for a Wall Street firm and their mother often worked nights as a bookkeeper.
I'm not sure how this brother worked his way up in the banking industry, but I gather it was through intelligence, focus and hard work.

[alfredo]

29. delete

[Lucky Luciano]

30. Ya really wanna know? PM me.

Basically, go to a good school, get good grades on a technical subject (though if you go to Harvard, A history major is fine). Be fast thinking. Never get nervous in interviews and be very confident. An internship is Fucking huge and should not be underestimated - internships are well paid by the way. Brainteasers interview questions should be studied as there will be many of those. Look up on the Internet as many interview question as possible and read on your own at least a few good technical books on finance. Then, you might get your foot in the door for a graduate training program. Those are the people they try to turn golden. Everyone else still has a chance, but the GTPers have a big head start. Then, as a GTP build your relationships and do your job well with no errors. GTPers are evaluated on how well they manage operational risk - did they sell when they should gave bought while processing a zillion orders that day? If so, they could be fired. Get past this stage after a couple years and always speed up inefficiencies and generate more PnL and get further along. You then might find yourself to be a managing director 10 years down as a "made" person. Etc.

Plenty of people had no connections who have done this, but connections do help - especially for sales.

[Raine]

33. Be a complete and total moral degenerate

who would stab their own mother in the back to get what they want??? :shrug:

edit: typo

[pnwmom]

35. Yes, the Wall Street firms have training programs,

and yes, many execs have worked their way up the ranks.

[Octafish]

40. Know somebody.

Tim Geithner, for example.

[Hannah Bell]

43. it's like the mafia: you have to demonstrate your willingness to kill.

[Lydia Leftcoast]

44. As I understand it, the steps are

1. Attend an Ivy League school and major in economics

2. During the summer, take unpaid internships at major banks and brokerages

3. During your senior year, buy a fancy interview suit and interview at the places where you interned

At least that's the process I observed as a T.A. at an Ivy League university.

[pnwmom]

45. Since you were at an Ivy league university, you weren't in a position

to see the non-Ivies that enrolled in the same training programs that your Ivy associates entered.

Majoring in economics is probably a good choice, and internships seem to help these days in almost any field.

It has been some time since I knew someone in such a program, but I remember her having to study for a series of exams on the products they were learning to sell. So anyone interested should expect to be good at "book learning," whether or not they are Ivy graduates.

[Lydia Leftcoast]

49. The key word is "unpaid"

Who but the affluent can afford to have their college students

1) Not work for pay in the summer

2) Live in New York or Washington while earning no money?

This isn't exactly an avenue of upward mobility for the kid from the ghetto or an abandoned industrial town.

[pnwmom]

50. I knew people who started in the paid training program

for college grads, without having had internships in college. Paid summer employment was also considered a good background for these programs. One woman, a high honors graduate of a non-Ivy -- had worked as a waitress during the summers. She had a single mother who was anything but affluent.

[Lucky Luciano]

52. The interns are paid. Undergrads get $4k or so per month.

That is obviously not enough in NYC, but will not be a killer either. The PhD interns about $8k.

[Lydia Leftcoast]

57. That may have changed. What I saw at Yale in the 1970s was

exclusively ads for UNPAID summer internships. If they had been paid, I would have applied.

[Warren DeMontague]

48. You have to fellate one of our lizard illuminati overlords under the giant owl statue at the

Bohemian Grove.

No, really.

[jeanpalmer]

54. To reach the executive level

you have to pass a number of tests. Do you have any scruples against charging desperate people 29% on a credit card? Does lying to people applying for mortgages bother you? Does it bother you to rip a $15 million bonus off of the owners of the company, the shareholders? Can you take bogus loans, securitize them, and sell them to unsuspecting investors. If you can do that, you are executive material.

[Toucano]

58. "Hedge Fund Manager" was never mentioned by my H.S. guidance counselor.

I'm thinking of suing!