“I am a banker. Why are the people on the street below me creating a ‘perp. walk’ of shame from the subway to my office?” Victoria Robertson has been there.
I am a banker. My nose is pressed against the glass of my office window as I stare down at the Occupy Wall Street protestors below me. Who do they think they are laying claim to my street? Creating a ‘perp. walk’ of shame from the subway to my office, making me feel bad for just turning up to work and trying to make a living. Little do they know, if I didn’t feel so trapped in this air-conditioned coffin of a banking career, I’d be down there with them sharing equal anger and frustration at the whole goddamn mess.
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This particular banker may be fictional but I guarantee that there are people sitting behind the stone and glass facades on Corporate Street feeling these emotions, right now. I know because these are my people; the banking class of 1997 and this is their story.
It was a Friday night in September 1997 and I found myself in the middle of this new class, propping up a bar on Moorgate in the heart of the City of London. The London Stock Exchange shouldered my new employer’s shiny office building on one side; the Bank of England protected the other. I had survived an induction week at a major investment bank; I was exhausted, elated and high on all of it.
We were all high back then. High on scoring our dream job; high on all the potential that lay ahead; and high on the years of strong economic growth that had just passed.
Most of us had joined for the same reasons: banking was the top job in finance; it provided an exciting environment in which no two days were the same; you gained the opportunity to work with many different companies and engage with their senior management; you got to travel the world; and, yes, but at the very end of the list, the money was good.
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Fourteen years on and the banking class of 1997 find themselves playing the part of Willy Loman in Arthur Miller’s ‘Death of a Salesman’: a washed out middleman, not old enough to be running the banking world yet not young enough to be blameless for the state that it is in. Where did it all go wrong?
The answer actually lies in when the seeds of wrong were sown rather than where. The when was November 12, 1999; the day the Glass-Stegall Act was repealed. On that Friday evening in 1997, we were in fact toasting a ‘Glass-Stegall’ world; a world that had learnt its lesson from the Great Depression in 1930 and created an act which banned banks from being an investment bank and a commercial bank at the same time.
In 1999, driven by frustration at watching securities firms make a lot of money, the big American banks used their political connections to arm-wrestle the act into repeal. We were less than two years into our careers and we didn’t know how that change would hit us; and hit us it did.
The first thing that happened was a wave of consolidation as the US banks swept into Europe and mopped up smaller investment banks with their billion dollar check books. Money flooded into the system and the banks all competed to steal the big game out of the investment bank’s mouths.
One minute we had signed up to the image of the trusted banker: a solid voice of advice and reason in a valued client’s ear; someone who puts their clients needs above their own commercial needs; a relationship banker whose word and judgment could help create wealth and be prized among industry leaders.
The next we were small, greasy cogs in a big commercial wheel. The trusted advisor became a technical salesperson selling Bigbank’s product set. A few short years later we were relegated to a ‘mouthpiece’ as our bonuses, promotions, many of our jobs were eroded. “You didn’t win that business,” said Bigbank as it turned on us “it was our strong balance sheet”.
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So, here we are—we’ve climbed up to the middle of this greasy pole only to discover that when you are almost at the top there is more grease than pole. The promotion system in banking has rewarded only the risk-taking political animals who have brought home the kill at the end of the day and they are at the top piling on the grease, scared out of their minds and protecting their positions at all costs.
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So, here we are—we’ve climbed up to the middle of this greasy pole only to discover that when you are almost at the top there is more grease than pole. The promotion system in banking has rewarded only the risk-taking political animals who have brought home the kill at the end of the day and they are at the top piling on the grease, scared out of their minds and protecting their positions at all costs.
Many now are reflecting on whether or not that climb was worth it. Some of it was: most of my peers used any bonus they received wisely by paying off the rest of their parents’ mortgages, or buying their in-laws the car they really needed or investing in their own children’s education. Some of it wasn’t: the 16-hour days; the constant traveling; and the long term effects on relationships with spouses and children that you never see.
We could get let go of the greasy pole, you say, “Come and join us on the street below: Take a stand!” We could, but what happens after that? Few will give a banker who’s downgraded their financial skills to a balance sheet mouthpiece a start in a new career.
No need to start a ‘Hug-a-Banker-thon’ though—those are the breaks, aren’t they? Compared to many of the protestors, the banking class of 1997 has done OK. Some still have jobs; most said “No” to the 10 times earnings mortgage offers and bought affordable houses that we have managed to hold on to; and a few made the break to Sensible Street when they could.
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Back to the fictional banker with his or her nose pressed against the glass: whom does he or she see on the street below them? A bunch of freeloading hippies who’d rather turn up and sit around watching people who are clinging on to their jobs, than get one of their own? Just as some stereotypes of ‘greedy banksters’ are true but not the full story, it seems that the Occupy Wall St movement has a sprinkling of wacko undesirables of its own—but it also has a voice of reason.
Some protestors are simply saying: we have played by the rules; we’ve worked hard; and we deserve to win over greed and corruption. It seems to me the only thing standing between some of the bankers and some of the protestors, is a thick pane of stubborn corporate glass. If we drop the stereotyping and take the time to look in the whites of each other’s eyes, we might just find a common ground on which to reoccupy Wall St. from the inside out.
The banking Class of 1997 may be tattered and torn but we still have a role to play in this whole sorry saga. We should push from the inside for a return to the basic values of the banking industry that we joined: hard work; sharp judgment; sensible lending; and client relationships built on trust, not deal size. We should sack HR and replace it with a promotion and remuneration system that values ethics as well as economics. We should encourage our leadership to be fearless in their attitude to league tables; missing a deal is not as bad as losing your conscience. If we manage to do that, we will once again be able to walk down Wall St. with our heads held high.
I just read through this very strange web site and I see that it is extremely politically correct. In fact, it is the distilled essence of PC. So I see where the hatred of bankers is coming from.
I didn’t realize it was a left-wing political site. My mistake and never mind the above comments!
You are allowing a crowd of angry radicals define you? If you are an honest person – which it seems you are – what are you worried about?
If you are so ashamed of being a banker then why not change careers? There is a strong element of maudlin self-pity in your comments that is difficult to take. Considering the suffering going on today, the ‘anguish’ of this ‘perp walk’ is questionable.
Just be an outstanding banker and stop agonizing about those protesters. They don’t know what they want anyway. Or find another profession where you enjoy it.
Its good to put a human face on the stereotype, however, I don’t believe most people go into the financial business to put into practise high minded ideals. Let’s face it, many of the benefits of banking boil down to status, money, and for the very successful, power. If you want a job with lots of travel, rarely seen family and new and exciting daily challenges that promote the best causes of humanity you could join doctors without borders, the peace corp or a missionary program. So let’s set that aside. There is however, a point to be made that… Read more »
Yes, Dr.without borders kick ass….I only wish I was smart enough aged 18 to have thought of it as a career!
Steve, your point of view is a popular but confused one that you have been spoon fed by the media. There are many different aspects of banking; some of which do help to shore up and indeed stimulate the economy and some who don’t. Providing liquidity to companies via lending is good for the whole economy – you can see that the more liquidity a company has, the more it can grow, provide jobs etc. Helping companies to list of the stock market also plays an essential role in the economy; in fact allowing people to have the opportunity to… Read more »
Just look at the mess created by the Banks in Europe http://www.scoop.it/t/euro-crisis/curate and if they are not careful ,it will pull America down as well, ………….however you seek to place blame you cant get round the fact that governments have spent and are continuing to spend our money to bail the banks out , with no benefit to any one other than shoring up essentially bankrupt organisations who have been gambling , the problem for bankers are they dont actually make or do anything of value, most of it is one giant ponzi scheme , dress it up any way… Read more »
If the top 1% of Wall Street brokers and bankers (i.e., economic terrorists) had endured the REAL perp walk they deserve, we wouldn’t have these protests. Thanks for an accurate and well written article on the need for public shaming of the financial industry, since our government seems too weak and corrupt to handle it through official channels.
I guess it is down to those both inside and out of the industry to make change happen but that will take time and I am not sure it can happen quickly enough to appease the building unrest. I for one don’t want hurried measures and easy scapegoats to be paraded out by the government just as a quick fix.
Thanks for your comment!
“We should push from the inside for a return to the basic values of the banking industry that we joined: hard work; sharp judgment; sensible lending; and client relationships built on trust, not deal size. We should sack HR and replace it with a promotion and remuneration system that values ethics as well as economic” LOL.Keep dreaming love. In a system that is based on undiluted greed and a lust for profit and quarterly growth above all else that dismisses social consequences as mere “externalities”, this will only ever happen in “It’s a Wonderful Life”. The problem is one of… Read more »
Sorry, Will, you lost me at “keep dreaming love”. Have you been taking tact and diplomacy classes from David Cameron?
Even though I get why people are angry at the Wall Street types, I believe that most of this anger is misdirected. One of the big lessons I took away from “The Big Short” was the power of incentives (money being a big one) in motivating human behavior. Of course bankers are greedy and willing to do most anything to make an easy buck… guess what, almost all of us are on some level. Many of us would have loved to have been a Wall St. banker anytime over the past two decades — making obscene amounts of money for… Read more »
DD, I agree that reinstating the Glass-Stegall Act will be a step forward. I also can relate to your feeling of living in “near-constant fear that the bottom will fall out any day now”. For many years bankers have lived with that feeling – I know some who keep a drawer in the desk for personal effects and documents that they will need to clear out in minutes should a call come from HR come asking them to go up to the ‘Firing Floor’. They know they are only ever 10 minutes away from being escorted by security out onto… Read more »
Living in constant fear of the bottom falling out…same here.
You make a good point and I have reflected long and hard about the motives that led me to begin a career in banking. They were just as I stated then in my article, I can’t dress them up and try to make them worthy. I was in my early 20’s and social responsibility was not as high on my list then as it became later in my life. I would argue though that not all jobs in society can have ‘social responsibility’ in the job title in the same way that say, a firefighter would have. Some jobs are… Read more »
“I would argue though that not all jobs in society can have ‘social responsibility’ in the job title in the same way that say, a firefighter would have. Some jobs are there to create wealth. That wealth (if treated with social responsibility) can [should!] help society as a whole.” eh. thats a slippery slope. it’s either socially responsible or it’s not. we should remember that the banking industry purchased its ability to “create wealth”, and, in that sense, the political systems that allowed that to happen are more to blame. and, by extension, the average voter. but factor in the… Read more »
Sean, I really appreciate your perspective and you develop a point that I was only able to touch on in my article – the rapid accumulation of wealth. When Bigbank added their check book back in 1999 there was a whole lot of money suddenly sloshing around and some of that did end up in bankers bonuses. To be honest, I did see some pretty nasty ‘car crashes’ of people who let that go to their heads. No doubt. I agree with you that it contributed to the situation we are today. Something I observed from the inside though was… Read more »
While I appreciate the perspective your piece adds to the discussion, I think it is important to continue to evaluate the tremendous harm caused by individuals seeking: “the top job in finance…an exciting environment in which no two days were the same…the opportunity to work with many different companies and engage with their senior management…travel the world; and…at the very end of the list, the money was good.” There is certainly a human side of the Executives and Managers (as you’ve pointed out) but in the list I’ve just quoted I see no mention of social responsibility or of an… Read more »
I don’t want to take any responsibility away from Wall Street bankers. There are enough ethical problems and corrupt practices in the big banks to keep protests alive for years. I do think that it’s pretty lame to blame a tiny number of executives for all the economic problems created by unchecked greed, as if bankers are the only greedy people in our society looking to get rich quick no matter who it hurts. What the people on the sidewalk looking up at the skyscrapers don’t want to admit is that a huge number of average, everyday consumers contributed to… Read more »
You took the words right out of my mouth. I completely agree with you and thanks for your spot on comment. A few years ago I remember looking aghast at my mortgage broker who offered us 10x our combined income, inc. the discretionary [read: insanely random] bonus. We could have bought a stupid Mc Mansion like all the other greedy bozos. We didn’t, we went waaaaaaaaaaay more modest. So, when the bonus went our kids kept their home and we were able to sleep at night. Instead of rocking MTV cribs we helped family members finally pay off their mortgages… Read more »
Wow! Thanks…not many people are calling me the voice of reason this week. Means a lot. As it turns out…standing up for what you believe in is a quick way to make enemies out of friends.
I appreciate the perspective too. After reading The Big Short I meant to go back and read Liar’s Poker (both by Michael Lewis) so I could learn more about the practical impacts of the reversal of the Glass-Stegall Act. Thanks for sharing your perspective. The importance of your story and more voices like yours can’t possibly be overstated.
Ha! Well, I thought long and hard about putting my ‘bankers voice’ out there for that very reason – it sure is a good way to rack up the enemies. I did it because it is true and I wanted to say it for my own piece of mind. You read enough headlines about who you are as a person because of the job you do/did and it starts to replace your own reality. Thanks for your comment!
Victoria thanks for this. I totally agree. Of course the same could be said of professions from health care to politics. We have lost perspective on what is really important and the centrality of human decency and fairness. I know plenty of bankes (mine would be the class of ’87 so I am an old man) who are in fact in dispair. The very founding of the GMP call was in part due to the late night calls from friends on WS when Lehman fell and for the first time really began to question if they had made profoundly wrong… Read more »
You are welcome, Tom. I have seen the same despair with my own eyes – like friends who were the first of their family to go to college feeling that they had let their parents/family down, as being a banker was now something to be ashamed of. It hit many in a very personal way. On a positive note, the whole shake down has meant that truly great, talented people (like ya’ll at GMP!) are now putting their energies into profoundly more rewarding and brilliant things – so that post-Lehman soul searching that your friends experienced did not go to… Read more »