Allure of Finance Continues to Attract Graduates

May 01, 2008 12:05 PM
by findingDulcinea Staff
Sky-high pay packages continue to draw students to careers in finance despite the looming recession and recent U.K. government criticism of the financial sector.

30-Second Summary

The governor of the Bank of England, Mervyn King, recently criticized City—London’s Wall Street equivalent—for using hefty pay incentives to steer a large number of the country’s graduates away from other careers. “It’s not a very attractive situation that such a high proportion of our talented young people naturally look at City and think it is the only place to work in,” King said in The Guardian.

Following the recession of 2001, staggering year-end payouts at financial firms have attracted a wide variety of people to financial careers. Though recruiting may at one point have seemed reserved for Ivy League graduates, other universities are bolstering their undergraduate finance programs and seeing substantial results.

Despite an economic downturn stemming from the housing credit crisis, MBAs and undergraduates continue to apply for finance jobs in droves. But job cuts and revenue losses are worrying some incoming Wall Street workers. Finance industry insiders predict that bonuses this year will be downsized considerably from 2007, though some firms plan to defy predictions of fewer student hirings.

Headline Link: ‘Lure of City Money Too Strong for Young, Says Mervyn King’

Background: From lecture halls to Wall Street

Analysis: The postcollege job scramble and deferring the good fight

Related Topics: Finance bonuses in America and Britain


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