Morning Coffee: How to ruin your finance career in your late 20s. Where Goldman's prop traders went next

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You're 27 years old. You've got more than five years' finance experience under your belt. You're good. And you're restless. - You can see other people making better money in hedge funds. - You can see other people making better money in private equity. You're thinking of doing something else - you're thinking of....starting a fund of your own.


Speaking to an audience of Harvard Business School students earlier this week, Stephen Schwarzman, co-founder of private equity fund Blackstone Group, said [efc_twitter text="people working in finance should fight the temptation to break out and find their own investors."]

“The biggest mistake I’ve seen people make with their careers is, when they’re good, after two or three years — and they happen to be smart — they announce that they’re going out to start their own firm,” Schwarzman told the attended MBAs. “I have begged, literally begged — I’ve had people come over to my house on Saturday — and begged them not to do that, because they’re going to destroy their careers, because they’re not old enough yet, they can’t raise enough money yet, they don’t have enough credibility.

Most people who join Blackstone will have spent two to three years in banking. Adding another three years with Schwarzman, that makes them around 27. So when's the right time to quit? Maybe never. Finance isn't like Silicon Valley, said Schwarzman - failure is not an option. If things go wrong then. "“you’ve then detoured for years, and getting back on a better track is really hard.”

Separately, Bloomberg has an excellent infographic detailing what happened to all Goldman's prop traders when they were battered by the Volcker Rule. We've taken the liberty of embedding it below. Almost all of them are now at hedge funds.

Goldman prop traders


Recruitment firm Astbury Marsden says 18% fewer finance jobs in London were created last month than in January 2014. Political uncertainty and volatility were to blame. (Telegraph) 

A senior leveraged finance banker who left Bank of America for Goldman Sachs is going back to Bank of America. (WSJ) 

Why Bank of America shares (and therefore its deferred bonuses) fell 15% in January. (Fool) 

Matthieu Pigasse, the Lazard 'restructuring rockstar' who doesn't sleep and likes punk music and computer games. is working on Greece's debt restructuring. (The Tally) 

Blythe Masters may replace Peter Sands as CEO of Standard Chartered. (The Times)

The difference between media interns and banking interns: The Financial Times is paying its interns the minimum wage for the first time. (PressGazette)  

The top 50 Fintech firms to work for in London. (CityAm)

Should you tell your children how much money you make? (Marginal Revolution) 

How to impart bad bonus news: Three phrases that will instantly calm emotional and angry people.  (Daily Muse) 

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