Next time you wonder why you’re doing an Excel model on a Sunday afternoon, keep in mind that there are alternatives: you could play the harp in a building your parents bought and take advantage of a low-income tax break; or you run a Special Purpose Acquisition Company (SPAC) that was founded with some of your friends from the university.
Both of these require a parenting income that the average young person is unlikely to have available, but both are real options chosen by people who chose to sidestep banking or who were in banking and then alternatives discovered that they are not private equity.
The harpist wasn’t into banking but is one of many creative descendants of wealthy / banking parents that Bloomberg says will benefit from New York rule Housing Fund Companies (HDFC). The rule allows cash buyers to purchase dilapidated buildings with a special tax break. Buyers are said to be low-income earners, but often wealthy parents buy real estate for their creative, low-income children. The children earn $ 30k a year, the parents put the money aside and receive a discount of around 70% on the price of the property. Young bankers struggling to buy something in Brooklyn now know how the neighborhood harpist is doing.
If you don’t have a harp or parents to buy you a house, you can always use your larger network to set up a SPAC. The 23-year-old great-grandson of an oil baron has reportedly formed a SPAC with his brother-in-law Cornell based in a $ 9 million seven-bedroom mansion in Atlanta; They hope to raise $ 200 million to buy internet businesses. A 30-year-old ex-Morgan Stanley analyst created a $ 100 million SPAC to invest in the cannabis industry. The 27-year-old alleged offspring of a sausage empire is CFO of a Zurich-based SPAC that also wants to invest in Internet companies. “Young people have a lot Advantages because they are very innovative and have the power, ”says a happy SPAC consultant.
Nevertheless, without prior money and contacts, it is not easy to set up your own SPAC or pursue a creative life in London or New York. If you don’t have either, there is always banking going on. – The industry for those who are willing to work hard and who don’t necessarily have the money or the ability to do something else.
Regardless, if you marry a senior Goldman Sachs banker, try not to divorce him. Former banker William Cohan, a writer for Airmail, tells a long and troubling story of a bitter divorce battle between a Goldman Sachs partner and her husband. Part of the problem seems to be that Goldman bankers are, by definition, rich and the rich have access to superior legal representation. At Goldman, the executive divorce attorneys seem to be in the Manhattan law firm Teitler & Teitler, a law firm purportedly so effective that other divorce lawyers are afraid to deal with them. – At least that’s what those who try to break free from their Goldman marriages claim.
In the meantime…
US banks announce their third quarter results this week. Fixed income trading is expected to decrease by 20%; M&A is expected to more than last. (Financial times)
Deepika Sharma, a director at BlackRock’s manager research team says they focus on hiring candidates who have studied Philosophy, Social Sciences and Political Science. “Monetary policy, fiscal policy and politics as a whole have a major impact on changes in the industry. There are a lot of regulations that govern decision making, so we need more people who understand that. “(Business Insider)
UK Financial Conduct Authority (FCA) is opening small offices in Belfast and Cardiff and possibly Leeds but will pay directors in London £114k more. (Financial news)
Goldman Sachs reached an agreement with an intern who claimed he was brain damaged after harassing his manager in a bar in 2017. Goldman said he wrestled and hit his head. (Bloomberg)
The new SEC chairman, Gary Gensler, has a good reputation within the agency a relentless and skillful manipulator of the bureaucracy who cares little about making enemies or tiring employees. He became one of the youngest partners at Goldman Sachs. (Bloomberg)
Almost half of the tutorials at Cambridge University are given by precarious workers without adequate contracts. Many are former PhD students. (Guardian)
Goldman Sachs is hiring engineers in Dallas through Hackathon. “The talent in Texas is phenomenal. We look forward to investing in the talent here and expanding our offices in Dallas and Richardson. ”(Dallas News)
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