Leonardo DiCaprio in the Wolf of Wall Street: today’s young financiers rightly take a more cautious approach. (Photo: Universal)
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Far from the Wolf of Wall Street: how did young people become so risk averse?

Today’s bankers have replaced the excesses of the 1980s with Excel spreadsheets and PowerPoint presentations.

A job in finance was once seen as a ticket to early security and a glamorous lifestyle, but that is not the picture that emerges from a new book, Young Money: Inside the Hidden World of Wall Street’s Post-Crash Recruits, by Kevin Roose, a journalist at New York magazine. The eight entry-level bankers Roose profiles are too busy and tired for the kind of high jinks shown in Liar’s Poker and The Wolf of Wall Street. They’re checking their BlackBerries around the clock, eating three meals a day at the desk and running to the office in the middle of the night to correct typos for tyrannical bosses. The excesses of the 1980s are gone, and they’ve been replaced by Excel spreadsheets and fussy PowerPoint presentations. “Among the young bankers I interviewed,” Roose writes, “I saw disillusionment, depression, and feelings of worthlessness that were deeper and more foundational than simple work frustrations.”

Yet you could replace “bankers” with any number of professions and that sentence would ring just as true. Leaving the safety and structure of college and embarking on a career can trigger an existential crisis in even the most pragmatic and well-adjusted person, and the problems plaguing young financiers – long hours, menial tasks, demanding bosses – will sound familiar to young professionals far outside the world of finance. Junior doctors work 100-hour weeks. Young academics get shunted from university to university as adjuncts. Aspiring journalists get caught in a cycle of short-term internships. Roose thinks he’s written a book about finance but in fact it’s a book about a generation.

Young people today are acutely aware that competition for jobs has gone global. They worry more, plan their lives sooner and even party less hard than their parents. In 1980, more than 40 per cent of Americans in twelfth grade (aged 17-18) said they’d had a drink in the previous month; in 2011, that figure was closer to 20 per cent. NHS statistics show a similar pattern in the UK.

Financially, millennials are more risk-averse than any other age group other than their grandparents. In January, the UBS investment bank published a study of over 2,500 investors showing that millennials – defined here as 21-to-36-year-olds – are among the most financially conservative Americans: 13 per cent of millennials classified their own risk tolerance as “conservative”, compared to 6 per cent of respondents from Gen X (37-48), 10 per cent of baby boomers (49-67) and 15 per cent of the 68-plus crowd.

The reasons for millennials’ economic caution aren’t a total mystery; coming of age during a recession would leave anyone wary. But it’s not just in the realm of personal finance that young people prefer to play it safe. We are risk-averse when it comes to our professional lives, too. The labour market has opened up, and bankers in New York are competing with financiers in London, Singapore and Hong Kong. Journalists are in competition with everyone else who’s on the internet.

Wall Street recruiters know how tempting it is for students to hear they’ll have a job lined up by the time they head home for Christmas of their final year. Roose writes that banks “have become extremely skilled at appealing to the anxieties of overachieving young people and inserting themselves as the solution to these worries”. They advertise two-year programmes for new recruits, promising not only high pay and prestige but also the opportunity to learn skills that can be transferred across other industries. Should young analysts decide finance isn’t for them, they’re told, they’ll have their pick of the jobs at hedge funds, private equity firms, tech start-ups or non-profits.

For high achievers who see their lives as a series of lines on a CV, banking can seem like a path of least resistance, a way to postpone tough decisions. I know how seductive this is. I went to one corporate recruiting event at university, because why not? It promised free drinks at a nice restaurant and I was sure I could avoid the suits. I ended up halfway through an application for Credit Suisse’s graduate scheme before I remembered I had no interest in finance.

As often as you see people choosing between Goldman Sachs and Morgan Stanley, you see students struggling to decide between applying to McKinsey and Teach for America. Earning £70,000 in New York and teaching in some of a country’s most deprived schools might seem like opposite trajectories, but they appeal to the same sensibility. Both offer set paths, structure and a limited time commitment. Millennials are addicted to structure – and paralysed by fear of falling off the treadmill.

This article first appeared in the 05 March 2014 issue of the New Statesman, Putin's power game

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Theresa May could live to regret not putting Article 50 to a vote sooner

Today's Morning Call.

Theresa May will reveal her plan to Parliament, Downing Street has confirmed. They will seek to amend Labour's motion on Article 50 adding a note of support for the principle of triggering Article 50 by March 2017, in a bid to flush out the diehard Remainers.

Has the PM retreated under heavy fire or pulled off a clever gambit to take the wind out of Labour's sails while keeping her Brexit deal close to her chest? 

Well, as ever, you pays your money and you makes your choice. "May forced to reveal Brexit plan to head off Tory revolt" is the Guardian's splash. "PM caves in on plans for Brexit" is the i's take. "May goes into battle for Brexit" is the Telegraph's, while Ukip's Pravda aka the Express goes for "MPs to vote on EU exit today".

Who's right? Well, it's a bit of both. That the government has only conceded to reveal "a plan" might mean further banalities on a par with the PM's one-liner yesterday that she was seeking a "red white and blue Brexit" ie a special British deal. And they've been aided by a rare error by Labour's new star signing Keir Starmer. Hindsight is 20:20, but if he'd demanded a full-blown white paper the government would be in a trickier spot now. 

But make no mistake: the PM didn't want to be here. It's worth noting that if she had submitted Article 50 to a parliamentary vote at the start of the parliamentary year, when Labour's frontbench was still cobbled together from scotch-tape and Paul Flynn and the only opposition MP seemed to be Nicky Morgan, she'd have passed it by now - or, better still for the Tory party, she'd be in possession of a perfect excuse to reestablish the Conservative majority in the House of Lords. May's caution made her PM while her more reckless colleagues detonated - but she may have cause to regret her caution over the coming months and years.

PANNICK! AT THE SUPREME COURT

David Pannick, Gina Miller's barrister, has told the Supreme Court that it would be "quite extraordinary" if the government's case were upheld, as it would mean ministers could use prerogative powers to reduce a swathe of rights without parliamentary appeal. The case hinges on the question of whether or not triggering Article 50 represents a loss of rights, something only the legislature can do.  Jane Croft has the details in the FT 

SOMETHING OF A GAMBLE

Ministers are contemplating doing a deal with Nicola Sturgeon that would allow her to hold a second independence referendum, but only after Brexit is completed, Lindsay McIntosh reports in the Times. The right to hold a referendum is a reserved power. 

A BURKISH MOVE

Angela Merkel told a cheering crowd at the CDU conference that, where possible, the full-face veil should be banned in Germany. Although the remarks are being widely reported in the British press as a "U-Turn", Merkel has previously said the face veil is incompatible with integration and has called from them to be banned "where possible". In a boost for the Chancellor, Merkel was re-elected as party chairman with 89.5 per cent of the vote. Stefan Wagstyl has the story in the FT.

SOMEWHERE A CLOCK IS TICKING

Michael Barnier, the EU's chief Brexit negotiator, has reminded the United Kingdom that they will have just 15 to 18 months to negotiate the terms of exit when Article 50 is triggered, as the remaining time will be needed for the deal to secure legislative appeal.

LEN'S LAST STAND?

Len McCluskey has quit as general secretary of Unite in order to run for a third term, triggering a power struggle with big consequences for the Labour party. Though he starts as the frontrunner, he is more vulnerable now than he was in 2013. I write on his chances and possible opposition here.

AND NOW FOR SOMETHING COMPLETELY DIFFERENT

Emad asks if One Night Stand provides the most compelling account of sex and relationships in video games yet.

MUST READS

Theresa May is becoming adept at avoiding defeats says George

Liv Constable-Maxwell on what the Supreme Court protesters want

Theresa May risks becoming an accidental Europe wrecker, says Rafael Behr

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Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.