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Illuminati has a great post up today. Everyone should read it. It has an interview with a Haas admit and covers topics from the interview, to school selection, to a budding business venture. Very original, very informative, and very interesting. The themes are applicable across all schools, so read it even if you are not applying to Haas.

Wall Street Compensation

This article states that it is set to bounce back, after falling substantially, last year. If this is true, then there is one question I have and two prerequisite questions.

1. How quickly will MBAs flood back to Wall St.?

Prerequisites:1. Will Wall St. still hire the same number of MBAs?

2. Is Wall St. permanently tainted in the eyes of MBA grads?

My reaction to the last follow-up question is that Wall St. is certainly tainted, but I think quite a few people will be driven back there because of the staggering amounts of money that can be made. Is that right, probably not, but do people sometimes look for the quickest get rich quick scheme, certainly. Many of this year’s grads had to change career plans quickly because there were no jobs to be had in finance. It should be interesting to see how the class of 2010 shakes out because Wall St. will be there with big bonuses, but non-profits and green tech companies will also be there. Do MBAs derive more utility from doing something good (for the country or the environment) or from the money offered by Wall St.? In the past, the answer was emphatically: Wall St., but now I am not so sure.

The next prerequisite is whether or not Wall St. still has an insatiable appetite for MBAs. Do firms view it as the failure of the MBA system, or simply bad risk management practices. My view is that Wall St. is going to need talent to make money, and an MBA (along with other professional designations, like a CFA) is a bona-fide stamp of approval that the person is intelligent and can work hard. Will the numbers be down? Of course they will be. The sheer consolidation of the financial industry almost assures that there will be less financial recruits on a yearly basis. This consolidation also provides smaller financial firms the opportunity to recruit talent that was not available to them during the boom. A smaller firm, like Jefferies, should be able to pick up a whole class of Top 10 MBAs because it is now a game of musical chairs, and no one wants to be unemployed when the music stops.

This brings me to my main question. Much like the clip below, MBAs will come, they will most certainly come.

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