There's obviously a lot of talk these days about AI and possible destruction of white collar jobs. Intuitively bankers might be expected to be victims of this. But before we can answer whether AI can disrupt an industry, or a line of work, we have to know what the job actually entails. What do investment bankers actually do, and why are they paid for it? To answer this question, we speak with Scott Bok, the longtime former CEO of the investment bank Greenhill. Scott is also the author of the book Surviving Wall Street: A Tale of Triumph, Tragedy, and Timing. We discuss how the industry changed in his career, what type of people thrive in it, and how AI could change the nature of the profession.
Chapters: 00:00:00 - Pre-Show Discussion on Investment Banking Culture 00:01:08 - Introduction and Excel Skills Discussion 00:04:43 - Scott Bach Introduction and Career Overview 00:06:13 - Evolution of Client-Banker Relationships 00:07:35 - Skills and Qualifications in Early Investment Banking 00:09:12 - Lawyers Transitioning to Banking 00:10:28 - The Culture of Long Hours 00:13:08 - Origins of Long Hours Culture 00:14:40 - Pyramid Structure and Competition 00:16:09 - Technology Disruption and Work Evolution 00:18:03 - Growth of Financial Services Industry 00:21:04 - Public vs Private Company Pressures 00:22:35 - Private Equity's Impact on Investment Banking 00:25:04 - Recruiting and Talent Evolution 00:27:17 - Student Preparation Arms Race 00:28:48 - Future of Finance Career Appeal 00:30:27 - Technology's Impact on Banking Work 00:31:58 - Competitive Differentiation in Technology Era 00:33:16 - Relationship Building and "Being a Good Hang" 00:36:07 - Investment Banking Culture Definitions 00:39:36 - IPO Process and Market Evolution 00:41:56 - Greenhill's IPO Decision 00:44:09 - League Tables and Competition 00:47:12 - Michael Grimes and Client Research 00:48:07 - AI's Future Impact on Investment Banking Watch Bloomberg Vodcasts: https://www.youtube.com/playlist?list=PLe4PRejZgr0MS0Tqk_zQl1LVVTdWuH2Di
Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets.
