The "Financial Services Industry"

[boutons_deux]

"business activity has other goals in addition to generating profits for shareholders"

Not for BigCorp, and esp not for CEO of BigCorp whose compensation is tied to the price of their companies' stock in his possession, AND the special tax treatment give to CEO "performance pay".

A recent report showed that CEO compensation is almost completely detached from (negative) corporate "performance".

[boutons_deux]

OnPoint from WBUR (NPR/TPR) had a good show last night, with somebody from inside and outside of the industry, talking about the Dept of Labor proposed rules to make financial advisors give "fiduciary" advice (consumer's income as only priority) rather than "conflicted" and/or "suitable" advice (advisor's income as priority)

http://onpoint.wbur.org/2015/02/25/r...-aarp-pensions

[TDMVPDPOY]

lol financial sector playing with ur money and losing it without any repercussions....

going to jail is minimum sentence compared some clown who commited some serious crime

lol losing millions and nothing happens to them

[boutons_deux]

There isn't an infinite pie of extremely gifted grads. When the financial industry lures them away from the Real Economy with high salaries and even huge signing bonuses, the Real Economy suffers.

Is Business School Gutting the Economy?

When finance sucks talented young workers away from other industries, we all suffer, a new report shows. Business schools, despite broadening their curriculum recently to encourage entrepreneurship and socially responsible careers, still basically amount to banker factories. If the boom in financial services is a sort of civic hazard, the role these programs play is hard to ignore.

once a country's finance industry grows beyond a certain point, national gross domestic product per worker declines. That conclusion comes from a 2012 study in which they looked at economic output in 21 countries from 2005 to 2009 and saw productivity decline as soon as the finance sector hired more than 3.9 percent of all workers.

The rise of finance companies costs the economy partly because of the types of projects the industry invests in (such as construction, which brings quick returns without generating productivity), but also because of whom they hire: talented workers. When the most skilled people work for investment banks, their high-functioning minds are put to work on projects that don't do much to create growth over the long haul.

To boot, the paper suggests that when financial services hire the bulk of skilled laborers, it enables them to lend more abundantly, which creates the incentive for entrepreneurial companies to propose rapid-return, low-productivity projects in the interest of getting a piece of that easy money.

http://www.bloomberg.com/news/articl...g-the-economy-

and it's just not B-school grads that the finance industry seduces. They also go after the top physics, math, chemistry, computer science grads.