Wednesday, April 29, 2009
I Should Have Been A Banker
Most Economic majors at Princeton become bankers or traders. It is the closest thing to business or finance that you will find there and it serves as an excellent launching pad to a career on Wall Street. However, after my junior year I decided to pursue a different path and left Wall Street to my classmates. Despite my love of finance, as evidenced by this blog, I have never really regretted the decision.
However, when I see headlines like this, I have to wonder if I chose the wrong profession. Ken Lewis, the CEO and Former Chairman of Bank of America, lost his title of Chairman of the Board. For those that are not totally familiar with the situation, Bank of America is one of the financial institutions most in trouble. They have made several very questionable acquisitions such as Countrywide Financial and Merril Lynch. The results for Bank of America is a stock priced that has dropped about 95%. Since the CEO is chiefly responsible for the financial success and failure of the firm as measured by its stock price, I would say Ken Lewis has not done such a hot job.
His punishment, he loses the title of Chairman but keeps both his CEO position and his seat on the board. God, how awful. What's next? They dock his pay by $1000? Yeah, that would really hurt him. Don't you just love demotions that aren't really demotions? I wish I had such a high paying job with such job security. Must be nice.