Are the leading Wall Street investment firms and fund managers losing their best brains to the new sector, the crypto industry? If some of the recent reports are to be believed, this does appear to be the case.
There have even been movies made on the lure a career in Wall Street holds and how young professionals are offered the chance to roll in millions.
There is no doubt that there is still a lot of money to be made in the financial business; however, the cryptocurrency sector seems to have beaten it and there is a natural migration of the best in the trade to deal in Bitcoin and mint more dollars, well, literally.
Top Wall Street Firms Losing Talent
The issue has gained attention since some of the best-known names from traditionally powerful corporations have switched their loyalties.
Godman Sachs ranks right up there when it comes to the investment banking and finance sectors, and young Americans with business education backgrounds would die to work there. Undoubtedly, the bread on the other side now is buttered more.
Names like Richard Kim and Michael Bucella are virtually legends associated with Goldman Sachs, and these three gentlemen are now busy helping cryptocurrency firms make more money in that sector. And they had formerly held senior positions in the Wall Street giant.
Other Top Companies Have Lost Too
There are many other reputed firms which have seen their highly rated executives leaving in search of greener pastures in the crypto industry. Deutsche Bank is another institution.
In many cases, when a senior professional makes a move, he or she makes an effort to drag a few more along. It helps the individual build a dedicated and committed team; the new organization benefits by going through recruitments without losing both time and money.
Wall Street Turning to Crypto
The irony in this situation is that the past few months have seen developments where leading Wall Street companies, including Goldman Sachs, have slightly altered their stand towards the cryptocurrency ecosystem and have initiated steps to include trading in some of the crypto products, if not the currencies themselves directly.
Possibly, if they see a bright spot in these trades and make more money in a shorter period, their key executives may end up carrying home larger bonuses and the attrition rate my come down.
In the absence of such initiatives, it is difficult to see how this switching of loyalties in favor of the firms engaged in the cryptocurrency business will slow down.
Legal Frameworks the Major Hurdle
Whatever may be the public perception on these large Wall Street firms, they would want to play by the book. And the fact that cryptocurrencies remain unregulated and major economies are yet to accord them the official status holds them back.
If the Federal Reserve were to come out with some statements giving a positive spin to these digital assets, then one may find more companies being drawn into doing business in them. In any business or industry, the cliché goes, someone’s loss is someone’s gain.