Will Goldman Sachs Scandal Cause Millennials to Abandon Wall Street?

How will former Goldman Sachs executive director Greg Smith's op-ed impact Wall Street banks' ability to recruit college seniors?

Today, New York Times writer Kevin Roose makes the case that Smith's resignation letter on the newspaper's op-ed page further tarnishes the industry's reputation and will harm Wall Street's ability to attract top college grads.

In Smith's op-ed, he says he came to the realization that it was time to leave the firm when trying to recruit students to join the firm. "I knew it was time to leave when I realized I could no longer look students in the eye and tell them what a great place this was to work."

Roose reports that financial institutions should be worried that the incident might scare off college and business school students. He writes: 

"College students who were once attracted to prestigious banks like moths to bonfires are increasingly turning to other industries in search of success. Insiders say that harsh testimonials of industry life can deter would-be financiers from even applying for jobs at the most selective firms."

Roose also writes that the economic crisis has negatively impacted the appeal of finance jobs: 

"Smaller paychecks and waves of layoffs are only making the decision easier for some students, who no longer view Wall Street as a fast track to seven-figure salaries. Last year, flagging profits at many financial firms reduced some bankers’ compensation from stratospheric to merely generous. At Morgan Stanley, cash bonuses were capped at $125,000; annual cash payments for some Goldman employees were cut in half."

Data shows that 28 percent of Harvard's seniors went into finance in 2008, while the number fell to 17 percent last year.

Join the debate: Have Wall Street jobs lost their appeal for millennials? If so, why? (Economic crisis, Occupy Wall Street, tech boom, etc.)

Photo Credit: Wikimedia Commons

How likely are you to make Mic your go-to news source?

Editorial Board

The editorial board is based in New York City and represents the editorial voice of PolicyMic.

MORE FROM

Serena Williams responds to John McEnroe's comments saying she would rank "like 700" against men

Williams said his statements were "not factually based."

People are way less likely to be helpful when it's hot out, according to study

Sorry, it's too hot out to help you move.

Democrats, the American Medical Association and US bishops blast the Senate health care bill

According to the Congressional Budget Office, 15 million more Americans will be without health insurance next year if the bill passes.

Dow Jones won’t talk about its reported pay gap problem

A study released by the union representing Dow Jones employees found evidence of a "significant pay gap between men and women" who had the same job title and level of experience.

Mom slams ACA repeal, shows what's at stake in a tweetstorm about son's health

This mom says that without the ACA, her son wouldn't get the medical care he desperately needs.

Theresa May announces pact with Northern Ireland's conservative DUP

10 of the DUP's MPs will vote alongside May's party in exchange for more than $1 billion of funds.

Serena Williams responds to John McEnroe's comments saying she would rank "like 700" against men

Williams said his statements were "not factually based."

People are way less likely to be helpful when it's hot out, according to study

Sorry, it's too hot out to help you move.

Democrats, the American Medical Association and US bishops blast the Senate health care bill

According to the Congressional Budget Office, 15 million more Americans will be without health insurance next year if the bill passes.

Dow Jones won’t talk about its reported pay gap problem

A study released by the union representing Dow Jones employees found evidence of a "significant pay gap between men and women" who had the same job title and level of experience.

Mom slams ACA repeal, shows what's at stake in a tweetstorm about son's health

This mom says that without the ACA, her son wouldn't get the medical care he desperately needs.

Theresa May announces pact with Northern Ireland's conservative DUP

10 of the DUP's MPs will vote alongside May's party in exchange for more than $1 billion of funds.