Goldman Goes Easy on Young Bankers for Loyalty

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Oct. 31 (Bloomberg) - -Bloomberg View columnist Matthew Klein and “Bloomberg Surveillance” anchor Tom Keene discuss Goldman Sachs’ new plan to encourage junior bankers to not work weekends to build loyalty to the bank for the future. They speak on Bloomberg Television’s “In The Loop.”

Facing and have been historically is you pay a lot of money for young college students who don't know much about the industry.

You work them hard for two years and when they learned what they need to do, they leave.

In some cases they are competing directly.

If banks can come up with a way to get their best employees not to leap to make the entry-level program a good way to groom a future talent, that would be worthwhile.

What does this say about the use -- youth culture.

They want to do their own thing.

They know they have a lot of choices and don't necessarily want to be working for 80 hours a week.

They're getting a paycheck.

They are not in intention -- indentured servant.

I don't get this.

In a sense these people would have been implying to investment banking anyway.

That is a good point.

A self-selecting group.

How do you perceive the size of the work week?

They go from 80 hours to 78? we have news reports they want to discourage people from working on the weekends.

That is such hogwash.

If they're not going to work on the weekend, they will just start to study for the cfa.

Between the idea of saying something -- we encourage you not to work on weekends -- but here's the thing, your whole peer group will get ahead, scoop you, you will get no bonus, and all your friends will be happy and you're not.

It could be a situation where the official policy -- they are lying.

Thursday question of -- there is the question of enforcement.

From your reporting, people are lined up 10 deep for those jobs to work 80 hours a week.

They pay very well.

Everybody wants that job -- to me, it is like a social statement by goldman sachs.

The basic window here of a junior executive is, they're sort of a window on sunday we get in our half before australia opens where you sort of don't think about work.

You can take a little nap.

And that is the extent of it.

Today comment on your piece?

No.

did you reach out?

I'm sure you did.

Referring to michael moore -- he only works 45 hours a week.

He will find you, tom keene.

As this idea of long-term greedy, that has been goldman slogan.

They have been doing this.

This is initiative to do it more with talent and workforce.

There's another possibility, presumably, it is easier justifying giving them a smaller bonus in the future.

But that is not really goldman's problem.

They are profitable.

They have been cutting costs overall.

On the trading house side.

Then they call out for pizza six days a week at 5:00 p.m., or get in the car and go home for four hours.

That is the image that when they're working the 70 or 80 hours, is it a productive effort or are they just moving paper around to justify their existence?

I think all in all i think you're being productive.

It depends on who you ask and how you say it.

The past four quarters, mergers and acquisitions, these guys really working 100 hours a week, not doing as well.

Maybe there is a structural shift going on.

The fed is looking a little more scant.

There could be other reasons why people on the banking side might be looking at cutting costs.

Matthew, always great to have you with us.

A good piece to read.

Tom keene with his 100-hour work week says 80 would be a breeze.

You would trade for etienne harpy.

-- you would trade for 80 in a heartbeat.

You must read matthew klein's entire piece.

It is on bloomberg view.

Bloomberg.com/view is the

This text has been automatically generated. It may not be 100% accurate.

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