News reaches me that banks and other financial institutions are now hiring seasoned bankers, on the grounds that these experienced resources will have the necessary gravitas and industry knowledge to run the banks of tomorrow in the way that they should
probably have always been run.
And this surely is a good thing. Good to see the greybeards being drawn out of retirement and pressed into action?
Well yes and no. I understand the sentiment, but these financial institutions really should be implementing a resourcing plan around a well thought out strategy and set of business plans. Not just hiring a particular profile of candidate just because that's
what everyone else is doing.
We've seen the herd mentatility take us thundering into equities in the 1980s, and then out and into derivatives in the 1990s. Then the dot.com boom and bust, followed by the open-necked world of the hedge funds and then charging into prop trading of CDSs. It's
my guess that the banks that succeed tomorrow will be those that ignore the fads and trends of today and plan for well managed businesses rather than just being dedicated followers of fashion.
Product Strategy Director
BT Global Banking & Financial Markets