What is ibanking?

College Majors Business Major
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<p>Im pretty sure what i just said was quite relevent. The opening remark on this thread was "What is Ibanking and Why does everyone want to do it." the follow up comment to that was "Why does anyone want to do anything?...money."</p>

<p>I am referring to why this thread was started. And that some individuals have the intentions of doing ibanking because of the "money", if u tell an interviewer that on a superday, id like to see you get the job.</p>

<p>Therefore I am referring to the common question of "why does eveyrone want to do it" and the common answer of "the money", which should be adressed. You dont go into ibanking because you want to work for a hedge fund down the line. You should go into ibanking because you WANT to go into IBANKING and you enjoy what you are doing.</p>

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<p>kbisus, everyone who does ibanking does it for the money (or future money). It's a legit reason to get into an industry. If you are going to business school, you are generally accepting that you want to make money, and not do something you enjoy. I-banking pays the most and gives the most opportunities for those with ugrad degree.</p>

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<p>
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You dont go into ibanking because you want to work for a hedge fund down the line. You should go into ibanking because you WANT to go into IBANKING and you enjoy what you are doing.

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<p>This is laughable. No one (well, maybe one) goes into ibanking because they enjoy being an analyst who gets *****ed around all day. Yes, you should enjoy finance and what you, as the lowest part of the chain, are working towards, but you would be hard pressed to find someone that enjoys doing all of the grunt work that an analyst does. It isn't like you are closing deals as an analyst. THE ENTIRE POINT OF BEING AN ANALYST is to work your way up so that you can get the better jobs, whether it be becoming an associate ibanker after your MBA or working at a hedge fund, VC, or a host of other jobs.</p>

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<p>obviously people are going to keep breaking down and crit. what im saying here. So im going to close out with this. <em>This is not my personal oppinion</em>. This is what ive been told from my peers who have interned at ibanks and from reps from goldman, lbrothers, merrill, stearns, etc taht have been at my school.
1) Theres plenty of career paths in Ibanks other than "investment banking division", you will still be well off financially, and there may be a better fit for you in one of the other divisions.
2) If you decide investment banking is for you, do it because you are interested in what you will be doing. Dont do it strictly for the resume, don't do it strictly for the money. Don't do it because you plan on leaving the company in the future. If you dont have the right intentions you are not going to be happy, and you probably won't be hired in the first place. This will be your career.</p>

<p>Yes you will prob be getting pushed around, work long hours, doing the grunt work. But your not going to succeed at the ibank unless you want to be there. Do i know this myself? No of course i don't, im not there. But this is what ive been told by my peers and company representatives, individuals who have succeeded in the business.</p>

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<p>Did the IB reps mention that most people don't plan to stick with IB for the long haul? Did they say that a big reason people want the job is that the analyst boot camp will prepare them for careers they would truly enjoy but are not capable of attaining out of college? Do they say a lot of people use the job as a stepping stone to wealth? Of course not. Do you see why?</p>

<p>I do agree, however, that for someone who wants to climb the ranks in the IBD and stick with it for a full career they should enjoy the work of the higher-ups in IBD. The fact of the matter is that most people don't end up taking that path. </p>

<p>And as a side note, when you express someone else's opinion as if it is your own, it becomes your opinion -- so don't say that it isn't.</p>

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<p>whats the best major for ibank? econ?
what colleges are best for recruitment into investment banks?
and what exactly do analysts do?</p>

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<p>Non "fluff" majors look the best. Engineering would be great, so would econ or math or business (only if its reputable bschool, though). Any of the top schools are good for recruitment, esp. ivies and pseudo-ivies. Keep a high gpa, though.</p>

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<p>"1) Theres plenty of career paths in Ibanks other than "investment banking division", you will still be well off financially, and there may be a better fit for you in one of the other divisions.
2) If you decide investment banking is for you, do it because you are interested in what you will be doing. Dont do it strictly for the resume, don't do it strictly for the money. Don't do it because you plan on leaving the company in the future. If you dont have the right intentions you are not going to be happy, and you probably won't be hired in the first place. This will be your career."</p>

<p>On Number One, he's definetly right, although if you really believe that what analysts make in NYC is "good money", then you're in for a rude awakening. People don't sell their soul for a mere 120-140K/yr. They're doing it for the exit opp's, MBA School, Experience, etc. Banking at NYC for a BB firm is also probably one of the best things, IMO, that you can do with your finance degree, albeit you are looking to go into finance, regardless of whether you like banking or not. It's a great experience, shows you how Wall Street works, looks good on resume, and it really opens up your network. To be honest, one really doesn't have to love banking to do it. And also, you do understand that the retention rate for banks through the first two years, and after that, are absolutely horrific, right? I would say that less than 20% of incoming analysts actually stay with the bank that they first start with. Unless you're a rock-star analyst who doesn't drool over PE or HF, you're GOING TO BE LEAVING THE COMPANY. </p>

<p>And the guy who says that "I want to do banking because I love finance" is going to get laughed at by his interviewer, on the spot. Find a better reason to want to go into banking. I don't think I could do anything that I "loved' for 80+ hours every week. And if I did love it, I'd hate it after my first 3 months.</p>

<p>But regardless, sarahhh, econ is good, finance is good, math is good, as well as engineering. Most banks like quantatative majors, since that's really what bankers will be dealing with. Harvard and UPenn, from their Business School-Wharton, are the best to go to, and after that, Yale, Princeton, Stanford, etc. Basically, the Ivies are great places to be recruited at.
To be brutally honest, Ibanking analysts really aren't as glorified as anybody makes them out to be. I think redsox put it best as to how analysts are seen by others in the firm. But, actually, this year should be their highest compensated year to date. Some BB Banks are expecting up to a 20% increase in all-in comp from last year, which is just ridiculous b/c its been going up for years.</p>

<p>As to what they do, they basically do work that associates tell them to do, make pitchbooks, stare at excel doc's for hours, etc. I don't really know if you'd understand if I told you, but I'm sure somebody could giive it a shot.
Are there any former analysts on this board that could help answer this question more concisely?</p>

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<p>seems kind of dull.
i wanted to go into i banking but def starting to second guess myself.
so do you actually use what you learned in college as an analyst in ibanking?</p>

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<p>you use some of the info, but i'm sure that you dont really need to be a rocket scientist in your field to do the work</p>

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<p>Welll not really, thats why ibanks take such a variety of majors. You learn what you need to know on the job. You just have to prove to them that you're smart and have excellent quantitative skills.</p>