The head of CME Group — the Chicago Mercantile Exchange – writes for the today's WSJ op-ed page:
In 2008, Harvard sent 28% of its graduating class to firms where they would become bankers, traders or investors. By 2010, Harvard was sending just 17% of its graduating class. Yale graduates entering the finance business fell to 14% from 26% during the same period. Even Princeton, traditionally the most finance-friendly school, fell to 35.5% from 40%.
Where have these young people gone? Alas, the author says, "more graduates with 'quant' skills are choosing tech over finance."
Sad, right? Who wants to live in a world that sends a dwindling share of HYP's "most promising college graduates" into high finance! One in which more super-smart people head for a place that doesn't involve credit-default swaps and the like! Oh, the humanity!
The writer thinks the problem arises from "lost trust".
Blawgletter suspects it has a to do with the post-financial-crisis refusal to allow Wall Street to make crazy bets with taxpayer money.