How Banking can ruin your body and your mind - Blog - Circle Square (2024)

FAQs

Is investment banking bad for your health? ›

A University of Southern California researcher found insomnia, alcoholism, heart palpitations, eating disorders and an explosive temper in some of the roughly two dozen entry-level investment bankers she shadowed fresh out of business school.

Investment banking is a demanding and competitive field that can take a toll on your physical and mental health. Long hours, high pressure, and tight deadlines can cause stress, burnout, and anxiety. However, there are ways to cope with these challenges and maintain a healthy work-life balance.

Key Takeaways

Investment banks help the broader financial markets and the economy by matching sellers and investors. The banks make financial development more efficient and promote business growth, which in turn helps the economy.

Owning a bank gives you the opportunity to generate income through net interest margin - the difference between the interest earned on loans and interest paid on deposits. Purchasing a bank also provides the potential for capital appreciation over time if the value of the franchise increases.

Major risks for banks include credit, operational, market, and liquidity risk. Since banks are exposed to a variety of risks, they have well-constructed risk management infrastructures and are required to follow government regulations.

More than anything else (almost), bankers live in fear of those who supervise them. Regulators—think of Office of the Comptroller of the Currency for national banks and the Federal Reserve for state-chartered banks—are empowered to ensure that banks are run prudently.

Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.

Your money is safe in a bank, even during an economic decline like a recession. Up to $250,000 per depositor, per account ownership category, is protected by the FDIC or NCUA at a federally insured financial institution.

Can I survive investment banking? ›

Investment banking is one of Wall Street's most coveted roles. It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.

Age plays a huge factor in the decision-making process. Wall Street is an up-and-out industry. Unless the goal is senior management, most people in finance are out of there by age 50. That's not at just the biggest investment banks, either.

The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you're being audited or the IRS is collecting back taxes from you.

The safest way to do this is to put your savings in a bank account. After all, in your account, your money is free from most risks and can slowly accumulate over time.

Lending and mortgage origination practices become "predatory" when the borrower is led into a transaction that is not what they expected. Predatory lending practices may involve lenders, mortgage brokers, real estate brokers, attorneys, and home improvement contractors.

In my experience, recognizing and managing stress is paramount in maintaining both personal well-being and professional performance, especially in high-pressure fields like investment banking. The relentless demands can lead to severe health issues, including anxiety, depression, and heart disease.

An investment banker's life is considered to have long working hours, working on weekends, a lot of hard work, and little sleep.

Some of the main risks associated with investment banking include: Market risk: This is the risk of loss due to changes in market conditions or movements in financial markets, such as changes in interest rates, currency fluctuations, or shifts in investor sentiment.

It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.