Karen Ho. 2009. Liquidated: An Ethnography of Wall Street.

1. Aspiration and Disillusionment:

initial excitement about becoming an investment banker reflects a common aspiration among law graduates, fueled by the allure of wealth and power in finance. However, his experiences quickly reveal the harsh realities of the job, where even trivial aspects like dress codes signal deeper cultural expectations.

• The Shock of Workload: New hires often find themselves disillusioned by the overwhelming demands of the job, which starkly contrasts with their earlier expectations of a glamorous lifestyle.

Workplace Aesthetics: Contrary to the common perception of opulence on Wall Street, many front-office workers find their work environments to be lacking in comfort and style. This discrepancy suggests a disconnect between the expected prestige of the roles and the reality of the work environment.

Hard Work as a Cultural Value:

• The narrative underscores the importance of "hard work" as a cultural badge among Wall Street professionals. Analysts are conditioned to view long hours and extreme workloads as rites of passage, and over time, they internalize this norm, often celebrating their exploitation as a testament to their commitment and success.

• This valorization of hard work ties into a broader neoliberal ethos where individual effort is linked to personal merit and success, despite the exploitative nature of the labor.

  

Hierarchies and Segregation:

• The training and orientation processes highlight a stark hierarchy based on educational pedigree. The differentiation between analysts from elite schools and those from less prestigious backgrounds reveals entrenched social stratifications within the investment banking culture.

• two parallel training programs illustrates how these hierarchies manifest early on, shaping career trajectories and reinforcing notions of superiority among certain groups, food they ate positions they took

The Role of Elite Institutions:

• The passage suggests that prestigious educational institutions play a crucial role in perpetuating inequalities within Wall Street. Graduates from elite schools are funneled into more desirable positions, while others are relegated to back-office roles, regardless of their capabilities or work ethic.

• The culture of "smartness" associated with elite education not only influences initial hiring practices but also affects workplace dynamics and advancement opportunities.

  

The Culture of Competition:

Analysts experience a culture of competition from the outset, as they must navigate training and orientation with an eye toward securing favorable placements. The competitive atmosphere fosters a sense of insecurity and anxiety, further intensifying the pressure to conform to corporate expectations.

Irony and Acceptance of Exploitation:

The candid acknowledgment of exploitation by senior management reflects an ironic acceptance of the culture within investment banking. Analysts are encouraged to laugh off their grueling schedules, which simultaneously acknowledges the intensity of their work and reinforces the notion that enduring such conditions is a pathway to success.

Elevator Hierarchy

The organization of elevators in investment banks is emblematic of a broader hierarchical structure. Elevators servicing different floors correspond to the prestige of various roles: the lower floors (back office) are easily accessible, while higher floors (front office) require more effort to access, illustrating a physical separation between job functions based on perceived value.

Job Functions and Prestige

• Front Office: This includes revenue-generating roles (e.g., investment banking, sales, and trading) and is viewed as the most prestigious. Workers here are compensated highly and are often recruited from elite educational institutions. Their roles are seen as essential for the bank's profitability.

• Middle Office: This includes support functions that are critical but do not directly generate revenue. Although these employees may be considered "officers," their compensation and status are lower than those in the front office.

• Back Office: Consisting of operations and support staff, these roles are often marginalized and viewed as cost centers. Workers here tend to be from diverse backgrounds, often including more women and people of color, reflecting broader inequalities in job access and advancement.

  

Social Dynamics of front and back

• Workplace Culture: Front-office workers often socialize only among themselves, further entrenching divides between departments.

• Job Insecurity: Both front and back-office workers face job insecurity but for different reasons. Front-office roles are characterized by high turnover and a culture of constant job-hopping, while back-office workers experience layoffs due to technological advancements.

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Exhaustive Work Hours and Intensity

Cutthroat and Competitive Culture:

Impact on Personal Lives:

Seductive Perks Masking Harsh Reality:

• Perks like free dinners and car services are used to entice junior bankers to stay longer at work. These perks, initially viewed as rewards, become necessities given the long hours.

• Despite the prestige associated with the job, much of the work involves tedious tasks like preparing financial reports and spreadsheets. Junior bankers are often disappointed by the mundane reality of their responsibilities.

1. Overwork as Normative Practice:

Investment banking is characterized by long, grueling hours. Overwork is not just expected but celebrated as a badge of honor, marking one's initiation into the world of elite finance. Examples:

• Bankers boast about their workloads, with phrases like, "I pulled three all-nighters this week" or "I've been working 110-hour weeks."

• Paul Archer recalls working 90% of weekends and staying awake for 72 hours during his early career at Goldman Sachs.

2. Exposure to Senior-Level Responsibilities Early:

Young analysts are exposed to high-level corporate decision-makers and responsibilities soon after joining. They get to sit in meetings with CEOs, CFOs, and other corporate executives, and sometimes even present to these senior figures. Examp

. Investment Banking as Elite and Smart:

Investment bankers see themselves as a different breed from regular corporate workers, driven by intelligence, ambition, and a superior work ethic. They distinguish themselves from the "nine-to-five" workers in corporate America, who they view as complacent.

Investment bankers justify their position in the financial markets by framing themselves as the drivers of corporate America’s efficiency and smartness. They believe their hard work and intelligence directly lead to superior market outcomes

For investment bankers, true hard work means overwork. The culture of grinding long hours serves as an internal form of discipline, ensuring their focus on profit and shareholder value. This overwork is seen as proof of their market superiority

Money Meritocracy as a Justification for Non-Discrimination:

Investment bankers on Wall Street often believe that their single-minded pursuit of profit makes the industry meritocratic and, in theory, less racist or sexist. The narrative suggests that "money does not discriminate," meaning anyone, regardless of background, can succeed if they make money.

Despite the belief in a money meritocracy, race, gender, and class distinctions still exist, leading to the "marking" of individuals from marginalized groups. These marked individuals often need to work harder to erase their perceived differences and gain acceptance in the industry.

Certain roles in investment banking, such as those on the "product side," are perceived to be more meritocratic and less dependent on social connections than roles on the "relationship side." Marked individuals (women and people of color) tend to gravitate toward these technical roles to avoid the biases present in social, relationship-driven roles.

Importance of Relationships:

• Terrell reframes the narrative by suggesting that, while hard work is crucial initially, building relationships becomes essential in the later stages of a career.

• Example: Terrell notes that Wall Street rewards good ideas, but eventually, one must develop social networks to succeed further.

1. Need for Mentorship:

   • Carla Harris argues that having mentors is critical, especially in the first ten years, to navigate the complex social and political landscape of Wall Street.

   • Example: Harris advises young professionals to seek mentors who can advocate for them in decision-making meetings.

Charlene Jackson points out that focusing solely on hard work can disadvantage people of color and women, who may not have the same access to informal networks and mentorship.

Social Exclusion:

• Informants like Christine Chang describe feeling excluded from social interactions (e.g., sports discussions or after-work activities) that are vital for networking.

  

Perception of Hard Work:

• overworking can lead to perceptions of being less valuable, as people may see her as merely completing tasks rather than as a leader.

• xcessively hard on a project but felt it did not positively impact her career advancement; instead, it led to being assigned more grunt work.

Class Slippage:

• The phenomenon of "class slippage" refers to the ways in which women on Wall Street are pressured to conform to class expectations, risking being perceived as lower status.

• Example: Raina Bennett and Malinda Fan discuss how many women change from sneakers to heels at the office, a practice seen as unprofessional and indicative of lower-class status.

  

Front-office women strive to maintain a professional appearance to differentiate themselves from administrative staff, who are often viewed as lower-status.

Racial Dynamics and Perceptions:

• Women of color experience heightened scrutiny regarding their professional status, where interactions with other people of color can lead to misinterpretations of professionalism.

• Example: Gillian Summers felt compelled to help an administrative assistant but worried about being perceived as lowering her status by doing so.

  

• Professional women, particularly women of color, navigate their social relationships carefully to avoid being associated with administrative work.

• Example: Summers and Chung describe how they must be cautious about interacting with administrative staff to maintain their professional image.

  

Image and Professionalism:

• Maintaining a specific image is crucial on Wall Street, with norms dictating how professionals behave, including their lunchtime practices.

• Example: Kate Miller emphasizes that bringing lunch can signal lower-class status, while eating at one's desk is seen as more professional.