Wall Street, Uncertainty, Expertise, and Regulation
What makes a better bank?
- A group of experts, picked to deal within their specific area of expertise
- A group of smart people, working on deals with which they are unfamiliar, bombarded with data, and forced to rely on others to succeed
According to Cambridge author A. Alexandra Michel, the second model consistently performs better, and the hard proof can be seen in the recent financial crisis. She’s followed two groups of new bankers in her new book, Bullish on Uncertainty, and has seen these forces at work. Here’s a cool clip of some of her ideas.