"These Young Bankers Are Trying To Save The World"
Who says the only thing bankers are good at is relying on (then blaming) S&P and Moody's research reports to justify their investments in worthless toxic subprime, then levering up beyond all known limits and putting on unbelievably risky trades in hopes of striking it rich or blowing up and getting bailed out by taxpayers. According to Bloomberg...
— Bloomberg News (@BloombergNews) February 4, 2014
The founders of the Resolution Project don’t dwell on generosity or charity when they describe why their nonprofit mentors and funds young leaders. They favor the language of finance. “We get good yield,” said Andrew Harris, the group’s 31-year-old vice chairman, who advises private-equity firms at Forum Capital Partners in New York. “We think it’s very different and, to use a Wall Street term, very differentiated.”
Without deserting careers, a new wave of young bankers is starting nonprofits to help orphans, immigrants, veterans and students. They say they’re moved to mend the world using capitalism’s wisdom, not because of its shortcomings, preaching the power of dividends, due diligence, leverage and efficient allocation of resources. Some see themselves setting a new mold for post-crisis Wall Street philanthropy by not waiting to give away their money or leaving for full-time charity work.
“Among this generation -- our generation -- is a deep passion and interest in learning, earning and returning simultaneously,” said Andrew Klaber, 32, an analyst at hedge fund Paulson & Co. whose nonprofit Even Ground provides education and care to African children affected by AIDS. “You just see an unmet need in your research, and research is what we do on Wall Street.”
Uhm, what? Some pearls of explanation.
“I’m a starter of things,” said Oliver Libby, another co-founder of the Resolution Project, which will hold competitions for student social ventures at the United Nations Youth Assembly this month and the Clinton Global Initiative University in Phoenix in March. “I just have fun with it. So there’s a certain aspect of me that just is like, yeah, sure, let’s get that started, let’s go.”
“I’ve never run a hedge fund, and they’ve never run a not-for-profit,” said Lublin, 42, now chief executive officer of Do Something, an organization that runs national campaigns about bullying, the environment and other causes to engage teenagers. “I brush my teeth every day, twice a day, that doesn’t mean I’m ready to perform a root canal on somebody.”
“There’s been a cultural humility that’s come out of the financial crisis,” said Tim Kleiman, 30, an analyst for New York-based asset manager Golub Capital. He’s working on a project to fund higher education in Africa that may aim for profit. “When you’re confronted with these really humbling events, where you see the meltdown of these systems and the sad human costs of that -- that were not necessarily the result of anyone’s intention -- for me it galvanized my thinking.”
Kleiman, a Yale University graduate who worked for McKinsey & Co. and hedge fund D.E. Shaw & Co. before Golub, said he doesn’t want to wait for his career to hit its high point before undertaking meaningful projects.
“That world that I’m imagining, where I’m a partner and I’ve made all my money, who knows what that world’s going to look like?” he said. “So why not try something now?”
Truly an utopia. As for this fluff piece: there are some things money can't buy, for everything else there is Bloomberg PR.
Then again even the Catholic Church has a name for this: indulgence.
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